What is CPQ software?

What is CPQ software?

Shorter lead times, better overview, faster response to changing market conditions: more and more organizations are realizing the importance of a Configure-Price-Quote solution.

More relevant than ever

CPQ streamlines complex quotation processes, creates more transparency and strengthens the competitive position of your organization. In 2022, that’s more important than ever. The preparation of quotes is often still a manual process. For example, complex Excel files are used to make calculations, which is prone to errors. Quotes are drawn up ‘manually’ in Word, printed on paper or scanned for further processing. Such processes are relatively slow. Combined with the rapid pace at which markets are developing, this situation calls for an appropriate response.

What is CPQ software?

CPQ stands for Configure Price Quote. CPQ software is technology that helps companies create sales quotes for their prospects. The right price may depend on a number of variables, including competition, local economic factors and production costs. Products and services that are highly customized can also be difficult to price accurately. CPQ software is an effort to address these issues, allowing businesses to quickly create accurate quotes.

cpq

CPQ Process Description

CPQ vs CRM?

Customer Relation Management software (CRM) enables your marketing and sales team to bring in more leads. Things often go wrong when the lead is interested and asks for a quote. Many companies still use very extensive Excel sheets and a lengthy approval process, which means an appropriate quote takes too long and the potential customer bails out. CPQ basically starts where CRM ends.

Why use CPQ?

Many companies choose to use CPQ as their product range grows. When your organization offers a very wide range of products or services, it can be difficult to manage product prices. It’s especially difficult to keep track of external factors, such as competitor specials, and how they affect the pricing of your own products.

CPQ software can also be useful for businesses that need to calculate prices quickly. In situations where a salesperson needs to quickly prepare a quote for a customer, CPQ software automatically collects all the important information so the sales representative can generate the quote and contact the customer as quickly as possible. Speed is important for organizations operating in rapidly changing markets.

Did you know?

Many global companies use CPQ because it allows them to quickly and efficiently send pricing data to hundreds of local stores.

This way, head office knows each store has goods that are appropriately priced, without having to spend time manually calculating the correct price for each item. For these companies, CPQ can help identify the prices at which the company could lose money. Those prices can then be corrected as quickly as possible.

Is CPQ necessary?

Not always. Many companies can manage prices and create quotes without using CPQ. It is clear the software is useful in certain situations, such as organizations with a very wide product range and therefore complex quotes.

If you don’t have thousands of products in your range, CPQ probably isn’t necessary for you. If your salespeople are able to quote customers without making serious mistakes or losing prospects because the process takes too long, then CPQ will likely give you only marginal benefits.

When deciding whether or not to invest in CPQ, you must weigh the potential benefits of the software against the costs. For a small business with a relatively simple product line, the financial benefits of more accurate pricing may not be worth the cost of CPQ.

Do you need CPQ?

If you’re not sure if your business needs CPQ software, here are some points to investigate:

  • Ask your sales reps if they regularly run into trouble preparing accurate quotes in the time frame expected by the customer? Are these issues preventing the salespeople from doing their jobs or do they cause the company to lose a lot of money?
  • The sales team uses traditional methods; spending too much time filling out Excel sheets to keep track of prices, quotes, and products; and a manual customer discount approval process. It has become a mess.
  • Your company offers a wide variety of products and services or has difficulty managing those products and maintaining their prices. Also, with every manual sales process, you need to consider so many things, such as:
  • Sales of products depending on the customer.
  • Preparing accurate quotes
  • Providing appropriate prices
  • Keeping track of what has been done and what hasn’t
  • Giving discounts to valued customers
  • Preparing promotional offers and issuing them to eligible customers, etc.
  • Also look at the cost of CPQ. Calculate how much the software can save you and ask yourself if it’s worth the money. CPQ is a great technical solution for companies that need it, but it isn’t necessary for every organization. To meet these challenges, you need a solution that streamlines your sales process and helps create a better customer experience.

The best of both worlds: CaseNine CPQ

CaseNine CPQ combines Salesforce Industries CPQ and your own best practices into a turnkey solution for optimizing the Configure-Price-Quote process. The result:

  • Flexible quotes
  • Standardized discounts for target groups
  • Faster time-to-market for new proposals

Thanks to our experience with over 50+ complex Salesforce projects, we have the Salesforce expertise to answer your questions.

Please contact us today! 

Do you want to know more about CPQ? Read our blog: Why smart CPQ is indispensable in 2022

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