Quote and proposal software has generated a lot of buzz. Postings on social media, commentary from industry analysts, as well as user and vendor blog posts and white papers, all offer advice and information about automating the quote and proposal functions within the enterprise. The most sophisticated quote and proposal software offerings provide AI-powered interfaces that communicate with customers and sales agents to fully configure and price highly complex products. Given the great potential quote and proposal software offers in terms of improved selling efficiency and customer experience, it’s hardly surprising that companies are interested in exploring the quote management software market.
The performance of these systems varies greatly. Some products are limited to simply “doing the math” to ensure accurate price calculations, while more sophisticated products fully integrate with back-office systems, CRM, and marketing-automation applications, offering robust document creation capabilities. For those who frequently require written proposals, a few systems even automate that phase of the selling cycle.
Evaluate Needs Before Purchasing Quote and Proposal Software for Your Sales Process
All quote and proposal software systems are not created equal. Price, sophistication, and performance widely vary. Before you invest in this technology, you will benefit from carefully considering some specific factors related to finding the best proposal software solution for your needs.
Not everyone needs the most feature-rich systems. In some cases, all that may be needed is a price checker or online product reference. However, many companies will find great value in bringing this technology into the selling process as a way to deliver greater value to their customers.
Before deciding what is best for you or your company, let’s consider some specifics related to your enterprise.
Understanding Quote and Proposal Software
Quote and proposal software, often referred to as Configure-Price-Quote (CPQ) software, is designed to streamline the process of quickly and accurately generating quotes and proposals. This software automates the quoting process, making it more efficient than manual methods. By automating many of the tasks involved in creating quotes and proposals, this software helps businesses save time, reduce errors, and improve overall efficiency.
With CPQ software, sales reps can quickly configure products, apply pricing rules, and generate detailed quotes that meet the specific needs of their customers. Additionally, quotation software can track when customers view quotes, facilitate electronic signatures, and automatically convert accepted quotes into projects and invoices. This level of automation not only speeds up the quoting process but also ensures that quotes are consistent and error-free.
Benefits of Using Quote and Proposal Software
The benefits of using a proposal CPQ software are numerous and impactful. For sales teams, the ability to create professional-looking quotes and proposals in just a few clicks is a game-changer. This software reduces the time spent on manual data entry, allowing sales reps to focus on more strategic tasks.
By minimizing errors and ensuring accurate pricing, sales quoting and proposal software enhances the overall quality of sales documents. Furthermore, the software provides real-time insights into customer engagement, such as when a quote is viewed or accepted. This valuable information enables sales teams to make informed decisions and close deals faster.
In essence, quote and proposal software not only improves efficiency and accuracy but also boosts productivity and sales performance.
Buyer Attributes that Drive Quote and Proposal Software Selection for Sales Teams
If you have a high level of complexity in your product and selling processes, you will likely need a more sophisticated quote software and proposal system to fulfill your requirements. Look at your selling needs in terms of the following attributes.
1- Product Complexity
Try answering the following questions as the first step:
- What kind of products does your company manufacture or sell?
- How many different product lines do you offer?
- How many models are produced?
- How much variability is involved in your product line?
If your sales reps are tasked with taking many diverse products to market or offering products with high levels of variation in terms of models and optional configurations that address multiple uses, you are likely dealing with a highly complex product.
Product complexity is a continuum that ranges from the simplicity of highly repetitive, low-variation products such as paper clips, on one end, and the highly differentiated unique products found in a contract manufacturing environment on the other. As you move toward the complex end, your requirements for quote and proposal software will become more demanding.
The more complex the product, the more challenging it is for sales to be conversant on the product, as a whole.
Impact on Quote and Proposal Software:
If required, the software must be able to deliver, to the buyer and seller, expert knowledge related to configuration alternatives, model selection and optional features based on the specifics of the buyer’s needs and requirements.
In the event a proposal is required, the logic that drives the selection of these options must be explained or justified within the generated proposal. Additionally, physical drawings or representations of the specific solution may also be required. Some solutions offer this type of documentation, as well as bills of materials (BOMs), itemized pricing, and customizable sales quotes.
2- Complex Pricing Structures
Here, understand the current pricing structure by answering the following questions:
- How many pricing models are used to price the product?
- How are variable pricing models invoked or limited?
- Are there multiple price lists devoted to special classifications of customers, such as national accounts or GSA discounts?
- Is the product priced for multiple markets such as different vertical industries or geographical locations?
- How does pricing scale to accommodate “big versus small” customers?
Complex products and complex pricing make it nearly impossible for a salesperson to produce a quotation without carefully considering the customer’s situation and referencing technical product memos and multiple price lists. Errors are common, and the result can be money left on the table or lost sales because of overpricing or undercharging customers for products sold.
Impact on Quote and Proposal Software:
Quoting software is essential for handling complex pricing that features multiple price lists, multiple currencies, and different pricing models for different types of transactions. Selecting the correct price usually involves the application of expert knowledge and understanding when each pricing model is applicable.
All pricing requires ongoing maintenance. Centralized control and maintenance of these price lists is critical to prevent misuse of pricing discounts and pricing models.
Additionally, the maintenance of pricing related to market pressures, promotions and other requirements makes centralized control highly advantageous. It’s more than one throat to choke; it’s simply a matter of reaction time and keeping your pricing current with the realities of the marketplace.
