The Request for Proposal (RFP) continues to get a bad rap. Perhaps this comes as no surprise. Especially because RFPs typically require agencies to put in considerable time and effort, with an uncertain outcome. And we often perceive the process as a fishing expedition or rigged if we don’t win the project. Gini Dietrich’s recent article, Scale Your Agency Without Proposals or RFPs, eloquently maps out an RFP-less growth strategy. As an agency and startup founder, I’ve been on the RFP goose chase and came up with a lot of goose eggs. At one time or another, we’ve all spent hours completing RFPs only to see someone else win the project. I know first-hand that it’s easy to see the process as a waste of time. So should agencies stop responding to RFPs? My answer is, not so fast! Don’t throw out the baby with the bath water. However, the RFP process does need to be more efficient. And, agencies need to be confident they are competing on a level playing field.
Those out-of-the-box approaches to generating new business revenue, along with strategies to build referrals, may well belong at the core of an agency’s new business process. You might argue they should supplement these with a clear-eyed and strategic pursuit of RFPs which are a strong fit for an agency’s capabilities. Why Should Agencies Participate in RFPs? To put it simply, there is business to win. The PR Diabetes Email List Council reports that more than one-third of all agency business is still won through the RFP process. Even if your agency is small or mid-size, RFPs can be an efficient and important method for winning client business. Well-crafted responses from qualified agencies are a path to winning new business and gaining growth. A Strategic Approach to RFPs Generating a return on investment (ROI) with RFPs requires agencies to be selective when it comes to participation. If you have the urge to dive into public RFPs or submit a proposal on spec when you haven’t been asked – don’t.
If you are not asked to the party or do not know the host, this is the surest way to guarantee no ROI. From an agency perspective, here are six key questions to consider when making this decision (and for companies to bear in mind when issuing RFPs): Are we asked to participate with intent? Has the company done research on your agency to understand your capabilities before asking for a proposal? Are we qualified for the business? In the chase to win business, it can be tempting to pitch any opportunity that presents itself, especially when you need the revenue.To increase your hit rate, here’s a simple mantra: Only pitch business for which you are qualified, or qualify yourself for. the business you pitch. The bar for winning is high. Do I have the information I need to make an informed decision about participating? Information shared by the client must include the scope of work, budget, measure of success, and selection process. Ask for this information if it’s not there.