The hidden cost of manual RFP responses – A breakdown of inefficiencies and how automation increases win rates

Many sales leaders underestimate the true cost of responding to requests for proposals (RFPs) manually. While it may seem like just another administrative task, the inefficiencies associated with outdated RFP processes can cost organizations millions in wasted time, lost deals, and missed opportunities.

According to studies, sales and proposal teams spend an average of 20 to 40 hours completing a single RFP. For enterprise organizations handling dozens of RFPs per quarter, this translates to thousands of lost hours - time that could have been spent on strategic sales efforts.

Beyond the time drain, manual RFP responses contribute to inconsistency, higher error rates, and reduced win rates, making the business case for automation stronger than ever.

The inefficiencies of manual RFP responses

1. Time-consuming and resource-intensive processes

The most obvious drawback of manual RFP management is the sheer amount of time and effort required. Sales teams must:

• Locate and verify past RFP responses, often searching across multiple documents, file hosting services, messaging services such as Teams and Slack, countless spreadsheets and documents, and email threads
• Collaborate across departments (legal, compliance, finance, product) to gather information, which slows down response times
• Manually format and tailor responses across a plethora of formats, increasing the likelihood of human error and inconsistencies

With AI-powered RFP response software, organizations can drastically cut down on this manual effort. Instead of wasting hours searching for the right responses, AI-driven RFP database software provides instant access to accurate, pre-approved content, reducing response time by up to 68%.

2. Lost revenue due to missed deadlines

Enterprise sales deals often hinge on the ability to submit high-quality proposals within strict deadlines. Unfortunately, delays caused by manual RFP processes lead to missed opportunities, as late or incomplete responses can disqualify organizations from consideration. Even when deadlines are met, rushed submissions are often of lower quality, reducing the chances of winning the deal.

Automated RFP response tools ensure that teams can produce compelling proposals quickly, with AI-driven insights optimizing responses for clarity, compliance, and persuasiveness. This allows sales teams to submit well-crafted proposals without the stress of last-minute scrambling.

3. Reduced win rates due to inconsistent messaging

When sales teams manually craft RFP responses, inconsistencies in messaging and branding are inevitable. Different team members may provide varied answers to the same questions across multiple RFPs, leading to confusion and potential credibility issues.

With AI-driven RFP automation software, responses are stored in a self-maintaining knowledge base, ensuring that every proposal is:

• Consistent with brand messaging and tone
• Compliant with legal and regulatory requirements
• Optimized for accuracy and the latest versions of policies or input

By eliminating inconsistencies, sales leaders can significantly improve the quality of proposals and increase their win rates.

The financial impact of inefficient RFP management

Inefficiencies in the RFP process don’t just waste time - they cost businesses real money. Consider the following breakdown of the hidden costs associated with manual RFP responses:

• Labor costs: If a team of five sales professionals spends 20 hours per RFP, at an average hourly wage of $50, that’s $5,000 per RFP in labor costs alone
• Lost sales opportunities: If delays cause a company to miss just 10% of potential deals, the revenue impact could be in the millions annually, depending on deal sizes
• Increased administrative burden: Instead of focusing on relationship-building and closing deals, sales teams are bogged down by paperwork, reducing overall productivity and efficiency

Automating the process with RFP management software allows organizations to reduce costs, increase efficiency, and close more deals.

How GoCardless reduced its RFP completion time to just 30 minutes

Operating in a highly regulated industry with complex compliance and stakeholder requirements, GoCardless needed a solution that could ensure accuracy, consistency, and speed at scale. The previous software provider fell short, especially when responses required collaboration across internal business units.

Following a competitive evaluation, GoCardless chose Platformed’s AI-powered platform for its ability to automate responses without compromising quality or compliance.

Within 24 hours of onboarding with Platformed, GoCardless automated its first RFP with a 70% higher response rate compared to its former provider. Completion times dropped dramatically - from days to just thirty minutes per questionnaire.

The platform’s self-maintaining knowledge base and support for any document format (from Excel to portals like OneTrust) allowed GoCardless to streamline its sales process without manual overhead.

Now planning to expand Platformed’s use to due diligence questionnaires (DDQs), GoCardless credits Platformed with boosting internal collaboration, maintaining trust in a regulated space, and delivering higher-quality responses that win more deals.

“Platformed accelerates us towards an accurate first draft, saving time during tight response deadlines which we can invest into response quality. Additionally, Platformed’s content management process means a previously day-long task takes half an hour. In our highly regulated industry, trust and accuracy are critical, and Platformed’s AI has been a game changer, ensuring precise responses and seamless internal collaboration.”

Borja Valiente, VP of Sales and General Manager, UK&I GoCardless

How automation increases efficiency and win rates

By implementing AI-powered RFP solutions, organizations can transform their proposal management process. Here’s how:

1. Faster response times with AI

AI-driven RFP response automation enables sales teams to draft proposals in a fraction of the time. Instead of starting from scratch, AI pulls relevant, pre-approved responses from a centralized RFP platform, allowing sales reps to:

• Instantly populate responses with accurate, compliant information.
• Automatically tailor responses to specific client needs and requirements.
• Ensure responses are formatted and structured correctly, reducing revision time.

2. Improved collaboration across teams

Sales, product, legal, and finance teams often need to contribute to RFP responses, creating bottlenecks in the process. RFP automation software facilitates seamless collaboration by:

• Assigning tasks and tracking progress within a centralized platform
• Providing real-time updates to ensure alignment and eliminate version control issues
• Enabling subject matter experts (SMEs) to review and approve responses efficiently

3. AI-driven insights for stronger proposals

Not all RFP responses are created equal - some answers are more persuasive than others. AI-powered proposal management software analyzes past successful proposals and recommends optimizations to improve:

• Clarity: Ensuring responses are concise and compelling
• Compliance: Verifying that responses meet all regulatory and legal requirements
• Customization: Tailoring responses to align with the prospect’s specific pain points and needs

By leveraging AI for RFP response automation, organizations can create higher-quality proposals that resonate with prospects, ultimately leading to higher win rates.

Why sales leaders are embracing AI-powered RFP solutions

With enterprise sales cycles becoming increasingly complex, sales leaders can no longer afford to rely on outdated, manual RFP processes. The shift to automated RFP software is driven by three key factors:

1. Competitive advantage: Companies that respond faster and with more precision win more deals
2. Scalability: AI-powered RFP software tools allow organizations to handle more RFPs without increasing headcount
3. Better sales performance: Freeing up sales teams from administrative burdens enables them to focus on high-value activities that drive revenue

The cost of inaction is too high

The hidden costs of manual RFP responses - lost time, missed revenue, and reduced efficiency - are too significant to ignore. Sales leaders looking to increase win rates, reduce administrative burden, and drive revenue growth must embrace automation.

By leveraging AI-driven RFP automation software like Platformed, organizations can future-proof their sales process, increase efficiency, and close more deals without the bottlenecks of traditional RFP management.

Ready to eliminate inefficiencies and maximize win rates? Learn howPlatformed’s AI-powered RFP response software can transform your proposal processtoday.