Why Bother With the LMS RFP Process? Customer Ed Nugget 34

A Solid RFP Leads to Better Buying Decisions

Many learning tech buyers assume vendors hate requests for proposal (RFPs). That’s not surprising. After all, it’s easy to imagine busy salespeople rolling their eyes as they force themselves to build a detailed proposal. But here’s the unexpected truth — vendors secretly love receiving strong RFPs.

Don’t get me wrong. I hear plenty of RFP pushback from software companies. That’s especially true now, with AI disrupting the purchasing process and buyers bringing vendors into the conversation much later in the decision cycle. But that’s why a thoughtful LMS RFP process matters more than ever.

When you document your objectives and needs, you’re telling vendors you’re not just kicking tires. It shows that you’re serious, you’re funded, and your goals are legitimate.

Vendors respect a genuine invitation to participate in the RFP process. They actually prefer a well-written document, because it leads to a better proposal, more accurate pricing, and a reasonable chance to win your business.

So, what exactly do vendors look for in an RFP? And how can this make this process faster, cleaner, and much more effective?

Join me as I tackle this topic on today’s Customer Ed Nuggets mini-podcast…

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5 Reasons Why LMS Vendors Love a Well-Run RFP Process

Here’s what I’ve found, as an independent learning tech consultant and former sales professional…

1. It Tells Them You’re Serious

What does a well-written RFP look like? Well, start with coherent business objectives and learning use cases. Then describe requirements in priority order. Ensure that expectations are realistic, rather than over the top. And choose metrics that underscore the solution’s success.

Together, these elements indicate that your organization knows where it’s headed and how to get there. That’s because you’ve tied all the pieces together around relevant learning needs and measurable results.

Qualified vendors will recognize this kind of RFP as a legitimate business opportunity. And because they never have enough genuinely actionable opportunities, you can expect an enthusiastic response.

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2. It Adds to The Sales Pipeline

Obviously, an RFP represents a chance to win new revenue. But here’s what is not as obvious: Software companies live and die by their pipeline.

Stellar sales organizations predict their pipeline in advance and continuously work toward those goals. But when sales teams don’t do either of these things, they nearly always underperform. And that doesn’t bode well for the team leader or their account reps.

When I was in sales, I soon discovered that top sales professionals know how to forecast future revenues and adjust over time. So, every week, I reviewed my pipeline and revised each deal’s potential to close during that quarter. I also updated whatever else might come down the pike after that quarter, so we could keep an eye on how the annual pipeline was taking shape.

This kind of dynamic planning is vital for salespeople, because no one wants to over-promise and under-deliver. Also, this is where a strong LMS RFP process makes a huge difference. That’s because it helps sales teams anticipate what’s ahead and adjust accordingly if a deal stalls or starts moving in another direction for some reason.

Of course, winning the deal is always a salesperson’s responsibility. But a well-run RFP process keeps vendors in the loop as the opportunity runs its course.

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3. It Helps Vendors Prioritize

When 10, 20 or more RFPs land on a vendor’s desk each month, responding to all of them is impossible. That’s why smart sales teams choose their best bets. In other words, they identify opportunities they should win and pursue those opportunities above all.

A solid RFP makes it easier for the right vendors to determine if an opportunity is a good fit, so they can treat it as a top priority. Your RFP’s rationale helps vendors decide whether it’s in their wheelhouse.

If your goals align strategically with the vendor’s mission, they have a good reason to make an extra effort to win your business. So, while an RFP keeps your organization focused, it also helps vendors focus on the right opportunities.

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4. It Gives Vendors a Reason to Allocate Resources

When a strong request is on the table, salespeople must rally the right resources, so they can respond with a first-class effort.

A well-written RFP doesn’t mean it’s easy to answer. It just means that the business logic makes sense and the requirements seem aligned with a vendor’s solution. It also signals to sales teams that the opportunity is legitimate. This motivates them to gather the necessary input for a strong response and begin building a trusted relationship.

Once a vendor is onboard with a project request, the sales contact must marshal a cross-functional team to develop a compelling proposal before the delivery deadline. This might include an executive sponsor, a solution architect, program manager, a legal representative, an implementation consultant, and other specialists.

Coordinating everything can be complicated and frustrating. So, it’s not unusual to receive a sloppy or incomplete response. But skilled salespeople know how to pull all the pieces together into a cohesive whole.

Have you ever received a proposal that seemed like an uninspired boilerplate? The salesperson might not have been skilled enough to organize anything more than a generic proposal. Maybe the vendor decided your opportunity didn’t warrant an “A” effort. Or perhaps the RFP itself was weak, so the vendor dismissed it.

Regardless, the response missed the mark. And if you moved on, it was no doubt for the best.

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5. It Reduces Risk for Everyone

Ideally, the LMS RFP process brings buyers and sellers together around a shared understanding of business goals, use cases, audiences, and performance metrics. With requirements driven by definitive outcomes, everyone knows what “success” looks like and how it will be measured.

This decreases uncertainty for buyers and sellers, alike.

Vendors naturally want to get a foot in the door and grow their business relationship with a potential customer. That means gaps may exist between reality and a vendor’s estimated scope and pricing. But often, those gaps don’t emerge until after the contract is signed.

So, to protect all involved, your request should draw a bright box around the solution. This empowers vendors to respond realistically with confidence. At the same time, it avoids after-the-fact surprises on both sides of the table.

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The Bottom Line on the LMS RFP Process

If you follow these recommendations, getting qualified vendors onboard with your LMS RPF process will be easier than you think.

Invite them to the table with a document showing how serious you are about finding a specific type of learning solution that fits your business and audience needs. Trust me, sales reps will recognize your extra effort right away.

By taking the time to share a thoughtfully developed RFP, you’ll improve alignment, reduce uncertainty, and set the tone for a strong partnership. You’ll also avoid costly surprises after the contract is signed and improve the odds of succeeding with whatever solution you choose.

So, how can you get started with this process?

If you want assistance, we’re here to help. As an independent learning tech consultant, my mission is to help organizations make better buying decisions. We offer a variety of useful services and resources.

For example, our free LMS RFP Starter Kit walks you step-by-step through the process of building a strong RFP. It’s not a generic template slanted in a specific solution’s favor. It’s a vendor-neutral tool that focuses on your needs as a buyer. This ensures that you’ll get great RFP responses, no matter what your needs may be.

And if you have questions, feel free to schedule a consultation with me anytime.

Watch This Customer Ed Nuggets Episode

Want more details about managing the RFP process? Watch the video version of this mini-podcast below…

Or, if you’d rather listen, tune in to the audio version right here at TalentedLearning.com.

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