The right CPQ software can help you improve your sales process by reducing quoting errors and speeding up the sales cycle. It can also help you increase revenue and reduce the time to value for new sales reps.
A CPQ system generates professional quotes that contain the products and services included in the sale, pricing information, terms and conditions, and other essential details. These quotes can be saved and used for future reference.
CPQ software can increase your business’ productivity in multiple ways. One of the benefits of CPQ software is that it simplifies the process of creating customer quotes and ensures that the quote you send them is accurate and complies with all rules and guidelines. This helps you avoid having to go back and edit the section and reduces the time your sales team spends waiting for approvals before sending out a new product quotation.
Secondly, it allows you to automate as many processes as possible. This means less data entry and fewer mistakes. It also allows you to speed up the process, meaning your sales representatives can spend more time building relationships with potential clients and generating revenue for your company.
Finally, it helps you create more detailed, personalized product quotations for your clients. This can be done through 3D and 2D visualizations that show them exactly what their finished product will look like. This will make them feel more valued as customers and give them confidence that your company understands their needs and wants.
If you want to implement a CPQ solution into your business, choose the right one for your needs. Ensure the vendor has experience working with companies like yours and offers customization options.
Automated Sales Processes
Unlike manual processes, CPQ software automates quote creation, reducing turnaround time and providing consistency. This helps reduce errors, improve presentation quality, and enhance the business image. It also allows sales reps to create and share personalized quotes quickly and accurately with their customers.
In addition, CPQ software provides real-time pricing guidance that can help sales teams increase margins through cross-selling and upselling. Additionally, CPQ can automatically generate custom terms and conditions for each configuration based on the product bundles and options the customer selects. This ensures that the quote document is accurate and consistent, ensuring that both sales and customer support are on the same page.
As a result, this eliminates the need for back-and-forth conversations between sales and internal teams. This allows sales representatives to focus more on their customers and closing deals.
In addition, a CPQ solution can collect and analyze data from the products sold to customers, giving businesses insight into the most popular and valuable options for each buyer type. Companies can use this data to make better strategic decisions regarding future product offerings. Ultimately, this leads to a faster, more efficient sales process for all involved. For B2B businesses, CPQ is one of the most critical sales technology investments you can make.
Increased Customer Satisfaction
CPQ software enables businesses to track customer preferences and recommend products or services that may be of interest. This can lead to cross-selling opportunities and increased revenue for your company. Aberdeen research shows that companies that use CPQ achieve a 105% larger average deal size than those without it.
Aside from the increased revenue, using a CPQ tool allows your sales teams to generate quotes faster to respond to customers within an acceptable time frame. A quote generated incorrectly or not within a customer’s preferred window of time can leave a bad taste in the mouth, so developing an accurate and attractive quote on your first try is essential for building long-term relationships with customers.
With the help of CPQ, sales representatives can confidently make pricing decisions and provide customers with accurate quotes that include all the components required for their unique product configuration. For example, suppose a customer orders a laptop computer with a high-end graphics card and a larger hard drive. In that case, the CPQ tool will automatically create a new part number for these additional components so that the laptop’s bill of materials will reflect the price for the unique configuration the customer is purchasing.
Furthermore, CPQ can integrate with other tools in your business, such as CRMs and ERPs, to allow you to send quotes directly into these systems, eliminating the need for data re-entry. This quoting process automation helps reduce errors, saving your sales team more time with each customer.
CPQ software helps sales teams sell more products at higher margins. It also helps finance teams see real-time profit and ROI for product investments. In addition, CPQ provides valuable insights to business leaders for evaluating the effectiveness of their pricing strategy.
One of the most significant benefits of implementing a CPQ solution is that it eliminates errors in the quote process. This reduces the potential for a sales representative to provide a price incompatible with a specific product configuration accidentally. It also reduces the time a sales rep spends preparing quotes by decreasing the amount of work that needs to be reviewed and approved by management.
Another significant benefit of implementing a CPQ system is that it helps to increase revenue by improving sales effectiveness and upselling opportunities. The guided selling capabilities within CPQ help to empower your sales team to take a more holistic approach to their customer or prospects’ problems by automatically bubbling up related products and services.
CPQ also allows for more product options to be created and configured, which in turn helps to create a world-class digital experience for your customers that will help to drive revenue growth. This is especially important with the growing expectations of buyers around customization and personalization, regardless of industry. Ensure that your CPQ platform can share your product catalogs across multiple divisions and quickly and accurately configure products from a single source to provide your customers with a consolidated proposal.