CPQ (Configure, Price, Quote) software is a powerful tool that helps companies quickly produce accurate and highly configured quotes for their customers.
The way CPQ manages to produce such quick and accurate quotes is by centralizing all the necessary pricing information. That way, the pricing data is streamlined so companies can save time and make more sales.
Many businesses, however, still don’t use CPQ during their sales processes because they don’t realize the positive impact it can have on their business, they aren’t sure if it’s worth investing in it, or perhaps, they think that they don’t need it. Which brings us to our next question.
It is actually easy to find out if you should invest in CPQ software. Your business would benefit from CPQ:
• If you sell multiple products/services that are configurable
• If you sell a wide range of products/services
• If you have multiple sales channels
• If quote creation takes too long
• If the created quotes are often inaccurate
• If there are missed opportunities for cross-selling and up-selling
If the current situation of your business fits the description of one (or more) of these, then it might be time to consider getting a CPQ software.
Considering the importance of sales within any company, CPQ software will definitely prove to be one of the most beneficial tools that your business will use. With that in mind, let’s go over some specific benefits that a CPQ software can bring to your business.
As we have already mentioned, CPQ is designed to improve the quote and pricing accuracy for your business. The possibility of making a mistake by quoting wrong prices, products, or incompatible product configurations will be minimized. This is important because you might lose time and money, or the customers could leave for your competition because of the mistakes that were made during the sales process.
Time is money. For a business, this means that any wasted time will also result in wasting money along with it. With CPQ software there won’t be any more delays caused by outdated pricing, outdated product/service information, manual errors, or approval backlogs. Not only will this increase the chances of winning the order since you can get back to the customers quickly, but it will also free up the time for your sales team so they can sell more.
CPQ software can also present more opportunities to up-sell and cross-sell at the various stages of the configuration cycle. For example, by also pointing out another product that a customer might need or perhaps to bundle the two products together for a cheaper price. To conclude, CPQ gives you the opportunity to increase your average deal size with the help of up-sell and cross-sell recommendations that will align with the preference of your customers.
CPQ makes it quicker and easier than ever to update the existing products and to introduce new ones. All the changes will be updated in real-time and through your entire business, ensuring that the sales team has the most up-to-date product catalog and price list. It is also possible for the CPQ to keep a history of the changes so you can revert them when it’s necessary. CPQ can also help you keep track of the current stock of products, show different price/currency according to the location of the buyer or to apply discounts to certain quantities and specific customers.
By analyzing all the information that is gained during the sales process, we can determine what part of the process is working well and what isn’t. Analytics can also help us to better understand the demand for specific products or product configurations, to get the visibility of real-time activities of your sales reps, to flag the quotes that stray away from the established rules for further review, and more.
Customer service can make or break a business. After all, the welfare of a business depends on its customers so high-quality customer service is necessary to keep your customers satisfied and your business running. You don’t want your customers to get their quote a month after they needed it or containing mistakes, as that will make them dissatisfied and your competition might seal the deal in the meantime. That said, CPQ will ensure that your customers get their quotes quickly with minimal chances of error which will, in turn, make it more likely to convert them into an actual customer.
Perhaps the best reason to consider getting CPQ is that it will contribute to your business growth. Since CPQ will help you bring more revenue and profits, it will boost the overall growth of your business, allowing you to expand it further.
As we can see, there are many benefits in implementing CPQ. If you are really serious about profit growth and want to get ahead of your competition, then it might be a good idea to invest in it.
If you are interested in implementing a CPQ software, contact us for more info.