Configuration, Pricing and Quote – CPQ is a tool designed to help enterprise sales teams quickly produce accurate quotations. CPUs automate product pricing for customizable products. Cloud-based CPQ, like Salesforce, can provide real-time data, allowing the sales team to keep pace with the giant of bringing a customer closer to the purchase, rather than wasting valuable moments during a critical call to do the calculations behind quotes.
To provide a simple example of what CPQ does, imagine you are a car salesman. A potential customer enters your new showroom while you are chatting with them. You talk about testing it. They were impressed. The big talk about money starts now. She hands them a brochure listing the price before the showroom. Now it comes back and forth, doing all the math. Once the negotiation process begins, you need to think about which insurance suits the person’s credit score, what accessories, what color the customer chooses, is there a way to pressure him to buy the updated model if it provides better EMI, can you drive more accessories based on your needs? All this while trying to prevent a customer from moving to the next showroom. CPQ can take all of this into account and provide you and the customer with accurate, real-time rates for every option added or removed to the base price.
How are CPUs being utilized in the current business model?
Most companies today don’t stick to a single product model. They provide an expanded base, and each product has many options and features. This process is a result of the way DevOps is changing and innovation in the Lean and Agile industries today. Using CPQ software is crucial to these companies because it can help them decide which product to sell based on the needs of the customers. An advanced CPQ program can take into account economic situations, market rates, and competition to provide customized, customer-based quotations.
- Improving sales efficiency is a largely intangible factor for most B2B organizations. CPUs help apply the principles of flexible thinking as a sales function by “eliminating waste” to a valuable sales resource – time. Improving the efficiency of time-bound processes, such as submitting a proposal, goes a long way in determining sales outcomes. Additionally, faster sell-offs are ideal for setting the big picture for businesses that want a steady stream of revenue rather than a one-time purchase.
CPQ is a small and medium-sized sales business
- Product knowledge is the beginning that leads to covering caviar. The leader of each sales team is a Subject Matter Expert (SME). Experts in product capabilities, SMEs use their extensive knowledge base to walk around pricking customers’ pain points and offering medication as a product. CPQ does the job for small and midsize businesses and essentially forces the sales team to ask customers the right questions. CPU utilization helps sales teams understand the breadth and depth of a transaction and identify combinations that would set them apart from the competition. Most salespeople are good at speaking, but cannot be distinctly technical in the finer details. CPUs are the solution to help reduce small errors, thus increasing cross-selling and selling.
- Having a ledger by your side, which explains everything, eliminates the need to go back and forth in settings. Comparisons are much easier and this key feature of CPQ helps speed up the selling process. Additionally, CPUs also help define the expected return on investment and provide the backbone for the vendor to reduce discounts. Since most CPQs also record sales calls, sales teams can better handle inquiries and questions and eliminate general confusion and jokes.
Improved citation accuracy
- CPUs ensure only the latest approved pricing and discounting rules are applied, which is an important support system for sales personnel. This eliminates the common citation errors that are often caused by an unedited cell in the Excel sheet. Human errors like missing information, wrong entry also cause big losses and embarrassing faces that sellers fear. By ensuring automatic compliance with business rules, sales teams across geographies and industries benefit from increased confidence in the numbers quoted.
CPQ + CRM = Higher profit margin
- Another method that increases transparency is, in general, role-based access to CRM software, which has greatly helped improve trust between parties. Incorporating CPQ into CRM functionality helps increase revenue and enable customers to choose additional rates and features on the go.
Facts behind the CPQ program
- Mitsubishi reported a 95% decrease in approval time with CPQ and a 5% increase in the cash price
- AVITRU noted citation generation is 10 times faster
- Nimble Storage was twice as fast as cash with CPQ
- Global CPQ software market is growing at a compound annual growth rate of 9.3%
- Dexter + Chaney showed a 30% higher inclusion accuracy after adoption.
- Domino Printing Sciences announces 80% faster price delivery.
When does your organization need a CPQ?
- While most organizations think their product structures are too simple to consider investing in CPQ and leaving the decision for the future, here are some signs that you can benefit from CPQ.
It has a variety of similar products with different functions.
- Your clients are happy, but the cycle time of your deal does not match the revenue cycle.
- Excessive manual mistakes and random deductions kill your profitability.
- You need segment quotes based on geographic regions.
- You are manually logging in to Excel to fill the gaps in your CRM software / using the old bid settings.
- You waste employee time checking bids manually.
- You want to create a recurring revenue stream, but your sales strategy is limited.
- You are not actively using cross selling and selling strategies.
- Lack of transparency in quotations affects confidence in post-sale procedures.
How do you choose CPQ for your organization?
Talk about the fourth industrial revolution in the storm and still not wearing running shoes? Here’s a quick summary of how to determine which CPQ is best for you:
Can CPQ integrate with your existing CRM? If so, how effective is it?
- Is CPQ Your Mobile? ETAs are a catastrophic term in the world of quotations. The Cloud Compatible CPUs eliminate this problem,
- Is your CPQ leveraging AI and data analytics?
What is the best CPQ program to use?
In no particular order, here are some CPQ programs that are popular options on the market:
Apttus is often cited as the # 1 commercial multi-channel sales tool. Silicon Valley Global Provider is a hybrid cloud platform that uses technology from Salesforce, Microsoft, and IBM. Apptus customers include Adobe, HP, LinkedIn, and PayPal.
If you’re already a Salesforce consumer, it’s highly recommended that you use the Salesforce native platform. The easy-to-use, cloud-based app comes with several benefits including ease of deployment and a proven track record. Salesforce CPQ lets you manage the entire negotiation process, from creating quotations to raising cash.
CallidusCloud (SAP CPQ)
CallidusCloud, the world leader in cloud-based sales and marketing solutions, helps identify leads, secure the right territory, pricing, and automate CPQ. This combination is a unique strategy, and SAP Certified Application Associate-SAP CPQ Implementation is trusted by more than 3,900 organizations. Some of the clients include Barclays, HSBC and NBA.
If you’ve ever thought about building your own CPQ automation solution, the biggest challenge would be maintenance. One problem that often goes unaddressed is that good sales reps often have skills that fall outside the realm of a computer and calculator. While product knowledge is essential, the biggest challenge to the sales force is that embarrassing numbers reduce confidence and disruptive counterbalance, inevitably reducing efficiency. A safe approach is the key to making a good sale, and keeping things moving is the smartest thing to do. Sluggish numbers are the biggest bottleneck for closing deals quickly, and CPQ can help the sales team overcome them. Also, it would be better for you to use data-backed solutions that can take into account economies in your listing structure, as it will largely determine your competitiveness in an unregulated market with very few players. Sales teams often have a lot of motivation to drive sales themselves, but a lack of support is what kills the fire, and that’s exactly what a CRM can face.