When a potential client invites you to pitch their business, it’s exciting. You feel wanted. You feel recognized. You feel validated. The feeling is reminiscent of being asked to dance at a party; it’s the first step of what could potentially be an exciting relationship. However, unlike deciding whether to dance with someone, the response to a Request for Proposal (RFP) should be based on logic—not emotion. For many agencies, pitching RFPs is the lifeblood of your business.
When do RFPs make sense?
Let’s begin tackling this issue by tapping into that logical mindset. Ultimately, RFPs make the most sense for IT and government-related contracts because the tactics and deliverables are known. In both verticals, the buy-in to work with an organization depends on responding to an RFP. When the brand commissioning the RFP understands how to achieve their outcomes, the next logical step is to find a partner or vendor that can fulfill the request in a cost-effective way.
When don’t RFPs make sense?
Next, let’s delve into the other side of the issue. RFPs do not make sense when a brand does not understand how to achieve their outcomes. For example, imagine that a brand sets a goal to increase sales by X% with a marketing budget of Y. In this situation, an RFP does not make sense because the tactics to achieve the goal are unknown. To compensate for this unknown, brands usually ask agencies to solve the problem via an RFP. In other words, you are solving the problem for free hoping that they pick you to be their partner.
Go/No-Go Process
Below, I've put together a simple Go/No-Go Decision Guide for your next client pitch. Experience has shown me the benefit of having predefined criteria; by following this guide, you won’t chase every opportunity that comes across your desk. When your agency isn’t busy, you’ll often find yourself wasting resources chasing opportunities that aren’t a good fit. On the other hand, you might pass up opportunities that are a great fit when you are busy with other (potentially no-go) clients. This guide will help you decide which RFPs are a strategic fit to grow your agency.Â
In the business development process, your most important choice boils down to the Go/No-Go decision. Your aim is to pitch work that you have a reasonable chance of winning. Determining which work to pitch is a great way to control business development costs.
These eight questions will help you think through whether or not the RFP solicitation in your inbox is worth pursuing.
Question 1. Is this a client you want to work with?
0 – No.
1 – Yes.
2 – Yes, and we’ve been looking for an opportunity to pitch this client.
Question 2. Do you have an existing relationship with this business, or have you met with someone in the organization?
0 – We don't know anyone, but it looks like a great opportunity.Â
1 – We have a contact in the organization.
2 – We were aware of the RFP before it was public knowledge.
Question 3. Does this prospect align with your expertise?
0 – No.
1 – This is our target market.
2 – We’ve solved a similar problem for this type of client.
Question 4. Is there reasonable time to respond?
0 - No. There is a good chance that this RFP was written with another firm in mind, and they are soliciting proposals to price shop or satisfy outside requirements.
1 - Yes.
2 – Yes, and we have intel on what the selection committee is looking for.
Question 5. Do you know the competition?
0 - We have no idea who else is pitching this business.
1 – Yes, and they are formidable.
2 – Yes, and we think we're a better fit.
Question 6. Is the current agency bidding on the project?
0 – Yes, and it's because their contract just ran out.
1 - We don't know whether or not the current agency is bidding on the project.
2 - No and/or the client does not have a current marketing agency.
Question 7. Do you have a sense of the budget?
0 - We have no clue of the budget.
1 - Budget seems low, but we hope to gain future business from this client.
2 - Budget for this work allows us to be profitable.
Question 8. Does winning this business help you strategically grow?
0 - No.
1 - Yes by solidifying our expertise.
2- Yes, and it positions us to achieve our strategic objectives.
A score above 12 should give you comfort in a Go decision on this RFP.Â
A score between 7 and 11 is a gray area. You might want to do additional research before making a final decision. There could be other subjective factors you want to consider—e.g., this might be a new market that you're targeting.
A score below 6 is a No-Go for this RFP. There are too many red flags that are not in your favor.
Going through this systematic process should give you some assurance that you're making the right decision. You want to take the emotion out of the Go/No-Go Decision and ensure that your choice to pursue an RFP is based on fact. If you decide to pursue, then bring the emotion back in; after all, you'll need it to win the pitch.