As most people know, customers like to do their own research and request quotes from different vendors when they are looking for a specific product/service. They, like everyone else, also value their time.
In a competitive market, even one second can mean the difference between a successful sale and a deal that falls through. Not to mention that some companies take a couple of days, weeks, etc., to process a quote.
Customers want the responses to their quotes to arrive quickly, so they are also very likely to choose the company that sends them the quote first. As we can see, whether consciously or subconsciously, their need for your products is on a time limit, and if your quoting process stalls even a little bit you could lose your potential customers.
So, today we’ll talk a bit more about the solution to the situation we mentioned above, and that is CPQ.
CPQ stands for Configure-Price-Quote, and it is a software that is designed to help companies which sell complex products and services. With a CPQ, every conceivable configuration, price, discount, and scenario can be specified, making the quoting process very straightforward.
Using CPQ, the company can easily produce accurate and highly configured quotes while making all the complex product, pricing, and business rules centralized, automatic, and available in real-time.
As companies offer more products/services and its variations, it becomes difficult for them to manage product pricing, to identify great upsell opportunities, and to keep track of the deals that are being offered by the competitors.
Besides that, their sales reps might not be up-to-date on the recent pricing information for their products, which would result in them losing some opportunities and having a slower quoting time.
The CPQ software can help you eliminate these problems by making the sales cycle faster, the pricing data more accurate, and to upsell and bundle the products more frequently. The company will also be able to prepare the orders faster, which will save time, and more sales will be made.
CPQ is also a key part of a successful global multi-channel selling strategy. The reason for that is because it grants the company full control over what partners, groups, or channels can access certain pricing or product information. With role-based access, discount locks, and portals, you can manage the revenue share, exclusive discounts, or pricing and shipping fees.
CPQ is a safety net that will ensure that the sales team will only sell by the latest approved pricing and discounting rules and that approvals (when they are necessary) can be given quickly without holding up any deals. Also, let’s not forget the most important benefit of CPQ, and that is the proven increase in revenues and decrease in costs.
If you are interested in CPQ software, or perhaps one of our other products and services, contact us for more info.