When a business has a complicated product, a large number of product variants, or a need to bundle products and services, one of the big pain points in the sales funnel is how long it takes to generate an accurate quote for each customer. It usually isn’t efficient to manually create quotes for each prospective customer. For these businesses, having Configure Price Quote software in place is crucial to create a sales process that is frictionless.
Configure Price Quote (CPQ) software automatically pulls product pricing details to enable your sales team to create quotes quickly and accurately. Businesses can manage pricing across their products and services, and simultaneously provide customers with real time quotes on custom bundles or variants. This can also close gaps in the sales process or between business tools.
Cloud based CPQ solutions are typically integrated into a business’s CRM or ERP system, such as Microsoft Dynamics 365. They use price optimization when making sales quotes to ensure the business has the most bottom line growth. By integrating with a company’s existing tools, the CPQ software provides the most up-to-date information from a central source. This reduces errors, streamlines the sales process, and creates shorter sales cycles, especially for global businesses with many regional offices.
How do you know if your business needs a CPQ solution?
If you meet any of the below criteria, you’d probably benefit from CPQ software. * You have many product configurations, bundles, or variants. * You sell complex products and services. * It’s too laborious or expensive to have sales reps provide individual quotes.
If you fall under the below categories, you may not have an immediate need for a CPQ solution. * You have a small number of products. * Your products or services are relatively simple. * Your sales process is already quick and cost-efficient.
What should I look for in a high-quality CPQ software solution?
There are several key qualities to look for in a CPQ solution.
Advanced rules engine: With complicated product variations, customizations, or bundles, there’s a higher potential for error in manual quoting processes. For an industrial manufacturer, there could be thousands of product combinations a distributor might want.
CPQ solutions with advanced rules engines can catch these errors before anyone sees them. This allows businesses to operate confidently knowing they’re not losing money. Good CPQ software will be customizable so you can build it to your business’s needs.
Visual product configurations: This feature allows a customer to preview the specific product they are getting a quote of - a specific size or color variation, for example. This is especially helpful when certain product variants cost more than others, or if there are special discounts.
Cloud-based and device-agnostic: Using cloud-based CPQ software greatly improves efficiency. It gives sales reps across all offices access to the solution through a standard web browser. Removing the need for special devices provides faster access and reduces costs. An added benefit is that cloud software has simpler subscription pricing.
Automated quoting and pricing: A key pillar of a good solution is automating quoting and pricing. The more manual tasks that can be automated, the better. But it’s important not to forego accuracy for speed; CPQ solutions have to be quick, but not prone to errors.
Guided sales process: Some CPQ software solutions have more self-service features for customers. These guide the customer to input data about their needs so it takes less time to create a custom quote. An example of this is a pricing calculator that you might see with more services-based offerings, such as software-as-a-service (SaaS) companies.
Integration capabilities: If a CPQ solution can’t integrate into your entire technology stack, it defeats the purpose of having a CPQ solution. Without seamless integration, there’s more room for error and data silos. This prevents customers from getting accurate quotes, and could impact the bottom line.
Analytics and reporting: Any business tool should have some level of analytics and reporting so you can understand what’s performing well and what isn’t. CPQ software with good analytics capabilities can shed light on which product configurations are most popular, what generates the most revenue, and which offerings you might want to phase out of the market.
Inxeption’s I-commerce platform has CPQ software built native into our cart. It brings in data from your a central ledger of your products and services so customers can get real-time quotes. You can manage complex product variants, services bundles, and custom configurations easily.
The platform also readily integrates with your suite of business tools. It is built on blockchain technology, which facilitates a more seamless handoff of data between systems. Visit our website to learn more about our I-commerce offering.