For the customers that opt for your products, it is good for them, since they get products that are personalized for them. As for the sellers, this can lead to some complications in a very sensitive
If the same product was sold to every single one of your brand customers, pricing would not be a problem. In most cases, it is not a problem for B2B SaaS companies. All thanks to the existence of CPQ software.
What is CPQ?
CPQ is an acronym that stands for “configure price quote”. CPQ is used to describe a software program that is used by marketers to produce accurate quotes for products that are complex and configurable.
One of the important uses of a CPQ system is to make your sales funnel to be more productive, efficient, and successful. Other than CPQ system, a Clickfunnel software can also be used to manage your sales funnel. When you focus on product configuration, your brand reduces the risk of producing inaccurate quotes. Besides, sales representatives also have a better chance at developing a better communication strategy with a prospect or a customer.
How Does CPQ Software Work?
When brands employ the use of CPQ software, they stand a chance to increase sales velocity and productivity. In a bid to get a deeper understanding of how most CPQ software work, let us break it down into three stages as follows:
This implies the configuration of your products using the CPQ software. Businesses usually offer customized solutions, experiences, and products that cater to each other and their customers individually. When businesses do this, it makes it easy for buyers and complicates the lives of sellers. But when CPQ software comes into play, it levels the ground for the seller.
CPQ software is used to configure complex product offerings that would fit the needs of the customers. Besides, the CPQ software can also detect up-sell and cross-sell opportunities that most sales representatives might not be able to identify.
With CPQ software, there is less probability for the occurrence of human errors and allows your sales team to focus more on creating connections with the customer.
In the acronym CPQ, the P stands for price. With very complex solutions comes very complex pricing systems. It is easy to have your customizable products in place. However, it is difficult to have the predetermined price laid out before they are configured.
When a brand decides to rely on its sales team to craft prices for them, they are at the risk of losing their business to the less optimal prices that they offer. With the aid of CPQ software, a brand can take advantage of the artificial intelligence CPQ suffices and pick up customer buying patterns and market research to determine what your potential customers are willing to pay.
CPQ software ensures that you are offering a reasonable and personalized price to your customers while still making a profit off your business.
After having your configuration and price in place, the next thing is for your brand to send an error-free quote. Most of the time, potential customers request quotes from more than one vendor of a product or service. If your brand responds quickly to a quote from a prospective customer, it can be an added advantage.
Truth is, it can be hard to send quotes to customers because of the complex nature of pricing and configuration. This is where the CPQ software comes into play. A CPQ software can be used to send quotes that are crafted to have a personal touch to customers. Also, CPQ software can help any sales team to review a quote before they are sent to a prospect or a customer giving them the ability to take note and change any details.
Advantages of a CPQ Software
There are lots of advantages that can be accrued from the use of CPQ software. With CPQ software, your sales team can enjoy an automated sales process that gives more time for sales representatives to focus on other things. When you have CPQ software in place, you would have an automated configuration, quote set, and pricing. Imagine the beauty of offering your customers a straightforward quote.
Without much mouthing, let us look at some of the advantages of implementing a CPQ system for your brand.
In a bid to create accurate and efficient quotes, your brand needs to involve a lot of internal departments. With CPQ software, there is a bit of efficiency that can be achieved. The CPQ system can integrate with other marketing tools departments in your brand use, for instance; the Customer Relationship management system.
The cycle of a quote, can go through a lot of stages. For instance, when a customer places an order, the right invoice needs to be sent. Once the payment for the order is made, the business would recognize the payment and approve the order. In the example illustrated above, it is clear that the sales department of your brand is not the only one involved, but also a CPQ system. Having a CPQ that can integrate with other existing sales tools will make your marketing workflow between operations and sales smoother, which would enable you to provide a positive customer experience.
#2. Collaboration for accurate Quota Creation
There are scenarios where there are many customers who would only request sales from your brand so that they can compare it with ones they get from distributors of the same or similar products.
Therefore, one of the things your brand needs is efficiency and accuracy, as this plays a big part in CPQ. The beauty of the CPQ is that it updates everything in real-time. And this is a necessary element for creating quotes that are accurate for your customers. In the quoting process, salespersons are not the only individuals that are involved. The legal, customers, finance, and customer success teams are also involved in creating and sending an accurate quote. The last thing your brand wants to do is to send a quote that has a lack of profitability or is laden with compliance issues.
In light of this, a CPQ system allows you to collaborate with other departments and send the best and most accurate quotes on the first go.
#3. Higher savings and Revenue streams
With the integration of a CPQ system, you can save time for your brand and your sales organization. And you know well that time means money.
When a CPQ takes care of configuration, pricing, and quote creation, your brand’s sales reps and managers can focus more on creating a well-guided sales funnel. Also, they can spend more time making evaluations about their current sales process, optimize them and identify what parts of their sales process they need to improve.
#4. A CPQ software gives your business increased sales efficiency
A sales representative of a business can try all they want to focus all their time and energy on their customers, but other stressful business processes have no involvement with customers. With the aid of a CPQ system, a brand can streamline its administrative tasks that involve pricing, configuring, and quoting. CPQ software gives your brand’s sales rep ample time to focus on interactions with customers.
Here are other tangible benefits of integrating a CPQ tool into your business:
Faster response times- how fast your sales representatives respond to customers that request a quote.
Low churn rates- a CPQ tool can help your brand to reduce the rate at which they lose customers
Creation of more quotes- The number of quotes that you make and send, tends to increase with the help of CPQ software.
Increase in sales close ratio- your brand’s sales close ratio is the rate at which your brand successfully converts prospects to leads and leads to loyal customers
Higher Return Of Investment (ROI)- your brand would also accrue profit on any given sale.
Does Your brand need a CPQ System?
This is a fair question.
Tools such as the Customer Relationship Management system and Business Intelligence have become a core part of sales processes. To add another tool to the list is not something that is taken lightly by most businesses.
To determine if your brand needs CPQ software or not, here are some questions that you need to ask yourself:
● Does your businesses’ sales team experience a slow turnaround when they generate quotes for customers?
● Does your brand have complex products in its inventory with even more complicated pricing models?
● Can your sales representatives create accurate and efficient quotes for your brand’s products?
● Are there products that you over-discount?
If the answer to any or all of the above-mentioned questions, then it is time for you to start looking for a CPQ system that suits your business.