As discussed in our previous blog article, the traditional quoting process results in pricing and order errors. Deals are also lost to those competitors that can produce an accurate, high-quality quote in minutes.
This is why more and more B2B companies are implementing CPQ software, which helps them eliminate typical bottlenecks and the inherent risks in traditional quoting.
Let’s have a look at eight key business advantages delivered by a CPQ solution, leading to greater sales revenue and increased profits.
CPQ software enhances process automation and allows you to accurately select and price for combinations of interdependent product and service options. This means that your sales organization can confidently build and price tailored solutions without the necessity for anyone to check these. This, in turn, reduces the cost of correcting errors later in the process.
In the world of B2B sales, the ability to enhance business is tied directly to how fast you can make an accurate, quality proposal available to your client. The first seller to the table with a professional, compelling quote is likely to win their business. However, creating a quote can be extremely time-consuming, especially when data is tied up in Excel, with multiple file versions.
Even if your organization has particularly complex configurations and unique solutions, CPQ tools can provide accurate prices and quotes in a matter of minutes. Collaboration tools allow all experts and contributors to work on a quote efficiently in the same system.
By sharing the knowledge of experts within a CPQ system, a broader team of individuals can answer questions posed by prospects and clients during your selection process. This eliminates guesswork and delay, streamlines the quote process, increases quality and speeds up the response time.
CPQ solutions reduce the time required to create quotes. Faster quoting means that your capacity to quote is increased, and you will be able to produce more quotes per employee, without compromising quality. Utilizing a rules-based structure means that anyone can be guided through the process, increasing capacity further. You will no longer have to rely on key personnel, and you can deliver quote revisions to clients fast – no matter how complex the situation.
By eliminating manual quoting processes and easing business complexity, CPQ solutions free up time, enabling your sales team to sell more and focus on building relationships with customers.
Rules can be used to guide and automate your sales team in designing and building even the most complex solutions. The learning curve for users, even for complex products and services, is shortened – in many cases no training is necessary, as the user experience is intuitive. This is particularly helpful if you want to encourage cross selling and up-selling of items that your sales team may not be familiar with.
CPQ systems allow you to capture ‘best practice’ and then ensure that this is used consistently and appropriately. Even the newest or least technically competent users will perform like the best and most experienced from day one. This will maximize the chance of success at every stage for everyone.
With greater presentation consistency can also come enhanced market image. When individual sales team members are less inclined to employ their own templates for quotes, the overall business image can be better directed and controlled in a manner required by the business as a whole. An enhanced perception can often lead to a justification of higher prices with buyers.
Well implemented CPQ solutions can empower and motivate the sales organization as a whole. It can give confidence to a wider group of individuals within your team to discuss product details with clients and prospects, and to build quotes tailored to their needs at the time and in the manner that users choose to engage.
CPQ solutions bring reduced cost and fast returns on investment. You will achieve a fast payback on your CPQ investment through the ability to quote more jobs, increase the conversion rate – which reduces the cost of a sale – and also eliminate the cost of errors. Consequently, many companies are now considering that this is one of the most significant areas for both cost reduction and revenue enhancement – and one that is seen as extremely positive by customers and employees alike.