9 CPQ Software Myths Busted (pt.1)

You may have read that Configure, Price, Quote (CPQ) software requires organizations to change their sales process. A simple yet misleading statement like this one might lead you to think adopting CPQ software isn’t for you.

Yet, at its core, CPQ software is designed to automate and improve the efficiency of your sales process, not reinvent it. It enforces your business rules to accelerate quote creation. It automates your approvals to shorten your sales cycle. By adopting CPQ software, you’re not changing your sales process, you’re increasing productivity and efficiency. 

With so much information on CPQ out there today, it's easy to fall prey to harmful myths that block your vendor evaluation and your stakeholder buy-in. In this first of two blogs, we bust the CPQ myths that can hold your project back.

"All CPQ software is the same"

Not all CPQ software is created equal. Some solutions have a wider range of functionality than others. Others require more customization. For example:

1. CPQ Out-of-the-box achieves a fixed set of outcomes. 
2. CPQ Customization achieves your outcomes by tailoring functionality.
3. CPQ Custom Develop achieves your outcomes by coding new functionality. 

The sweet spot is often a mix between “Out of the Box” and “Customization” because it accelerates your time to first value while reducing your total cost of ownership.

"CPQ software is just for sales teams"

While the obvious benefits impact your sales team, CPQ is not just for sales. CPQ is, in fact, a time-saving tool used by different departments for different sales-related activities across your organization. For example:

• Product Owners easily add new options, products, and pricing to the price book. Without the need for IT support.
• Sales Operations eliminates manual re-keying and reviews for accuracy. 
• IT reduces support overhead and extends the value of existing CRM/ERP investments.
• Marketing enables eCommerce and lead generation enhancements to the website.
• Management enables greater visibility of the pipeline, including downstream channel partner quotes.

The sales quote process can be complex, and touches a myriad of teams across your organization. By connecting your revenue-driving sales team and their supporting stakeholders, CPQ is the cornerstone for greater efficiency, productivity and quality every step of the way.

"CPQ software requires changing our sales process"  

CPQ software does not require you to change your sales process. However, while simply shifting your existing process into your new CPQ system will deliver some efficiency and productivity gains - a few tweaks to your existing process, that were not possible without a modern CPQ tool, may yield even greater benefits. 

Ask yourself, do we simply want a faster horse, or should we consider a car?

Reviewing your sales process, and defining your CPQ short term and longer term needs and goals now, will focus your project on time-saving process improvements. It will also help you work with vendors on an incremental implementation of change at a pace your business is comfortable with.

"CPQ vendors must be industry specific"

Although sector experience might help, it won’t necessarily bring you a competitive advantage. Pricing and quoting is a cross-industry process, and many of the challenges are rarely sector-specific. 

For example, while a manufacturing company sells tangible goods, such as steel and textiles, and a business services organization sells intangible goods, such as consulting and training, both sectors deliver complex sales quotes.

In fact, as manufacturers seize the opportunity to add services to their offering mix, their challenges become more similar; configuring and pricing complex project resources, hours and labor rates as well as complex tangible products.

- Want proof that CPQ works?

There are a lot of CPQ vendors out there to choose from, and it’s easy to fall victim to misinformation that inflames stakeholder concerns, blocks buy-in and stalls your project. Propel you and your business forward with the facts. 

Stay tuned for our next installment where we bust myths on CPQ complexity, adoption, and value. 

Talk with Xait today and learn how XaitCPQ customers world-wide validate their return on investment with proof you can use to build your CPQ business case.

Related article: 9 CPQ Software Myths Busted Part 2