CPQ is software that provides sales reps with tools to create accurate price quotes in the fastest time possible. It can also help to eliminate human errors that could cost your business revenue.
If your MSP offers complex and configurable products, CPQ can significantly improve your sales process by driving consistency and increasing sales velocity.
Improved Sales Process
One of the most significant benefits of CPQ software is that it saves your sales team time. Configuring products, creating quotes, and routing them for approval takes days or weeks when done manually. A CPQ solution reduces this process to minutes or even seconds. This frees up valuable time for your sales team to interact with prospects and customers.
In addition, CPQ eliminates human error. This is especially important if your company uses complex product configurations, multiple pricing schemes, and recurring or subscription-based business models. In these situations, the slightest mistake can lead to a lost sale or a costly overpayment for your organization. CPQ solutions are designed to prevent these mistakes by automatically checking that each product and service combination meets specific requirements, such as quantity discounts or contract pricing.
CPQ can also help you create bundles and configurations that make sense for your customers. By leveraging subject matter experts, the CPQ system can determine the best options and designs to offer your buyers. These are then entered into the system as rules so your salespeople can confidently build tailored solutions for each customer. When the entire team is involved in this process, your company becomes more solution-oriented and customer-centric.
While sales teams are the primary users of CPQ systems, these solutions can be optimized to benefit the entire organization. This includes product and marketing teams, sales, renewals, finance, and legal departments.
While salespeople are the most likely to use CPQ, it’s a tool that can benefit the whole company. A CPQ system will significantly impact your entire revenue generation process. In addition to providing a better-guided selling experience for customers, the CPQ software can also improve pricing and sales quoting efficiency.
For example, if you sell configurable products (e.g., airplanes or new headquarters), CPQ can create bundles and configurations that make sense for your buyers. Subject experts on the product will determine these configurations and enter them into the CPQ system to serve as rules for salespeople to follow when creating quotes. This helps reduce the time spent on your team building and sending complex quotes.
CPQ software can also help companies establish consistent quoting processes with pre-configured guardrails that limit rogue discounting and improve contract pricing. Additionally, CPQ can enable sales teams to enlarge order sizes by showing upsell and cross-sell opportunities that increase the overall deal size.
Lastly, a CPQ solution can provide analytics and reports that allow finance departments to see the accurate revenue picture. This can help with forecasting and planning for the future. It can also identify pricing trends and patterns that may help the business during a downturn or an upswing in growth.
Improved Customer Satisfaction
In a world where customer experience matters more than ever, businesses can’t afford to send out poor-quality quotes. By using CPQ software, companies can ensure that the sections they send out meet compliance and profitability requirements, thereby improving customer satisfaction.
In addition, CPQ software can be used to help up-sell customers on add-ons and accessories. This helps to increase the average deal value and allows sales representatives to make recommendations without being overly pushy.
CPQ can also improve customer service by allowing sales reps to answer questions quickly and accurately. This is because the system will use rules to guide them and display only the relevant options for each situation. This is particularly important when working with complex products with many possible configurations.
Another area where CPQ can improve customer satisfaction is by reducing the time it takes to create a quote. Typically, a CPQ solution can cut the time needed to prepare a quote from days and weeks to minutes and hours. This reduces the work required for sales reps and channel partners and can increase overall productivity.
Other departments that benefit from a CPQ solution include marketing and finance. Marketing can use the data provided by a CPQ solution to spot trends in the market and position their business to take advantage of them. Similarly, financial departments can use the data provided by a CPQ system to understand exactly how much money their company makes from each sale.
CPQ software is a powerful sales tool that can streamline the quote-to-order process. It helps businesses configure products based on customer requirements, determine pricing rules based on product features and quantity, and create optimized quotes for each business case. This technology can help businesses increase revenue by making it easier for salespeople to close deals. It also eliminates the back-and-forth between sales and customers, which can lead to a lack of consistency in customer experience.
In addition, using a CPQ solution can help businesses avoid manual errors during the quoting process. These errors can be costly for the company and result in delays in submitting accurate sales quotes to customers. Often, these errors can be traced to human error during the quoting process or a misinterpretation of the product configuration. This can be difficult to detect, especially with a large quoting volume.
Finally, a CPQ system can help reduce the time sales reps spend on administrative tasks and data entry. Removing quoting, pricing, and proposal management processes from their workflows gives them more time to focus on prospecting and connecting with customers. This can make it easier for them to meet or exceed their sales quotas. To learn more about CPQ and how it can improve your sales process, contact us to schedule a demo today.