There are two primary explanations why you should aggressively pursue requests for proposals (RFPs). One, they’re a great way to build pipeline. Which is key for the 69% of B2B salespeople whom do not have enough leads in their pipeline to meet quota. Two, they can be a major revenue drivers. You just have to make sure you’re pursuing the right RFPs plus doing so as efficiently as you possibly can. Take my word for this. Just kidding. I actually possess data to back it up. I also did an entire webinar on this topic, if you’ re ready for a deeply dive.
RFPs: Opportunity and Risk
Globally, $11 trillion of revenue is received through competitive proposal processes (RFPs) every year. You may be requesting, “What is a good proposal win rate? ” RFPIO’s research puts the average RFP earn rate at 45%. But that’s across all sectors. It will vary according to your level of specialization. RFPs exist within multiple markets, including government, construction, supply chain, production, systems integration, healthcare, and technology.
$11 trillion associated with revenue is won via competitive proposal processes (RFPs) every year.
As a salesperson, I always wanted to include RFPs to help grow my pipeline. A healthy sales pipeline is 4-5x the close rate, plus RFPs can represent offer sizes large enough to maintain my pipeline super healthy. Since working in sales, I’ve led proposal teams and today have my own company, Patri , that helps qualify sales opportunities, including RFPs. I’ve also found that too many salespeople and market leaders are avoiding RFPs.
RFPs are not simple, and they can be labor-intensive. I’ve known many salespeople exactly who find them too restrictive. To put it differently, there’s too much red tape in order to navigate to put together a response.
The fact is that only a little over half of most salespeople are hitting their particular quotas. There’s a lot of frustration out there. If you’re already in desperation mode, then the thought of allocating resources for an RFP proposal is tantamount to putting all your eggs in one basket. Proposal possibilities are more than 5x more costly than traditional sales opportunities. As a result, companies are spending an estimated $200+ billion per year upon lost bid opportunities alone.
Companies are spending an estimated $200+ billion per year on lost bid opportunities alone.
So if you boil it all down, arguments to pursuing RFPs fall to period and finding the right opportunities . I’m going to unleash our inner salesperson and help you overcome those objections. Let us look at the data.
five smart moves to increase your RFP win rate
- Pursue RFPs you have the highest probability associated with winning: Being approved RFP opportunities before you respond helps reduce your loss price and increase your win price. Patri clients have preserved $26 million and twenty-seven, 000 hours by focusing efforts only on possibilities they can realistically win.
- Increase RFP response volume: Teams with dedicated proposal professionals submitted 3. 5x more responses in 2020.
- Boost sales efficiency: Teams using RFP software program submit an average of 46% a lot more responses every year.
- Improve RFP response quality: Medical device manufacturer IBA re-invested time saved from RFP software into improving reaction quality and increased win rate by 15% in the first year.
- Streamline collaboration: 38% of responders cite collaborating with material experts (SMEs) to create plus review content as their biggest headache.
So that gives you an idea of what you can do. Now, how can you earn more RFPs? Qualify opportunities and implement RFP response software.
The best way to win more RFPs in 3 steps
Step 1 : Qualify based on information
I remember early in my proposal response times, I was the salesperson and proposal manager. Wearing both hats, anything I wanted to pursue I had to make sure has been winnable. Some of those early guidelines were relationship status, incumbency, solution fit, and necessity fit. I grew this exercise in qualification straight into my company, Patri.
Patri sits between RFP identification and response, at that pivotal qualification stage. We analyze data to deliver clients a fit score and call out their own strengths and weaknesses that will play to their pursuit of an opportunity. So far, we have helped qualify more than $40 billion of opportunities and helped win $84. six million worth of company.
Step 2: Conserve and re-invest time
When clients agree that an opportunity is match enough to pursue, we all recommend that they use RFP software program to craft the best response possible. Solutions such as RFPIO automate manual processes and improve collaboration, freeing the time for other things. The more time you have to fine-tune your own proposal, the better your offer will be, and the higher your win rate.
RFP software helps proposal and sales teams save time (and achieve higher win rates) by:
- Reducing response time by an average of 40%: Instantly respond to commonly-seen questions with Auto Respond, automation efficiency powered by machine studying.
- Controlling and moderating content plus projects: Arrange RFP content, import projects, assign tasks, respond to questions, set up review cycles, and export into the source file or custom template.
- Streamlining cross-functional collaboration: Quickly collaborate across teams making use of in-app @mentioning and integration with Slack, Microsoft Groups, Google Hangouts, and Jira.
- Producing data-driven decisions: Gain insight into time spent, deals won, and resources used with built-in business intelligence plus analytics.
- Integrating into your existing tech stack: RFPIO integrates with more platforms than anyone, including popular CRM, SSO, cloud storage, and communication platforms.
The primary indicator regarding RFP software, like any other automation software, is that it will save time. It’s what you do with that time that will determine your level of success with increasing RFP win rate.
Re-invest time into addressing more RFPs with top quality proposals. Also, like a genuine shooter who moves nicely off the ball (a la Craig Hodges for 90s-era Bulls fans or Klay Thompson for current Players fans), you can work on your own process outside of active tasks. In other words, re-invest time straight into improving your content. So when that next RFP comes in happened only have content that’s secured and loaded, it’s top quality, too, which will improve your likelihood of getting shortlisted.
Step 3: Designate an proprietor of the response process
While RFP software program delivers efficiency, you will get more value out of it if you have an ardent proposal manager administering the program and the processes around this. This de-facto leader from the proposal team will also be accountable for:
- Building relationships with other company stakeholders, which includes sales, product, legal, plus marketing teams.
- Driving user adoption, knowledge management, and other essential features associated with RFP software.
- Enabling sales to get a streamlined, unfettered user experience to minimize objections and elevate the value of RFPs in pipeline management.
Finally, it’s important to remember that you don’t have to make double-digit benefits in your RFP win price to realize impressive results. For instance , if a company’s average RFP is worth $570, 000 and they also submit 415 RFPs annually, with a win rate of 32%, the business value of their own RFP process is $75, 696, 000. Improving the particular win rate just 2% would represent a nearly $5 million dollar increase.
Pursuing RFPs doesn’t have to be a black box experience. Become transparent within the company. Know your costs and earn rate probability. Go and embrace them. By properly qualifying opportunities and using RFP software, you can improve your own odds.