Configure complex products and customizations quickly

Gone are the days of the Ford Model T with very little wiggle room for customization and modifications. Today, customization is all the rage. That’s where the C in CPQ (Configure Price and Quote) comes into play.

Configure modified products for your customers based on pre-set rules and constraints without going back and forth with engineers or searching old quotes for examples. Many CPQ systems provide real-time 2D or 3D visualizations based on different modifications. Certain solutions allow customers to visit your website, select customizations, and even request quotes.

Set prices using rules and data from market rates

Unlike Jessie J, many customers do care about price tags. So, how do you ensure the price is right? A pricing engine will help find the sweet spot by considering your pricing rules, production costs and market forces.

Input your pricing rules based on past orders, profit margins and variable pricing from customizations. Automate contracted pricing using previous quotes, create multiple price lists and optimize price management with bulk pricing.

Streamline sales processes

Browsing through old files, spreadsheets and emails for customer information, past orders and pricing details is an unnecessary time expenditure. Use centralized data, pricing rules and approval workflows to get from lead to sale as quickly as possible.

Manage discounts and promotions

Set pre-approved discounts and price margins so sales reps can send quotes without waiting for manager responses. Create approval workflows to alert upper management when discounts or prices need to be manually approved and send reminders when approval deadlines pass. Collaborate with other departments to ensure margins are workable.

Increase sales opportunities and boost revenue

Sunk cost fallacy may not be ideal when contemplating switching from Android to iPhone, but it can help boost upselling. Use AI-powered analytics to add pop-up upsell and cross-sell suggestions and increase sales at checkout. Identify renewal opportunities and receive reminders when customers may need to reorder.

Improve collaboration and customer response times

Historically, it takes nearly two days for companies to respond to a lead. Cut that time down using in-document comments, user tags and collaboration tools to help team members communicate contextually and eliminate missed emails or lengthy back-and-forth email conversations.

Create customized product catalogs and bundles to allow customers to request accurate quotes without involving sales reps.

Automate administrative tasks

Did you know sales reps only spend 28% of their time actually selling? Use automation and auto-fill to complete data entry, contract drafting and pricing updates. Automate contract renewals, email follow-ups and price limits for approvals.

Create customized proposals, quotes and invoices

No graphic designer? No problem. Use in-built, customized document templates to create customized proposals, quotes and templates with your logo and brand colors. Save time with auto-filled deal requirements, customer details and quote-to-order features. Drag and drop quote sections, terms and conditions and convert quotes to orders and invoices.

Collect and analyze customer data to improve performance

Like alchemists of old, sales reps are always searching for the winning formula. Use CPQ reporting features and CRM integration to determine what works for your team. Compile data on popular prices, discounts and modifications into reports to replicate successful quotes and pricing strategies.

Identify purchasing patterns using historical data to recommend relevant products and exploit upselling opportunities during reorders.

Integrate with other software to improve sales cycles

Software isn’t an island. Integration with ERP, CRM, MES and supply chain management software helps departments identify working margins, sales opportunities, available inventory and possible configurations for smooth sailing.

FAQs

What does CPQ stand for?

CPQ is an acronym for Configure, Price and Quote defined as a system that configures complex products with accurate pricing to create proposals and quotes.

What is CPQ software?

CPQ software is a tool that helps companies streamline sales processes using pricing rules and engines, product configuration and quote creation while factoring multiple market and production variables into the equation.

Can CPQ benefit my business?

If you sell complex, highly customizable goods or multiple products CPQ software can benefit your business. It’s also helpful for companies with complex pricing structures, B2B industries and businesses with a high number of quote line items.

Are there best practices to follow for CPQ implementation?

Successful CPQ implementation depends on clearly understanding your goals, business objectives and what your vendor can provide. Use the following steps to guide your implementation strategy:

• Define measurable goals and KPIs you want to achieve.
• Identify the features you need.
• Choose your deployment method.
• Commit to training and adoption.
• Focus on data management to optimize performance.
• Measure your progress.
• Improve processes and gaps in usage.

How do I select a CPQ system?

Right off the bat, you need to understand your business needs clearly. Sometimes the best way to get answers is to ask the right questions. Here’s an excellent place to start:

• Do you already have CRM with some CPQ capabilities, or are you looking for CPQ solutions to solve this problem via a native system or integration?
• What is your budget?
• How complex is your product? Will a rules-based configuration work for you, or do you need something constraints-based? Is your product catalog expanding?
• Will you need to add multiple products and services to your quote? Some software starts to slow down with quotes of more than 1,000 line items, so test this feature during the demo.
• Do you need AI-based capabilities for upselling and cross-selling or pricing recommendations?
• Are you looking for software with integrated e-commerce channels?

Want a more detailed deep-dive into what your company needs? Check out our free requirements template.

Have a question about which software vendor is right for you? We’d love to help! Contact our team for individualized recommendations by emailing support@selecthub.com or calling 855-850-3850.