Conversion Improvement Workbook

How to use this tool. This workbook is for owners and sales leads who get enquiries but suspect too many are slipping away. Set aside about 90 minutes with your CRM, quoting system or a spreadsheet of the last 90 days. You will finish with your conversion rate at each stage, the dollar value of your biggest leak, and a short action plan with owners and dates.

Why this matters

Most small businesses try to grow by getting more enquiries. That is usually the most expensive route. If you already pay for leads through marketing, referrals or your own time, lifting the share that turn into paying work is often cheaper and faster.

The catch is that "our conversion is low" is not a decision. You need to know which stage is leaking and what that leak costs. This workbook gives you both.

The method

1. Define your stages. Use the stages a job passes through from first contact to signed work.
2. Count the last 90 days. Use real numbers from your records, not memory.
3. Calculate the conversion rate at each stage.
4. Put a dollar value on each leak. The biggest percentage drop is not always the most valuable fix.
5. Diagnose the winning stage. Use the lost-deal log and the checklist.
6. Commit to three fixes at most. Give each an owner, a measure and a date.

The formulas in words

• Stage conversion rate = the number that moved on to the next stage, divided by the number that entered the stage, times 100.
• Overall conversion rate = sales won, divided by total enquiries, times 100.
• Gross profit per sale = average sale value multiplied by your gross margin percentage. Use gross profit, not revenue, because revenue overstates what a win is worth to you.
• Value of a fix (per 90 days) = the number entering the stage, times the realistic improvement in percentage points divided by 100, times the win rate of all later stages combined, times gross profit per sale. For the final stage (quote to won), the later-stage win rate is 100%.

Tool 1: Your funnel, last 90 days

Adjust the stage names to suit your business. Delete or add rows as needed. Count each enquiry once.

Worked example: Banksia Ridge Commercial Fitouts (fictional)

Banksia Ridge is a Perth fitout contractor. Its owner pulled the last 90 days of records.

Average sale value is $18,500 and gross margin is 30%, so gross profit per sale is $5,550.

Next, the owner tested a realistic 10-point improvement at two stages:

• Quote to won: 54 quotes × 10 ÷ 100 = 5.4 extra wins. Later-stage win rate is 100%. Value: 5.4 × $5,550 = about $29,970 per 90 days.
• Qualified to quote sent: 90 × 10 ÷ 100 = 9 extra quotes. Those win at 29.6%, so 2.67 extra wins. Value: 2.67 × $5,550 = about $14,800 per 90 days.

These are estimates, but the comparison is clear. The quote stage is worth roughly twice as much, so that is where Banksia Ridge starts.

Tool 2: What is each leak worth?

Use a realistic improvement, usually 5 to 10 points. Do not use a wish.

Your biggest-value stage is: ______________________

Tool 3: Lost-deal log

List your last 10 lost or stalled quotes. Be honest about whether you know the reason or are guessing. If you have never asked, that is itself a finding.

Tally the reasons. Which one appears most often? ______________________

Tool 4: Diagnostic checklist for your priority stage

Tick only what is true today, consistently, not just when you have time. Every unticked line is a candidate fix.

Speed and first contact

• Every enquiry gets a human response within a set time, such as two business hours.
• Someone is named as responsible when the owner is on the tools or away.
• Enquiries are recorded in one place, not across inboxes, texts and notebooks.

Qualification

• We ask about budget range, timing and who makes the decision before quoting.
• We have a clear answer for jobs we should decline, and we decline them quickly.

Quote quality

• The quote goes out within a set number of days of the site visit or briefing.
• It restates the customer's problem in their words, not just a price list.
• It shows scope, inclusions, exclusions, timeline and next step on one page.
• Where suitable, it offers options (for example good, better, best) rather than a single number.
• It includes proof: a similar completed job, a reference or relevant accreditation.

Follow-up

• Every quote has a scheduled follow-up within two to three business days.
• We follow up at least three times before closing the quote as lost.
• We ask lost customers for the reason, in one short question.

Tool 5: Quote follow-up script

Adapt this to your voice and keep it short. Use it by phone, or by email or SMS if the customer has asked for the quote or otherwise consented.

Hi [Name], it's [Your name] from [Business]. I sent through the quote for [job] on [date] and wanted to check it answered your questions. If anything is unclear, such as scope, timing or options, I am happy to adjust it. If you have decided to go another way, that is fine, and a quick line on why would help us improve. Otherwise, would it help to speak on [day]?

Compliance notes (general guidance only): written follow-ups sent to people who have not asked for them can fall under the Spam Act 2003, which requires consent, a clear sender identity and a working unsubscribe. Check the Do Not Call Register rules before phoning individuals who have not enquired. Keep customer notes in line with the Privacy Act, collecting only what you need and storing it securely. Seek professional advice for your situation.

Tool 6: Action plan

Choose no more than three fixes, ranked by the value in Tool 2.

Reading your results

• Start with dollars, not percentages. A weak stage with few leads entering it may be worth less than a decent stage with many.
• Compare against your own history first. Healthy conversion rates vary widely by industry, job size and lead source, so general benchmarks can mislead. Your last four quarters are the best comparison.
• Check the sample size. With fewer than about 20 enquiries at a stage, one or two jobs will swing the percentage. Widen the period to 6 or 12 months.
• Look at timing. If quotes that wait more than a week win far less often than quotes sent fast, speed is your fix.
• Split by source if you can. Referrals usually convert better than cold enquiries. A low overall rate may just reflect a weak lead source.
• What good looks like: you can state your three stage rates from memory, you know why you lost the last five quotes, and every open quote has a next-contact date.

Common mistakes

• Using revenue instead of gross profit, which inflates the value of every fix.
• Setting a target by wish, such as doubling the win rate, rather than a 5 to 10 point move.
• Changing five things at once, so you cannot tell what worked.
• Counting stalled quotes as "pending" forever. Close them after your final follow-up so the numbers are true.
• Cutting price before checking scope clarity, speed and follow-up. Price is often cited when the real issue is trust or uncertainty.
• Measuring once and never again. Re-run this workbook every quarter.

Put it to work this week

1. Complete Tools 1 and 2 today using the last 90 days of records, and circle your highest-value stage.
2. Fill in the lost-deal log (Tool 3) and, if you do not know the reasons, call or message three recent lost customers with one question: what tipped your decision?
3. Work through the checklist (Tool 4) for your priority stage and choose the top one to three unticked items.
4. Complete the action plan (Tool 6), name an owner for each fix, and put the review date in the calendar for 30 days out.
5. Start the follow-up routine on every open quote from tomorrow, using the Tool 5 script.

Where Lotus helps

If your numbers show a leak but the cause is not obvious, we can analyse your pipeline data, review your quotes and sales process, and build a practical fix plan with you. Many members find an outside view quickly separates a pricing problem from a process problem. Book a free 30-minute discovery call at lotusstrategic.com.au.