How Badly Do Companies Suffer Due to Incomplete RFPs?
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:
- 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%)
Proposal management software improves efficiency
- 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
- 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
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.
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