Proposal Craft Skill

When to Use

Activate this skill when:

• User needs to create a proposal for a specific deal
• User asks for help with an executive summary or value proposition
• User wants to calculate ROI or build a business case for a buyer
• User needs to select case studies or proof points for a proposal
• User asks for pricing guidance or deal structure advice
• User wants a proposal reviewed against quality standards
• User is building a presentation deck for a client pitch
• User asks about proposal best practices or formatting

Step-by-Step Methodology

Step 1: Gather Context

1. Read the deal file from data/memory/deals/ — understand stage, value, key contacts
2. Read the company file from data/memory/companies/ — understand pain points, industry, competitive landscape
3. Read all contact files for this deal from data/memory/contacts/ — understand stakeholder priorities
4. Read data/memory/learnings/proposal-effectiveness.md — what's worked in past proposals
5. Read data/templates/proposal-template.md for the structural skeleton

Step 2: Apply the SCRAP Framework

Build the proposal following SCRAP (detailed below). Every section must earn its place — if a section doesn't advance the buyer toward "yes," cut it.

Step 3: Quantify Value

Never submit a proposal without quantified value. Use the Value Quantification Methodology below to calculate ROI, payback period, and cost of inaction.

Step 4: Select Social Proof

Choose case studies and references using the Case Study Selection Logic below. Wrong case study = worse than no case study.

Step 5: Structure Pricing

Apply the Pricing Strategy Guidance below. How you present the number matters as much as the number itself.

Step 6: Run Quality Gate

Before finalizing, run the proposal through the 10-Point Quality Gate. Every point must pass. No exceptions for "the client needs it today."

Step 7: Update Memory

• Update the deal file with proposal details (date sent, value proposed, key terms)
• Log to data/memory/learnings/proposal-effectiveness.md after outcome is known

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SCRAP Framework — Proposal Structure

SCRAP is designed for executive readers who will spend 90 seconds on your proposal before deciding whether to read more. Front-load the insight, not the product description.

S — Situation (10% of proposal)

Purpose: Prove you understand their world before you ask them to consider yours.

What to include:

• Their business context: industry position, strategic priorities, recent developments
• The specific challenge or opportunity that prompted this conversation
• Relevant market dynamics affecting their business

What NOT to include:

• Your company history ("Founded in 2005, we are a leading...")
• Generic industry statistics they already know
• Anything that doesn't connect directly to THEIR situation

How to write it: Start with something only YOU could write because you've done the discovery work. The first sentence should make them think "they get us."

Example: "Meridian Media Group is navigating a shift from linear-first to digital-first advertising revenue, with digital now representing 38% of total ad revenue — up from 22% two years ago. This growth has created both opportunity and pressure: your sales team is fielding more RFPs with digital components, but your programmatic infrastructure and data capabilities lag behind your premium content position. The result is a growing gap between the audience you can reach and the audience you can monetize efficiently."

C — Complication (15% of proposal)

Purpose: Articulate the cost of the status quo. Make inaction feel expensive and risky.

What to include:

• The specific pain points validated during discovery (use their words, not yours)
• Quantified impact: what is this problem costing them in revenue, margin, time, or competitive position?
• The trend line: is this getting better or worse without intervention?
• What competitors or peers are doing differently

How to write it: This section should create discomfort. Not fear-mongering — honest, evidence-based discomfort. The buyer should read this and think "yes, that's exactly what keeps me up at night."

Example: "Three dynamics are compounding this challenge:

1. CPA inflation — Your average cost per acquisition has risen 34% YoY on programmatic channels, outpacing the 12% industry average. At current trajectory, you'll spend $1.8M more in 2027 to acquire the same number of customers as 2026.

2. Audience fragmentation — Your first-party data covers 40% of your addressable audience. The remaining 60% is reached through third-party segments that are degrading quarterly as cookie deprecation accelerates. This creates a targeting accuracy problem that directly impacts campaign ROI.

3. Competitive gap — Three of your direct competitors (including [named competitor]) have invested in integrated data platforms in the last 18 months. Their pitch to advertisers now includes deterministic audience matching that you can't currently offer."

