Using Integrated CPQ to Improve The Sales Process
Salespeople are still looking at ways to improve their win ratios and shorten the sales period. To that end, the majority have implemented CRM applications. A customer relationship management system (CRM) automates lead management and helps you identify potential prospects from current partnerships. All of these are essential tools for business development.
However, if you know anything about CRM, you know that it’s designed to be a base, not an entire infrastructure. A company also needs a slew of other methods and software to function effectively. CPQ (configure-price-quote) program is one of the most widely overlooked.
Despite being an essential part of the sales process, many departments use spreadsheets, emails, and notes to configure goods and approve quotations.
These manual processes can work for small businesses. Still, when the company progresses, you’ll see their limitations: so many back-and-forths between sales and other divisions (manufacturing, fulfillment), bloated sales times, overdue permits, and data entry errors. Meanwhile, rivals with more powerful CPQ workflows can steal the customers.
The Importance of a Company-Wide CPQ System
Using a CPQ solution for the whole organization reduces impediments to the CPQ process and assures that all sales reps pursue the same workflow. According to a new Aberdeen Group survey, “best-in-class” companies turn 30 percent more quotes into closed transactions. CPQ deployments are linked to 45 percent higher RFP response proficiency (requests for proposal).
It’s no surprise that Gartner ranked CPQ second next to lead management as one of the “top CRM application targets” for sales teams last year.
Suppose you’re not familiar with CPQ solutions. In that case, they operate like this: an automatic wizard guides the sales rep through product setup (based on the consumer’s preferences and needs), prompts an acceptance request, and sends a quote to the prospective customer. Many CPQ software will instantly build a new customer record in your CRM if your rep closes the sale.
Companies that market sophisticated, scalable goods, such as applications, high-tech electronics, industrial equipment, or multi-product systems, can use CPQ solutions.
CRM Integration and Its Importance
If you’re going to use a CPQ platform to streamline sales, it’s a good idea for it to work alongside the device the sales staff is currently using: CRM stands for Customer Relationship Management. Users will handle the whole workflow in one place with integrated CPQ/CRM, without the need to open a different application and execute cross-comparisons or redundant data entry. A CPQ app would function as a “tab” in the CRM, close to how forecasting or inventory is managed in most scenarios.
Here are some popular CPQ add-on features to look for:
Control of proposals and documents
Sales and product selection assistance
Pricing that changes over time
Aid on the go
Analytical/reporting (analyze feature popularity, sales activity, promotion effectiveness, margin performance right in your CRM) (“business intelligence”)
The integration of CPQ to your CRM has a host of technical advantages. You would predict the greatest return on investment in these fields if you adopt a new solution:
React to RFPs More Effortlessly
In specific ways, sales success hinges on your ability to think quickly. You should be able to efficiently deliver a solution that meets a customer’s needs after you’ve identified one. A competent rep and an acceptable period are crucial to a fruitful follow-up by around 75% of B2B firms.
Your sales staff can quickly drag customer details and preferences into a product setup and ship a reliable quote to the customer as fast as possible through direct access to CPQ software. This is particularly true for mobile CPQ solutions, which allow your sales reps to quote and sell when they are away from the office.
Increase your win rate and profit margins.
The work taken to change prices or contract terms is significantly reduced as all of your product, and consumer data is pulled into an integrated framework. As a result, your sales reps will be able to market more confidently, and your new buyers will be more likely to find a configuration that meets their requirements and budget. An automated device also aids in the reduction of human error and the avoidance of unpleasant surprises at the transaction closing period. As a result, you’ll be able to market more goods and close higher-value sales.
Costs of Selling are Lower
The need for convoluted conversations between processing, fulfillment, and sales is eliminated with integrated CPQ. Without leaving the CRM, sales reps will review prices and inventory, position a new order, and monitor delivery without going back and forth between offices. The saved time and money tend to lower operating costs and increase earnings.
Improve Customer satisfaction
The most significant benefit of a smooth CPQ operation is that it enhances customer service. Your leads will get the detail they need from a single contact rather than waiting for an outdated, incomplete quotation or doesn’t exactly meet their criteria. Customers are willing to pay more for good service, according to research.
Integrated CPQ is a must-have if you market custom goods and want to expand your company. However, it’s crucial to remember that while CPQ strategies are incredibly beneficial, they can be challenging to implement. The deployment mechanism usually is more complicated than “plug and play,” unlike some of the market’s simplified CRM applications. You’ll need to load all of your product and pricing variables into the software, as well as link it to the appropriate back-end systems. To prevent expensive errors, make sure everything is in order (and tested) before releasing the software.