The Quote to Close KPI measures the number of formal quotes sent out by your sales team compared to the number of deals closed. To formalize a quote, send out a quote that can be documented and that even requires a signature or some other form of explicit acknowledgement. This KPI is used to help prioritize how much time your sales team spends on any given opportunity and to gain an understanding of your key conversion metrics.
The quote to close KPI can be used in conjunction with the current opportunities metric to assess the probability of closing a particular deal. If your sales team has a strong quote to close rate, you can say with certainty that opportunities with a quote in hand are highly likely to convert and are well worth your team's time. Depending on your industry and business model, however, your quote to close may be very high in which case you may want to consider automating the quotation process to maximize your sales team's efforts.
This KPI represents a point where sales and marketing intersect. Marketing's goal is to attract qualified leads, and this KPI provides an indication as to how qualified those leads actually are. If your lead to quote ratio is high, then you know that leads are unqualified and not entering the sales pipeline for the right reasons. Consider pairing this KPI with the cost per lead KPI to provide your marketing team with much needed ROI data and to foster improved communication between sales and marketing.
- Quote: A formal or informal proposal for a sales transaction.
- Lead: New prospects generated by a marketing campaign.
- Wins / Closed deals: New customers generated through sales efforts.
- A low or decreasing quote to close ratio.
- A low or decreasing lead to quote ratio.
- An increase in the quality of leads.
Monitoring Sales KPIs on a Dashboard
Once you have established benchmarks and targets for your Quote to Close Ratio, you’ll want to establish processes for monitoring this and other sales KPIs. Dashboards can be critical in this regard. Read more