CPQ software is essential for businesses that sell products and services. Devilerving accurate price quotes to customers are time-consuming and can often result in inaccurate pricing, unapproved discounts, or the promise of configurations that aren’t available.
The best way to streamline the sales process is to implement the right software that makes it easy to generate quotes. Configure, Price, Quote software (CPQ) allows sales teams to create accurate price quotes quickly. Implementing an effective CPQ solution not only streamlines invoicing and payment processes, but it also streamlines inventory management.
With so many product options on the market, customers don’t want to make a one-size-fits-all product purchase. Customers expect the ability to personalize their orders, and the more specific your offering, the better. Configuration allows you to offer customers customized products and ensure they chose the specific features and functionalities they need and want through an easy-to-track system.
2. Pricing Strategy
Price functionality allows you to offer an attractive price to customers based on their desired configuration. The price functionality of a CPQ tool allows you to take into account any applicable discounts or taxes and supports your ability to make the sale. There are several pricing strategies included in CPQ, such as competition-based pricing, cost-plus pricing, dynamic pricing, rate-based pricing, and value-based pricing. When working with configurable products, it’s essential that you can automatically specify and determine each product’s pricing.
Once customizable products have been configured and priced, you can then send a quote to customers. A CPQ tool allows you to instantly generate and send out accurate quotes to stakeholders, which speeds up the sales process for the sales team and customers. The ability to automatically generate quotes allows you to create more accurate quotes and eliminate back-and-forth communications regarding quotes and invoices. Automation streamlines the process of obtaining approvals and collecting signatures.
The main advantage of using configure, price, quote software is that you will have clearly established, pre-programmed rules in place that make it easy to create a quote. A CPQ application allows you to specify every possible product configuration, price, and discount so that all options are straightforward based on what your business can deliver. Your sales team can rely on a customized template that walks them through the process of creating an accurate quote and get pricing to the customer in minutes.
New sales people will have peace of mind knowing they can build a price quote with preapproved offers and discounts so that they can close their own deals. The customized rules and pricing of CPQ automation benefit businesses that do one-off sales, subscription pricing, and recurring billing. CPQ software means consistent pricing and discount control, multicurrency support, contract, subscription, and channel and partner pricing, and advanced discounting and approval workflows.
CPQ increases the efficiency of your sales team and allows them to spend more time cultivating meaningful customer relationships. The more business processes that you can streamline, the more time your sales team will have to engage with customers, generate leads, and make effective sales calls.