In automotive repair the quote capture rate is a measure of the percentage of quotes that turn into sales within a given time period. So if a shop provides 10 quotes in a month and 4 quotes turn into repair orders within that month then the quote capture rate would be 40 percent. Quotes can be provided for potential new customers as well as existing customers. Usually the quote capture rate is much higher for existing customers than for prospective customers. This writing will focus on prospective customers although many of the same principles of the quoting process apply in either situation. Many factors can impact the effectiveness of the quoting process and the following are points to consider when evaluating success in quoting:
- Prospect Follow Up – When a prospective customer asks for pricing on services often the shop will quote a price over the phone and not pursue the sale any further after the initial interaction. This can result in a good number of missed opportunities. Following up on quotes can result in more sales as well as information on lost sales. Usually a customer will consider it a positive when a shop takes the time to follow up with them and follow ups offer an opportunity at relationship building. So if the person doesn’t become a customer as the result of the quote – they may become one in the future.
- Quote Development – Producing quotes takes time and therefore there’s a cost associated with the quoting process. So it would stand to reason that the amount of effort put into providing a quote would be affected by the size of the potential sale. Consideration should always be given to the prospective customer’s perspective when considering quotes. When a customer sees that a thorough job was done in producing a quote it will likely affect their decision in a positive way. A well-built quote communicates completeness and accuracy.
- Sales Process – The selling process when a quote for new business is involved can make or break the deal. Of course pricing is important but presentation may be even more important. Offering multiple options and presenting the quote in an easy to understand format will help the customer decide on the services offered. Taking a consultative approach and explaining the benefits of alternatives will help to build the relationship and earn trust. The communication involved in the quoting process can be a huge factor in turning quotes into sales.