Here are two ratios that you can use to quantitatively measure the effectiveness of your RFP responses. At the end, the company’s strategic direction will determine which ratio, or combination of the two, is more valuable.
#1 - Win Rate Ratio
The win rate ratio is the ratio of RFPs won to RFPs lost. Win rates are complex to track, because win rates can include many categories of data: was the RFP won or lost, did you decide not to bid, did the client cancel the RFP, or did the client postpone their decision. A higher win rate is an indicator that you are winning more of the small, less competitive competitions.
#2 - Capture Ratio
The capture ratio is the ratio of the value of RFPs won to RFPs lost. The capture ratio is a better measure of success because large dollar bids, which are likely to be more competitive, bring in more business for the company. A higher capture ratio is an indicator that you are winning more of the larger competitions.
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