Unlocking the Power of CPQ Pricing to Streamline Sales and Boost Revenue

Unlocking the Power of CPQ Pricing to Streamline Sales and Boost Revenue

Sales reps can’t focus on customers if administrative tasks bog them down they’re. With a CPQ solution, businesses can streamline the configuring, pricing, and quoting.

Automated quoting mechanisms churn out quotes at lightning speed. This enables businesses to respond to customers promptly without sacrificing personalization. This helps businesses drive revenue and profitability.

CPQ with Multiple Quotes

For example, suppose your company sells a complex piece of technology that can be configured in several ways to meet the needs of different customers. In that case, there may be millions—even billions—of potential configurations. When a rep configures the product and creates a quote, each option must be accurately priced to ensure the customer and the business are satisfied with the final solution.

This is where CPQ with multiple quotes comes in. This functionality allows the system to offer various products, services, and pricing options based on the configurations of sales representatives and customers. For instance, a software company may offer software bundles with different features to accommodate unique customer preferences.

CPQ pricing, with multiple quotes, also enables businesses to apply product rules, including block prices for specific accounts, discounts based on account tiers or regions, and pre-agreed pricing with customers. It can also support pricing models, such as one-off sales, recurring payments, subscriptions, and usage-based pricing.

By integrating with CPQ, your sales team can save time and avoid the frustration of manually piecing together spreadsheets to produce quotes. This can help speed up the process and enable you to deliver a better customer experience. Plus, it can reduce the number of errors when manual processes are involved.

CPQ with Configuration Management

Sales reps can present customized products to customers using a product configuration management solution. These are based on the customer’s unique requirements and priorities. These solutions allow you to optimize the product and service’s features, benefits, and price to maximize the customer’s purchase value.

When the product configuration is complete, CPQ calculates prices in real-time based on the configured product’s specifications. This powerful feature allows companies to avoid pricing delays and inaccuracies resulting from manual processes. This process can consider raw material costs, supplier discounts, and competitor pricing.

CPQ can also update pricing options in real-time when the product specifications change. This resembles how tax software updates the expected refund amount in real time as users enter information. It helps businesses reduce pricing friction with customers, provide transparent and flexible terms of service, and improve quoting accuracy.

Ultimately, implementing a CPQ system is about optimizing the entire sales process for your organization. With this, you can eliminate bottlenecks, increase revenue, and accelerate closing time. Everything in one place allows teams to work together more efficiently and ensure that the quotes they send customers are accurate and up-to-date. This technology allows sales reps to spend more time selling and less on administrative tasks unrelated to their job.

CPQ with Order Management

CPQ solutions help sales teams produce accurate pricing quotes that address customer requirements without manual calculations. They can also integrate with order management systems (OMS) and automate the generation of orders based on quotes, thus simplifying billing processes.

For example, a customer may request a certain number of seats on a fleet of airplanes or in a new headquarters for their business. In such cases, a CPQ system can use configurator technology to reduce the thousands or millions of possible permutations from the initial product selections. The resulting quoting process is much faster, and the final pricing quote is more likely to get an emphatic “yes” from the buyer.

CPQ solutions can also automate the approval process for the resulting quotes and sales proposals. For instance, discounts that fall below a certain threshold can be automatically approved or routed to the appropriate approver for review. This helps protect profit margins and limits rogue discounting.

Moreover, a CPQ solution can provide a single digital source of truth for all products, pricing information, and configuration rules — thereby ensuring that customer quotes are validated and consistent with company policy. This capability reduces sales rep confusion and makes it easy for buyers to make fast decisions.

CPQ with Inventory Management

CPQ, with inventory management, lets salespeople easily customize their product offers and quotes to match specific customer needs. It combines an extensive product catalog, pricing rules, and promotions with real-time data access to a customer’s order history and current inventory levels, which makes it easier for reps to recommend the most suitable products. Ultimately, it helps your company deliver a world-class customer experience and keep them returning.

When a CPQ solution is fully integrated with your CRM platform, it makes it easy to create a branded quote that clearly defines all the components in a solution, the prices of those components, and any discounts or special offers. It also enables your sales teams always to use the same, consistent process. As a result, new hires can jump in and start quoting immediately without spending much time getting up to speed on their existing sales processes.

This also helps ensure that your warehouse can fulfill orders accurately based on the products, quantities, and configurations your sales team recommends. You can eliminate manual, error-prone processes and improve customer satisfaction. Your customers will trust you to meet their needs and deliver on their promises with fast turnarounds. They will repeatedly return to you for the same excellent service, boosting customer retention rates.