11 Nov In Less than 500 Words: We Explain CPQ
Did you know that salespeople spend only a third of their time actually selling and the rest on mountains of admin and confusing processes? If this sounds like you and your sales team it might be time to consider CPQ (aka Configure-Price-Quote).
What is CPQ? Let’s break it down. We’ve got 500 words. Aaaaand, go!
Sales reps need to be able to quote quickly, accurately and in a way that adds value to the prospective client.
Configuration pulls together all the threads of existing product and service data, including client details, engagement history, competitor pricing and whole-of-life costs. It’s the foundation stone for automating time-consuming tasks, like spreadsheeting and manual data entry.
Once you know all the variables, it’s time to price. The key is to automate and standardise the pricing model as much as possible.
A Salesforce CPQ system will automatically apply important sales data, like volume or term-based discounts and client-specific pricing. And as a further time-saver, CPQ allows you to set up automated approval routing – promoting standardised approval processes across the company.
Simplify your quoting software as much as possible. The last thing you want is a complex pricing model that risks losing business because your clients don’t understand what they will have to pay and why.
Ongoing contract management
Having all your records in a central, automated database means your support or maintenance teams have easy access to reliable customer information – allowing them to deliver better customer service.
This is particularly handy when it comes to contract amendments and renewals.
CPQ makes your data work for you
You need access to data to provide the most accurate (and appealing) quotes but, when there’s a lot of it and your systems and departments aren’t talking effectively, sorting through it all can be time-consuming, frustrating and sometimes hit-and-miss.
A Salesforce CPQ solution provides fast and actionable insights into your data. For example, let’s say you find that another company is quoting for the same job, you want to be able to note this down. With CPQ systems, you can – so when it’s time to quote you can see this information immediately and know to offer a competitive price.
Other benefits of CPQ
In addition to the above, Salesforce CPQ also has many other benefits:
- It’s a natural complement to your CRM system because it gives a 360-degree view of your customers.
- You know how your products and services are discounted and at what level, so you can optimise margins and streamline your sales process.
- It opens up better collaboration between different departments, and feeds a number of connected sales processes, like fulfillment or invoicing.
Find out more
For more CPQ insights, contact the team at Simplus today.
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