4 Reasons Why Companies Should Implement CPQ Software
CPQ software streamlines the complicated processes of configuring products, pricing them, and generating quotes. This gives sales reps more time to focus on delivering value to customers and qualifying leads. The CPQ system you choose should scale as your product catalog grows and your business processes evolve. It should also be easy to use for both administrators and end-users.
Increased Profitability
CPQ solutions reduce the time sales reps spend on administrative tasks such as calculating pricing and creating quotes so that they can focus more energy on their interactions with customers. This translates to higher customer satisfaction and more revenue for the business.
One of the benefits of CPQ software is that it helps sales teams avoid costly errors when a manually calculated quote is sent to the customer, such as over-discounting products or miscalculated margins. These types of mistakes can be expensive and result in lost revenue for the business.
Manufacturers using a CPQ solution can cap discounts, ensuring they don't fall below a specified margin value. This ensures that the company's profit margins are protected and keeps sales teams from over-discounting products, which can erode customer retention rates.
The best CPQ software should scale as the product catalog expands and sales processes evolve. This scalability will ensure that the CPQ platform can grow with the business and that the investment continues to deliver ROI.
Increased Productivity
CPQ software makes it easier for sales reps to configure products and services that align with customer specifications while ensuring accurate pricing. It can help you avoid the expensive mistakes that can occur when manual processes are used, such as miscalculating discounts and rogue pricing that can cost the company more than its profits.
During a quoting process, sales teams often spend their time coordinating emails and spreadsheets rather than engaging with potential customers. This can lead to a long delay in generating quotes, negatively impacting the client experience. Implementing CPQ software eliminates these problems by automating and streamlining the entire process.
Sales representatives can now focus on building client relationships rather than wasting valuable time on administrative tasks. In addition, a CPQ solution can provide 3D product visualization to improve the customer experience. This helps them demonstrate product features and benefits to increase conversion rates and boost deal sizes.
Successful CPQ software implementation requires the support of all stakeholders. Several factors must be considered, including ensuring that the tool meets the sales team's needs and training them on how to use it.
Enhanced Customer Experience
While CPQ software does help your sales team produce accurate quotes more quickly, the main benefit is that it gives your customers a better experience. The quoting process is no longer manual and time-consuming, and your sales reps can focus on building relationships and closing deals.
The automated quoting processes in CPQ software ensure that your customers always get the right pricing, products, and services without going back and forth with sales representatives. They also provide a personalized and accurate quote for each customer that will give them confidence in your business.
Aside from providing automated quoting, CPQ software can also improve the quality of your customers' experiences by making it easier for them to configure and customize your products and services. For example, you can offer a visual product configurator that will allow them to see a rendering of their furniture, exhibitor booth, or vehicle as they add different customizations. This enhances the customer experience and will increase their satisfaction.
A CPQ solution should seamlessly integrate your existing tech stack and CRM. It should also be available via mobile to enable your sales reps to access it on location during a client meeting. This will help your sales teams avoid the hassle of managing multiple systems and reduce their administrative costs. In addition, a cloud-based CPQ solution such as NetPRM is ideal because it can be easily accessible from anywhere and does not require installation or IT support.
Improved Collaboration
Many organizations may have preconceived notions about when it's appropriate to implement CPQ software. The truth is that CPQ can be a powerful tool for any company, regardless of size or product complexity.
A clear, transparent pricing and configuration system can make everyone on your team more productive. Using the right CPQ software can also improve collaboration between departments. For example, a sales rep can easily share a quote with the customer's engineering or finance teams. This streamlines the approval process, saving valuable time and energy for all parties involved.
In addition, a centralized, up-to-date pricing and configuration database can be shared with other departments, allowing them to access information anytime, anywhere. This eliminates the need to rely on spreadsheets or other documents that can be easily altered by mistake or intent (think hackers).
It's essential to consider your company's needs when selecting a CPQ solution. Research vendors and explore features, integrations, scalability options, customer reviews, and more. Ensure that the solution will work for your business model and be able to adapt as your product catalog and sales processes evolve.
