How Badly Do Companies Suffer Due to Incomplete RFPs?

By Sudipto Ghosh On Nov 15, 2021

QorusDocs, an RFP and proposal management software company, released findings from a new report that uncovers insights into how proposal management software significantly boosts business win rates and supports the efficient development of requests for proposals (RFPs).

According to the survey findings, companies saw a notable rise in RFPs this past year. Sixty-four percent of respondents reported an increase in the volume of RFPs received in 2021, compared to 2020, with most experiencing around 30% more requests. Additionally, 64% of companies using proposal management software experienced higher business win rates in 2021 over last year, with a median improvement of 59%.

The survey also uncovered that businesses using proposal management software:

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Experience an average win rate for a new business that averaged 45% and an average win rate of 66% when bidding on existing business
Report a higher share of revenue coming from new businesses than those not using automated tools (51% vs. 39%)
Were significantly more likely to report an increase in RFP requests compared to companies not using automated software (71% vs. 53%)

“COVID-19’s impact on business operations, profits, and revenue opportunities significantly hindered companies’ growth last year. However, this report reveals how businesses have bounced back in 2021 and seen new opportunities soar,” said Ray Meiring, CEO and co-founder of QorusDocs.

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Ray added, “With proposal management software, companies can complete critical RFPs in a personalized, timely fashion. Our platform is designed to enable customers to improve the efficiency and quality of their proposals, ultimately leading to increased wins and more revenue-generating opportunities.”

Proposal management software improves efficiency

On average, it takes nearly a week to complete just one RFP document. However, due to time constraints, lack of employee support and other factors, some companies are unable to respond to every RFP they receive. As a result, approximately 20% of RFPs are left incomplete by businesses each year, resulting in a median revenue loss of $725,000. However, some companies reported even higher losses from incomplete RFPs:

Technology companies reported a median annual loss of $813,000
Enterprises with more than 500 employees saw a median loss of $875,000
37% of respondents estimated a revenue loss of more than $1 million
9% of respondents reported losing more than $10 million in annual revenue

QorusDocs’ Not Your Average Benchmark Study survey found that proposal management software aided enterprises’ capacity to complete more RFPs in 2021 and successfully secure business opportunities:

72% of companies saw a positive increase in deal velocity
54% of businesses noted processing greater volumes of RFP responses
Enterprises reported that the time spent building an RFP response decreased by 53%
85% of companies using proposal management software report having the tools needed for responding effectively to proposals

“Responding to and completing RFPs is a time-consuming process that requires a sizable amount of resources,” said Dena Stukenberg, Divisional Vice President, Proposals & Enrollment at Health Care Service Corporation. “However, with QorusDocs, we are able to both personalize and refine our proposal documents, offering greater detail and information that is catered to each specific request we receive.”

Proposal management software supports future remote work models

Nearly three-quarters (74%) of U.S. companies plan to permanently shift employees to remote work after the COVID-19 crisis ends.

As a result, tools that enable collaboration and communication across locations are becoming a priority. According to the survey, an average of 28 people is involved in responding to request for documents (RFx) which can lead to chaotic collaboration and fulfillment bottlenecks.

However, with proposal management software, the RFx process is streamlined, enabling smoother collaboration to efficiently complete proposals. The survey found that companies using proposal management software reported:

Collaboration on RFPs improved by a staggering 56%
85% of those using proposal management software agree that it’s easy to collaborate when working on request
83% of those using proposal management software agree that the internal process to respond to requests is clear and straightforward

Methodology and sample size

For this year’s survey, QorusDocs received feedback from 169 professionals in proposal, IT, business development and C-suit roles who are involved in creating proposals and responding to RFPs, RFIs, DDQs or security questionaries. The cohort encompassed companies from multiple industries and across a wide range of revenue levels, with the majority of respondents representing the technology, professional services, and financial services industries.

QorusDocs is cloud-based proposal management software that streamlines RFP responses and automates proposal creation. The smart solution is intuitive and easy-to-adopt, enabling proposal and sales teams to create personalized, professional-looking documents directly from familiar Microsoft Office apps and popular CRM systems. QorusDocs’ AI-enabled auto-response feature eases the process of identifying high-quality content for proposal and RFP development. With QorusDocs, RFP, RFI, and RFQ responses, pitches, presentations, security questionnaires, and SOWs will be created from a single source of truth and completed in minutes versus hours.