June 17, 2022

CPQ: why it’s important for the sales process

CPQ for sales process

It is clear that consumer purchasing behaviors have changed sales processes, so much so that companies have had to redefine their goals and start a digital transformation process that goes beyond traditional tools. To overcome the new challenges, companies should invest in a CPQ solution with which to align the characteristics of their offer to the specific customers needs.

In this way, the company is not only able to adapt to changes but can differentiate itself from competitors. In fact, the Configure, Price and Quote technology is constantly growing and its success is due to its ease of use and integration with CRM systems.

Therefore, a CPQ software has a positive effect on the sales area of the company by offering the ability to quickly send quotes on simple and complex products, responding in a timely manner to customer requests.

WHY USING A CPQ IN THE SELLING PROCESS

The CPQ essence is to provide a tool with which to simplify the configuration of products, the determination of prices and the creation of quote. Therefore, it’s a solution that guides sellers step by step in formulating a purchase order, speeding up the entire sales process.

When to integrate a CPQ solution into business processes?

  • Many companies decide to adopt Configure, Price and Quote software when they have a large catalog of products / services.
  • Even companies with a complex offer prefer to rely on a CPQ that allows them to consider all the needs expressed by a customer and combine them with the perfect solution. This increases trust in the company and helps to provide a reliable image of the same.
  • Companies operating in multiple countries may need to adopt different pricing policies. The CPQ allows you to define dynamic prices based on geographical areas but also differentiated by sector or other characteristics of the reference target.
  • Slowness is certainly one of the main weaknesses in creating a quote. With a CPQ software it is possible to have all the necessary documents available to quickly generate a quote even in the case of complex quotes which would usually require the involvement of experts.

Read our guide on CPQ and discover all benefits that the solution offers to the sales department.

CPQ: role and benefits for vendors

WHEN IS IT ADVISABLE TO USE A CPQ?

Today companies need to define a clear and efficient marketing strategy to reach important goals such as lead generation, sales increment and customer loyalty. However, implementing a good marketing strategy while boosting sales is often difficult and brands tend to make the process more complex than they should. Moreover, a lot of companies have an offer based on complex products and struggle to understand their clients’ needs and to combine them with a perfect fitting solution. How to intervene? A CPQ helps companies to embrace the digital transformation and solve typical problems of a non-fluid sales process.
So, in this scenario, what are the specific cases in which a CPQ is especially recommended?

When companies offer a high number of products, each one with its own configuration model, a CPQ can help them to simplify the product configuration and the relative quotation, thanks to automation and pre-set models of configurations. 

Often companies’ offers are based on dynamic pricing models, different geographic areas, different industries and different targets. In this case a CPQ allows brands to manage an offer based on various options in a simple and fast way, using a unique platform.

In various companies salesmen still rely on outdated models and selling procedures, using features that vary from seller to seller and generating different pricing. Moreover, they use different tools to manage and share the quotations, making the entire work rough and confusing. On the other hand, a CPQ software allows the full enhancement of the brand identity and respect the corporate image.

When the quotation process is slow and complex it can have a strong negative impact on revenue.  On this occasion, companies should react quickly and seize all the available business opportunities. With a CPQ software it can have all the documents needed to create a quote at hand, as well as all the updated materials, perfectly in line with company directives. Besides, complex quotations often require the intervention of expert salesmen, while a CPQ allow even less experienced sellers to prepare fast and accurate quotes.

Some companies already have software to help them configure the offer, but often it is incompatible with other customer relationship management systems, with business resource planning softwares or other tools. It results in inconsistent data collection and leads to the difficulty in finding information. A modern and well structured CPQ, instead, is compatible with any CRM or other software and tool already implemented in the business. 

MAIN BENEFITS OF A CPQ

The implementation of a CPQ actually allows companies to enjoy benefits that are important not only for customers, but also for the business, especially in terms of revenue and a better customer experience. A CPQ allows brands to manage and coordinate the sales process in all its steps, with a fast, simple, digital and automated approach. What does it mean? That vendors will no longer have to deal with loads of documents, completely eliminating all the paperwork. This makes them embrace a sustainable business model, adapting to the ongoing digital transformation. But there’s a lot more to consider.

Thanks to its features, a CPQ allows companies to reduce the lead time of elaboration and emission of the offers, making the entire quote-to-cash process more fluid and efficient. For example, with a CPQ it is possible to automate sales processes, integrating their various steps in specific workflows while minimizing errors and the need for corrections.

Besides, since automation is the main keyword when speaking of CPQ, even the vendors with little technical experience and preparation have the possibility to easily configure complex products.  Thanks to an advanced CPQ program, companies can speed up sales activities while offering their customers exactly what they need. In fact, vendors can constantly count on continuous updating in the sales department, with access to fresh data and information about new products or promotions available. In this way they will be able to configure an offer according to customers’ actual needs.

Last but not least, an advanced CPQ software guarantees its integration with all the other managerial business programs already used by companies.

Want to innovate your sales process and improve the customer experience? Discover more about our  CPQ PLATFORM and be ready to embrace the digital transformation.
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