Organizations issue requests for proposals (RFPs) because they have a need that cannot be fixed internally. A big need. One that will cost lots of money.This isn't calling a plumber to fix a clog. It's soliciting bids from multiple contractors for complete remodels, or to construct full-on additions. So in this post, we'll explain how you can master the process, create compelling bids and hopefully win.
The challenges of responding to RFPs
Admittedly, RFPs can be challenging. To overcome them, we'll need to first confront them.
Scale. An RFP can include thousands of questions and requests for specific content. The sheer volume and detail of information can lead to lengthy preparation times, potentially causing delays or suboptimal responses if rushed.
Competition. Sometimes, the lowest price wins. Other times, the best solution wins. Sometimes, it's both or neither.
Complexity. Crafting a great RFP requires a lot more than writing. It's a complex document that draws on relationships you have with in-house subject matter experts, sales teams, and the clients themselves.
No matter what the deciding factor between an RFP win or loss, the ultimate truth is that you have to compose an RFP response to have a chance. Let's look at ways you can put your best foot forward.
The basics of an RFP
When a company or organization wants to make a major purchase or launch a project, they usually issue a detailed document (a request for proposal or RFP) describing their needs to several potential vendors. A typical RFP will outline the following:
Their budget for the project or product
The project's goals
Common deal breakers, such as:
Unsatisfactory audit findings
Insufficient security protocols
Poorly defined procedures and policies
Improperly vetted subcontractors
Customer support concerns
Inability to meet the buyer's budget or timeline
Not enough customer references
No out of the box functionality
The most important factors
The RFP's due date
How to respond to an RFP step by step
The best way to produce a winning bid is to have a process in place. The process breaks down into 8 major steps:
1. Understand the requirements
What do you need to get it done? This ranges from the type of content, to who produces it, to who is responsible for signing off on the final proposal. The list can be extensive, but it must be comprehensive to make sure nothing falls through the cracks.
2. Qualify the bid with a go/no go analysis
Is this worth going after? Starting off with a bid or no bid discussion gives you an opportunity to evaluate your win probability. Essentially, building a proposal is like investing in your future. Every investment requires close scrutiny. Instead of going after every bid, only choose those that best align with your business and are winnable.
3. Answer repeat questions
Because roughly 80 percent of an RFP contains questions you've probably answered before (many times), let your automated knowledge management system take a run at it first. Make sure the answers are correct and up to date.
4. Set due dates, tasks and expectations
Whose expertise do you need? After you determine the requirements, identify all the milestones. There'll be due dates for content, reviews, edits and approvals. The trick is to respect everyone's time while driving the process forward.
5. Assign questions for review
Who needs to sign off on this content? Generally, you'll have multiple approvers to sign off on content related to sales, product, support, legal, branding and so on.
6. Proofread and polish
Were the questions answered accurately and completely? Were all the objectives met? Are there any misspelled words or typos? Are the responses otherwise well written? Have you attached all relevant documents? Don't let poor grammar and typos be the reason you lose the bid.
Make sure you're telling YOUR story. Add visuals or other supporting content to help convey your message. If you have the good fortune to have a dedicated proposal team, look to them for proposal formatting guidance. If you don't have a proposal team, look to your marketing team. Ensure your proposal is in a clean, easy to read format. Or, even better, put it into a branded template.
7. Submit
Once you've completed and polished the response, submit it (before it's due). Confirm that it was received and let team members know.
8. Save and audit responses
Every answer is potentially valuable for future RFPs. Save them in a central location that's easily accessible to key stakeholders. Make sure you regularly audit the content in the centralized repository.
The benefits of following a repeatable process
RFPs are more alike than they are different. You're going to need to answer some of the same concerns over and over. Do you have project management software? Who is your project manager? Do you have a list of subject matter experts (SMEs) and their schedules? What about other stakeholders, such as writers and editors?
Around 80 percent of an RFP's questions are relatively standard. For example, it's common for an RFP to ask about company history, hiring practices, and the onboarding process. Why not have those answers ready to go or at least prepared for a quick proofread?
Creating a repeatable process establishes:
Whether the RFP is worth pursuing
Team participants
Timelines
Role definitions
SME engagement
Final evaluation
Best practices for RFP responses
RFP wins, proactive sales proposals, and fast turnaround on questionnaires equate to revenue and may determine whether the company grows, shrinks, or offers an extra percentage point in next year's retirement fund match.
Here are some tips for getting the entire RFP process up to the highest possible standard.
Work with your team
Because RFPs are long, complex, and require potential input from every department, collaboration is a critical part of an RFP response process. And because we have distributed and siloed workforces, intense competition for SMEs' time, and tight deadlines, smart processes foster collaboration.
The proposal team is made up of the individuals you rely on for a variety of roles:
Prospect and customer interaction: Customer facing teams have their fingers on the pulse of competitors and customer needs.
Subject matter expertise: Many RFP questions require detailed answers, and for those you should turn to the people who know the most about their particular area of expertise.
Brand messaging: Consult with marketing before submitting your response to ensure that you are on brand.
IT support: Can your company support the issuer's needs?
Choose RFPs you can win
As part of your bid qualifying at the beginning of your RFP response process, add a go/no go checkpoint to ensure that you only respond to RFPs you can win. Whether it's a scheduled team meeting or a checklist, you need to answer:
Is the RFP the right fit for your organization and solution?
Do you have a comprehensive solution that addresses all of the challenges presented in the request?
Does your pricing match the budget?
Do you have an existing or prior relationship with the issuing organization?
Do you have any insight into why the RFP has been issued?
Can you meet the submission deadline?
Basing the answers to these questions on data rather than anecdotal evidence will help validate the go/no go step as well as your role as a proposal manager.
Keep your process organized
A documented RFP response process will anchor your team during the most chaotic times. It's up to you to own the process, but modern AI powered proposal platforms make it easier to automate, execute and monitor processes from beginning to end on multiple projects running simultaneously.
Review your wins and losses
The win loss review gives your team an opportunity to close the loop. Internally evaluate what worked and what didn't.
Did you win? Why? How can you repeat it for future proposals?
Did you lose? Why? How can you avoid it in future proposals?
Include the whole proposal team in a wrap up summary, but make the extra effort to work hand in hand with sales enablement so they can bring in the customer perspective.
Use technology to save time
These reviews help you better predict which RFPs you can actually win. AI proposal platforms make this easier by keeping all your proposal work in one place. AI-powered proposal software helps overcome time and resource constraints. Since few organizations use AI for proposals yet, it's a great competitive advantage. You can save hours or even weeks by using AI to handle repeat questions, giving you more time for the questions that really need your attention.
Using AI for RFP responses
Most companies already use CRMs, communication apps, and project management software. Adding AI powered proposal tools might seem like overkill, but these tools work with your existing setup rather than replacing it. AI proposal software is specifically designed for proposal management and can significantly boost your revenue by helping you win more deals.
How Wonit helps with RFPs
Traditional RFP responses take weeks of manual work. Wonit changes this completely. Simply upload your RFP document, and Wonit's AI reads through everything in seconds, understanding the requirements and generating professional responses in minutes, just upload your RFP, and the AI analyzes every question while accessing your company's knowledge base (from CRM data, documents, and previous proposals). It then creates tailored responses with specific examples and formats everything into a professional web-based proposal with pricing tables and visual elements.
Join the waitlist at wonit.ai to transform your RFP response process.