CPQ Software for Business

The term “CPQ” is probably familiar to those who have been looking for ways to simplify and improve the sales process in an organization. Companies offering various services have to put a lot of effort into finding potential customers and generating a sales proposal for them. CPQ software will speed up the sales cycle and make this process efficient.

CPQ — What is the Definition of the Word?

Literally translated from English, the term means “configure, price, quote”. In simpler language it sounds like configuring a price quote. CPQ tool is used in processes related to quote setting. It is a handy tool that allows you to create accurate quotations for customers, taking into account the complexity of the product being promoted, business rules and pricing. Managers using this software can generate estimates quickly. Since preparing them manually takes a lot of time, the use of CPQ will speed up the sales process by 2 times.

This handy tool will be useful for both small and large businesses. Today in almost any sphere there is a lot of competition and to stand out against this background, you need to be able to adjust the proposals in time. This will require certain changes that will lead to an increase in sales, but the whole process will be as difficult as before. It will be more challenging for managers to form commercial proposals, taking into account a number of specifics. But if CPQ is implemented, the whole process will become much simpler.

Why You Should Use a CPQ tool

The use of this software will save time. Now managers will be able to form offers for customers more quickly. According to research, a sales representative spends only one third of his working time on sales. And ⅔ of his time is spent on communicating with customers, on the basis of which commercial offers are formed and coordination of actions with the management. Using CPQ will free up additional time to conclude deals, which will favorably affect the development of business.

It is wrong to think that, for example, Excell is a more convenient program. It may be simpler, but all the data in it has to be written manually, which will also require a lot of time. And if a company can offer several variants of services from different categories, and the price depends on the volume of purchases, the calculation of a commercial proposal will involve a lot of work. In addition, managers can make mistakes that will significantly slow down the entire process.

Using CPQ will reduce the likelihood of errors, as the program will take into account pricing rules, discounts and other important factors. Since everything will be done automatically, the whole process of preparing a quotation will increase by about 10 times. 

How do You Determine What a CPQ Solution is Needed for the Business?

CPQ software is suitable for companies that have to work with complex services or products that require extensive customisation to meet the needs and demands of their customers. However, CPQ may not be appropriate for simple or off-the-shelf offerings.

Here is a list of possible problems that CPQ software can help solve:

• complex sales where managers need to emphasize different options when putting together a sales proposal;
• sending documents in different formats;
• it takes a long time to draw up commercial proposals;
• if new employees join the company, their adaptation will require a long period of time, as they have to familiarize themselves with a long list of products and pricing rules;
• missed opportunities to apply discounts.

If any of these signs are present, you should consider implementing CPQ.

How to Choose the Right CPQ software

When choosing a software vendor, it is important to consider the main tasks that the software should cope with:

1. Flexible configuration. The program will allow quick and easy formation of offers for products or services, taking into account the needs of customers. It should be possible to add, change or delete order components, variability in the application of parameters.
2. Pricing. The software should determine the cost of products or services considering different factors: price of materials, margins, labor costs, discounts.
3. Formation of commercial offers. Based on the entered information, the program should cope quickly with the creation of commercial proposals.
4. Integration with other software. It is important that CPQ can be easily integrated with other systems: CRM, ERP, order management. This will create a unified and centralized flow of information between company departments.
5. Growth with the business. If an organization is looking to expand its operations, develop new areas or provide additional services to customers, CPQ must be able to scale.
6. Analytics and reporting. The software should provide the ability to analyze data, create reports on sales performance. This information will help to manage the whole process more competently and make the right decisions.
7. Information security. Since the software uses important information regarding price formation, products, services, customers, it is important that all this data is securely protected.
8. Employee training and technical support. When choosing a program, you should take into account the possibility of training employees who will have to work with the software. There should also be a liaison with technical support to solve current problems.

When choosing a software provider, you should study reviews from other customers who have already started using the software. This will give you a better understanding of how reliable and effective the program is and whether it is worth buying.

If you need to find a really effective CPQ solution, pay attention to the PandaDoc service. This online software will allow you to make the right offers for your clients without errors, which will help you make more deals. 

Integrating CPQ with Other Software Products

It is worth understanding that the use of this software is advisable in an integrated approach. It will allow you to set up the sales process so that everything works like clockwork.

To make the software really effective, you will need to integrate it with other systems:

• billing platform;
• CRM and ERP solutions;
• payment tools.

With this approach, each structure will fulfill its own tasks. Close integration will make it possible to automate the whole process. It will include all the main stages, from finding clients to finalizing the deal and making a profit. If you set up and approach it correctly, you can reduce the likelihood of errors and downtime. 

Conclusion

CPQ is a useful tool to make the sales process faster and more efficient. It will enable competent management of commercial offers and optimize the company’s operations. It will help to scale the business. The main thing is to choose the right software to suit the needs of the organization.