A smooth flow from sales to revenue is vital for every business. CPQ software streamlines this process so your sales team can deliver personalized quotes faster and more accurately.
Implementing a CPQ solution requires a shift in processes and workflows. This change can be challenging, especially for sales teams accustomed to their existing methods.
Increased Productivity
CPQ (configure price quote) software can help sales teams increase productivity by removing manual steps that slow the creation of product configurations and pricing quotes. In the age of data-driven decision-making, a solution that eliminates time-consuming manual tasks for sales reps is hard to ignore.
Implementing a new tool in your business can be scary, but if you’ve struggled with a slow turnaround time for product quotes, CPQ is a great way to take back your selling power and speed up your profits. CPQ can also free up engineering and sales managers’ time so they can spend more time working on improving their products.
CPQ software uses rules to structure the configuring and pricing process, allowing sales team members to create accurate quotes quickly. These rules are organized into three categories: product, pricing, and workflow. Product rules contain your company’s engineering knowledge, ensuring consistency and reliability in the product design and configuration. Pricing rules, direct pricing mechanisms, and workflow rules automate processes, eliminating errors and improving coordination between departments.
Implementing a CPQ solution that can integrate with your other digital tools, including CRM and ERP systems, will make it easier for each department to work together to deliver a smooth customer experience. With a centralized location to store and track quotes, each sales representative can find what they need quickly and easily.
Reduced Errors
There are a lot of moving parts when it comes to producing quotes. From sales reps handing off product configurations and pricing to revops, who then hand it to finance for contract types and terms of service and back to the sales team to finalize, there are plenty of opportunities for things to go wrong.
With CPQ software, these errors can be significantly reduced. The software can automatically enforce pricing and configuration rules, eliminating the possibility of human error. It can also help to limit the amount of discounts that are offered so that sales don’t overdo it and hurt the company’s margin.
Another way that CPQ software can reduce errors is by enabling the company to standardize its product offerings. It helps sales teams understand what they’re selling, making it much easier to sell to customers. The system can also collect data on what options the customer did and didn’t select, which can be used to improve future product offerings.
By automating the quote generation process, CPQ software can reduce the sales cycle and increase the number of deals closed. It can be a significant boost for any business, especially in this competitive landscape. By leveraging the software, companies can focus on what they do best: engaging their customers and closing deals.
Increased Sales Revenue
When you implement CPQ software, it has an impact beyond just sales. Marketing, finance, operations, and engineering can also benefit from the new technology, providing a treasure trove of data to drive new revenue.
While a basic CPQ system can work with something as simple as a sandwich or a laptop, configuring and pricing more oversized products requires more complex rules and procedures. It is where a CPQ solution becomes invaluable, reducing the time needed to create a quote and helping your company increase sales by generating accurate quotes faster.
CPQ software can also reduce errors by ensuring all pricing and configuration options comply with your company’s pricing guidelines. It eliminates rogue discounting, which can have significant financial consequences for your business. Furthermore, the automation of CPQ allows for rules to be created that are more consistent so that even your most inexperienced sales rep can deliver a well-guided quote.
In addition, a CPQ solution can generate reports that provide insight into which products are selling and what customers are purchasing. This information can help you make more informed decisions about what to invest in and which products are the best fit for your company’s goals and market niche. It can also help you identify opportunities to expand into new markets or create unique product combinations that will be more appealing to your customers.
Increased Customer Satisfaction
CPQ systems can create a professional and customized quote for each customer. It allows salespeople to build a relationship with each client and demonstrate that they are listening and have developed an optimal solution for their needs. It also allows for an impeccable contract to be written, including terms and conditions.
When a proposal is generated with CPQ software, it is automatically passed through for review and approval. It reduces friction between departments and speeds up the process. It is beneficial for complex projects with many stakeholders and high levels of risk.
As a result, customers are getting proposals faster and are satisfied with the service they receive. This increased customer satisfaction is also because many of the errors and miscommunications that occur during the quoting process are eliminated.
During a CPQ implementation, it is essential to involve all departments using the system in the design and implementation process. This is especially true for sales teams, as they will be the primary users of the software. Identifying the existing bottlenecks, inefficiencies, and backlogs in the sales process is critical to ensuring that the tool will address these issues. Taking an MVP approach to the rollout of the device also helps with change management and can help gain buy-in from employees.
