How to Improve the Conversion Rates of Quotes

Reading Time: 6 minutes
Reading Time: 6 minutes

 

Most value added resellers (VARs) depend on sales quoting to do business with their customers. Quoting is an indispensable part of the sales cycle. VARs send out quotes to hundreds of potential customers on a monthly basis but surprisingly very few get converted to a sale. A dismal quote-to-sale conversion rate can hamper the growth of any business.

As a VAR, how can you convert more quotes into orders? Here are some strategies to improve the conversion rates of quotes:

Invest in a powerful quoting software

A slow response time to quote requests and the inability to provide timely accurate quotes negatively impacts your conversions. Resolve these issues by using a quoting software that is designed to speed up your quoting process.

Create error-free sales quotes in minutes and save time and money. Other benefits of a sales quoting software include the ability to create attractive, professional quotes in a PDF format. This can leave a lasting impression on your customers and increase your chances of winning the deal.

A good CRM is a game changer

CRM software gives you a good understanding of your customers and a detailed insight into their needs. You get in-depth knowledge about your customers’ previous orders, buying history, favorite products, etc. This lets you develop quotes that represent the best products for their specific needs.

A quotation software that supports CPQ will take your IT business to the next level

When you quote complex products that require configuration, choose a quote management system that supports the Configure, Price, Quote (CPQ) functionality. Optimize your complex quoting process with CPQ software that automates the process of configuration, pricing and quoting of complex products.

A customer might want to buy a laptop with a unique configuration. Say, a Lenovo laptop with a 12.1-inch widescreen, Memory – 4 GB RAM, Hard drive – 1 TB, Graphics Card – NVIDIA GTX 950 2 GB DDR5, Processor Type – Core i5. When the customer is looking for a customized configuration for a software product, quoting it manually can be tedious, in turn slowing down the sales cycle. A CPQ tool will enable you to create such customized quotes in minutes.

A quotation software for small business with CPQ capabilities will allow you to quickly configure, calculate the price, quote the product accurately and present it in a professional manner. 

Sell bigger, sell faster and sell more by incorporating a quoting tool integrated with a CPQ functionality.

You can even present the quote on your ecommerce store and allow your customers to create their own product configuration, making the entire quote to ordering a very seamless and unified process. Letting your customers build their own quotes via the website, can also help to increase conversions.

Clarify the client’s requirements and respond to them

Not having a clear idea about customer requirements can stifle conversions. Many times, a quote fails to meet the requirements of the customers and is rejected. To avoid this, pay close attention to your customers’ request and understand their requirements well before you write a quote.

Ensure that you have documented all the details of your customer’s requests. If possible, you can even set up a meeting to understand their needs. When in doubt, contact the customer immediately for any necessary clarification. 

Once you comprehend their requirements, identify the products and solutions that best fits their needs. Never quote unless you’re sure you can deliver.

Another factor to consider is your customers budget. If the products you quote are way above what their budgets permit, your quote will get rejected no matter how good your product is. So, before you quote a price, inquire about their budget and make sure you tailor products within their budget.

Make your response client specific

To win eyeballs and improve conversions, it is important that you personalize the content of your quotation emails. Do not just cut and paste content from old emails.

Though you are dealing with a business, there is a person who does the buying. Address your mails to the person sending you the correspondence. This builds a connection.

As a reseller, you know more about the industry than your customers. Recommend solutions you think will be better suited to your customers needs than what has been requested by them, especially if it saves them money.

This gesture shows you care about your customers and are willing to go above and beyond to help them.

Automated tax and freight calculation make your life easy

Using Excel spreadsheets for tax and freight calculations can be tedious and delays sending quotes to your customers reducing the chances of conversions. Use an easy quote software that comes integrated with a tax database and shipping carriers like FedEx, UPS, USPS, DHL, etc. 

This will enable you to get the sales tax and freight charges for quoted products with a single click of a mouse. The quotation management software will calculate tax and freight automatically and allow you to give a faster response to quote requests.

A good structured quote is easy to read

The sales quotes that you prepare for your customers often give the first impression of your business. Every quote sent to the customer reflects on your company. 

Hence, it is imperative that you create a well-structured quote that provides all the necessary details in an easy-to-read format. Keep your quote short and simple with a clear font and layout. A well-structured quote will have a quotation header, quotation body, and quotation footer.

The quotation header should contain information such as your company’s name, quotation number and date, contacts, name of the recipient, payment terms, etc. 

The requested products or services along with pricing information should be in the body and the quotation footer should have the total price of all products as well as the expiry date of the quote. Or better conversions include a call to action such as a signature.

Build a template with a strong brand identity

Make your quotes stand out and grab your customer’s attention by adding your company logo and choose colors that reflect your business’s brand identity. A sales quoting software comes with a wide range of templates to choose from. Customize these templates; make them unique by changing their appearance, font, and layout to match your own branding and increase your chances of conversions.

Spell check and then spell check again

Sending a well-written sales quotation is a good chance to impress your clients and improve conversions. However, quotes with grammatical errors or spelling mistakes is an indication of sloppy work. Grammatical mistakes in quotes can damage your credibility and lower your chances of winning the deal.

You certainly don’t want to be judged as someone who cannot spell or didn’t care enough to proofread your work. That is why before sending quotes, spell-check your document in Word and check its readability. 

You can also use software tools like ‘Grammarly’ to check for different types of errors. Ensure all words are spelled correctly and punctuation and grammar are correct.

Make it easy for your customers by offering an electronic signature option

For higher conversions, it is important that you simplify your interactions with customers. Manual approval flows is one of the biggest barriers in converting a quote into an order. 

Quote approval is a lot of paperwork that involves printing, signing and then faxing the document. Following this convoluted process can be tiring and delay conversions. A better way is to provide an electronic signature option attached digitally to your document.

An electronic signature option is convenient, saves times and will allow your customers to sign your quote document easily from their smartphones and tablets. 

With a single click, your customers can digitally sign the document, thereby converting it into an order. This will help to improve conversion rate and enable you to sell faster.

Conclusion

To improve your quote-to-sale conversion rate be professional and proactive when creating quotes for your customers. Every quote sent should demonstrate your ability to understand customer needs in the best possible manner. 

Present your quotes in a way that sets them apart from your competition. Most importantly, reduce time to quote and streamline your quotation process by incorporating a sales quoting system into your business.

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