Today’s customers ask for more adaptability in how they buy. They appeal for a satisfying experience while buying goods and services. And companies in all industries are reacting to it by initiating new revenue models. To do so, they need a technology platform, and CPQ does that.
CPQ is a Configure, Price, and Quote software that has been in the business for the past many years. It is one of the sales optimization tools that help companies to create accurate quotes for order faster than traditional methods. Whether you have ERP or CRM platforms or other business technology, CPQ works in tandem with them. It can integrate data without any error.
The CPQ can generate quotes automatically as per the preprogrammed set of rules. In the meantime, it ensures perfect pricing by taking the account qualities, customization, discounts, multiple revenue types, and alternative features of the products.
Why should you use CPQ?
Researches reveal that the sales reps only spend 34% of their time selling, and they spend the rest of their 66% time in creating quotes, proposals, and getting approvals. As per one of the reports, if you use CPQ, you can boost selling by:
- Ten times faster quote creation
- 95% decrease in approval time
- Two times quicker moving from quote to cash
- 30% speedier ramp for new reps
Three basic steps to get the best result with CPQ configuration
As software, CPQ offers three necessary steps to get the best configuration. We are discussing these steps below:
#Step 1: Sell the right product combo
Identifying and recommending the right product combination to your customer is a critical step. The modern business environment is complicated to choose the right mix manually. It consumes more time for the sales rep. However, CPQ came to the scene and rescued all the sales reps. It automatically recommends the best product combo suiting your prospects’ needs.
#Step 2: Control discounting
When the sales reps generate a quote, they will undoubtedly want to apply discounts to some products to negotiate the deal. CPQ supports such kind of necessary discounting. And it offers more than this. For example, you can reward clients who wish to buy large quantities by offering volume-based discounts to encourage bigger sales. CPQ applies such volume-based discounting automatically.
Additionally, CPQ tracks various types of discounts, including distributor or partner discount. You can never lose the pricing details. Thus, CPQ saves time for your sales reps by making discounting easy.
#Step 3: Automate approvals
How much time do you lose in the sales cycle while getting approval for the quotations? With CPQ, you set approval rules to make this process faster. When a sales rep presents a quote for approval, CPQ evaluates the approval rules for the quote. If the rules meet the pre-defined conditions, it sends an approval request to the approvers. With such automatic approval, your sales reps can spend more time selling.
How CPQ simplifies the healthcare and MedTech industry?
CPQ simplifies the healthcare industry apart from other sectors like manufacturing, high-tech, financial, retail, restaurant, nonprofit, and publishing by automating their sales cycle. For being a hypersensitive sector, healthcare faces many problems with group purchasing from various regions and providers. More than 30% of healthcare companies have zero visibility on revenue and cost. The lengthy quoting process and inability to track KPI of the sales team are some of the significant issues the sector is facing.
CPQ for the Medtech industry helps the manufacturers and distributors in managing quoting, contracting, and revenue across various channels. While growing the revenue, it gives visibility of the gross net income. Additionally, it helps closing deals faster by streamlining the supply chain of the medical equipment.
With custom CPQ implementation, we offer a standard and tailor-made technology platform for pharmaceuticals, biotechnology, equipment, distribution, and facilities.
Adapt Configure-Price-Quote for smart business
In essence, we can say that CPQ helps your sales reps to close deals faster and assure businesses 360-degree visibility over what you are offering and what you are selling. Such strategic clarity helps you to analyze your existing revenue model and implement new revenue models to enhance the ROI and customer experience at the same time. With such a strong impact, CPQ adaption is growing among companies.
Get in touch with us to enhance your customer experience with our smart CPQ solutions.
About CommerceCX: CommerceCX is a global consulting, design, and development firm. We provide organizations with the solutions and services that support the transformation of a commerce ecosystem. We specialize in CRM, Quote-to-Cash, Lead to Cash, and have strong expertise in Salesforce, Apttus, and Microsoft Technologies. Leveraging our solutions, organizations can connect technology, data, and insights to unify and enhance the buying, selling, and service experience that powers the commerce ecosystem.