The Business Value of Implementing CPQ

Configure, Price, Quote (CPQ) solutions deliver high value for many companies, particularly those that deal with complex product lines. 

When properly aligned to sound product structures, pricing models, empowered employees and partners, a good CPQ solution drives a range of real business advantages. 

If your organization offers any level of product complexity, be it bundles or configured products, CPQ will direct sales to the most appropriate and compatible products. And if your quoting process is time-consuming and involves some negotiation, CPQ will automate the work, reduce inaccuracies, and increase effectiveness.

The following business benefits have been achieved by companies that have successfully implemented CPQ solutions:

Improved Accuracy

Productivity gains can be achieved through enhanced process automation. As a CPQ system user, you can accurately select the product and service options and features that you require. This enables your front-office staff and channel partners to configure quotes exactly to meet customer requirements.

Shortened Response Times

Within a CPQ system, specialists can pool their knowledge to answer questions posed by prospects and clients during the selection process. Furthermore, more companies are able to implement self-service business models.

Increased Volume Throughput

It takes less time to create quotes. As users can only select options that are authorized to be sold, compatibility errors are prevented. Prices are calculated automatically and are accurate and consistent. The ability to generate professional-looking documents with the click of a button is one of the essential components of CPQ.

Reduced Learning Needs

A CPQ solution that is easy to use shortens the learning curve for users, even for complex products and services. Good CPQ solutions enable direct users / channel partners to select the products and services that meet their needs most closely – requiring minimal training and product knowledge.

A More Consistent Approach

When sales teams are required to take on new or enlarged product ranges that they may not be familiar with, consistency is a major advantage gained by CPQ implementers. Sales Administrators can be confident that a consistent approach is achieved quickly.

Enhanced Market Image

Consistent presentation can also enhance your company’s market image. When individual sales team members aren’t allowed to use their own templates for quotes, you can better manage and control your overall business image as required by the business as a whole.

Empowered Employees

A well-implemented CPQ solution can empower and motivate your sales organization as a whole. A wider group of people within a team may feel confident discussing product details with clients and prospects and providing customized quotes.

Reduced cost

Companies that successfully implement CPQ solutions, achieve reduced cost and rapid returns on investment. CPQ investments pay off quickly when quoting errors are removed from their system. For many companies, this is a key area for reducing costs – and one that is extremely positive for both customers and employees.

Several companies making the case for CPQ are taking advantage of the opportunity in their markets to increase client choice, and wherever appropriate, client self-selection.

CPQ solutions enable companies to adopt 'mass customization' business models. Therefore, they can eliminate or significantly reduce the requirement to sell standard products, and benefit from reduced stock holding of finished products.