How PR Agencies Can Win More RFP Bids

While many PR agencies bemoan responding to requests for proposals (RFPs), submitting RFP responses can win new clients and generate significant revenue.

PR and advertising agencies on average win the highest percentage of RFP bids (63%), followed by legal services (60%), and insurance , according to new research by Loopio, which provides RFP bidding software. The software sector has the smallest win rate percentage (39%). On average, RFPs help to generate 41% of sales revenue among survey respondents.

Despite their relatively strong showing, only 5% of PR and advertising professionals are “very satisfied” with the overall quality of their organization’s RFP responses.

The Loopio analysis reveals how communications agencies and other types of organizations can win more RFPs:

A straightforward process. Those who “strongly agree” that they have a clear process have an average win rate of 55%. Those who “strongly disagree” that they have a clear response process have an average win rate of 38%.

More people. Those with processes that involve more than 15 people are 8% more likely than average to win rates in the 70–79%, and 9% more likely than average to have win rates in the 80–89% range. While more people may slow down a process, the ability to quickly access knowledge from the right people in your organization likely improves the quality of RFP answers.

Adequate resources. Those who “strongly agree” that they have the resources they need to do their job effectively have an average win rate of 55%., compared to 42% who “strongly disagree.”

Respond to more RFPs. While there needs to be a balance between volume and quality, those answering more than 250 RFPs a year are significantly more likely to report win rates over 80%. As expected, larger companies generally submit more responses.

More time dedicated to responses. Companies that win RFPs are 6% more likely to spend more than 61 hours, on average, writing RFP responses. Most organizations indicate they take between a few days to a few weeks to complete and submit an RFP.  The average is 252 hours, or 10.5 days. It’s an enormous investment of time and resources. Vetting the RFP for potential success can help avoid investing in RFPs that have little likelihood of success.

Dedicated ownership. Organizations with a proposal manager or team leading the RFP response process are 9% more likely to be “satisfied” with their submission timelines. Those with ad hoc ownership are less likely to be “very satisfied” with their response speed — even though they take less time to submit RFPs.

Process clarity. Those who don’t feel their organization has a clear process for responding to RFPs are 58% more likely to be “very unsatisfied” with the time it takes to complete RFPs, while those with a clear process are 30% more likely to be “satisfied.”

Track metrics. Companies that win most of their RFP bids track overall revenue and new revenue from RFPs. Those that typically don’t win bids, tend not to track revenue metrics. Companies with dedicated proposal teams or individuals are more likely to track submission numbers, win rates, and overall revenue metrics. When sales teams manage the process, companies are less likely track those metrics.

RFP process software. Those using RFP software respond to an average of 152 RFPs annually, while those without respond to only 103 RFPs. They’re also more likely to plan to submit more bids next year.

When to View RFPs Skeptically

Avoiding suspicious RFPs can also increase bid win rates and save substantial time and frustration, PR agency executives say. Red flags that raise alarm bells include:

• A short timeline that could indicate that the client has already picked an agency and is only issuing an RFP to satisfy the organization’s required contracting rules.
• No budget figure may mean the client lacks funding or has not yet received an approved budget.
• Vague descriptions of required work or opaqueness in general raise suspicions and make it difficult to create thorough or specific proposals.
• A large number of responses that makes winning the bid unlikely.

The RFP Alternative: Request for Information

Although RFPs remain prevalent, many PR agencies criticize the RFP process as time-consuming and unproductive. The request for information process offers a better alternative, argues John Raffetto, CEO of Raffetto Herman Strategic Communications. That method entails researching agency websites, seeking referrals, requesting information from three or four agencies, researching their previous campaigns, and meeting their team members.

“This is a far more efficient and useful way to whittle down the list to two or three top PR firms,” says Rafetto.  “It also enables the agencies to reserve more of their time for the actual in-person pitch, which produces a much more accurate representation of what they would bring to the table in a relationship.”

Bottom Line: Requests for proposals can offer PR agencies a strong source of new business and revenue – if agencies handle responses well, new research shows. An organized process, specific personnel managing responses and adequate resources help agencies win more RFP bids.

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