What Is a Proposal and When to Use It
In CRM (Customer Relationship Management) systems, a Proposal is a formal document used to present a product or service offer to a potential customer, typically a Lead.It outlines what your business can deliver, how it will benefit the client, and the associated costs. Proposals are a key part of the sales process, helping to convert leads into customers.
Purpose of a Proposal
The main purpose of a proposal is to initiate a business relationship by clearly presenting a solution tailored to the lead’s needs. It acts as a sales pitch in a structured, professional format.
It can include:
- An introduction to your business
- Details of the product or service offered
- Pricing information
- Terms and conditions
- Timelines for delivery
- Additional notes or disclaimers
When to Use a Proposal
Proposals are specifically meant for Leads—potential clients who have shown interest but haven’t yet committed. It’s an opportunity to make a compelling case for why they should choose your company over others.
Proposal vs. Estimate
It’s important to understand the distinction:
Proposal: Sent to leads; focuses on selling a solution.
Estimate: Created for existing clients; focuses on pricing for specific work.
If you are dealing with a new opportunity, use a Proposal. If the client already has a relationship with your company and simply needs a cost breakdown for additional services, use an Estimate.
Professional Benefits
Using proposals in CRM systems offers several advantages:
Tracks sales activity and pipeline progress
Ensures consistency and professionalism
Allows customisation for each lead
Increases conversion rates with structured communication
In short, proposals help you pitch the right offer at the right time, using the tools of your CRM to stay organized and efficient.