Lead time from quote to order: how to calculate and shorten it
How to calculate the lead time from quote to order and your conversion rate, see where the delay sits and shorten it with follow-up and online approval.
In this article
Short answer
The lead time of a quote is the date of approval minus the date you sent it, in days. Take the median of your accepted quotes as a starting point, also look at the share that never signs, and shorten the time with a fixed follow-up moment, a reminder and online approval.
By the makers of stiptUpdated September 21, 20266 min read
How do you calculate the lead time of a quote?
The formula is simple: lead time = date of approval minus date sent. The result is a number of days per quote. Across a series of quotes you look at two numbers: the average and the median.
Choose one rule for the starting point up front and stick to it. If you change a quote after sending it, count from the first send or from the version the customer signed, but do not switch per quote. And make sure an approval by phone or WhatsApp goes into the system right away. Otherwise you measure the day you entered it, instead of the day the customer said yes.
What is a normal spread?
There is no general norm. An air conditioning quote for a private customer runs differently from a heat pump with a subsidy, and a business customer decides with more people than a household. A benchmark from a report therefore tells you little. Your own numbers tell you more.
This is how you find your own average. Take the accepted quotes from the past period, for example the last thirty to fifty. Work out the days per quote, sort them and read off four numbers: the fastest, the median, the average and the day by which nine out of ten were signed. Suppose ten accepted quotes had these lead times in days: 2, 3, 3, 4, 5, 6, 7, 9, 14 and 41.
How to read those ten quotes
| Measure | Result | What it tells you |
|---|---|---|
| Fastest | 2 days | Sometimes a customer decides right after the site visit |
| Median | 5.5 days | Half were faster, half slower: what is usual |
| Average | 9.4 days | Pulled up by the single outlier of 41 days |
| Nine out of ten within | 14 days | Use this to plan your follow-up |
Fictional numbers, as an example. Use your own quotes.
Do you also measure the quotes that never sign?
The lead time of accepted quotes leaves a gap: quotes that never sign do not count. A short lead time with few approvals is not good news. So also measure conversion: the number of accepted quotes divided by the number of quotes sent from the same group.
Suppose you sent 40 quotes in March and 14 were accepted. Then conversion is 35 percent. Only look after a few weeks, otherwise part is still open and conversion looks too low. Also split by type of work. An average across solar panels, air conditioning and maintenance together hides the differences.
Where does the delay sit?
| Phase | What happens | How you see it | What helps |
|---|---|---|---|
| From enquiry to sent | The quote sits with you: survey not processed yet, prices to look up, evening work | Many days between site visit and send date | Build the quote from the record, shortly after the visit |
| From sent to viewed | The email does not arrive or goes unnoticed | The status stays on sent | An early reminder and a check that the address is right |
| From viewed to decision | The customer hesitates, compares, consults or waits for financing or a subsidy | Viewed, but no approval yet | Call and answer questions, instead of another email |
| From decision to approval | The customer is willing, but signing is a hassle: printing, scanning, emailing back | Viewed, and approved only days later | Online approval through a link, without printing or scanning |
The first phase falls outside the formula, but the customer certainly feels it.
How to shorten the lead time, without being pushy.
- 1Send quickly
Send the quote while the site visit is still fresh. Every day you let it sit counts in the customer's experience.
- 2Let the customer approve online
A link with digital acceptance and signature saves printing, scanning and emailing back.
- 3Set a validity period
A quote with an expiry date gives the customer a reason to decide. Let the period only start running when you send.
- 4Plan a fixed follow-up moment
Pick a moment, for example three days after sending if the quote is not signed yet, and a second shortly before the validity ends.
- 5Let the reminder go out by itself
Set the email up once, so it goes out without anyone having to remember.
- 6Call those who hesitate
If a quote has been viewed but not signed, a phone call works better than a third email. Have a task for that call created automatically.
How do you set up the follow-up?
Set the follow-up up once and let it run. In stipt you do that with a rule. As the trigger you choose a number of days after a quote status, for example three days after sent, and as the action an email to the customer or a task 'Call the customer' for a colleague. A second rule can fire shortly before the validity ends.
If the customer says yes by phone, you mark the quote as accepted with one button. That keeps your lead time correct, and the reminder that was scheduled after sending no longer goes out after the approval.
Frequently asked questions
How do you calculate the lead time of a quote?
Date of approval minus date sent, in days, per quote. Across several quotes, take the median and the average. Always use the same rule for the starting point, for example the first send.
What is a good lead time for a quote?
There is no general figure: it depends on the type of work, the amount and whether the customer is private or a business. So compare with your own history per type of work and watch the trend. If the lead time grows, there is a delay somewhere.
What is the difference between lead time and conversion?
Lead time tells you how fast a customer decides, conversion how many customers say yes. A quote that is signed quickly counts in both, but a quote that never signs only counts in conversion. So measure both.
How quickly should I follow up a quote?
Many businesses choose a first reminder after a few days and a second shortly before the validity ends. More important than the exact moment is that it happens by itself, and that you call after a viewed but unsigned quote instead of sending another email.
Should a quote have a validity period?
It helps. An expiry date gives the customer a reason to decide and gives you a natural moment to call. Let the period only start on the day you send, otherwise a quote that sat as a draft for weeks goes out already expired.
Read more
More articles. On software and processes in the installation trade.
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