Unless you’re selling a single product that can only be configured one way, the configuration, pricing, and quoting (CPQ) processes are probably resulting in a disproportionate amount of time spent – not only by your sales reps but others that are involved. Are you ready to simplify the process, deliver precise quotes each and every time, and do it faster than ever before? If so, read on to learn how a CPQ tool can improve the efficiency, productivity, and profitability of your organization.
Develop Accurate Quotes with Speed and Precision
Not mutually exclusive, speed and precision go hand-in-hand when you have the right CPQ tool. Built to streamline the entire sales cycle, CPQ software adds a level of efficiency, productivity, and accuracy that can’t be duplicated using manual processes. Let’s look at each of these benefits in a bit more detail.
Efficiency
From configuring the products through obtaining approvals to creating the quotes, automation provides efficiency, accuracy, and speed. For instance, by integrating a CPQ tool with your customer relationship management (CRM) system, the platforms work in unison, eliminating the need to re-enter information from one system into another, ensuring a single source of truth.
Productivity
A direct result of being more efficient, productivity is enhanced. Ask any sales rep and they’ll tell you. Selling involves more than just prospecting and customer interactions. It also requires tedious and time-consuming administrative tasks. In fact, studies have shown that sales reps spend less than 30% of their time selling.
By integrating a CPQ tool, you’re able to automate repetitive and arduous tasks and provide your reps with more time to prospect, sell and close deals. All of which improves your revenue and profitability, while cutting costs.
Accuracy
Integrating existing systems such as CRM not only increases efficiency but improves accuracy. For instance, when a CPQ tool is integrated with CRM, sales forecasts automatically update with the latest customer quotes. You can be confident that sales managers always have the most recent and accurate forecasts.
Additionally, a key benefit of CPQ software lies in its ability to automate the quotation process. It guides sales reps through the configuration process, so that reps propose only valid combinations of products and services. Finally, it enables reps to deliver quotations that are error-free, automatically branded and generated with a click.
After onboarding a CPQ tool, you can enjoy the benefits mentioned above. Additionally, this tool can help improve sales metrics.
CPQ in Action
Let’s assume that you receive a request for proposal (RFP) for a solution with multiple configuration possibilities. Say it also has upsell/cross-sell opportunities and client discounts after a certain threshold is met. Given the numerous variables, quotes created manually often contain configuration and pricing errors. Additionally, the time it takes a rep to manually access the needed information, create a ‘workable’ configuration, and determine the pricing is painstakingly slow.
Let’s use the same scenario, however this time the sales rep is a CPQ user. With the guided selling functionality provided by a CPQ tool, the rep can quickly and accurately configure and price the solution, and apply discounts that are in line with company policy.
A rep who’s not using CPQ could take days (or even weeks) to generate a quote. The CPQ user can complete the process in 15 minutes or less. And given the quote’s accuracy, it is ready to be automatically routed to the appropriate personnel for approvals.
When it comes to delivering on return on investment (ROI), CPQ is a standout! A study conducted by Aberdeen compared the sales cycle of CPQ users versus non-CPQ users, uncovering the following impressive figures.
Sales Metrics | CPQ Users | Non-CPQ Users |
Average sales cycle length | 3.42 months | 4.68 months |
Reps achieving quota | 58% | 46% |
Sales quota achieved by sales team | 56% | 52% |
Lead conversion rate | 35% | 30% |
Average deal size | $432k | $211k |
Average number of proposals per month | 20.9 | 14.0 |
While CPQ delivers countless quantifiable benefits, it may not be right for all businesses. However, there are indicators to let you know when it’s time to incorporate a CPQ tool.
Is Your Business Ready for a CPQ Tool?
You don’t want to jump on the bandwagon and implement CPQ if it’s not needed. You also don’t want to wait until your company is facing a loss of sales and revenue due to late quotes and/or errors that are resulting in customer mistrust and lost deals. Are you wondering if it’s the right time to integrate CPQ into your software ecosystem? We have identified 12 questions to help you decide if your business is ready for a CPQ tool.
- Do your offerings consist of numerous products and services that are complex and/or have multiple configuration possibilities?
- Do you offer packages, bundles, discounts, promotions, etc.?
- Throughout the sales cycle, are you experiencing a high degree of errors and proposals that need to be recreated?
- Does the required data to create a quote reside in disparate systems?
- Are you losing revenue due to rogue discounting or quotes that miss the submission deadline?
- Does it take your sales reps days to generate a quote?
- Do you have a lengthy quotation review/approval process?
- Is your product or pricing information outdated?
- Are you missing out on upsell and cross-sell opportunities?
- Are the quotes generated inconsistent or lack branding?
- Do you lack visibility into the entire sales process?
- Do you struggle to create accurate sales forecasts?
If you answered yes to even one of these questions, now’s the time to look into CPQ.
Experience the Power of CPQ
Just like no two CRM, enterprise resource planning (ERP) or other software solutions are alike, the majority of CPQ tools offer a common set of functionalities with differing feature sets and capabilities. To get the most from a CPQ tool, make sure it includes:
- Advanced rules engine
- Automated quoting and pricing management
- Seamless integration to billing, ERP and CRM systems
- Reporting
- The solution needs to be able to handle your unique requirements, as well as your current and future workloads.
As part of our unified quote-to-cash platform, BillingPlatform CPQ offers a fast and seamless experience. One that enables reps to configure products and services that meet buyer requirements easily. Our cloud-based architecture unifies the entire revenue management process. All the way from the first entry in the CRM system to managing subscription and usage-based pricing, on to recognizing revenue in the general ledger. With an easy-to-use interface, BillingPlatform’s CPQ gives companies the power to win more deals, grow and retain customers, and leapfrog the competition. Take a tour of our solution today to learn more.
