Some government contractors are resistant to implementing internet marketing programs. They feel that their B2G sales process is based solely on their relationships and past performance. While relationships are always part of any company's sales process, the federal budgetary situation is changing the face of government contractor business development. Not all government contractors resist inbound marketing techniques - just take a look at the major prime contractors' websites. They're using social media and content marketing to promote their brands and generate leads. Here are four reasons you should introduce internet marketing into your small or mid-sized government contractor.
Agencies are looking for solutions - you need to get found when they search
The nation's fiscal crisis is changing the B2G purchasing process. Sequestration and LPTA (lowest price, technically acceptable) contracts are two of the most visible manifestations of the new B2G paradigm. There's no doubt that past performance and relationships are still very important elements of the business development process. But pressures from legislators and citizens to spend wisely are here to stay. This environment is creating new pressures on contracting officers to find innovative technologies and solutions for their agencies' missions. They are proactively looking for those new technologies and solutions. Internet marketing will help your technology get found when they come looking. Not all agencies have figured this out, but you can bet they will.
Prime contractors are looking for business-minded partners to help them develop business
Many SMB government contractors view partnerships with prime contractors as a key component of their business development strategy. The first step in developing prime contractor partnerships is completing the required registrations in the prime's small business partnership offices. The registration is simply table stakes, it's a requirement for any partnership arrangement. However, the prime contractors will tell you that they are looking for partnerships with growth-oriented small businesses. If you have a brochure-ware website that hasn't been updated in years, you are showing the prime system integrators that you're not serious about growing your business. I can assure you that they are deadly serious about growing their businesses and are looking for like-minded partners. A robust internet marketing program as a component of a professional business development process shows the prime contractors that you're serious about growth like they are.
Internet marketing supports diversification into commercial markets
In today's uncertain environment for government contractors, you should be exploring every possibility of commercial applications for your solutions. For example, cybersecurity is almost as important to commercial enterprises as it is to the government. Have you considered commercial applications for your cybersecurity technologies? Internet marketing is a mainstay of the B2B purchasing process. A 2011 study by the DAC Group found that 71% of enterprise purchase decisions start with a search engine query. Internet marketing will help you get found for the search terms commercial buyers use when they are researching solutions that you provide. A targeted internet marketing program aligned with your business development process will support diversification into commercial markets.
A robust pipeline and lead generation process will increase your valuation when you're ready to sell
Many owners of SMB government contractors look to merging or being acquired as their ultimate business goal. The government contractor M&A marketplace has changed the way buyers view potential acquisitions. While your existing contracts are still important to buyers, the new environment has changed their outlook. LPTA contracts and the diminished value of incumbency have placed an increasing emphasis on a business development process with a healthy pipeline in determining business valuations. An internet marketing program demonstrates to potential buyers that you're serious about growing and diversifying your business - you're not depending on your current contracts to grow your company. Buyers are less concerned about what your business has done and more concerned about what your business can do for them in the future.
Summary
The government contracting business is in a state of flux; companies that don't embrace the changing environment face a rocky road. However, change creates opportunites for those that adapt to it. For government contractor business development, opportunities abound for those that implement internet marketing programs to sync with the new way of doing things. It takes time develop domain authority and the traffic necessary to see results from internet marketing, so the time to act is now. Many SMB government contractors lack the resources and talent internally to run a successful internet marketing program. Affordable outsourced options are available that integrate with your current business development process.
