There are problems commonly faced by most sales organizations. They involve the ability to quickly create sales quotes that are professional and accurate for potential customers. The goal is always to have no inefficiencies as well as errors. This is a challenge faced by many sales leaders. They all struggle to find an effective solution. A software category growing in popularity is CPQ. It is designed to face these challenges in the sales world and resolve them.
1. Configure, Price, Quote
CPQ is an acronym.
C Stands For Configure – Any type of customer will have needs unique to their situation. A seller must address a customer’s needs using whatever combination of services and products to provide exactly what is requested. If a sales team can’t do this, the customer will see if the competition can. CPQ software provides the tools necessary to configure what is requested by a customer. This makes it possible to follow a company’s business rules and accommodate the unique needs of their customers.
P Stands For Price – It is common knowledge most businesses don’t sell their products or services to all customers at full list price at all times. Customers will be offered volume pricing, bundle pricing, special pricing and more. Many sales reps try to sweeten the deal by adding some extra discounts and more. It can be a challenge to keep track of a company’s most current bundle pricing, current pricing as well as pricing rules. If discounts aren’t applied consistently, it could be a problem. CPQ software can help its users manage the pricing for a company’s products and services. It is an effective way for a company to make certain its pricing is optimized and accurate.
Q Stands For Quote – A salesperson won’t be able to close a deal unless they provide a potential customer with an accurate proposal or quote. A salesperson will always make the effort to try and get the opportunity to provide a quote to a potential customer. This quote must be carefully crafted and presented professionally. CPQ software makes it possible for a salesperson to create an excellent quote with just a few clicks. In a short amount of time, it can be attached to an email and sent. An e-signature option can be included so the deal can be more easily closed.
2. Increased Efficiency
Many companies have deployed this software in their organization and correctly use it. They report to experience increased efficiency of more than 14 percent on average. There will come a time during the sales process when CPQ software can help. This is when the selling stops and it’s time to make a decision. Salespeople can accurately configure products with CPQ software. They can apply accurate pricing as well as qualifying discounts automatically programmed into the software. This can help build customer confidence and enable salespeople to look professional.
3. Grow Profit Margins
Those who regularly use CPQ report being able to increase their profit margins when compared to non-users. This is something that happens yearly. Some users claim to have experienced a 4-fold-growth of their net profits within a five-year period. The increased revenue of a company using this software has often occurred due to limits on product discounts, time savings as well as the ability to provide various options to customers when learning their business needs.
This software makes it possible for sales organizations to spend more time selling and replicating the best sales practices they’ve developed. It decreases the amount of time required to constantly retrain sales staff. Companies who use CPQ report they experience a higher rate of retention of their salespeople. This software makes it possible to deliver quotes and closing sales to become an almost effortless process. It makes it possible for a sales professional’s success to increase, and this increases a company’s bottom line as well.
4. Benefits Of CPQ
Companies that use This software benefit from it being able to formalize its pricing and rules. It can create a method for standardization across a business. This software is preferred for its ability to increase efficiency throughout an entire company. The most notable benefit is how it decreases a company’s costs and increases its revenue.
A successful deployment of CPQ will depend on a company’s willingness to provide the necessary training and support for their sales staff. It can then be implemented in tandem with different departments including materials, engineering, manufacturing and more.
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