Have you been wondering what the meaning of CPQ is for your business and if you could benefit from a configure, price and quote (CPQ) solution? If so, look no further. We’ve taken the guesswork out of your decision by highlighting the top five industries, and the nearly innumerable advantages of CPQ software solutions. Let’s determine which type of businesses could benefit from a CPQ solution by asking if you have:
- Limited product catalog: Do you sell less than four distinct products, only offer a few options or features, and are product configurations simple and similar?
- Quotes and proposals: Can sales reps create quotes and proposals in less than an hour without the assistance of sales operations personnel or managers?
- Service level agreements (SLAs) and warranties: Are your servicing agreements the same regardless of the products or services purchased?
Unless you answered “no” to one or more of the above criteria, your business – regardless of the industry – is missing out on the numerous opportunities CPQ software delivers.
The Power of CPQ Across Industry Sectors
Businesses across virtually all verticals are reaping the benefits of CPQ software. The following is a representation of various industries and how they are capitalizing on CPQ.
More people are shopping online than ever before. So businesses need a way for customers to configure their products, advise if inventory is available, and calculate the price. CPQ delivers on these needs and more, making it easy for customers to fill their shopping carts with the right configurations of the products they desire.
Insurance and finance
Services industries such as insurance and finance typically need to customize their offerings to meet fluctuating customer requirements. Both verticals require the ability to quickly and accurately create quotes based on customer-specific product selections. When narrowing down the vertical to insurance only, bundles, or cross-sell and upsell policy options complicate the proposal process even further. This makes CPQ a must have to reduce manual effort and deliver a timely and accurate quote.
Given the variety within the manufacturing sector, we’ve narrowed it down to the top four types of manufacturing organizations.
- Discrete manufacturing: An industry term for the manufacturing of finished products of distinct items such as appliances, automobiles, furniture, toys, smartphones, airplanes, etc. Discrete manufacturing companies have been long-time users of CPQ. Regardless of whether they are producing high volume/low complexity products or low volume/high complexity products, discrete manufacturing companies need the ability to manage the inherent complexities associated with this industry. CPQ software solutions help with their myriad of business rules and data, eliminate order and manufacturing errors, and speed time to market.
- High-tech manufacturing: This includes companies such as telecommunications, data storage, storage networking, electronics, computing and automation, network equipment, semiconductors, etc. Complex product configuration, competitive pressures, the need to support partner and customer configurations, and the ongoing demand for more innovative capabilities and functionality are just a few of the reasons this industry gravitates towards CPQ solutions. Indeed, high-tech companies have one of the most (if not the most) complex configurations consisting of numerous components and subcomponents. CPQ gives users the accurate, up-to-date data needed for accurate configurations. In addition, high-tech manufacturing companies are increasingly adopting CPQ solutions that either provide 2D or 3D visualization functionality or have the ability to integrate with visualization tools.
- Medical device manufacturing: Also known as life sciences, this manufacturing segment is highly regulated. This further complicates the production, distribution, sale, and servicing of these complex products and services. Medical device manufacturers rely on CPQ to capture and manage large amounts of data, provide immediate and accurate pricing in a variety of currencies, manage contracts, and help to protect against noncompliance.
- Transportation manufacturing: Whether vehicles or yachts, personalization and customization have become the norm with luxury transportation products. This of course offers some unique challenges. These companies need to design and produce opulent products that meet individual wants, needs and requirements. The complexities of specialty transportation manufacturers are many. From managing hundreds to thousands of options, features and configurations, to the materials and manufacturing processes, these manufacturers require a fool-proof way to deliver high-quality vehicles and water crafts. A CPQ solution takes the guesswork out of configurations and pricing, providing an accurate quote that meets the customer’s requirements.
With an ever-increasing number of subscription-based companies, this business model continues to flourish. The majority of subscription-based companies, whether B2C or B2B, offer customers the ability to make purchases online – eliminating traditional back-office proposal creation. While not specific to a certain industry, this sales model requires a CPQ software solution to guide customers on their shopping journey. First to purchase the appropriate product or service, second select the right options or features, and third provide pricing that meets the customer’s criteria.
These businesses sell their products in bulk to another retailer, who then sells the product to the end customer. To be successful in this fast-paced environment, wholesalers need rapid response data results and immediate query responses. Typically, CPQ is implemented on the back-end of a B2B eCommerce site so that wholesale suppliers can provide accurate and immediate pricing.
We covered some of the key industries, but did yours get missed? If so, here’s a few questions to determine if you could benefit from a CPQ software solution.
- Do your offerings have the option to include products, features, services or maintenance?
- Can these add-ons change depending on the product sold?
- Does the configuration of the product affect option selection?
If you answered yes to any of these, then CPQ is the right choice for you.
CPQ Means Closing the Gaps on Your Quote-to-Cash Processes
Quote-to-cash (Q2C) starts with CPQ, and you need to ensure each of the processes throughout the lifecycle run with efficiency, accuracy and control. Is it time for you to swap your traditional methods for a system that can take you beyond traditional selling, configuring, pricing, and quoting?
BillingPlatform can help. With us as your partner, you can generate quotes faster, speed quote approval time, decrease sales cycle time, reduce configuration and pricing errors, improve win rates, and increase revenue. Reach out today to learn more about our CPQ solution.