3- Selling Model Complexity
If you sell your product through a single direct sales force, your sales-management burden may be comparatively simple. But, if your product is sold through multiple channels, using resellers, partners, integrators and direct sales, you have a decidedly more complicated sales-management challenge.
Additionally, your geographical footprint may require you to work with multiple currencies, floating exchange rates and localized selling customs.
Finally, consider the actual selling process for your product:
- How do you identify qualified buyers?
- How do you justify the value of the products you sell?
- Does this vary by prospect, or is it a consistent value message?
- Is there a specific technique built into your pitch that focuses the buyer/seller conversation on achieving an effective solution?
Impact on Quote and Proposal Software:
The ability of the system to scale to multiple price-list requirements is critical to global or multi-channel selling environments. Sales quoting software not only simplifies the creation of quotes and proposals but also improves pricing accuracy and facilitates collaboration among sales teams.
Additionally, multi-market selling frequently involves different pricing models. One market may expect prices per pound; the other market may express value in access to the solution by a specific number of people.
The solution should be able to accommodate variable pricing models driven by the sales transaction that is taking place.
4- Transaction Complexity
When you quote a price, what does that price represent? So many units, pounds or gallons? A limited number of users? Ownership of a specific discrete product? Use of a product for a specified amount of time or number of transactions? What exactly, are you selling?
Is the transaction based on a transfer of ownership? Is it a rental or lease? Is it a usage license or access granted to a service?
All of these transaction variables require an array of possible selling instruments, and they are evidenced by contracts, agreements, various definitions of what constitutes delivery and fulfillment of obligations between the seller and buyer.
Impact on Quote and Proposal Software:
The nature of the actual product or service sold must be handled in terms of pricing for various quantities or other units of scale. The sales team plays a crucial role in utilizing automated quoting software to manage these complexities, ensuring efficiency and accuracy.
These must be easily translated to the proposal language and supporting documentation, and an accurate description, unit price and extended price must also be presented.
5- Selling Infrastructure Complexity
Understand how buyers and sellers communicate with one another:
- Are sales transacted via eCommerce online, on the phone or via person-to-person discussions between field reps and customer buyers?
- What systems are involved in documenting and inputting specifics related to the sale?
- Are orders manually created via hard-copy forms, or is the system automated with tablets or online stores?
- How is the sales order communicated to the billing system, production scheduling system and logistical systems?
- Are there accommodations for auto renewal or replenishment in the future?
Selling may occur in the field by being documented on a paper napkin, or it may be totally automated. The infrastructure that supports these two process extremes are very different.
Impact on Quote and Proposal Software:
The solution should be able to capture the specifics of the transaction and communicate the relevant information to the order management system, production scheduling system and other back-office systems, including the creation of interactive proposals.
The manual process of order entry is error-prone and time-consumptive. Automation of the order-entry process will address both of those weaknesses.
6- Integration and Compatibility
In the modern sales landscape, integration and compatibility with other systems are essential for maximizing the benefits of quote proposal software. Seamless integration with Customer Relationship Management (CRM) platforms and other sales tools ensures that data flows smoothly between systems, reducing manual data entry and enhancing overall efficiency.
Integrates with Popular CRM Platforms
One of the key advantages of quote and proposal software is its ability to integrate with CRM platforms. This integration allows sales reps to create, send, track, and close deals directly from their CRM, streamlining the entire sales process. By syncing contacts and using custom variables to pre-populate fields in quotes, the software reduces the need for manual data entry and minimizes the risk of errors.
Additionally, integration with CRM platforms enables sales teams to leverage real-time data and insights, enhancing their ability to make informed decisions and drive deal automation. This seamless connectivity not only improves productivity but also ensures that sales proposals are accurate and tailored to the specific needs of each customer.
By understanding the key elements of quote and proposal software and its integration capabilities, businesses can make informed decisions about the best solution for their needs. Whether dealing with complex pricing structures or managing a multi-channel sales process, the right software can significantly enhance quotation management and drive success across the entire revenue lifecycle.
Enterprise Requirements, Software Performance and Proposal Automation Benefits
Quote and proposal software can deliver huge benefits to the user when properly utilized. Quoting software tools are essential solutions for businesses to streamline their sales processes by automating and optimizing the creation of sales documents, including quotes and proposals. There are many systems and levels of performance available to address a wide range of selling transactions.
It is important that buyers be aware of their own needs related to the sophistication of the system selected. Risk is present for overbuying, as well.
If your requirements are driven by low-complexity products, pricing or transactions, your needs will likely also be met with a lower-complexity quote-and-proposal-automation product.
However, if you are dealing with multiple products, model price lists or markets, your needs will lean toward the more highly evolved systems. And, if you are frequently delivering proposals in highly competitive transactions, you will find great value in the automated proposal process.
Take time to understand your requirements, and you will find the perfect system for your needs.
FAQs
1- What is a quote and proposal system?
A quote and proposal system is software that helps automate the process of generating accurate quotes and proposals, improving sales efficiency.
2- How does quote and proposal software improve sales efficiency?
Quote and proposal software automates the creation of accurate quotes, reducing errors, saving time, and enabling sales teams to close deals faster.
3- What are the benefits of integrating quote software with CRM platforms?
Integrating quote software with CRM platforms improves data accuracy, streamlines the sales process, and provides real-time insights for better decision-making.
4- How do I determine the right quote and proposal software for my business?
Consider your product complexity, pricing models, sales channels, and integration needs to choose the software that best supports your unique business requirements.
