Many sales organizations face a common problem: producing accurate and professional sales quotes for prospects quickly, while eliminating errors and inefficiencies. Although the problem is widespread, many sales leaders don’t know how to address it effectively. CPQ is a growing software category that tackles this challenge head-on.
Let’s look at what the acronym CPQ stands for: Configure Price Quote.
C is for Configure.
We do not live in a one-size-fits-all world. As a famous Burger King commercial used to remind us, we can have things our way. Not only do we want our burgers configured with just the right toppings, but we have grown to expect everything customized to our wants and needs. We create custom play lists for our music, build our cars on dealer websites to identify which features best fit our desires and budgets, and can even design our own personalized shoes and jeans online. In our consumer purchases, this desire to configure may be driven by “want”, but in our business purchases, configuration is driven by “need”.
If you are a B2B seller, you must address this need with unique combinations of products and services that deliver exactly what your buyers need. And if you can’t do that, then your competition will. CPQ software can enable your sales team to configure your offerings, following your business rules and meeting your customers’ needs.
P is for Price
Few businesses sell their products at full list price to all customers in all situations. Perhaps you offer special pricing, bundle pricing or volume pricing. And maybe your sales reps like to apply extra discounts to “sweeten the deal”. Keeping track of current pricing, discounts rules and bundle pricing can be a headache. But more importantly, it can be disastrous to the bottom line when discounts are applied incorrectly or inconsistently. And it can be embarrassing when you misquote prices to a customer, it can even cause you to lose the deal.
CPQ software helps manage pricing for all your products and services. It enables your sales team to create quotes with consistent pricing, including available discounts, quickly and accurately. Advanced pricing rules can be set to handle volume discounts, percent-of-total subscriptions, pre-negotiated contact pricing and channel and partner pricing. Using CPQ software you can be sure that your pricing is accurate and optimized.
Q is for Quote
You can’t close a deal until you present a quote or proposal. Sales reps spend a lot of time and effort to earn the opportunity to present a quote to a customer, so they need to create the quote correctly and quickly. And it needs to represent the business in a carefully crafted, professional manner. Once again, CPQ software provides the solution.
With just a few clicks, a sales rep can create a quote, send it in email, and even include an e-signature to close the deal. CPQ software automatically pulls in the configured products and pricing, tying the whole process together and ensuring consistency.
Many sales professionals that use CPQ software say they can’t imagine how they ever lived without it.
If you want to learn more about CPQ, includng the ROI from CPQ, download our e-book CPQ Made Simple.