What is the cycle time for the quoting process? Definition
Also called quote cycle time, it is defined as the total amount of time it takes for an organization to create an accurate quote estimating when a configured product will be delivered.
Reducing the cycle time for the quoting process increases close rates, making it an invaluable metric that reflects how well-orchestrated each department is in the quote-to-cash process.
Who owns the cycle time for the quoting process?
The major reason why optimizing the cycle time for the quoting process is challenging and complex is that it is not owned by a single department. It is governed by multiple teams including sales, finance, engineering and delivery. Although each team has a specific role (the finance team is responsible for revenue management and the sales teams for preparing quotes), all departments must combine their expertise and work in an efficient and collaborative manner to create, optimize and deliver the final quote.
What is the importance of efficiency in cycle time for quoting?
A longer and slower cycle time for services quoting takes up more resources, increases the costs and blocks the ability to monitor and realize expected revenue from service delivery.
Dysfunctional or slow cycle time can make customers switch to competitors who promise to deliver a better experience.
What is the role of services quoting software in cycle times for professional service organizations?
Services quoting cloud software Provus enables your PSO to manage the cycle time for quoting efficiently and effectively. Here’s how.
- Automates services quoting process to reduce the time sales reps would spend on creating services quotes.
- Guided selling pulls historical data to give insights into what works and increases the average deal size.
- AI-led scenario planning improves win probability, maximizes revenue and stops revenue leakage to increase the gross margins.
