Companies Lose Roughly $725,000 in Annual Revenue From Incomplete RFPs
A new QorusDocs survey reveals how proposal management software increases business win rates and enables increased RFP completion
QorusDocs, an RFP and proposal management software company, today released findings from a new report that uncovers insights into how proposal management software significantly boosts business win rates and supports efficient development of request for proposals (RFPs).
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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 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 an 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. “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.”
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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 reporting 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.”
