B2B organizations are always under pressure to optimize their sales processes and generate revenue growth in today’s highly competitive business climate. Companies’ Configure, Price, and Quote (CPQ) procedures are one critical area where they may make considerable changes. Companies may simplify their sales processes, decrease mistakes, and boost the productivity and effectiveness of their sales teams by optimizing their CPQ.
You can simplify complex sales processes when you have sophisticated Configure Price Quote (CPQ) capabilities, making it a valuable option for business to business (B2B) ecommerce companies that want to reach the next level of performance.
Your products might have hundreds of possible configurations and variations, so your team will need in-depth knowledge to create a detailed specification and accurate pricing. However, this can be time-consuming and there’s the risk of errors that could cost your business significant sums.
As part of your digital transformation strategy, powerful CPQ functionality can provide a behaviour-guided and automated process. You can improve your quotations and free up your sales team to provide more value added advisory and support services to your new and existing customers. That’s why six out of 10 leading companies that prioritize the use of technology are likely to have already automated key aspects of their CPQ process.
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What is CPQ?
CPQ is an acronym that stands for Configure, Price, and Quote. It’s a method used by B2B organisations to streamline their sales processes, decrease mistakes, and boost the productivity of their sales personnel. CPQ is, at its heart, a software system that assists businesses in managing their complicated product catalogues, pricing structures, and sales quotations.
When a consumer indicates an interest in a product or service, the CPQ process begins. The sales team configures the product or service to match the individual needs of the customer using CPQ software. The programme subsequently provides a quotation that contains the configuration of the product or service, pricing, and any applicable discounts or promotions.
Why is CPQ important for B2B sales?
Streamlines sales process: For various reasons, CPQ is crucial for B2B sales. It helps to streamline the sales process, making it more efficient and speedier. Sales teams may use CPQ software to swiftly produce accurate quotations that suit the needs of their customers. This not only saves time but also aids in the reduction of mistakes.
Maintains uniform pricing: CPQ aids in maintaining uniform pricing across all sales channels. This is critical because uneven pricing can undermine client confidence and result in lost revenue. Pricing is centralized using CPQ, so everyone in the organization has access to the same information.
Responsiveness towards customer needs: CPQ allows B2B businesses to be more responsive to their customers’ needs. Sales teams may respond to client enquiries more quickly and efficiently by swiftly configuring items and creating accurate estimates. This is critical in today’s fast-paced business environment, where customers expect quick and accurate responses to their inquiries.
How can CPQ transform your B2B sales?
Here are just some of the ways CPQ can transform your B2B sales
Depending on your market sector, you could find your sales team spending a large part of their time creating detailed specifications to meet your clients’ requirements. Understandably many B2B organizations focus on the internal processes involved to deliver a complex product but this can sometimes be at the expense of customer service.
Not all your quotations will be successful, adding to the overall cost, and at the same time you could be missing opportunities if you take too long to respond. In contrast, an effective product-builder process can help you redesign your response to reduce complexity and meet your customers’ needs more quickly and accurately.
You can create intelligent questionnaires that will guide your client through their order process. Depending on their responses, they can be directed to additional questions to clarify their requirements to provide all the information you need. By educating, informing, and supporting clients throughout the order process, you create a seamless experience and increase satisfaction and loyalty.
Your B2B customers are looking for personalized experiences which can become very complex and time-consuming if your process is manual. In contrast, CPQ functionality can support self-service options. You can use data about buying behavior to help predict what your customers are looking for, making their lives easier and improving your service.
With high quality two- and three-dimensional product imagery and virtual reality experiences, CPQ solutions can also offer sophisticated visualization options. These help your clients understand your products and see the impact of changes they make to their specification in real-time. You can add rules that will prevent them from making changes that can’t be implemented to minimize errors and increase satisfaction.
Fast response times are becoming a point of differentiation for many B2B companies. When your client provides most of the technical details you can reduce the time needed to check their requirements whilst automated back office processes speed up response times to create fast and accurate results. Once the order has been placed you can immediately transfer the information into your production process so delivery and invoicing can take place more quickly and efficiency can be improved.
Your sales cycle might be measured in days or months and the more complex your products and processes, the longer the cycle is likely to be. Any simplification can help to reduce the length of your sales cycle.
Many steps in your CPQ process will be the same or similar, so you can create workflows that will allow you to automate some stages and minimize manual data entry, which can lead to errors. You can connect data and remove duplication and unnecessary work, making your team more productive.
You can increase the total value of your sales by adding strategic pricing and intelligent systems that will automatically identify upselling and cross-selling opportunities. Your sales team will have access to data from other sales to highlight additional associated products that can be added to the quote, or to highlight discounting thresholds to improve overall customer service.
All your teams can collaborate more easily and decisions can be saved centrally to speed up administration and inform future quotations.
With effective systems integration you can make sure all aspects of your business are included in the quotation process. You will then have a reliable view of feasibility and accurate costing taking account of multiple variants, supplier requirements, and distribution constraints, for example.
Your CPQ solution can also provide in-depth reports during the ordering process, so you can see customer preferences, effective discount strategies and other insights. These can range from simple tables of attributes to cross-organization data from multiple departments.
Your sales team will be able to identify best practices to help them create effective offers and promotional options as well as preferred associated products that can be added to bundles or used as incentives to maximize sales values. With a single overview you can identify your most valuable products and preferred product configurations.
4 ways Cloudfy CPQ enhances the B2B customer experience
Close deals faster than ever
Cloudfy CPQ speeds up B2B purchases while saving your clients time. It enables sales representatives to close deals faster and increase client satisfaction. Your sales agents may now generate quotations in record time and cater to your clients’ particular industry requirements.
Aside from quick responses, customers only want one thing: accuracy. Your sales agents can now develop faultless quotations and product configurations without having to double-check the data thanks to Cloudfy CPQ. Contract Lifecycle Management (CLM), a CPQ add-on, may assist your sales staff in streamlining the final contract discussion on costs and terms while ensuring it does not develop into a nightmare for your B2B buyers.
Personalization is an important component of the B2C buying experience that B2B buyers want. When integrated with Cloudfy B2B Commerce, Cloudfy CPQ allows you to personalise orders by providing your customers with customised product catalogues at their negotiated/contracted rates.
Cloudfy CPQ may offer cross-selling and up-selling possibilities to your salespeople by leveraging insights and prediction. All of the time and effort saved may then be put in profitable pursuits such as selling and engaging with clients without interruption.
Revitalize your selling with our Cloudfy CPQ services
CPQ is a very effective and valuable sales tool that relieves your sales agents of unneeded obligations. With unrivalled features and user advantages, CPQ helps you sell more effectively while also improving client happiness and loyalty for your company. It is vital to highlight that adopting CPQ and tailoring it to unique selling requirements is a separate scenario. To successfully adopt CPQ for your team, you must have a well-planned strategy, a thorough grasp of your sales processes, and the ability to efficiently convert business objectives to technological requirements.
Our staff will assist you with assessing, strategizing, and migrating your database to Cloudfy CPQ, as well as offering any necessary adjustments to achieve optimal productivity. Our objective is to assist you in increasing your sales and utilising every element of Cloudfy to the fullest.