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What is CPQ?

CPQ stands for “Configure Price Quote.” CPQ is on-premise or cloud-based software that simplifies complicated selling processes by digitally transforming business rules, workflows and product configurations through a role-based engine that integrates with other enterprise platforms. CPQ is a sales-enablement solution that helps businesses improve their customers’ buying experiences across multiple sales channels, countries, currencies and time zones.

Some features of CPQ software may include:

• CRM (Customer Resource Management) Integration
• ERP (Enterprise Resource Planning) Integration
• Guided Selling Scripts
• Product/Service Configuration
• Pricing and Quoting
• Branded Proposal Generation
• CAD Integration and Product Visualization Capabilities
• Business Intelligence (BI), Analytics Data and Reporting Capabilities

CPQ platforms make it easier for sales representatives and dealers to have all of the information they need at hand when helping customers, enabling customers to make buying decisions at the point of sale. Multi-channel, multi-currency CPQ software software can greatly improve the buying experience for customers across the globe.

CPQ technology drives innovation and makes an ever-stronger case for being positioned as a core business tool.

How Does CPQ Work?

Cincom’s CPQ software platform starts with product configuration. The CPQ software creates a real-time price and quote of the specified configurations and delivers that price and quote to the customer or sales team.

CPQ Market Growth

CPQ technology has been a fundamental business driver for decades, according to Forbes. It used to be what was used behind closed doors, addressing complex sales orders from sales reps and customers.

The forecasted market growth for CPQ software is based on two factors:

  1. CPQ software is no longer only being used for complex sales.

According to Forbes, “Businesses are using CPQ across all product solution lines to sell accessories, bundle and configure service options.”

  1. More industries are using CPQ software.

Once the domain of manufacturing, CPQ technology is now moving beyond this industry and is being used in industries such as financial services, media and entertainment, high-tech, healthcare and communications.

CPQ technology drives innovation and makes an ever-stronger case for being positioned as a core business tool.

How Can CPQ Software Benefit Sales Teams?

As mentioned in a previous post, “Five Ways to Measure ROI for a CPQ Solution,” CPQ software provides a “five times greater year-over-year revenue growth rate” and minimizes “the complexity of the quoting and proposal process by minimizing the people and functions involved.”

Here are six more benefits that sales teams are already enjoying with CPQ software:

  1. Guided selling
  2. Proposal generation tools
  3. Automated quoting
  4. Deal profitability analysis
  5. Workflow-based approvals
  6. Contract negotiation

The Benefit of Selling Value Over Selling a Product or Service

If you ask anyone in Marketing which is more effective, product selling or benefit selling, most will tell you the latter is more important. Just look at Apple. They didn’t sell the iPod as a product, but more as a lifestyle option. They sold the value of the product, rather than the product itself. You could hold hundreds of songs on a sleek device that fits in your pocket.

The cosmetic industry also sells on value, rather than on treatments or procedures. Admittedly, their value is not only how much better you will feel about yourself after you’ve gotten a treatment or procedure done, but it’s also very much about the value of the treatment rather than the price tag.

That’s what customers want. They want to know what’s in it for them. Is it worth them exchanging their money (and their time) for your product or service?

If you could show a potential customer the value they’ll get out of the purchase, and out of working with you rather than your competitor, your chances of converting them from a potential customer to a paying customer is much higher, and you also increase your chances of turning them into a repeat customer.

How CPQ Software Can Help Your Sales Team Sell on Value

When a member of your sales team goes to see a prospective customer, they can take the CPQ software with them on a tablet device. This allows them to answer all questions and explain the value of what the customer wants.

The mobile nature of the CPQ software keeps salespeople from feeling awkward about not knowing answers or having to book another appointment to give them time to find out more information.

Everything they need to know is there at their fingertips. Which, as has been written in another blog, CPQ Solutions – Looking beyond ROI,” instills confidence in the buyer.

There’s also the efficiency and accuracy of the CPQ software in delivering real-time prices and quotes. Eliminating the guesswork from quotes and prices as well as showing the buyer’s real-time information shows them the value of your sales team, your product and by extension, your company.

Why a CPQ Solution Could Be What Your Company Needs to Increase Sales

The data from the last 12 months all seems to point to one thing: a CPQ solution is the best solution for businesses looking to grow their bottom line.

With a range of products and options, multi-channel CPQ solution could be what your business needs to increase sales and customer retention.

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