Why install a CPQ?

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itcelerator

22 January 2024

Implementing a CPQ (Configure, Price, Quote) solution in your company is a strategic decision that can boost your sales and revenue. If you find yourself in one of the following situations, you need a CP solutionQ:

Your products and services have a technical and marketing complexity that holds back sales. If your offer is diversified and includes multiple options, specific configurationsor if it requires flexible pricing Depending on the characteristics chosen by the customer, external factors or your pricing strategy, a CPQ can simplify this complex sales process, guiding sales representatives and customers, reducing human errors and administrative tasks, and all this will contribute to shorten your sales cycles.

Your products and services have a technical and marketing complexity that holds back sales. If your offer is diversified and includes multiple options, specific configurationsor if it requires flexible pricing Depending on the characteristics chosen by the customer, external factors or your pricing strategy, a CPQ can simplify this complex sales process, guiding sales representatives and customers, reducing human errors and administrative tasks, and all this will contribute to shorten your sales cycles.

If your company uses variable pricing based on various criteria such as order quantity, customization options, specific discounts for certain customers, a CPQ can automate these complex calculations while respecting sales policy (to protect your margins) and guarantee precise, reliable pricing at every stage of the process. The CPQ thus enables us to generate price quotations in the shortest possible time, to the customer’s complete satisfaction.

In sectors where the sales cycle is naturally long, due to the complexity of the solutions to be configured, a CPQ can considerably reduce the time needed to submit a commercial offer. The generation of tailor-made sales offers enables sales teams to be more responsive, boosting customer satisfaction and increasing conversion opportunities.

Generating a quotation can involve the collaboration of several players and departments in your company. Sales staff are supported by other departments such as sales, engineering and logistics to produce complete proposals. This creates a major mobilization of these departments, with multiple interactions to respond to each request for quotation or call for tender. The challenge is to collect and synthesize data from diverse and often heterogeneous sources. Effective coordination of these multiple players via a single platform such as CPQ is therefore crucial, underlining the need for an integrated, efficient and collaborative approach.

Using several tools that don’t communicate with each other(CRM, PIM, PLM, ERP, CAD…) creates silos and prevents smooth collaboration between teams. What’s more, the lack of a CRM-integrated costing system complicates the sales process. Spreadsheet-based costing sheets, sometimes not updated, lead to potential errors, impacting the reliability and speed of the quotes generated.

Processing customer requests received by email and reprocessed manually leads to significant human error, and wastes time that could be devoted to more lucrative activities.

Theabsence of automated approval and dunning processes complicates and delays signatures. Implementing a CPQ automates manual tasks and approval processes, makingthe sales process faster and more reliable.

If your company is looking for a better understanding of sales performance, purchasing trends and customer behavior, a CPQ can help you collect the indicators you need to optimize your sales efficiency.

Connected to a CRM or BI (Business Intelligence) solution, a CPQ solution can be used to supply the many dashboards needed for sales management. This provides a clear, detailed view of performance, enabling informed decision-making. You can identify sales trends, buying behavior, etc. more quickly and easily, enabling you toanticipate market needs and adjust your offers accordingly to gain market share or maintain your position as market leader.

In the context of PaaS (product as a service), a CPQ solution is an asset for managing the recurrence of offers and the renewal of subscriptions. The tool makes it quick and easy to configure customized sales proposals based on customers’ specific needs, taking into account their preferences and purchase history to suggest the most suitable products or services. CPQ thus encourages cross and upselling, as the tool automatically suggests complementary services or options to the customer, thereby increasing the value of the transaction.

Its ability to manage variable and complex pricing means that rents can be calculated automatically, in compliance with sales and marketing regulations. Automated quote generation improves customer satisfaction and speeds up the sales process.

Connected to a billing tool, CPQ software simplifies contract management and renewal by automating billing cycles.

See also :

Quote-to-Cash or how to manage the sales cycle from offer configuration to revenue recognition?

Feedback from Loxam Module: how Loxam Module considerably reduced its lead times for module rental offers?

In conclusion, determining whether your company should equip itself with a CPQ is based on an assessment of the specific needs, issues and objectives to which your sales processes are subject. If your company offers complex products or services, manages a wide range of products, or faces extended sales cycles, CPQ can bring significant value by automating configuration, pricing and quotation generation processes.

Reducing human error in quotations, improving sales responsiveness through automation, and providing dashboards of sales performance are just some of the benefits that justify the adoption of a CPQ.

Supporting your CPQ strategy

There are a number of CPQ software packages available, each with different functions and features. As with any strategic IT project, the choice and integration of a CPQ requires the support of an expert in order to determine the most appropriate solution for achieving your objectives.

Our consultants will guide your company through the integration of a CPQ solution, from needs assessment through to implementation of the most appropriate solution according to your specific needs: discovery/analysis of requirements, solution configuration, maintenance & skills transfer to make you autonomous.

See also :

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As aQUALIOPI*-certified training organization, we provide you with pragmatic, comprehensive training programs to help you get to grips with your CPQ solution.

*ITCeleratoris an ICPF-certified Qualiopi training organization in the Training Actions category.

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