R — Resolution (25% of proposal)

Purpose: Present your solution as the bridge from complication to desired outcome. Focus on outcomes, not features.

What to include:

• How your solution specifically addresses each complication identified
• Expected outcomes tied to the metrics the buyer cares about
• Implementation approach (high-level — not a project plan, a confidence builder)
• Timeline to value: when will they see results?

Structure this as outcome blocks, not feature lists:

BAD:

• "Real-time bidding optimization"
• "Cross-device audience graph"
• "Customizable reporting dashboard"

GOOD:

• "Reduce CPA by 25-35% through contextual + behavioral targeting fusion"
• "Reach 85%+ of your addressable audience with deterministic matching"
• "Provide weekly performance insights with recommended optimizations"

Example: "Our proposed solution addresses each of these challenges:

CPA Reduction: Target 25-35% decrease within 90 days By combining our proprietary contextual engine with your first-party audience data, we create a targeting model that's 3x more predictive than third-party segments alone. For Meridian's audience profile, our modeling suggests CPA compression from $42 to $28-$31 within the first campaign flight, based on performance benchmarks from [comparable client].

Audience Extension: 85%+ addressable reach without third-party dependency Our identity graph covers 240M US adults with deterministic matching. Integrated with your CRM data, this extends your targetable audience from 40% to 85%+ of your total addressable market — without reliance on deprecated third-party cookies.

Competitive Positioning: Data-driven advertising capability within 60 days Full platform integration and first campaign live within 60 days of contract signature. Your sales team will have a data story to tell advertisers by Q3, closing the competitive gap before upfront season."

A — Action (15% of proposal)

Purpose: Make the next steps crystal clear. Reduce the cognitive burden of saying yes.

What to include:

• Specific investment and what it covers
• Timeline with milestones (not a Gantt chart — a simple phase plan)
• What you need from them (data access, stakeholder time, technical resources)
• What "success" looks like at 30/60/90 days
• The mutual action plan to get from here to signed contract

How to write it: Make it feel easy. The buyer should read this and think "this team has done this before and they'll make it simple for us."

P — Proof (35% of proposal)

Purpose: Eliminate doubt with evidence. This is the longest section because proof is what converts consideration to commitment.

What to include:

• 2-3 case studies selected using the logic below
• Quantified results from each case study
• Customer quotes (attributed if possible)
• Awards, certifications, or third-party validation
• Implementation success rate and average time-to-value
• Team credentials (who will work on their account)

Proof hierarchy (most to least persuasive):

1. Named customer in their industry with quantified results
2. Named customer in adjacent industry with quantified results
3. Aggregate performance data across your customer base
4. Third-party analyst endorsement or award
5. Your team's credentials and experience

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Value Quantification Methodology

The Three Numbers Every Proposal Needs

1. ROI Percentage

ROI = (Net Gain from Investment / Cost of Investment) x 100

Net Gain = (Revenue Increase + Cost Savings + Efficiency Gains) - Investment Cost

Example:
- Investment: $350,000 (annual contract)
- Revenue increase from better targeting: $480,000
- Cost savings from CPA reduction: $220,000
- Efficiency gains from automation: $65,000
- Net Gain: $765,000 - $350,000 = $415,000
- ROI: ($415,000 / $350,000) x 100 = 119%

2. Payback Period

Payback Period = Investment / Monthly Net Gain

Example:
- Investment: $350,000
- Monthly net gain: $415,000 / 12 = $34,583
- Payback: $350,000 / $34,583 = 10.1 months

For quarterly contracts, calculate per-quarter payback.

3. Cost of Inaction (The Most Powerful Number)

Cost of Inaction = (Current Loss Rate x Time Period) + (Opportunity Cost of Delay)

Example:
- CPA inflation costs $150K/year extra and growing at 34% YoY
- Competitive gap costs estimated $400K in lost RFP revenue per quarter
- 6-month delay = $75K additional CPA waste + $800K lost revenue opportunity
- Cost of Inaction (6 months): $875,000

Compare: $875K cost of waiting vs. $350K cost of acting.

