For many SaaS companies – especially those selling public safety solutions and essential services – being able to market to government entities can seem like a profitable venture. However, the B2G (business-to-government) sales landscape is considerably different than B2B (business-to-business).
SaaS organizations that are focused on providing products and services to the public sector need to take the time to familiarize themselves with government procurement procedures. By carefully customizing your offerings and approach to stay in alignment with these unique processes, you’ll be better equipped to win more SaaS contracts.
Understanding the Government Procurement Landscape
When SaaS companies market to other businesses, there are a variety of strategies that can be applied to bring in additional leads and close new clients. However, government procurement for the public sector is a highly regulated space with very specific guidelines in place for how governments choose the vendors they work with.
In the U.S., the Federal Acquisition Regulation (FAR) puts in place a specific list of criteria that organizations need to meet in order to entertain the ability to be contracted by government organizations. This framework is in place at both the state and local levels and is designed to ensure fair and ethical business practices are being followed at all times by both sides of business transactions.
Outside of specific regulations, government entities rarely purchase SaaS services directly and will instead create RFP (Request for Proposal) arrangements, where multiple companies will be for a chance at winning a government contract. This is often a lengthy process that goes through several stages of deliberation with multiple stakeholders before a decision is made.
Customizing Your SaaS Offerings for Government Needs
In order to maximize your chance for success when submitting RFP bids, it’s important to focus your pitches on a few key areas:
Security First
Government agencies are heavily focused on ensuring that any sensitive data used in the procurement of services is protected. This is why it’s important to emphasize your company’s ability to stay in alignment with this need by highlighting the proactive steps you’ve taken to secure your products and solutions. This can include data encryption, certain access controls your solutions have, or any industry-backed security certifications you’ve gained.
Integration Capabilities
Modern government agencies are desperately trying to streamline their digital operations, and this means investing in solutions that fit well into their current technology stack. The solution you offer should have this level of flexibility in mind and use open APIs (Application Programming Interfaces) to help seamless communication between other essential services they subscribe to.
Usability Features
Because of the number of employees that various government entities employ, there is usually a wide spectrum of technical skill sets they’ll have. This means the solutions they look for often need to have a certain level of usability to ensure all of their employees are able to effectively adopt them. You’ll want to prioritize easy-to-use interfaces and clear documentation to ensure you’re considered more closely during an RFP round.
Demonstrating Value and Building Trust
Government agencies have a responsibility to the public when choosing the various vendors they work with. It’s critical that they ensure due diligence with any of the partnerships they make, and this extends to the reputation of the SaaS vendors they work with.
As a SaaS company, one of your primary goals during the RFP process is to quickly establish this important component of trust. One way to do this effectively is by highlighting case studies or customer testimonials that speak to the quality of the services you provide and your reliability in the industry.
The satisfied customers you’ve gained over the years can be some of your greatest advocates. Wherever possible, leverage the great relationships you’ve established to help prove to prospective buyers why your brand is worth engaging with.
Another way to show that you’ll be a reliable partner is by proving your expertise on a topic relevant to your industry or niche. You should have a strong digital footprint established through blog posts, whitepapers, and other helpful content that showcases your knowledge about the problems that potential clients are likely experiencing and how your solutions can help solve them effectively.
Unlock Your Success in the B2G Market
Marketing SaaS solutions to government entities can be a unique and rewarding experience for organizations. However, it’s important that you arm yourself with the right information to make your sales strategies a success. By following the guidelines discussed, you can make sure that your business stands out in the minds of your prospective buyers, allowing you to gain more qualified leads and convert more deals successfully.
Author: Kevin Ruef
Kevin Ruef co-founded 10-8 Systems after exceeding multiple companies’ sales records (both domestically and internationally). With more than a decade in sales, his experience ranges from B2B, B2G, and B2C. Since the company’s start in 2019, Kevin has been responsible for business development, strategic partnerships, and business operations.
