KPISales

Quote-to-Order Rate

Percentage of customer quotations that convert into confirmed purchase orders

What is Quote-to-Order Rate?

Quote-to-order rate is the percentage of quotations issued that result in a purchase order. It shows how effective quoting is at winning business.

Quoting takes time, so a low rate suggests wasted effort or uncompetitive pricing.

How this KPI is measured

Function
Sales
Sub-function
Order Management
Industry
All Industries
Type
Lagging
Impact
Operational
Unit
%
Measurement frequency
Monthly / Quarterly
Formula
(Purchase orders received / Quotations issued) × 100

How to calculate it

Divide purchase orders received by quotations issued, and multiply by 100.

For example, if 400 quotes were issued and 120 turned into orders, the rate is 30%.

Measure over a period long enough for quotes to convert, and split by product and customer type.

Where it is used

  • Judging pricing

    Assess competitiveness.

  • Improving quoting speed

    Test whether faster quotes win more.

  • Prioritising effort

    Focus on quotes likely to convert.

How to improve it

Tips and common mistakes

  • Track quote validity periods.
  • Compare by customer type.
  • Do not cut price on every quote.

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