18 Feb 4 reasons product bundling should be part of your CPQ strategy
by Kevin Willemse
If you’re like many sales teams, you tackle the core responsibility of generating complex, customized, but accurate sales quotes—less than 30% of electronics manufacturers, for example, can generate accurate quotes within 24 hours, according to Adeon industry research.
Most businesses recognize the value of sales quotes that are optimized for each customer’s preferences and needs, as well as for the company’s bottom line, but they don’t necessarily have a strategy in place for ensuring that these quotes are generated in a timely, efficient way (while protecting your margins). This can often be alleviated by introducing a bundling strategy into this process.
Product bundling enables businesses to create configurable, customized packages of items that are more valuable to customers than the sum of their parts. More importantly, predetermined rules and logic ensure any bundle configuration quoted is both technically and financially viable. With product bundling, sales teams create new opportunities to recommend bundled solutions and add-on products (as opposed to myopic unit sales) that are optimized to the customer’s needs.
Without the correct tools, automation, and front-end configuration and guidance in place, introducing bundling into your sales process becomes unwieldy or poorly governed. But when integrated into your Salesforce CPQ platform, product bundling becomes automated, seamless, and a powerful asset to your sales team. Here are four essential reasons that you should integrate product bundling into your Salesforce CPQ selling strategy:
1. Product bundling will increase your deal size
Intuitively, the average business understands the power of product bundling as a strategy for driving sales, and academic research backs up this intuition: Not only do businesses sell more when they offer bundled products, but businesses also are more likely to recognize holistic solution value and make purchase decisions sooner, according to a seminal study on product bundling by researchers at Yale and Carnegie Mellon University. CPQ-powered product bundling is especially powerful because it takes the guesswork and inconsistency out of maximizing the potential bundle options you are quoting. With CPQ bundling, sales reps can also automatically be prompted about cross-sell and upsell opportunities that they can share with customers, including lucrative recurring revenue opportunities such as optional warranties and service add-ons.
2. Bundling will mitigate human error
One of the most frustrating parts of product bundling is ensuring that the products are eligible and appropriate to bundle together. When a product is improperly added to a bundle, it creates confusion, frustration, and waste for all parties. In the end, the customer…
Want to keep reading? Download the complete white paper: Guide to Product Bundling: Firsthand Experience and Knowledge From Salesforce CPQ Experts.