Value Quantification Rules

1. Use their numbers, not yours. If they told you their CPA is $42, use $42. Don't substitute your benchmark.
2. Be conservative. If your data says 30% improvement, propose 25%. Under-promise, over-deliver. Credibility is worth more than a bigger number on the slide.
3. Show your math. Don't just say "119% ROI." Show every input and assumption. Buyers trust transparent math; they distrust magic numbers.
4. Include a sensitivity analysis. "Even if we only achieve 60% of projected improvement, ROI is still 47%." This handles the buyer's internal skepticism.
5. Tie to THEIR metrics. If they measure success by ROAS, calculate ROAS. If they care about subscriber growth, calculate subscriber growth. Don't force your metrics on their framework.

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Case Study Selection Logic

Wrong case study = worse than no case study. Selection criteria, in priority order:

Selection Matrix

Priority	Criterion	Why It Matters
1	Same industry	Buyer thinks "they understand my world"
2	Similar company size	Buyer thinks "they can handle my scale"
3	Same pain point	Buyer thinks "they've solved this exact problem"
4	Similar deal size	Buyer thinks "this is a reasonable investment"
5	Recent (< 18 months)	Buyer thinks "this is current, not legacy"
6	Named customer	Buyer can verify; adds credibility
7	Quantified results	Numbers > adjectives. Always.

Selection Rules

• Must match at least 3 of 7 criteria. Below 3, the case study creates more questions than answers.
• Never use a case study from a direct competitor. The buyer will wonder if you're sharing their data too.
• Include the customer's challenge, not just the result. The buyer needs to see themselves in the story.
• If you don't have a perfect match, acknowledge it. "While [case study company] is in [different industry], the challenge they faced — [specific challenge] — mirrors yours."

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Pricing Strategy Guidance

Pricing Presentation Principles

1. Never lead with price. Price appears AFTER value is established. If the buyer sees $350K before understanding the $875K cost of inaction, $350K feels expensive. After understanding the cost of inaction, $350K feels like a bargain.

2. Anchor high, offer options. Present 3 tiers:

   • Premium: Full solution + strategic services + priority support ($X)
   • Standard: Core solution + standard support ($0.7X)
   • Starter: Minimum viable solution to prove value ($0.4X) Most buyers choose the middle. The premium makes the standard feel reasonable. The starter gives budget-constrained buyers a path in.

3. Frame investment, not cost. Language matters:

   • YES: "The annual investment for the full platform is $350,000"
   • NO: "The cost is $350,000 per year"
   • YES: "At $29K/month, that's less than the cost of one FTE..."
   • NO: "$350K annual contract"

4. Address TCO proactively. If your solution replaces existing spend, show the net new investment: "Your current programmatic spend is $200K/year with a $42 CPA. Our solution is $350K/year but reduces your CPA to $28. Net new investment: $150K. Net new customer acquisition: 5,400 additional customers. Cost per incremental customer: $27.78."

5. Build in flexibility for negotiation. Know your walk-away number before the proposal goes out. Build enough margin that you can offer:

   • Phased implementation (smaller initial commitment)
   • Performance guarantees (shared risk)
   • Longer term = lower annual rate
   • Upfront payment discount

Pricing Red Flags

• Buyer asks for pricing before discovery is complete → they're shopping, not buying
• Buyer immediately says "that's in our range" → you probably priced too low
• Buyer shares competitor pricing without being asked → negotiation tactic, not a blocker
• Buyer asks for a discount as the first response → test: "What would you need to see to feel the full price is justified?"

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10-Point Proposal Quality Gate

Run every proposal through these checks before sending. Score Pass/Fail on each. Minimum 8/10 to send. Below 8, revise.

1. Buyer's Voice Test

Question: Would the buyer recognize their own words and priorities in the first page? Check: The Situation and Complication sections reference specific things the buyer said in discovery, not generic industry platitudes. Direct quotes from the buyer appear at least once. Fail condition: You could swap in any company name and the intro would still work.

2. So-What Test

Question: Does every section answer "so what does this mean for the buyer?" Check: Every feature mentioned is tied to an outcome. Every statistic is tied to an impact. No orphan facts. Fail condition: Any paragraph that describes what you do without explaining why the buyer should care.

