What is CPQ and why do you need it? Gartner Inc, the world’s leading information technology research and advisory company, offers this definition of CPQ software: “Configure, price, and quote (CPQ) application suites provide an integrated set of software applications supporting the configuration, pricing, and quote generation activities that accompany solution and negotiated selling. CPQ application suites are also deployed to support self-service sales environments, including business-to-consumer (B2C) and B2B sales environments. CPQ systems typically include pricing engines, proposal generators, quoting systems, and rules or constraint engines, and are complemented by approval and authorization workflows.”
If you can answer yes to any of the following questions, then a CPQ solution can help to promote your company’s growth and streamline your sales processes:
- Is your pricing complicated?
- Do your product lines change frequently?
- Is it difficult to keep your products and pricing updated?
The top four reasons for investing in a CPQ solution are accurate pricing, compelling proposals, rapid quote generation, and more time to make sales. CPQ software has the tools to deliver all four.
1. Accurate Pricing
Complex product lines can make getting the right price a challenge. A CPQ software provides accurate prices because it automatically updates product and price changes. The software incorporates all order details with accurate pricing that includes such factors as bundling and discounts. Security features prevent sales reps from giving too large a discount or offering an expired promotion.
With a CPQ solution, pricing errors will not affect the company’s profit margin.
2. Compelling Proposals
A compelling proposal can distinguish you from the competition. With CPQ, your proposal tells the customer that you know what they want and that you are able to deliver it. CPQ software uses best practices for quote configuration, RFP documents and generates compelling quotes that offer the best solutions with the highest value, showing the customer that your company has the qualifications to fulfill their order on time without errors.
3. Rapid Quote Generation
A CPQ solution give sales reps the ability to improve the time from quote request to sale time. The software solves issues that are the result of slow quote processing, time spent generating the proposal, inaccuracies in product requests and price, and lost cross-selling and up-selling opportunities.
Chances are likely when a customer requests a quote, that the request is also being delivered to the competition. A CPQ solution can permit your company to generate a quote and respond rapidly to the request, because response time really does make a difference.
A quick quote response does not guarantee the sale, but in combination with the other benefits a CPQ software offers, it definitely makes a difference.
4. More Time to Make Sales
A CPQ solution eliminates much of the time sales reps spend preparing sales quotes using conventional configure, price, quote methods, freeing them up to make more contacts, deliver more quote requests, and make more sales. More sales generate revenue which means a better profit margin.
Singly, the four reasons may not be enough to choose a CPQ solution, but when combined they create a compelling reason to invest in the software. A CPQ solution can help your company to better meet the changing needs of your customers, offer them a competitive advantage and improve your brand’s status. A CPQ solution enables your sales team to make informed decisions, streamline processes, sell smarter, increase sales, and deliver an extraordinary customer experience.