This percentage shows you the rate in which quotes are being converted to contracts.
Depending on your service offering, an approved quote can be converted into a contract which is defined by a specific long length. In the contract creation process (see diagram below), you have the ability to convert a quote to a contract. Information relevant from the quote will pre-populated the contract.
If you have a low conversion rate, it's important to understand why your open quotes aren't being converted into revenue.
WAYS TO IMPROVE:
1) Define your Products and Services better.
It’s important to define what products and services you are offering, what problems you are resolving, and what value you are providing.
Solution: Ask you best customers to define your product and how it has helped them. Note the industry they are in so you can address this market in their own language. They are good at explaining what you offer to people in their same situation.
2) Improve the Quote description and content.
It’s essential in a quote to any customer to be clear and as concise as possible. There is a reason for limited characters so you don’t bombard your customers with too much irrelevant information. They want to know you are able to clearly communicate expectations and how you will be meeting their expectations. Keep it clean.
3) Customers are not ready to be apart of the buying cycle.
Sometimes, a business can provide customer with a quote when they are not ready to be in the buying cycle. These customers need to be educated and inform about your products and services in order to be ready to take the next step, which is an actual purchase. These customers should not be receiving quotes.
Talk to your customers to see why they are not ready to purchase and what is holding them back. Make effort to constantly improve your workflow and business objectives to ensure total customer satisfaction. Even if they are not ready to buy something now, it doesn’t mean they won’t buy anything in the future.