Introduction
In this fast-paced business world, companies are constantly improving their sales processes to enhance customer experience. This is not just about closing a deal but also about building long-term relationships. This requires meeting customer needs and preferences throughout the sales journey. However, companies that offer customizable products face a major challenge: how to configure products to meet customer needs without any error, delay, and inefficiency?
This is where product configurations come into the picture. CPQ product configurator or CPQ software simplifies the process of customizing and configuring products to meet the customer’s needs. The software enhances product selection, configuration, product visualization, and price adjustments, turning complexity into sales efficiency.
So, before we get into the detail of how CPQ product configurators help you with simplifying complex customizations, let us understand what a product configurator is and what does it includes.
What are Product Configurators?
A product configurator is a software solution that helps businesses to customize and configure complex products according to specific needs and preferences of the customers. Through the software, businesses can configure products by selecting different parts, colors or features in real-time and high accuracy based on customers’ requirements.
With a product configurator, customers get what they want. The product is customized according to their needs in a frictionless sales process.
Simplifying Customization with CPQ Product Configurators
If your company offers highly customizable goods, such as industrial equipment, automotive equipment, or medical devices, you must know the pain of configuring products to match the needs of the customers. Customizing products can be highly time-consuming, tedious and may involve many sales reps. It also increases the risk of inaccuracies and errors in the sales process, like selecting the wrong color, size, material, or whatnot. Consequently, you can face loss of productive hours and loss of sales even after such efforts.
CPQ product configurators simplify the entire sales process. Here is how they make complex product configurations easy for your customers.
Rule-based product configurations
CPQ software offers rule-based product configurations that govern the logic of product customization process both for buyers and sellers. In simpler words, CPQ product configurators ensure that only valid combinations are applied while customizing the product without manually checking possible customizations every time a customer makes a new demand.
Rule-based product configurations significantly reduce the tedious back-and-forth of the sales team while customizing products for the customers. It works in two ways:
Auto add and recommend product: Product rules can automatically add and recommend products based on the selections made by the customers. This ensures that the final product meets the user’s needs.
Prevent invalid customizations: Product rules minimize configuration errors and prevent invalid customizations, simplifying the process and reducing the back-and-forth.
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Real-time visualization
CPQ software lets you visualize the final product during the configuration process. It offers 3D visualization or real-time renderings of customized products, helping customers see exactly what they are buying. With real-time visualization, sales teams largely simplify customization process by:
- Showing exactly what customers are ordering
- Showing design changes instantly and in real-time
- Reducing chances of errors and misunderstanding as a clear representation of the final product is provided
- Building confidence amongst customers with higher transparency
Guided Selling
CPQ product configurators takes simplifying the sales process to the next level by providing sales reps with step-by-step guidance throughout the product customization process. They get assistance in selecting the right products and configurations based on the customers’ needs. The product configurations work in a step-by-step process, often showing questions or prompts to guide sales reps through the configuration process. This minimizes chances of human error, ensures nothing is missed and reduces reliance on technical experts. This feature also helps sales reps with less experience to create accurate and valid configurations.
Dynamic Pricing Adjustments
Pricing adjustments in the case of complex and customizable products can be challenging. Sales reps must ensure that the pricing is accurate and includes all the discounts and charges based on the final product selected. They must also consider bulk order pricing and region-specific pricing before giving the final quote to the customer. CPQ product configurations help simplify these pricing adjustments by automating calculations, including different pricing rules and discounts. This ensures that customers pay a fair and accurate price for the product they are getting.
Automated Quote Generation
Once the product configuration is finalized and pricing is accurately set by the sales reps, they are required to provide a quote to the customer that comprises everything discussed. This could be a cumbersome process if done manually. Furthermore, the chances of errors and missing something out are also high.
CPQ product configurations help in the quote generation process by bringing the power of automation. Sales reps get instant and error-free quotes that include accurate product descriptions and pricing details. This not only speeds up the sales cycle but also enhances customer satisfaction.
Now you know that by using CPQ product configurators, your business can streamline the sales process, reduce errors, and boost customer satisfaction. However, not all CPQ solutions are created equal. The level of features, specifications, and customization offered in these solutions vary from product to product.
Cincom CPQ is a powerful and user-friendly tool that your business can use to meet your needs. Cincom CPQ tailors every aspect of your complex products and services, enabling full control to maximize your revenue potential. It empowers your sales teams with modern features and user-friendliness. It seamlessly integrates with major ERP and CRM solutions available in the market, so your work doesn’t stop. Discover how Cincom CPQ can transform your sales process. Get in touch with us today.
Business Benefits of CPQ
Integrating a CPQ software platform brings multiple benefits to a business’s sales process. Apart from simplifying complex product customizations, here are other advantages that you can get:
- Shorter sales cycle – With CPQ software, sales reps can minimize the time and effort required in configuring products which significantly reduces the sales cycle time. They can serve customers faster and meet their specific needs efficiently.
- Higher transparency – Customers today demand higher transparency in product representation and pricing. CPQ software brings that required transparency in the sales process by showing customizations, final product, and pricing updates in real-time. This also boosts customer confidence in the purchasing process.
- Increased Accuracy – CPQ software helps sales teams achieve high accuracy throughout the sales process and eliminate costly errors, resulting from invalid configurations or incorrect pricing.
- Scalability – CPQ software reduces the burden on the sales teams by minimizing manual errors and accelerating the quoting process, allowing businesses to scale as they grow.
- Maximize revenue – With CPQ software, businesses can reduce operational costs and turnaround time, ensuring higher margins and greater efficiency.
Conclusion
CPQ product configurators are amongst the most valuable parts of a smart selling process. They transform the way sales teams manage complex products customizations, pricing, as well as quotes.
Sales reps can use product configurations, so they don’t have to fiddle with product details every time. On the other hand, customers enjoy accurate customizations, real-time visualization, and fair pricing. This also brings higher transparency and simplifies decision making for them.
By integrating CPQ software, businesses enjoy higher efficiency and accuracy in the sales process and meet customer expectations seamlessly.
FAQs
1- What is CPQ software?
Configure, Price, Quote, commonly known as CPQ, is a software solution that simplifies the process of creating complex quotes, so sales reps can close deals quickly and provide enhanced customer experience.
2- Why is CPQ software important for selling complex products?
CPQ software simplifies the customization and pricing of complex products to meet customer needs. It automates product configuration, reduces chances of errors, and quickens quote generation.
3- Why should businesses use CPQ software?
Businesses should use CPQ software as it brings various benefits, such as shorter sales cycle, increased transparency in the sales process, and higher accuracy in product configuration and pricing.
4- What are the popular CPQ software available in the market?
Salesforce CPQ and Cincom CPQ are amongst the popular CPQ software available in the market. You can choose software that perfectly suits your business needs and helps you achieve your goals.
