When to Walk Away: Evaluating RFPs and RFIs Against Your Competitor’s Success
Receiving an unexpected Request for Proposal (RFP) or Request for Information (RFI) can be both exciting and daunting. However, if you discover that your main competitor is currently providing the service, and the client is happy with it, it’s time to approach the situation with caution. Here’s a strategic guide on when to engage and when to walk away, ensuring you use your time and resources wisely.
Step 1: Analyze the RFX Carefully
Before rushing into action, take a step back and thoroughly review the RFP or RFI. Look beyond the surface to identify key indicators:
Scope and Requirements: Are there areas where your solution distinctly outperforms the incumbent provider?
Evaluation Criteria: Is the focus more on compliance and price, or is there room for innovation and added value?
Client History and Satisfaction: Understand the client’s relationship with your competitor. Are there any hints that they might be open to change?
A detailed analysis will help you determine whether there’s a real opportunity to differentiate your offering.
Step 2: Set Up a Meeting with the Client
Once you’ve dissected the RFX, arrange a meeting with the client. This is crucial for understanding their motivations and gathering insights that aren’t explicitly mentioned in the documentation.
Key Questions to Ask:
Why now? Find out what prompted them to issue this RFX. Are they experiencing any dissatisfaction with the current service?
What’s the pain? Is there a compelling event driving this RFP/RFI? Perhaps a merger, acquisition, or an upcoming regulation that requires them to re-evaluate their options?
What are their priorities? Are they looking for innovation, cost savings, or simply fulfilling a mandatory review process?
This conversation will provide clarity on whether the client is genuinely considering a change or simply conducting a routine review.
Step 3: Qualify Hard, Disqualify Fast
Not every RFP or RFI is worth pursuing, especially if it’s clear the client is satisfied with their current provider. Here’s how to make the call:
No Pain, No Gain: If the client has no pain points and is merely conducting due diligence, it might not be worth your time. Participating in a bid where the outcome is likely predetermined is a poor use of resources.
Added Value: Can you offer something substantially different or better than what your competitor provides? If not, gracefully bow out.
Remember, the harder you qualify, the better it is for your team. Focus your efforts on opportunities where you can genuinely make a difference.
Step 4: Make the Decision
After gathering all the information, it’s time to decide whether to proceed:
Participate Only if You Can Add Value: If you uncover significant pain points or areas where your solution offers additional value, go for it. But make sure your proposal highlights these advantages clearly.
Politely Decline if Not: If there’s no compelling reason for the client to switch, be polite and decline to participate. This decision reflects professionalism and ensures that you can allocate your resources to more promising opportunities.
A Cautionary Tale: When Every Deal Seemed Like the „Best“ Deal
A few years ago, our sales team found themselves under immense pressure. The economy was struggling, the pipeline had dried up, and every opportunity felt like a lifeline. In response, the sales team jumped at every RFP and RFI, eager to secure business. Each deal was pitched as the „best opportunity,“ and the pressure to deliver was enormous.
But there was a problem. Back then, the presales team didn’t have the authority to disqualify deals that weren’t a good fit. We were expected to chase every lead, regardless of how viable it actually was. The result? Frustration after frustration. We worked tirelessly, pouring countless hours into opportunities that had little to no chance of success. And as you might guess, the win rate was terrible.
Looking back, it was a nightmare. We were exhausted, morale was low, and the company was stuck in a cycle of wasted efforts and missed targets. If only we had been honest about our chances from the start, and if only we had the tools to assess these opportunities more effectively.
The Functional Technical Qualification (FTQ) Framework: A Game Changer
Fast forward to today, and things are different. If we had the Functional Technical Qualification (FTQ) framework back then, our lives would have been much easier. The FTQ framework is a structured approach that allows presales teams to rigorously assess each opportunity before deciding to engage fully. Here’s how it works:
Evaluate Technical Fit: The first step in the FTQ framework is assessing whether your solution can genuinely meet the client’s technical requirements. This involves a deep dive into the client’s needs, understanding their current setup, and determining if your offering aligns with their expectations.
Understand Business Impact: Beyond just the technical aspects, the FTQ framework emphasizes understanding the broader business impact. Will your solution solve a significant problem for the client? Is there a compelling event driving the need for change? If the answer is no, it’s a red flag.
Assess Competition: The FTQ framework also considers the competitive landscape. If a competitor is already delivering the service successfully and the client is happy, the framework guides you to weigh the chances of winning realistically. Can you offer something that significantly outshines the competition?
Client’s Buying Process: Understanding where the client is in their buying process is critical. Are they serious about making a change, or are they just going through the motions? The FTQ framework helps identify whether the client is genuinely open to new solutions or if they’re just satisfying a procurement requirement.
Qualification Scorecard: All these factors are combined into a qualification scorecard, which provides a clear, objective measure of the opportunity’s potential. This scorecard helps the team decide whether to pursue the opportunity or politely decline, saving time and resources.
If you want to understand more about the FTQ. Please visit FTQ
Do you want to have the FTQ Worksheet? Check out the course
Why Hard Qualification Matters
The lesson from those tough years is clear: being brutally honest about your capabilities and your chances of winning a deal is crucial, especially in challenging economic times. The FTQ framework empowers presales teams to take control, ensuring that only the most promising opportunities move forward. This doesn’t just save time – it boosts morale, increases win rates, and aligns the entire team around realistic, achievable goals.
In today’s market, where every deal counts, qualifying hard is more important than ever. By using the FTQ framework, you can avoid the pitfalls of chasing every opportunity and focus on the ones where you can truly add value. Remember, the harder you qualify, the better your outcomes will be.
Conclusion
In presales, knowing when to walk away is just as important as knowing when to engage. By carefully reviewing the RFX, understanding the client’s motivations, and qualifying the opportunity with rigour, you ensure that your efforts are directed where they can have the most impact. Remember, it’s not about chasing every opportunity; it’s about winning the right ones.
This approach not only saves time but also strengthens your position as a strategic partner who values both your own and the client’s resources. The harder you qualify, the more successful your engagements will be.
Author: Dr. Johannes Hangl
Hi there! I'm Johannes Hangl, a recent Ph.D. graduate in Business and Economics from Mendelova univerzita v Brně. With a solid foundation in logistics, supply chain management, and business — further enriched by my Master of Science from THM Technische Hochschule Mittelhessen and both a Bachelor and Master Professional of Business Management from the Academy Handel Munich — I bring a robust mix of theory and practical PreSales experience. Professionally, I've developed expertise in crafting effective logistics strategies and solving complex problems, which enhances business growth and operational efficiency. At home, I'm a dedicated father of three, balancing family life with professional ambitions, which fuels my passion for productivity and efficiency in all aspects of life. I thrive on working smart to streamline processes and achieve excellence with a relaxed, yet focused approach to both life and work.
