Many organizations wait for a large sales team or complex pricing and configurations to consider CPQ pricing. However, even the smallest businesses can benefit from this tool.
A centralized quote builder speeds up the sales process, giving reps more time to close deals. It also improves the customer experience.
CPQ solutions are time savers for sales teams, which is excellent since focusing on their customers is necessary. Eliminating the back-office tasks and manual processes associated with configuring, pricing, and quoting frees up reps’ valuable time prospecting, generating leads, and connecting with clients.
Using a CPQ solution, sales reps can deliver accurate, professional quotes automatically generated in a branded document containing all terms and conditions for the products or services offered. This gives the customer confidence in your company’s quote, which can help close the deal.
In addition, CPQ solutions like those in Tacton.com that are appropriately integrated into other business tools (like ERP systems) can make it easier for the sales team to communicate with customers throughout the revenue lifecycle. This includes encouraging upselling and cross-selling to extend the value of a purchase and maximize profit margins. This is especially important for distributors whose sales compensation plans often reward revenue growth instead of profits. These improvements can improve margin potential and help distributors stay in business long-term.
A CPQ system can handle a product or service’s complicated pricing and configuration rules. The software can calculate prices in real-time based on configured products’ specs and add or subtract markups and discounts as needed to get the best price for your customers.
Sales teams can save time and energy that would otherwise be spent manually calculating quotes and creating proposals and estimates. They can use this time to focus on customer relationships and growing business with existing or new clients.
Adding a configurator to your CPQ software can be a game-changer for the customer experience. The tool will make it easier for your customers to configure the right product or service for their unique needs. They will also be able to see 3D renderings of the configured product so they can easily understand and visualize how it will work in their environment before purchasing. This provides a more convenient and informative buying experience to boost sales and increase customer satisfaction. You can even offer a personalized experience for each customer by sending them a custom quote.
A good CPQ solution makes it easier for the entire sales team to create accurate quotes that meet customer requirements and ensure compliance. This can reduce the number of errors that may occur while creating a quote, potentially damaging the company’s reputation.
A CPQ solution also helps to eliminate errors within the sales process by making it more efficient and automating many of the steps involved in the quoting process. This means that there will be fewer mistakes made by your sales reps, which will ultimately lead to a better customer experience.
CPQ solutions are for more than just the sales team, as they can be used by other departments in your business, such as customer success and finance. By streamlining the quoting process and reducing the likelihood of errors, a CPQ solution can help to improve communication between departments.
With less manual work involved, sales teams can spend more time on their customers, leading to a better relationship and increased revenue for the business.
Many businesses implement CPQ to streamline their product configuration, pricing models, and sales quoting processes. This helps sales reps produce quotes more efficiently and accurately, improving sales productivity and success.
CPQ software can also collect data on the options customers choose to purchase and the relationships between those options, which provides valuable insights for future marketing efforts. In addition, CPQ can help you avoid over-discounting products and sacrificing revenue by providing accurate pricing and discounts consistent with the market.
While your customers may be willing to overlook minor errors that could come from human oversight, they will not tolerate a slow turnaround time or unreliable sales quotes. Automating the quoting process can reduce turnaround times and ensure your quotes are error-free. As a result, you can boost your customer satisfaction ratings and win more business from competitors who cannot offer timely, accurate quotes. CPQ can also increase the efficiency of your sales team by allowing them to spend more time focusing on building customer relationships.
Better Customer Experience
The automation allows sales reps to spend less time building quotes and more time prospecting and connecting with customers. They can deliver a more personalized, professional experience with every quote and proposal they send to buyers. This gives the customer a positive, memorable experience and makes them feel like they’re getting a customized, quality product from a company that cares about their business.
CPQ software also enables businesses to provide a more flexible pricing model that varies based on a product’s functionality or the customer’s specific needs. This can help a business differentiate itself from competitors and attract more customers.
However, before investing in a CPQ solution, sales leaders must evaluate the current process and identify bottlenecks and inefficiencies. Implementing a CPQ tool should be done with seriousness, and the benefits should outweigh any potential costs.