3. Quantified Value Test

Question: Is the financial case clear, specific, and credible? Check: ROI is calculated with transparent inputs. Cost of inaction is stated. Payback period is included. At least one sensitivity scenario. Fail condition: Value is stated in vague terms ("significant improvement", "substantial ROI").

4. Proof Relevance Test

Question: Would the buyer see themselves in the case studies? Check: Case studies match at least 3/7 selection criteria. Results are quantified. The customer's challenge is described, not just the result. Fail condition: Case studies are from unrelated industries with unrelated challenges.

5. Executive Readability Test

Question: Could a C-level executive understand the proposal in 3 minutes? Check: Executive summary is under 1 page. No jargon without definition. Clear visual hierarchy (headers, bold, bullets). Key numbers are easy to find. Fail condition: Wall-of-text paragraphs. Acronyms without definitions. Buried punchlines.

6. Differentiation Test

Question: Does the proposal explain why YOU, not just why this type of solution? Check: At least 2 differentiators are specific to your company/product, not the category. Competitive advantages are stated without naming competitors. Fail condition: The proposal reads like a category pitch. A competitor could put their logo on it and it would still make sense.

7. Action Clarity Test

Question: Does the buyer know exactly what happens next? Check: Next steps are specific (who does what by when). Investment is clearly stated. Timeline has dates, not just phases. What you need from the buyer is explicit. Fail condition: "We look forward to discussing next steps" — this is a non-action disguised as a closing statement.

8. Objection Anticipation Test

Question: Does the proposal address the buyer's likely concerns before they raise them? Check: Pricing includes value justification. Implementation section addresses complexity concerns. Risk mitigation is included. Competitive positioning is woven in (without naming names). Fail condition: The proposal assumes the buyer has no concerns and will say yes on first read.

9. Consistency Test

Question: Are all numbers, names, dates, and claims consistent throughout? Check: Deal value matches between sections. Company name is spelled correctly. Dates in the timeline are realistic. No contradicting claims. Fail condition: Executive summary says $350K, pricing section says $375K. These errors destroy credibility.

10. Ask Test

Question: Is there a clear, specific ask? Check: The proposal ends with a specific request: "We'd like to schedule a 30-minute review of this proposal on [date]. If the approach aligns, we can have the MSA ready for legal review by [date]." Fail condition: The proposal trails off or ends with "let us know your thoughts."

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Learnings Integration

After each proposal:

1. Read data/memory/learnings/proposal-effectiveness.md
2. When outcome is known, log:

   ## [Date] — [Company] — $[Value] — [Won/Lost/Pending]
   - **Proposal approach:** [SCRAP emphasis — which section was strongest?]
   - **Buyer feedback:** [What they said about the proposal, positive and negative]
   - **Winning element:** [What moved them most — pricing, proof, value calc?]
   - **Weakness:** [What they pushed back on or didn't find compelling]
   - **Time from proposal to decision:** [X days]
   - **Lesson:** [One-sentence takeaway for future proposals]
   

3. Over time, patterns emerge: which proof types convert best, which pricing structures close fastest, which Complication framings create the most urgency

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Example: Executive Summary (Best-in-Class)

EXECUTIVE SUMMARY

Meridian Media Group is losing $1.2M annually to CPA inflation and audience
fragmentation — a gap that widens every quarter as third-party data degrades
and competitors invest in first-party infrastructure.

We propose a 12-month strategic partnership ($350K annual investment) to:
- Reduce programmatic CPA by 25-35% (from $42 to $28-31)
- Extend addressable audience reach from 40% to 85%+
- Deliver a live data-driven advertising capability within 60 days

Based on conservative projections, this investment delivers a 119% ROI
with a 10-month payback period. Even at 60% of projected performance,
ROI exceeds 47%.

Three comparable media companies (including [named reference]) achieved
these results within the first two campaign flights. We've included their
case studies and would welcome a reference call with any of them.

Proposed timeline: Contract signature by April 15 → Platform integration
by May 30 → First campaign live by June 15 → Q3 performance review
with optimization recommendations.

We'd like to review this proposal with you and Sarah Chen on [proposed date].