CPQ: Configure, Price, Quote. These three letters hold the key to innovating your sales process. For many businesses struggling with slow-moving proposals, inefficient sales pipelines, and inconsistent quotations, CPQ has proven transformational.
In this blog post, we’ll be discussing the benefits of these types of software and share some tips for implementing them in your business for improved workflow accuracy and efficiency.
Importance of CPQ
“Configure, Price, Quote” is an umbrella term used to describe various sales processing and quoting software. CPQ software streamlines the sales cycle by reducing friction and error across core sales processes: sales configuration, pricing information, and quotations.
Let’s take a look at these three core processes in more detail.
Sales configuration is fundamental to providing customers with what they need. Whether you’re marketing data warehouse software or chat-bot tools, sales representatives will often need to create customized product configurations on demand. Personalized offerings simplify the sales process by making it easier for customers to locate what they need and improve the overall customer experience as a result.
Most businesses have a pricing catalogue of some kind. The complexity of a business’ pricing scheme can vary widely. For example, if you’re selling numerous different types of software testing tools your pricing scheme will need to be equally flexible.
CPQ tools help businesses stay on top of pricing with configurable, automated pricing functions that make it easy to add and catalogue product items. In turn, this helps sales representatives adapt to individual customer needs with variable pricing plans, discounts, upsells, and concessions.
Accurate and timely quotations from another integral part of the sales process. For example, a software development business will need to accurately and efficiently quote clients for automation testing.
Part of the role of a sales representative is to compile and send out quotations to their clients. The more complex the products being sold, the more complex the quotation process, resulting in frequent errors or misquotations that could end up eating into revenues.
CPQ tools include quotation features that help to improve quotation accuracy by syncing automatically with your pre-established pricing catalogue. The result? Fewer errors, reduced losses, and better customer experiences as a result.
Benefits of using Configure, Price, Quote
Managing product configuration, pricing, and quotation separately can quickly become a bit of a minefield. That’s why more and more businesses choose to implement CPQ tools to help synchronize and optimize their sales processes.
There are multiple benefits associated with using CPQ tools; not just for companies but for sales teams and customers too. CPQ tools help streamline workflows, ensure accuracy, and improve relationships between businesses and their customers. Let’s take a look!
For the Company
First, let’s take a look at what CPQ tools can do for your company as a whole. These are the big-picture benefits to your sales cycles, finances, and overall revenues.
Shortens Sales Cycle
Sales processes are notoriously tricky to time just right. Most businesses will have experienced their sales cycle slowing at one point or another. Oftentimes, this is the result of good intentions.
Teams want to make sure that they’re giving customers the best product configuration options possible and generating accurate quotations. But this takes time and can quickly start to cause bottlenecks in your sales cycle.
CPQ tools overcome the issues associated with manual processes and improve efficiency whilst bolstering accuracy. CPQ software will automate your product pricing and quote generation processes so that sales reps can provide customers with customized products and prices in an instant.
Instead of purchasing a separate tool for each of your sales processes, CPQ software offers everything you need under one roof. Plus, by opting for a SaaS tool, you’ll reduce all costs associated with implementation and maintenance!
Potential for higher revenue
By increasing efficiency across the sales process, CPQ tools are good news for your revenues. That’s because, by automating key processes along the sales pipeline, CPQ software gives sales teams the time to focus on improving their services. And better experiences mean more deals closed.
For the Sales Team
Implementing CPQ software will also improve sales team experiences by automating previously time-consuming tasks like proposal generation and quotation. As a result, that leads to higher close rates and improved pipeline management.
Faster Proposal Generation
CPQ tools make proposal generation quick and easy. Sales reps no longer have to manually input numbers into spreadsheets. Instead, reps can put their time to better use and shift their attention to building better relationships with customers.
Manual price quotations typically involve sales reps wading through endless lists of pricing rules to generate a quote. This is both slow and leaves room for error. CPQ tools automate pricing so that every possible product configuration and pricing scenario can be generated instantly. This liberates sales reps to deliver quotes quickly and with greater accuracy.
Higher Lead Conversion
By freeing up time, CPQ tools allow reps to dedicate more attention to lead generation. CPQ tools help reps identify and track high-quality leads based on real-time analytics. CPQ software helps to eliminate false leads and evaluate the success of each lead generation campaign so you can constantly improve.
