Author: Bill Thane
Configure, Price, and Quote, better-known as CPQ, is a powerful software solution that helps companies automate their capability to configure complex products, simplify pricing models, and quickly generate a quote or proposal document. Typically a CPQ solution is used as an extension of a CRM system, though they can be leveraged without one. Learn more about CPQ here.
Why might a company need a CPQ software? There are a number of reasons, but let’s take a look at the more common examples.
(Watch an example of what CPQ did for this company above.)
Complex Products - A company that has highly complex products that require a level of expertise to “configure to order” may consider CPQ. Often this situation poses difficulties in training new employees, resulting in order errors and costly incorrect product deliveries.
Lengthy Review and Approval Processes
- Just as in the previous example, orders that require configuration expertise may also require multiple levels of review or approval which result in a lengthy order process. It is not uncommon for reviews and approvals to take weeks before final signature, potentially costing a company a sale. CPQ streamlines and gives users a view of the review and approval status and reduce the time it takes.
Complex Pricing and Discounting Schemes - Companies may not have a complex set of products; however, they may have complex, multi-level and multi-market pricing. Again, pricing that is incorrect and needs to be rectified can lead to many internal and external problems. Along these same lines, discounting without rules and guardrails is another common pricing problem that can be solved with a CPQ solution.
Inconsistent Customer Facing Documentation - Inconsistency in what is presented to customers is another common reason why companies turn to CPQ as a solution. Companies need to have the proper branding, collateral, legal language etc. included in any proposal, quotation, or order sent to their customers. Often, we see companies who struggle to control not only the accuracy of the quotations, but the professionalism of the presentation.
Dispersed Data - Companies data that is used in quotations may exist in several different systems. This is a highly common scenario that we see when companies explore CPQ as an option. CPQ can act as a conduit for these different streams of data to reduce the amount of data “look up” and re keying of data. This will save time as well as reduces errors.
Many companies suffer from a combination of some of these common scenarios. It’s crucial that companies insure their CPQ vendor or implementation partner fully understand the challenges that their company is facing. If not, it could set you back time and money.
If you already have a CPQ solution but don’t feel that you’re getting the most out ROI out of your solution, and still experiencing these issues, then you may want to consider a Managed Services Provider (MSP). Visit www.canidium.com to learn more about sales performance and process management, or click the button below!