Is your company maximizing productivity and revenue with CPQ software? If not, it may be time to learn what this AI tool can do for your business.
What is CPQ?
CPQ (Configure, Price, Quote) software has been available to businesses for decades, but this sales tool has recently become a growing trend in the business world. CPQ software efficiently generates quotes for your company’s products and services while taking discounts, customizations, features and quantities into account.
How Does CPQ Software Work?
CPQ pricing tools use AI to analyze current market data and customer buying patterns to generate a price that offers maximum value to the client and vendor. They often integrate seamlessly with ERP, CRM and PLM systems to offer collaboration on price points across all departments in the company.
CPQ Increases Work Productivity
Technology in general often serves to automate meticulous processes and free up time for more important tasks. CPQ software does that for generating quotes. By automating this process, your employees will spend less time working on quotes and more time solidifying deals, increasing productivity across departments.
CPQ Software Frees Up Time to Spend With Customers
With CPQ software, your sales team is freed up to spend more time with customers, strengthening valuable relationships with current clients and tracking down new leads. They won’t have to wait on other departments to work on a quote for the client, and managers don’t have to spend time approving individual quotes.
CPQ Software Speeds Up the Sales Process
A quicker sales process means your team can reach out to more clients. With manual quoting, speed often comes at the price of accuracy, so the process is often slowed by double-checking quotes and getting manager approval. Yet this slow sales process can demoralize your salespeople and frustrate your customers. CPQ software gives you the best of both worlds by effortlessly delivering accurate quotes in seconds. Rules for quotes are preprogrammed ahead of time, so the software won’t come up with a price that wouldn’t receive approval.
CPQ Software Creates More Effective Collaboration
The seamless integration that CPQ software offers with the CRM, ERP and PLM systems that your company already uses means that all your departments can collaborate on a quote or RFP. Your department heads can input product configurations that your sales team is unaware of while safeguarding against configurations that aren’t possible.
All departments are in the loop with CPQ software. Your IT department can use it to analyze product trends. Different departments can monitor deliveries and the overall sales process. You can even bring your customers into the collaboration by adding an interactable version of the software to your website for clients to use.
CPQ Software Avoids Costly Errors
When the sales team is unaware of which product configurations are possible or desirable, this can lead to them offering prices and configurations to customers that end up costing your company revenue. Errors could also cost you the client. Because CPQ software brings effective collaboration and preprogrammed rules for quotes to the table, the chance of selling an unapproved configuration is eliminated. CPQ software also produces a quote that offers the highest profit for your company at the maximum value for your client. Your employees will spend less time fixing mistakes and more time securing the best deals.
CPQ Software Helps Win More Sales
A more productive work environment means more sales for your company. CPQ software helps you win more sales in a couple of ways.
Faster sales. Many companies miss out on a sale because another vendor offered a quote to the client first. Speed is key, with 35%-50% of sales wins going to the vendor that responds to a lead first. CPQ software helps you quickly deliver a quote, increasing your chance of qualifying leads and making sales.
Offer the best quote. CPQ software takes a lot of factors into account when producing a quote for each client. It analyzes market data, buying patterns and customer behavior to generate the best quote possible. With AI handling this process for you, you’re more likely to win the sale on the first quote than you would be without the software.
Salespeople often spend only about one-third of their time selling. While a lot of factors affect that number, many salespeople report that their time not selling to clients is spent on administrative tasks and waiting for approvals. CPQ software, once correctly integrated into your business, will allow your sales team to focus on making sales. Collaboration across departments will increase productivity throughout your company and generate more revenue in the process.
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