Configure price quote (CPQ) software empowers salespeople, partners, and customers to configure complex products efficiently and accurately. It streamlines the quoting process and delivers personalized pricing and product information to ensure higher win rates and a better buying experience.
CPQ systems have three core processes: a configuration engine, a pricing engine, and a quote generator. Let’s take a look at each one.
Configure price and quote (CPQ) software helps you configure complex products to match customer specifications. It also automates pricing and quoting by using codified product and price information. These features expedite the quoting process and empower sales teams to boost win rates and create a better customer buying experience.
Whether you sell complex or simple products, salespeople face the same challenges when preparing quotes: they must have all the correct product information at their fingertips. That’s hard to do when there are many options, components, and add-ons, resulting in a combinatorial explosion (the rapid growth of product complexity that can occur when the combinations of different product components exceed a specific limit).
A CPQ tool provides a guided configuration journey for your sales reps and customers to make it easy to select customizations, upgrades, and accessories while automatically calculating prices based on those selections. This saves your salespeople time and reduces errors that lengthen the sales cycle and harm your brand image.
Most importantly, a configurable price quote system can be easily integrated with your CRM platform and other business systems so that it becomes an integral part of your sales process. Then, your salespeople can access it from any device and location, making it easier for them to use during client meetings and reducing the need to update quote information that may change after a conversation manually.
CPQ software takes the guesswork out of product selection, pricing models, and discounts. It allows you to create professional customer proposals based on their specific requirements and budget. Ultimately, it speeds up the sales process, increasing your win rates and creating a better buying experience for your customers.
The CPQ industry is increasing, and for good reason. Various studies show that companies with configurable products can increase their sales win rate and provide a better customer experience by automating the quote and proposal process. It also saves time and resources for both the seller and buyer, which is a win-win situation for everyone involved.
In addition to saving time and money, automation eliminates manual errors. It makes it easier to work with data and reduces the possibility of miscalculation or misinterpretation when re-keying complex data sets into multiple systems. In a CPQ system, rules define and control the entire configuration and quoting process, providing consistency, reliability, and efficiency.
An automated system also enables your sales team to track the status of quotes and invoices. It allows you to identify bottlenecks in your system and take steps to streamline the process and improve the overall customer experience. It also ensures that all data is up-to-date, allowing you to make informed decisions about pricing, discounts, and offers for your customers.
For any MSP, the benefits of CPQ are limitless. The system can integrate with a variety of CRM and project management tools, and it can also import data from existing merchant accounts. It streamlines the handoff from sales to project teams so that work can begin on the new quote as soon as the deal is accepted.
A centralized database makes it easy to track configurations, quotes, and sales proposals in one location. It eliminates the need to manage multiple spreadsheets or deal rooms, reducing the risk of error. The simple, user-friendly interface means there’s no learning curve for your sales team—they can use the CPQ solution alongside the CRM software they already know and love.
In addition to streamlining the quoting process, CPQ systems enable more cross-selling and upselling opportunities for your salespeople. Enhanced product/service information and automated quote generation reduce the time it takes to create sales proposals, boosting win rates. It, in turn, leads to more satisfied customers. And, as you probably know by now, a happy customer is a loyal one—so it’s worth investing in configure, price, and quote software.
CPQ systems offer detailed reporting that gives sales reps and managers an overview of the quoting process. It helps in identifying problems and enhancing performance. The system also provides valuable analytics that help in making better decisions for the business. For instance, a CPQ system can provide details on quotes created, purchases completed, disapproved quotes, etc. It can also give a clearer picture of revenue sources.
In a traditional sales environment, many manual tasks are prone to errors, especially with customizable products or complex pricing models. CPQ software automates these processes, eliminating inefficiencies and mistakes in the process. Moreover, it reduces the time required to prepare and send quotes. It improves customer satisfaction and paves the way for sustainable growth.
The Configure Price Quote (CPQ) market is increasing, and for good reason. Using CPQ solutions can significantly improve the sales process and boost profits. However, implementing a CPQ system requires a significant investment.
The benefits of a configured price quote system include increased efficiency, improved accuracy, and greater customer satisfaction. These systems can help you prioritize opportunities, identify cross-sell and up-sell opportunities, and optimize the sales process. They can also make it easy to create and update quotes, even on the go. Moreover, a CPQ system can integrate seamlessly with other sales and CRM applications.