Configure Price Quote software, commonly known as CPQ software, is used for helping B2B businesses sell products and services which are complex in nature. It is used to provide the right price of any complex product, at an appropriate time to the customer, to boost sales. It does so across different sales channels, an added benefit of CPQ system.
CPQ, does this by utilizing the data of the company, which includes items such as product catalog, past transactions, information of customers, among others. It is an integrated platform that has features for generation of proposals, quotes, pricing engines, and also has a dedicated process flow for authorization and approvals. It is increasingly being deployed to work with business-to-business (B2B) and business-to-consumer (B2C) processes.
Customer expectations are high and must be met to achieve greater sales. This can be achieved by deploying CPQ systems. Just one bad experience is enough to drive customers away. Hence, B2B ecommerce businesses strive hard to provide unique and satisfying customer experience by utilizing the benefits of CPQ systems.
B2B consumer behaviour is different from B2C ones and differs in many ways. For example, they don’t have the patience to wait for days or weeks to get quotes from B2B platforms and once they get the quote, do not wait further for negotiating the final prices. They demand instant and final response.
Benefits of CPQ Systems for B2B Ecommerce Business
- Create Quotes Quickly
The system provides faster results. Customers are not willing to spend more time on B2B platforms and demand a higher processing rate thus leading to faster checkout. They are not willing to wait and demand quotes for their requirements in less time.
CPQ can generate quotes at a very fast rate, thus complementing the demand for faster results of customers. If a particular quote does not work for a customer, it can also deliver the revised quote at a faster rate. This results in the reduced attrition rate of customers. The complexity of parts in manufacturing may compel one to think that CPQ is mostly associated with manufacturing; however, it can deliver outputs with the same speed to service industries and subscription industries. This has increased the application prospects of CPQ in B2B business platforms.
- Price Accurately
B2B purchases are mainly made in bulk, and the customers are specific and particular about the pricing and the quotes given to them. A slight mismatch in prices can lead to huge deflection in the overall transaction; hence there is no room for error when it comes to quoting price. CPQ eliminates the errors in price quoting. In addition to speed, customers can get accurate quotes, when CPQ systems are employed by ecommerce platforms. Quote and configuration are the factors that may force a customer to switch suppliers, however, CPQ eliminates errors in quotes thus, in turn, eliminating customer loss.
- Simplify Negotiation Process
Negotiation processes can be painful for customers if they do not get the right attention, proper quotes and flexibility in pricing. Contract life cycle management (CLM), if integrated with CPQ, can bypass this painful experience. It does so, by streamlining the negotiation process on terms such as pricing, timeline and other parameters. For a better sales experience, it is advised that B2B business platforms integrate CPQ systems with their sales automation tools.
- Display Quotes on Store
Using the CPQ tool, quotes can be directly displayed on store, thereby allowing the customer to configure the quote as per his needs. Thus, customer can be given different configuration options to create a customized quote on the store itself.
- Offer Personalized Experience
Not all customers coming on the B2B eCommerce platform are same. Every customer has different needs and demands. If one applies standardization in each aspect such as pricing, delivery and other features, it is bound to result in customers getting disappointed. Hence personalization is the need of the hour. It is one of the most important contributing factors for enriching customer experience.
CPQ greatly contributes to personalization on a B2B business platform. It can provide tailored product catalog as well as tailored pricing which best suits B2B customer needs. Thus, B2B platforms employing CPQ systems can then have an added differentiation of providing personalized quotes and hence can distinguish themselves from their competitors. In addition, business partners can also have tailor-made catalogs that best suits their customized needs.
Artificial intelligence backed platforms have an added advantage over the rest of the platforms
AI-assisted CPQ systems analyses cross sell and up-sell opportunities and can recommend the same, for a higher revenue output. It provides granular data, and insights pertaining to the same, thus enabling representatives to better handle each customer deal. It eliminates the large amount of sales research that a sales representative has to carry out, prior to every deal, thus making it possible for the representative to concentrate on the deal more.
In addition, it removes human intervention in the research thus eliminating all possible errors and discrepancies that may occur. AI-powered CPQ system thus ultimately saves time, which can then be utilized to further deepen the customer relationship. A deeper and better customer relationship results in a higher probability of purchase thus ultimately resulting in increased sales.
Buyers demand customised experience, tailor-made proposals and best deals. A buyer also expects better connect with the seller. To understand these expectations, one has to carefully study the buyer organization’s vision in addition to his buying journey. CPQ aids in all of the aforementioned factors, thus greatly benefitting the growth of B2B eCommerce platforms.