At present, doing business demands fast decisions, accuracy, customization of quotes, advanced planning, and strategic budgeting. Getting competitive positions in the continuously evolving business environment requires ongoing development and progress. Customers become more demanding in terms of time and personalization; hence, businesses have to adapt to challenging requirements and use advanced software to automate various processes, including complicated multi-layered quote-to-cash in-house procedures.
Implementation of a CPQ solution contributes to managing sales procedures for businesses of any scale automatically. A CPQ system allows fast adjustment of complex and compound products & services and their pricing to customer needs through the elimination of human errors and cutting the time needed to create individually adjusted offers. As a result, quotes are created and delivered much faster.
CPQ Software: What Is Configure – Price – Quote Software Designed For?
CPQ software has been developed to automate and streamline sales processes. As the name implies, CPQ is designed to automate the process of quote generation. It allows the creation of accurate & tailor-made quotes within minutes and saves a great deal of time for sales teams.
Customizable to meet the needs of businesses across various industries, CPQ provides extensive functionality: setting prices for complex products, generating quotes, contract management, electronic signature, etc.
Integrated into the existing infrastructure, a CPQ tool automates processes of quote generation: a quote can be automatically created and adjusted within minutes compared to a couple of days if a sales representative has to prepare a quote manually.
For companies using ERP and CRM tools, CPQ software can connect ERP and CRM systems automatically making the entire sale process smoother and error-free. The main objective of CPQ solutions is the optimization of sale procedures in terms of accuracy, consistency, and time.
What Problems Does CPQ Help to Solve?
- Time-taking sales procedures. Sales teams have to deal with multiple pricing sheets manually creating quotes for complex products. Until the quote is approved, a customer can change the requirements or request several quotes for different products. Without dedicated software, the process of quote generation and adjustment can take several days.
- Disconnected databases and pricing channels. Sales data diffused across separate channels and systems undermine the performance of sales teams.
- Quote inaccuracy. The lack of real-time price updates and the inconsistent discount system result in lower sales volume and non-derived income.
- Approval complexity. Time-taking quote adjustments and long approval periods typically result in client attrition and loss of revenue.
CPQ software has been specifically designed to solve the above-mentioned problems via the automation of multiple sale procedures and the elimination of gaps between separate systems. Elimination of sales challenges leads to better customer experience, higher sales volume, and higher profits.
What functionality of the CPQ solution do you need to look for?
A customizable set of features makes CPQ solutions beneficial in various business segments, from governmental institutions and large enterprises to smaller e-commerce companies.
The extended functionality of the software allows the incorporation of required features based on the business sector. The set of features includes e-signature, when clients can sign proposals electronically, integration with external ERP and CRM systems, and real-time tracking of offerings.
While looking for a suitable CPQ solution, businesses need to look for sector-specific functionality and consider the following features:
- Niche-specific templates and expertise
- Integration with CRM, ERP, and SFA (sales force automation)
- User-friendly self-administration
- Subscription and contract pricing support
- Web configurations
Benefits of Using CPQ Software
Automation of multiple sales processes and integration of different in-house and external systems result in the optimization of the sales process and overall better performance and productivity. If more specifically, CPQ ensures:
- Error elimination and enhanced accuracy. The quote creation for multi-featured products involves different channels and sources and is subjected to errors. CPQ software automates the procedure, eliminates the risk of human errors, and accelerates the process. As a result, customers receive accurate quotes faster and the entire process becomes more systematic and efficient.
- Price management. Pricing control involves multiple rules and price lists, which makes the pricing process time-consuming and complicated. With an incorporated CPQ tool, sales teams save time and can generate quotes for more customers.
- Automation of quote creation processes. The elimination of manual processes allows for generating quotes in minutes. Instead of manually checking numerous price lists, sales representatives can focus on deeper customization of offers and consequent upselling.
- Upselling and cross-selling efficiency. Given the track of customer orders, the system analyzes the data and provides individually adjusted recommendations.
- Personalized service. Given the real-time pricing updates, CPQ helps to create personalized offerings and proposal templates. CPQ tool automatically generates offerings based on relevant information. The result is error-free and timely proposal documents.
- Increased revenue. Faster response to quote requests, higher accuracy, and upscaled sales volume lead to higher profits and business growth.
With a reliable CPQ solution provider, the software will be seamlessly integrated into the existing infrastructure. Reputable providers ensure that the CPQ system has specific features and is compatible with your business needs. While choosing a CPQ provider, do a thorough research and compare offerings. Trustworthy vendors provide training for sales teams to ensure seamless transition and performance. Once integrated, CPQ improves quote accuracy, shortens quote generation time, and expands profit margins and overall sales performance.