Boost your hit rate – how to measure, analyse and evaluate to win more procurements

Even the most well-oiled bid organisation can improve. But how? How do you figure out where there's room for improvement? What are the key metrics to look at?

That's what we'll dive into now.

Measure important KPIs

To be able to improve something, you obviously need to know how it's actually going. Far too many bid organisations are moving full steam ahead and forget to look up.

Hit rate

One of the most common KPIs to measure is hit rate – in other words, how many procurements did we win out of the tenders we submitted.

To measure this you need to keep track of:

• How many tenders you submit.

• Which procurements you win.

So what's a good hit rate? It depends entirely on which industry you operate in, the competitive situation, your experience, and how much risk you want to take on.

With Tendium's Intelligence you can see competitors' hit rates, giving you a solid benchmark to measure yourself against. See where your hit rate stands today and set a target to aim for.

Cost per won procurement

If you want to go a step further, cost per won procurement is an excellent KPI to measure. Then you don't just know how often you win, but also what the win costs you.

To do that you need to keep track of:

• How many procurements you win.

• The cost of a tender.

Keep track of reasons you don't submit a tender

Many bid organisations keep track of the tenders they submit, but have much less visibility into all the procurements they look at but choose not to pursue.

That's a shame! Because there's a lot of interesting information here.

Make sure you save procurements you've evaluated, and note the reason you decided not to pursue a tender. It could be mandatory requirements you don't meet, poor terms, or simply that you didn't have time.

And the next step, of course, is: how can you develop so you can go after more deals?

In Tendium you can document why you didn't submit a tender and produce a list of all these procurements for further analysis.

Analyse lost contracts

You obviously can't win every procurement. But it's important to understand why you didn't win, and follow up on that over time.

Was it the price that decided it? Did you not get as high a score as you think you deserved? How can you make the tender stronger next time?

Here too, you can note in Tendium why you didn't win the procurement and produce a list of these procurements for analysis.

Look for efficiency opportunities

A high hit rate goes hand in hand with an efficient bid organisation.

Here's a good example. How long does it take from a procurement being published to you making a Go/No-Go decision? That matters a lot.

1. A strong tender is important for improving your hit rate.

2. That means it's important that you, as an organisation, give yourselves the conditions to produce a strong tender.

3. One of those conditions is time.

The more time you spend evaluating potential business opportunities, the less time you have left for the tender itself.

So: streamline how you monitor procurements and review new business opportunities, so you can get started on the tender as early as possible.

Look for these kinds of small time-wasters in your bid work and keep streamlining the process step by step.

Tendium works hard to minimise the time bid teams spend on unnecessary admin. Read more about how you can monitor procurements more smartly and quickly.

Create the conditions for a higher hit rate

The right tools give you the ability to both analyse your results and save valuable time in the bid process. Book a demo and we'll show you how you can work smarter, faster and more efficiently.