How CPQ Software Can Help Improve Sales Efficiency
Many industrial companies need more efficient revenue processes, including slow quoting, siloed product data, and complex configuration management and pricing. CPQ software can help improve sales efficiency by automating pricing and generating quotes quickly and accurately.
A fast, accurate sales quote process is vital to winning business. CPQ software can help speed up the process, automate pricing, reduce errors, and make it more easily scalable.
Improved Visibility of Options
A CPQ system can reduce the number of product options your sales teams need to know by automating rules that only show the product choices and prices applicable to a specific customer. This can dramatically improve the speed at which quotes are delivered and help companies meet the rising expectations of customers who want a delightful experience responsive to their unique needs.
Often, industrial manufacturing companies have complicated configurable products that require an extensive catalog of options and relationships between those options. Even a highly trained sales team may only have part of the catalog committed to memory. Moreover, CPQ software can help streamline the quoting process by providing sales reps with a simplified and centralized tool that offers guided configuration, nested bundles, unified pricing, advanced approval management, templated proposal generation, and contract integration.
A streamlined quoting process gives your sales team more time to focus on building relationships with customers and closing deals. It also eliminates the need for multiple people to review a quote, which can reduce errors and delays. Personalized, professional quotes can be created by sales reps and channel partners in minutes, saving time for everyone involved in the revenue process. This allows organizations to quickly turn quotes into proposals that are ready for eSignature and can accelerate the revenue cycle.
Automated Pricing
As a result, companies that use CPQ can see a decrease in the time required to create customer quotes. CPQ software also increases the accuracy of pricing. Rather than having the sales rep undergo a lengthy process for each section, CPQ software can automatically generate prices based on the configured product’s specs. The system can then display a range of prices for each option and configure discounts and other company pricing policies that may apply.
Sales teams don’t have much time to waste on administrative tasks when connecting with customers and building relationships. By reducing the time that salespeople spend configuring products and creating quotes, CPQ solutions can free up more time for the team to focus on customer interactions.
Ultimately, the best CPQ vendors do more than provide a set of tools to help simplify the creation of quotes. They offer a solution integrated with critical sales processes and systems. This allows all departments to collaborate and ensure the final section is accurate and compliant and can be confidently sent. This can increase customer satisfaction, reduce the cost of sales and allow for a more sustainable growth model.
Streamlined Quote Creation
CPQ software makes creating and delivering accurate sales quotes for complex products or services accessible. It also helps companies identify areas to improve and optimize the quoting process.
Consider this: salespeople spend significant time creating quotes and submitting them to their customers for approval. A CPQ system reduces this time by automating a quote’s configuration, pricing, and generation. This provides a fast, seamless experience for the customer and eliminates the need for human intervention.
If the quoting process isn’t streamlined, it can lead to several problems for the company. For example, a customer might receive an inaccurate quote or a higher price than expected. A CPQ solution can help prevent these errors by ensuring that all sales quotes are accurate and compliant with company rules and regulations.
When implementing a CPQ system, it’s essential to consider the needs of all departments involved in the sales process, including Sales Management and Operations, Finance, and Legal. This will ensure that the CPQ solution is designed to address all of these needs. By addressing the issues causing inefficiencies, companies can get the most out of their investment and drive more value for their customers. This will result in increased revenue and improved overall business efficiency.
Reduced Errors
When generating sales quotes, mistakes are costly and can be highly frustrating for both teams and customers. CPQ Software easily avoids these mistakes and improves quoting speed and accuracy.
For example, a manufacturing company may need to provide custom pricing and configuration for each customer. With CPQ software, these customized options can be automatically added to the quote to ensure it accurately reflects the customer’s needs. It also helps to eliminate the need for a manual review process.
Similarly, the automated pricing mechanisms in CPQ software help limit rogue discounting that can cause harm to margins. By defining specific thresholds, sales managers can ensure that discounts don’t go overboard or negatively impact revenue. Additionally, the guided selling tools in CPQ can help sales reps upsell and cross-sell products to potential buyers.
Ultimately, CPQ is a valuable tool that can be used by many different departments within an organization. If your team is experiencing issues such as a lack of standardized pricing, advanced product configurations, inconsistency with discounts, and non-compliant contracts, a best-in-class CPQ solution can make all the difference. To determine what type of CPQ is right for your business, consider the needs of your Sales Management and Operations, Finance, and Legal departments to find a solution that will address those specific challenges.
