Getting the most out of RFPs and RFIs
Menachem P.
Director, Global Solutions Engineering at Akamai Technologies - API Security
How do you feel about receiving and responding to RFPs? When you ask three SEs this question, two will likely say that they are not very happy. The answer should, however, be a happy yes, I enjoyed getting and answering RFPs.
Today I will try to show you why answering RFPs is so valuable and has significant potential for you and your business and what you can learn from that.
By reading that article, you will learn:
The RFX basics
A?request for proposal?(RFP) is a document that solicits proposal, often made through a?bidding?process, by an agency or company interested in?procurement?of a?commodity,?service, or valuable asset, to potential suppliers to submit?business proposals.[1]?It is submitted early in the procurement cycle, either at the preliminary study, or procurement stage. Source
The TL;DR of RFX is that you and most likely some of your competitors get a spreadsheet file or online system containing the customer's background information and technical questions. Depending on what they are looking for, some of it will be very specific to you, while other items will be fairly general. It could range from 10 to hundreds of questions. It comes with a deadline to submit your answers, and you may need to have multiple people in your organization helping to respond to the RFX.
Don't overlook it
There will be some pre-sales engineers who think, "Wow, that's complicated, how many questions do we even have to answer, do we have any chance of winning here, as this isn't 100% relevant to our solution." I'll handle that, but I'll just give a short Yes/No answer, and I'll tell the customer more over the phone.
Please, don't be that person. When you get an RFX treat it like the next billion dollar deal that is likely to close that quarter.
Use the following process and methodology to handle RFX
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Fun and meaningful
Yes, responding to an RFP is very relevant for you. Reading the questions carefully and writing responses will help you a lot. You will learn about the industry you are in, be an expert in your solution, learn what customers really want and need, learn about your competitors, what they do, provide feedback and product features to your R&D and Product Managers and learn new topics or terms that you never heard before.
See it as a learning opportunity. Every RFX contains hidden treasures that can help you win better deals now and in the future and learn about customers' pain points.
Who should own and respond to the RFP
It varies between companies. The pre-sales engineer and the Account Executive in a small startup will handle RFX, but some companies will have dedicated RFX teams, like a bidding department or RFX team part of pre-sales, allowing the pre-sales engineering to focus on later stage deals that have passed the RFX process. Some companies will have some automated tools to support the answering process.
I think that it doesn't really matter who's responsible for it, if you get an RFX don't say 'that's not my problem because X will do it' do everything you can that answers will be provided in time and raise flags to your manager if needed and when needed.
What are the chances to win RFX?
When you work in a fast growing company, you will get many RFX, quickly you will realize that not all of them are relevant for you and or you came late to the game. If you get an RFX that isn't relevant to your company, it might be an indication that your company didn't influence the RFX design. This gives you lower chances to win but never say never. I had cases where people thought that our chances were very low and we won. Invest time in answering the RFP.
Do a self-check - check how many RFX you answered on each Q, and how much you invested in each one, and how many were converted into POVs and paying customers. Evolve and improve, at some point you will be able to say no to some irrelevant RFX. As the startup grows and the number of RFX increases, consider purchasing RFX software that can streamline the process from managing to answering questions.
Tips and what else you should know
Summary
RFX should be treated with respect. Take this opportunity to learn about your industry, competitors, your solution, and to learn about the latest topics in the industry. Put it in your calendar, and prioritize what you should start with first and what should come later. Make it easy for all parties to answer the questions. Be the owner who makes it happen. At the end do your finest to educate your customer because you are the expert here.
Till next time,
Menachem.
What are your tips and tricks for RFP? What works best for you? Share in the comments.
Palo Alto Networks - Corporate Systems Engineer 1
2 年Thanks again Menachem for your valuable and timely insights! Always relevant! Do you think an app like qvidian simplifies the process?