Many retailers have started to actively use CPQ solutions, which have several significant advantages. Let’s talk about what this software is designed for and how it works.
CPQ — Definition of the Concept
CPQ is an abbreviation of the concept. If you decode each letter, you will get “configure, price, quote” or customize the price of offers. This algorithm is used by sellers to provide the target audience with an appropriate commercial offer.
So, let’s take a simple example. There are many brands of automobiles. Their price depends on the brand, model, and equipment. A modern algorithm will allow you to set parameters by configuration and get the right price.
Using CPQ, enterprises independently manage the pricing system. Trading companies set available discounts, and customize price offers.
Scope of CPQ Application
The software has received a wide application. The list of industries in which the algorithm is actively used includes the following:
- healthcare industry;
- banks;
- telecommunication networks;
- advertising agencies;
- enterprise logistics;
- catering;
- waste management.
It is most often used by companies providing complex services or high-tech goods where large volumes of information are involved. The firms related to network and computer security use this software to effectively manage subscriptions and licenses.
5 Reasons to Implement CPQ
Compared to standard methods, the use of CPQ is more economically beneficial:
- The number of closed deals increases by 36%. Using SPQ Software allows you to dedicate more time to finding new customers.
- Increased profits. You can create your own templates or use ready-made ones. It speeds up the quotation process and thus shortens the cycle from finding a client to closing a deal with him.
- Reduces the probability of making a mistake. The software takes into account the maximum number of relevant factors. Using CPQ, you can save the time needed to prepare a quotation and provide the client with accurate prices.
- Effective interaction with other departments. It is possible to configure joint work with documents with other departments in the program. It is convenient if you need, for example, another employee to check a commercial proposal and coordinate it before sending it to a client.
The use of CPQ also makes it possible to analyze the situation more accurately and create correct predictions of its development.
Examples of CPQ software Implementation
CPQ tool can be applied to various industries. Let’s analyze the advantages of implementing the algorithm on the example of an insurance company. .
The situation at the enterprise before the software was implemented was as follows. There was a regular need to change prices for services or add new ones. Many departments had to be involved. With any change, it was necessary to approve each action. These processes took several weeks to complete. Clients and agents were not satisfied with this situation.
The company mainly used Excel spreadsheets in its work, which led to incorrect calculations. Outdated software did not manage to change according to market and customer demands. The company’s employees constantly had to spend time on version control.
To change the situation, it was decided to use CPQ.
The insurance company gained the following benefits:
- changing data in real time;
- the ability for all departments to work on a single platform;
- providing customers with timely and correct information;
- efficient collection of data on service consumers.
The entire sales process has become simpler and more efficient.
Electronics manufacturers are also taking advantage of CPQ. Without innovative software, companies face daily challenges and errors in determining the correct configuration.
Once the system is installed, company representatives can generate the best offers, taking into account customer requests. Closing deals happens faster.
CPQ as an Add-on to CRM
These programs are autonomous, but they can be integrated into a single platform. If CRM is used to store contacts and assess the probability of sales, then connecting CPQ to it will make the process optimized and streamlined.
Integrating these systems will tie together all stages of the sales process, find vulnerabilities and increase the likelihood of closing the deal. Salespeople will be able to immediately send a quote to the client and sign the contract.
Integration will optimize all workflows. It will improve the generation of complex transactions and reduce probable losses due to human factors.
If the system that allows pricing is separate from the program that contains customer information, there is a high probability of making mistakes. Some data may be lost when transferring data. If all information is consolidated into a single system, possible errors are reduced and it is convenient for all parties of business processes.
If you integrate the SPQ solution into your existing CRM, you can significantly reduce the time spent on training sales representatives. With the help of a modern algorithm, work processes are improved and labor is facilitated.
Integrating CPQ tool With Other Platforms
For creating commercial proposals, price calculations, contracts using customizable templates in corporate style, it is suggested to use Pandadoc. It is a user-friendly platform that allows you to set up an automated document flow and create different types of business and marketing documents. Each created proposal is assigned a status that allows you to track actions with it. All created documents are in a single list.
By working with a modern platform and integrating it with CPQ, you can create eye-catching, professional business proposals. The entire workflow will be automated and convenient.
Using CPQ together with other software can customize many business processes and make them more efficient. As a result, companies save a lot of time and also increase the number of successfully completed transactions, which favorably affects the growth of economic indicators.
