For an entity involved in sales, it is very difficult to provide an exact quote to a customer. The factors for the same are a large number of options available to the customer, the complexity of the products, internal revenue calculations of the company, the nature of the market and many more. The whole process becomes relatively more difficult if the products and services offered by the company are complex in nature. However, these difficulties are not restricted to quote as well as the management of contracts.
The whole process of preparing a quote for a product that is highly complex in nature can consume a lot of time. This time consumption may keep a customer waiting, which might prove harmful to the overall prospects of deal closure. In such cases, the uses of CPQ software might be of help to companies.
In this article, we will discuss at length the uses as well as other dynamics of CPQ software.
Configure Price Quote Software, popularly known as CPQ software is a tool that enables efficient management of the entire sales pipeline. It essentially works with the pricing aspect of the company, in scenarios where the value of goods is always changing. The complexity of price quotations increases radically when a company has many complex products. In such cases, CPQ software can provide pricing with increased accuracy.
CPQ software brings all the data related to the pricing variable under one central platform. It then analyses the data in real time to help create targeted and accurate sales quotes. It also aids in the personalization of the overall quoting process.
As the data is provided by the CPQ software in real time, it can be easily accessed by sales personnel at any time and that too at the click of a button. Even a novice salesperson can easily create and share highly accurate, detailed and precise quotes using the software. This whole process takes very little time and hence proves beneficial for the overall client conversion prospects.
The whole objective of the quoting process of CPQ is to provide a deal that is beneficial for everyone. CPQ software as discussed earlier analyses everything pertaining to the customers. This may include past transactions, pricing fluctuations, the level of customization, predefined profit margins of the company among others. As this software gives complete control over the entire sales process, it eliminates the slowing down of the overall quoting process. Fast response is thus facilitated resulting in better customer experience which might lead to customer retention, as most of the customers seek swift and accurate response with minimal wastage of time.
Alternatively, if CPQ software is not implemented, it may lead to draining of resource as well as customer time which may lead to damage of brand image and a long list of unhappy customers.
How to use CPQ?
The overall process of the usage of CPQ is well defined, concise, optimized and easy to use.
The first step in the overall process is configuration. The whole process starts with a number of simple questions about customers. The process at this stage has a set of smart rules that lead to the elimination of variables not related to the answers given in the question. One example of this step might be the question regarding the nature of the customer, i.e. a government based, private, or an educational institute?
As the P in the name CPQ suggests, the next step is the pricing. This is the most important step of all. Finding the right price for the products is quintessential, and CPQ does that. The sales personnel of a company can apply discounts and other parameters at their own discretion, and then the software does the rest. The software does all the calculation and other math; thus, giving the sales representatives to concentrate more on improving the overall customer service.
The next process is quoting, which is completed in no time. The quoting process is fast, accurate and precise. The quote can be generated in PDF or any other format; however, the PDF version is mostly used and can be sent to the customer in no time. The generated quotes are professional, customized, and precisely accurate and are consistent in nature. Some of the quotes may also contain e-signature integration and can also contain special terms, thus making them dynamic.
Benefits of CPQ
- Streamlines Process
The benefits of CPQ software are many. The first and foremost advantage is that it streamlines the overall contract process. It ensures that all important data is kept up to date and is made available to the sales team at any time. Thus, it provides impetus to the overall slow moving sales process thereby ensuring better results.
- Get Error-free Quotes
No company as well as a customer desire pricing errors, which may prove fatal to the overall customer experience. CPQ software limits human intervention; thus, providing less or no room for error. It provides dependable, accurate and highly customized quotes, which are completely error free.
It also provides highly customized as well as personalized service to customers. Not all customers are the same. Their requirements differ, their sourcing strategies differ and so does their overall objectives. CPQ software helps to engage with customers on a personal level and not as a part of some theoretical audience segment. Thus it enables to provide a personalized experience by adjustment of discounts, variations in the overall pricing, and optimization of the overall sales process to suit the client buying behaviour.
- Increase Revenue
Reduced time frame is one of the most important advantages of using this software. Clients are looking for high value at reduced timelines. As the whole sales process is automated, it results in reduced response times for creating and closing contracts. This enables sales teams to respond more leads in less time. This essentially leads to achieving increased sales thereby helping to boost revenue.
CPQ software is advantageous, beneficial and complementary to the overall business growth. One should purchase software that is compatible with one’s functioning. In this era of changing industry dynamics and high industry rivalry, it is always better to possess an edge over the competition, which can always be achieved using a CPQ software.