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How Does a CPQ Work?

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CPQ

This software has been available for several decades. Modern innovations in CPQ software are constantly updated. This is the best tool for sales optimization. CPQ enables companies to create order proposals quickly and accurately.

This application usually works with other platforms such as CRM and ERP programs. Basically, it can work with other business technologies to ensure data integration and accuracy. All proposals that are created with this software are automated according to specific rules. They can be programmed to provide error-free pricing. It will take into account discounts, customizations, all types of income, and additional features.

Sales reps spend about 35% of their time selling. Research has found that some of the time is spent not on the sales themselves but on making quotes, and getting approvals and offers. When CPQ is used correctly, one can observe:

  • Fast generation of quotes;
  • Shorter approval times;
  • Rapid transition from quotes to cash;
  • Accelerated growth for new repetitions.

The software and its functionality are available to many companies. If you implement this tool, the organization will be able to see real benefits and combine it with other systems.

Removing Obstacles to Sales with CPQ Solution

Noticing the benefits of this software is not difficult. You will see whether the current process meets your requirements. Even when you think that the sales offers are sufficient, pay attention to the following signs:

  • the use of outdated quotes;
  • income exceeds your ability to work;
  • creating a steady stream of revenue;
  • the company needs up-to-date business solutions;
  • sending inaccurate sales proposals to customers;
  • sales proposals need to be revised manually..

All of these are indications that a company needs a CPQ tool. After installing this software, you’ll be able to see major changes.

Guide to Configure, Price, Quote

Companies that don’t use tools to configure, price, quote, have their sales process slowing down significantly. The unwillingness to speed up the process is usually due to incorrect prices or unapproved discounts. Sometimes companies attract the target audience in this way but end up failing to deliver on the promised offers.

Companies that prefer to evolve choose modern solutions. Pricing can be a large-scale problem for the sales department. For example, when trying to make a sale, a salesperson offers a too big discount. As a result, the price will be more expensive for the company than it is worth. In the future, this can affect difficult negotiations with buyers as the salesperson tries to guarantee a fair price to the customer and the company.

Advantages of CPQ

One of the obstacles to contemporary offer delivery is the complicated and irregular pricing process. In this case, sales representatives spend a long time in spreadsheets to offer the customer different options. If you use the CPQ tool, you can avoid this kind of conflict. The software enables you to set up all the rules in advance.

Using the application allows you to set the necessary configuration, price, and discount to simplify the product options. This also takes into account the company’s capabilities. When a representative makes a proposal, the tool guides him through the entire process. In this way, it ensures a complete and accurate proposal. The selected template is used for the required time. It is automatically sent to the right parties, for review and approval. This significantly reduces the waiting time.

Representatives can form a quote that will be pre-approved. This is a big plus because it will not be necessary to delay waiting for feedback. With CPQ, sales departments have the capability to deliver offers quickly. A great feature for companies that offer one-time sales.

Using this software, companies can appreciate the benefits of standardized processes:

  • control of discounts and pricing regulation;
  • multi-currency support;
  • contract, subscription, partner, and channel pricing;
  • advanced approval processes.

This software manages tasks that are related to repeat orders. The tool will automatically generate quotes based on existing contract terms. This is an excellent opportunity to save time and present reliable information to partners.

When you’re working with complex options and configurations, CPQ automation provides the capability to personalize offers and deliver them to customers. If this process is fast, the company will become more efficient and competent. You can use specialized programs for this, for instance, Pandadoc.

The use of CPQ software helps to create accurate business proposals. One of the most important benefits is the possibility for the entire company to participate. Proper use of the application enables sales, finance, and legal to participate in different configurations.

Today’s software enables you to create configurations that make sense. Salespeople won’t determine the configuration on their own. You can get it all in the SME subject area and choose the best options for customers. The company’s product will become more solution-oriented and customer-focused.

This software can mainly be used by the sales department but it is also suitable for others. Optimize CPQ applications to benefit the entire company.

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