Quote Conversion Rate
Overview
The Quote Conversion Rate feature helps you track how effectively your quotes are turning into actual sales. It automatically identifies when items that were previously quoted to a customer are subsequently ordered by that same customer within a specified time window.
Key Settings
There are two important settings that control how the Quote Conversion Rate feature works:
1. Quote Conversion Window
This setting defines the maximum number of days between when an item was quoted to a customer and when it was ordered by that customer for it to be considered "converted."
Default value: 30 days
Location: Admin > Settings > Orders > Quote Conversion Window
2. Customer Quote Conversion Rate Days
This setting determines the time period (in days) used when clicking the Re-run Quote Conversion Check button.
Default value: 365 days
Location: Admin > Quotes & RFQs
How Quote Conversion Status Works
The system now automatically marks order lines as "converted" when the following conditions are met:
- An item was previously quoted to a customer
- The same item is later added to an order for that same customer
- The order line is created within the Quote Conversion Window (days) from when the quote was created
- The order is not a draft and has not been deleted
This conversion status is updated:
- When an order is published (changes from draft to published)
- When new lines are added to an already published order
- When the system runs the scheduled conversion status update
Quote Conversion Rate Calculation
The Quote Conversion Rate is calculated as follows:
Quote Conversion Rate = (Number of Converted Order Lines / Number of Quoted Lines) × 100%
Where:
- Number of Converted Order Lines: Count of order lines marked as "converted" within the specified time period
- Number of Quoted Lines: Total count of quote lines created within the specified time period
Examples
Example 1: Quote Conversion Status
Scenario:
- On January 1, you create Quote #1001 for Customer ABC with Item X
- On January 15, Customer ABC places Order #2001 that includes Item X
- Your Quote Conversion Window is set to 30 days
Result:
The order line for Item X in Order #2001 will be automatically marked as "converted" because:
- The same item (Item X) was previously quoted to the same customer (Customer ABC)
- The order was placed within the Quote Conversion Window (15 days, which is less than the 30-day window)
- The order is not a draft and has not been deleted
This happens automatically when the order is published, without requiring the use of the "Convert Quote to Order" functionality.
Example 2: Quote Conversion Rate Calculation
Scenario:
- Customer Quote Conversion Rate Days setting: 30 days
- In the last 30 days, Customer ABC received 20 quote lines across various quotes
- Of those 20 quote lines, 5 were subsequently ordered and marked as "converted"
Calculation:
Quote Conversion Rate = (5 / 20) × 100% = 25%
This means that Customer ABC has a 25% quote conversion rate over the last 30 days.
Re-running the Conversion Check
The system automatically updates the conversion status of order lines based on the configured settings. However, if you change the Quote Conversion Window setting, you may want to re-run the conversion check to update all historical data.
To manually trigger a re-check of all order lines:
- Go to Admin > Quotes & RFQ
- Find and run the
Re-run Quote Conversion Checkbutton
Best Practices
- Regularly review your Quote Conversion Rate to identify trends and opportunities for improvement
- Consider adjusting your Quote Conversion Window based on your typical sales cycle
- Use the Quote Conversion Rate as one of several metrics to evaluate sales performance
Note: The Quote Conversion Rate feature is designed to provide insights into your sales process. It works best when your team consistently uses quotes as part of your sales workflow.