Higher Close Rates
By reducing rates of error in quotations, CPQ software also reduces the number of revisions that need to be made. For example, if an agent misquotes a business power dialer plan to a customer that’s holding up a potential deal by two or three more interactions. As a result, the overall sales cycle is condensed and close rates increase both in number and velocity.
Real-time data dashboard
A typical CPQ tool will provide real-time high-quality data and analytics across your sales pipeline giving sales teams useful insights that can be used to inform the selling process. Insights like how often particular products sell and which product configurations are most likely to meet the demands of a particular customer.
Improved Pipeline Management
CPQ tools help to streamline sales pipelines in a number of ways. They speed up the quote generation process and shorten the overall sales cycle by reducing the number of customer interactions needed to make and close a deal.
For the Customers
CPQ software also benefits your customers. By streamlining the sales pipeline from the back-end sales teams are freed up to spend more time working towards providing even better customer experiences.
Reduce Waiting Time
One way in which CPQ tools benefit customers is by reducing wait time for product configurations and quotes. Customers don’t want to wait around for weeks on a quote. CPQ software allows teams to issue customers with accurate quotes almost instantaneously.
CPQ tools improve product satisfaction rates by allowing teams to deliver highly customized product packages at better customer value. Furthermore, by freeing up agent time, customers calling in with problems are more likely to receive the support they need quickly.
Better Customer Service
CPQ software enables a more consultative sales process in which sales reps can engage with customers to provide personalised experiences. When reps understand their customers’ pain points it becomes easier to prescribe effective solutions that leave customers fully satisfied.
Top CPQ Software of 2022
Ready to introduce CPQ software into your business? There are lots of great tools on the market right now. We’ve collated a list of our top five choices to help you get started.
Better Proposals streamlines your sales process with digital documentation, quotes, client sign-offs, contracts, and more. Instead of using different systems to generate, sign, and track proposals, Better Proposals lets you do everything under one roof.
There are hundreds of templates to choose from so you can create and send professional documents in minutes and convert more deals in the process. Plus, with AI automated suggestions you’ll be able to be on top of what is and isn’t working and continuously improve your sales processes.
- Custom templates
- Digital signatures
- Real-time notifications
- Direct payments
- Automated quotes
- Client signoff
- Automated sales reports
Salesforce CPQ automates business ordering processes, contracting, and quotations and integrates with Salesforce’s CRM platform so you can pool all of your customer data under one roof.
- Easy automated quoting
- View customer data in one location
Hubspot’s CPQ functionality monitors sales analytics and customer data to provide sales reps with insights and data to improve customer experiences.
- Track leads
- Easy data-input
- Highly customizable
Oracle CPQ software makes it easy to process and configure purchases by connecting your front and back office with other customer experience platforms.
- Easy implementation
DealHub.io is a flexible tool that generates no-code connected revenue workflows for sales teams that support customizable CPQ workflows.
- Document generation
- Digital sales proposals
- Subscription management
Does your company need CPQ software?
CPQ software is an invaluable investment for all kinds of businesses. If you’ve ever struggled with maintaining market agility due to slow-moving sales processes, then CPQ software is for you. You’ll be able to generate accurate proposals and quotes without all the repetitive manual labour so that agents’ time can be freed up to focus on the most important thing – customers!
Importance of getting the right CPQ software for your business needs
With so many CPQ options, it can be tricky to pick the right software for you. Remember that not all CPQ solutions will share the same software quality. It’s important to factor in some key criteria before deciding to invest in a new workplace tool.
Look for software that:
- Makes sense financially and won’t surprise you with hidden costs.
- Is simple to use and makes it easy to communicate with your team.
- Improves the sales process with total (or near-total) automation.
- Can be customized to your individual business needs by integrating with existing business software tools and apps.
- Will scale up and down with your organizational needs.
- Provides built-in analytics and data insights.
- Comes with comprehensive vendor support.
Improve your bottom line with CPQ software
When it comes to keeping your sales practices performing at their best, CPQ software is the holy grail. Automating your product configuration, pricing, and quotations is the catalyst for increased efficiency, agent performance, and customer satisfaction. With the right CPQ tool under your belt, you’ll save time, and money, and transform business practices from their root!