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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