CPQ means configure, price, and quote software, which is used for sales optimization. CPQ is a tool for organizations to quickly generate quotes for orders in correlation with CRM, ERP, and other business technology, ensuring integrated data and accuracy. Quotes are required by a preprogrammed set of rules, which results in error-free pricing based on quantity, discount, customization, electable features, revenue type, and incompatibilities.
To measure CPQ implementation success, start with setting a goal for what the organization wishes to achieve. Goals can be quantitative or qualitative, depending on the organization’s overall objectives. Also, map the sales team’s challenges and design the CPQ so that it solves the challenges. Ensure that product models create useful configurations, the structure of the pricing rules, and the quotation process for a consistent experience.
Understand existing processes: What does the configure, price and quote system look like today? What inefficiencies disturb the sales process? Find out what the sales representatives need to manage to create, and deliver quotes effectively.
The customer: Understanding customer behavior and needs will help identify product models and pricing that will support effective selling.
Find lead opportunities: When you understand customer behavior, you will receive insights into product and pricing patterns to identify new sales opportunities.
Testing – Test the system to eliminate bugs. A smooth-running system will establish credibility
Project manager– Someone who will be an ambassador for the implementation project and help i dentify requirements or needs previously unaddressed
Engage all departments – A new system will affect the entire organization, including sales, marketing, product management, finance, IT, and operations; they should all contribute and understand its benefits. A better understanding of how they will benefit will result in a faster adaptation of the new system
Training program – Ensure that everyone knows how and is comfortable using the new system
CPQ software touches on every aspect of a business – the how, what, where, and why – which means that a CPQ project is a high-value process full of opportunities. With CPQ, organizations can modernize their infrastructure and, at the same time, maximizing impact for business value.
CPQ is a sophisticated selling tool; channel selling structures, product configuration, and sales cycles become more complicated, CPQ sales strategies provide benefits.
Sales representative’s time not spent on selling is spent generating quotes, proposals, and approvals. When CPQ is implemented correctly, it can trigger several commercial benefits:
As an effect of implementing CPQ, there are plenty of opportunities to increase your revenue and margins.
CPQ is a tool for companies that, when implemented correctly, generates increased revenue, margins, and sales efficiency within the organization.
Instead of spending more than half of the time, manually generating quotes, writing proposals, and getting approvals, CPQ frees up time to create more leads. CPQ works together with your CRM to make the sales process easier, faster, and more organized.
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