29 Apr 3 ways to grow manufacturing revenue with Salesforce CPQ
by Randy West
Improved sales are just one of the many benefits reaped from the implementation of CPQ software. Companies across all industries who use CPQ see an increase of 105% to their average deal size. The manufacturing industry, in particular, has much to gain from CPQ, where a multitude of pricing options, product choices, and other factors make the quoting process time-consuming and prone to errors.
While there are plenty of reasons to use Salesforce CPQ, shorter sales cycles, fewer errors, and enhanced customer experience are three benefits that manufacturers can quickly take advantage of to better their business and their bottom line. Most manufacturers go to market through a channel, and the benefits of CPQ help manage that channel by making it easier to quote, order, and assess partner performance. Let’s explore how each of these elements results in revenue growth.
1. More time = more money: Giant spreadsheets managed by different people and multiple channels of approval can make the quoting process inefficient and difficult to manage. Sales professionals on the front line may not have access to all the necessary information, so they need to go back and consult product experts before delivering a completed quote. Salesforce CPQ brings all of this information together and automates the process. This gives sales reps access to complete and accurate information, allowing companies to finalize and approve quotes and contracts quickly (66% faster, in fact). Shorter sales cycles means less time doing paperwork and more time selling and growing revenue.
2. Error elimination: The highly flexible price configuration environment of manufacturing leaves plenty of room for human error. Quoting the wrong price, selecting features that don’t go together due to configuration errors, or selecting a product that’s out of stock are just some of the issues that can arise when manually managing the quoting process, leaving money out on the table and hurting the relationship with your customers. You may also have reduced warranty cost, as CPQ lets you better match your product to a customer’s application. The adoption of a CPQ software identifies and eliminates these errors quickly, allowing you to deliver timely and accurate quotes.
3. Enhanced customer experience: “A business’ ability to retain customers is as important, if not more important, than its ability to acquire new customers, particularly when establishing a foundation for sustainable growth and long term success,” said Adrian Swinscoe in a recent Forbes article. CPQ software not only provides the unique, easy, and efficient buying experience that today’s consumers crave, but it also allows you to personalize beyond the product. You can easily offer sized accessories, spare parts, and service contracts along with the original sale and tailored to the customer’s purchase. Some additional customer attributes that can be accessed through CPQ include customer’s objectives, purchase history, and the industry or regional legal requirements. All in all, increasing your average deal size. CPQ gives your sales representatives more intelligence to produce the best quotes, increase sales win rates, and retain customers year over year.
Manufacturing companies often have too many variables in their operations to leave anything up to chance in their quoting practices. But with CPQ, you can rationalize product options by looking at transactional data—allowing your team to see what is or is not selling. Implementing Salesforce CPQ is a surefire way to ensure an efficient, error-free quoting process that results in loyal customers and revenue growth.
Randy West is the Director of Quote-to-Cash here at Simplus. A leader in the CPQ space, Randy brings over 17 years of CPQ experience to his management of the Simplus Quote-to-Cash practice. As the former CPQ practice manager for Deloitte, Randy is the premier talent for managing CPQ resources, project delivery, and customer satisfaction.