Posted by Kristina Fine, SteelBrick Practice Manager
This is the third installment in a five-part series that looks at the Configure, Price, Quote (CPQ) process and outlines the fundamentals of CPQ and how to get started with a CPQ solution.
ROI. Companies need to spend money to make money. Investing in a CPQ solution will allow your business to streamline processes and bring in greater revenue. A CPQ solution enables the sales process to be streamlined, letting Sales Reps sell more and sell bigger. The time saved configuring quotes will give reps time to make more sales contacts and increase your ROI.
Who needs a CPQ solution? Companies whose sales processes are complex or detailed, such as requiring different product lines, frequent product modifications or regular price updates. What benefits does the software provide to a business? CPQ software provides accurate pricing because it automatically incorporates product and price changes. The software incorporates all order details with accurate pricing that includes such factors as bundling and discounts.
When should a company decide it is time to invest in a CPQ solution? This question will vary from business to business. There is no set rule that dictates when the time is right. However, if you can answer yes to the following questions, it may be time to take the plunge and invest in CPQ solution:
- Are your Sales Reps making duplicate sales calls?
- Customer databases are not stored in one place?
- Do the demographics of your customers vary?
- Do you still use spreadsheets to configure quotes and your team is not able to keep them up-to-date and manual quote configuration is difficult and time consuming?
- Do you want a more transparent sales pipeline?
- Generation of reports is time consuming or difficult?
- It is difficult to track marketing and sales trends and to identify sales opportunities?
Companies that deploy a CPQ solution experience the perfect balance of functionality, ease of use and affordability. CPQ software provides a single customer database that will help to eliminate duplicate sales calls. The software allows your Sales Reps to create quotes containing consistent pricing that are customer friendly. With features such as product search capabilities, pricing options, defined descriptions and subtotal features, and the ability to edit product items, CPQ software ensures that every sales quote contains the required components the first time.
With a CPQ solution, your Sales Reps can:
- Spend more time selling
- Generate superior quotes
- Price the Quote correctly the first time
- Respond more rapidly to a quote request
A CPQ solution reduces the time needed to configure a price quote, freeing Sales Reps to spend more time selling. The software generates professional quotes that set your company apart from the competition, telling the potential customer that your company has the qualifications to fulfill their needs and can deliver the highest value. Quoting the correct price is vital to your bottom line and any errors in pricing can reduce company profits. CPQ software updates pricing automatically, is able to keep track of all options and exceptions required for the quote, while applying discounts when applicable. When a customer requests a quote, it is likely that the request will also be sent to your competition. By implementing a CPQ solution, your Sales Reps will be able to generate quotes faster, allowing your business to be the first to respond to the request. This is not a guarantee that you will win the bid, but response time does make a difference.
Next week, we will continues our CPQ series by answering the question: When Do Companies Need to Invest in a CPQ Solution?