What is Configure Price Quote (CPQ) solution? Do I need it?
You might if you:
- Have someone who manually reviews quotes before sending to customers.
- Have plans to increase sales revenue and need a solid system in place to help you scale your business.
- Are using Word or Excel to manage leads, opportunities and produce quotes.
- Are frequently on the move and need easy access to latest products, product bundles, pricing, current offers, etc.
- Have hard time determining quickly which discounts the client is eligible
Yes, but tell me more.
You may also be able relate to the following problems:
- Sales team is frequently sending incorrect quotes for your approval, or worse still, sending incorrect quotes to the customers.
- Discount approvals are not being consistently applied resulting in incorrect pricing, offering expired discounts or applying discounts to wrong products or services.
I am beginning to get the picture. So how can a CPQ system help my organization?
Well lets see, a good CPQ system helps you achieve faster lead to cash cycle, improves data and pricing accuracy, helps identify up-sell and cross sell opportunities, streamline discounting & approvals and much more!
Don’t believe us? Well then believe Gartner. Gartner says that without a good CPQ system, salespeople spend less than 45% of their time selling, and, in some cases, actual client “face time” represents just 10% of the work week, with the remainder devoted to travel, administrative tasks and preparation.
Ok, so what exactly is a CPQ system?
Thought you would never ask!
C stands for Configure, ability to quickly create and configure various configuration of your products and services to deliver what your customers need. CPQ system allows you to configure your product/service catalogue as per your organizations rules for funding, discounting etc., thereby enabling your sales team to meet customer needs.
P stands for Price, ability to ensure accurate and optimal pricing policies as per your business objectives. In many situations businesses need to maintain multiple price lists depending on geography of sale, volume pricing, channel partner pricing, etc. further complicated by having various discounting business rules. A good CPQ system facilitates such pricing controls and saves your business from disastrous situations when price lists or discounts are incorrectly applied leading to either loss of revenue or a lost customer.
Q stands for Quote, ability of your sales team to quickly and accurately generate customer quotes or proposals based on all the product, pricing and discounting rules already set in the system. A good CPQ system allows the sales team to create accurate, well-crafted, professional looking customer quotes on the fly and deliver it to the customer in a PDF or printed copy complete with company branding elements. It also allows for tracking a quote through multiple stages of quote, such as, Draft, Negotiation, Delivered, On-Hold, Confirmed, Closed Accepted, etc.
The following diagram depicts a simplistic flow:
Hmm, ok, but…how much does a system like this cost?
It costs much less than you would think, especially considering the high return on investment.
Right, but RETURN comes later, INVESTMENT I need to do now. So really, what’s the price?
Our solution, SimpleCRM, which in addition to having CPQ as one of its core components, is also a comprehensive CRM that can help you grow sales, increase market share and retain customers.
SimpleCRM On-Cloud starts from as little as $50/month for up to 5 users. Our cloud offering is hosted out of ultra secure Amazon Web Services (AWS) and IBM cloud servers.
Great, so what’s next?
Let us arrange a complete, real-time online demo for you. Leave us a reply below and we will get back to you ASAP.