CPQ is modern software that salespeople can use to evaluate customisable and complex products. In 2020, about half of sales organizations in English-speaking countries were using it. Salespeople customized product parameters, determined pricing, put together and sent out an offer to potential customers. Another possibility is to make discounts automatically.
The software is in demand due to the large number of features. These include 3D product visualization, the ability to set a discounted price, and managed sales. The software integrates with e-commerce, ERP and CRM programs.
Where Cpq Tool is Used and Example
In what areas is the software, which stands for configure, price, quote used? IT companies, marketing and advertising companies, and manufacturing companies can’t do without it. Other such areas include:
- finance;
- health;
- telecommunications;
- food;
- beverages;
- business services.
Quality cpq software can be successfully used for the automotive industry. One example is the production of heavy trucks. The chassis becomes the basis, but a vehicle without an engine will be a pile of scrap metal. Another necessary part is a trailer. All add-ons can be calculated using a computer, saving the time and effort of the company’s specialists.
When selling cars, other criteria are taken into account. The cost is influenced by the brand, model, body color, equipment, the presence or absence of additional options. Another example is the work of domestic airlines, which provide customers with a small number of services. It is possible to make discounts if the ticket is not tied to a particular aircraft.
How Do You Use Configure, Price, Quote?
Configuration is the possibility of simplified promotion of a non-standard product. Small companies can focus on the needs of individual customers – one person or a group of people. When subscribing, it is easier to create three product packages with different costs at once. For example, bronze, silver, gold.
When installing Pandadoc software, you can use a special pricing module. You may specify a price and description for each item in the catalog. Customers will find it by article using the search tool. The company’s employees will be able to make changes to the price table using the usual editor.
At the last stage, a commercial offer is sent to potential customers. All errors are eliminated beforehand, after which the processes can be automated.
CPQ Features and Functionality
One of the advantages of cpq solution is the ability to customize additional products. The recipient has access to a ready-made template with several options. There are generated offers that are well understood by the potential buyer. Company employees see recommendations, with which it is easier to take into account the needs of each buyer. Sellers get the opportunity to compare offers on one page.
Another advantage is instant quotes. Sales staff can speed up the pricing process. Instead of several days, a deal closes in a few hours or minutes. The employer can train sales representatives. Employees must be able to work with the software and know all of its features.
Pricing can be customized by quality. The settings use product personalisation, specify the amount of discounts in effect, and use exclusions. Business owners will appreciate the advantages:
- Control of decision making and quotations.
- Accuracy of margins in systematizing sales.
- Performing administrative tasks of a sales representative.
Not everything can be clarified through automation. With electronic prompts, employees will start to get rid of inconsistent contracts, incorrect discounts, standardized prices without discounts for regular customers.
Examples of Scenarios Using CPQ
There are ready-made scenarios that each software buyer can make a few simple changes to. Here are four scenarios for implementing the cpq tool:
- Limited staff. All labor-intensive processes are automated. Company employees will not enter data manually.
- A drop in sales. When processes become more efficient, revenues increase.
- Sending inaccurate commercial offers. The program itself makes changes.
- Decrease in sales efficiency. Using accurate data, the company’s employees will work professionally.
When you purchase the software, you will receive quality analytics in a timely manner. The vendor will know how customers interact with their documents. The risk of errors is reduced.
Such software has proven itself perfectly in IT companies. The platform should be easy to set up. In this field of activity, a lot depends on automation. The number of sales increases rapidly even when new employees are recruited. The latter will be able to reach their potential customers. They will appreciate a quick answer to their question.
What Problems May Arise
Financial information that is stored in work computers is legally protected against possible fraud. Security should not be overlooked with the need to prevent data leakage. Only authorized users should have access to the program. Other employees should be given limited access. A suitable option is to allow changes to be made after providing a password and login.
To increase security, it is possible to use an electronic agent. This is a program that asks questions each time a new item is entered. It inquires whether the employee wants to protect the description from unauthorized access. Beneficial features include custom policies that can be used for discounts.
How to Choose the Right CPQ Provider
There are several types of software on the market from different providers. Choose cpq software according to the specifics of your company. What exactly do you need today? What features will be needed a year from now? At the first stage, favor a package with minimal features. The costs should be recouped with the growth of sales – only then you can buy a new program.
Is the vendor ready to improve functionality? Well-known developers who care about their reputation eliminate bugs and use optimisation elements. Sometimes software scales with the business.
Conclusion: Which Issues Are Dealt with Using CPQ
Most companies that have read the examples and implemented modern software set prices that are perfect for the customer. Employee time is optimized even when selling individual services. At the same time as the number of errors is reduced, monetary costs are minimized. On the other hand, companies improve the quality of customer service.