The tail end of the sales process seems smooth, but it is anything but. Salespeople encounter all kinds of hurdles that prevent them from closing a sale and moving on to the next project. Your sales team spends hours figuring out the right combination of products, calculating the optimal prices, and following through contract approvals.
Additionally, sending price quotes is not safe from human errors. One misstep can cost your company a great sales opportunity.
This is where CPQ solutions come in. They automate the last stage of the sales process, so you can make the most of every sale.
CPQ stands for Configure, Price, and Quote, the three basic processes that a CPQ software does. At its core, it’s an app that enables your salespeople to figure out the right configuration of products, generate the right price, and send clients the right quote.
How does CPQ work? Let’s break it down further:
Finding the right combination of products may sound simple, but it takes years of training before this can be executed perfectly. But with a CPQ, your team can put together a combination that meets the client’s every need. Configuration allows for a customized solution—something every customer wants.
If your company follows tier-based pricing, there’s a risk of a pricing error, which means you might be selling products at less than the optimal price. There are also several pricing factors that the sales team has to incorporate, like seasonality and willingness to pay. CPQ helps your team put the right price on every product.
Vague information and confusing quotes turn customers off. You need to send a personalized and professional quote that breaks all pertinent details down. A CPQ generates accurate quotations, which the prospective client can examine without any misunderstanding.
All these can be done in a matter of minutes. Compared to CPQ, other non-specialized methods like spreadsheets and email are not as effective. They may work for your company now, but in the long run, you will miss many opportunities to close more sales and optimize man-hours.
To determine if your company needs to migrate to specialized CPQ software, look at these challenges:
Spreadsheets and email may not be able to support the pricing and quoting needs of hundreds of stores across different locations. Discrepancies in pricing—small though they are—add up and cause a sizable revenue loss.
Without access to updated product information, your sales force is at a disadvantage. They’ll find it difficult to sift through thousands of items and identify the ones that meet all the clients’ requirements. To make matters more complex, they need to incorporate discounts, promos, and other dynamic pricing factors.
Clients, especially B2B, expect accurate quotes sent promptly. If not, they’ll bring their business elsewhere. Legacy systems may not be able to put together a quote quick enough to beat your competitors to securing a sale.
Mastering the entire product line takes time; it will take a while before the newest members of your sales force can upsell and cross-sell. CPQ software enables quick configuration.
These are just some of the cases that would benefit from CPQ. So long as you want to improve your sales process, consider investing in this software.
The small opportunities that CPQ offers have a huge impact in the long run. Here’s how CPQ works with your sales force to improve your business:
With CPQ, your sales team exerts greater control over the sales process. They can see everything that you offer, track everything that’s been sold, and, consequently, make better sales reports and forecasts.
CPQ supports your endeavors for new revenue models. It empowers your sales team to execute new income streams flawlessly through efficient configuration, pricing, and quotation.
In sum, CPQ is a powerful software that transforms the way you close your sales. It saves you time, gives you a clear picture of your sales, and, more importantly, ensures you make the most of every opportunity.
Learn more about CPQ by getting in touch with our experts.