March 2019 | CPQ, Recurring Revenue Software, Payment Automation
As ERP consultants we are experienced in all types of software relating to revenue cycle automation or recurring revenue. One type of automation that falls under this umbrella is configure price quote (CPQ) software. This technology was designed to improve the process of creating sales quotes for prospective customers. When implemented correctly it’s a powerful tool that can transform how a business operates.
We live a fast-paced world where prospects perceive value in timeliness, customizable or configurable products and ease of doing business. This is where CPQ can help. Let’s look at what this type of software can do:
- Harness technology to configure product quotes using variables chosen by the client
- Reduce time spent generating accurate quotes significantly shortening the deal cycle
- Adjust seamlessly to changing variables (if your pricing changes it can be quickly updated)
- Allow multiple pricing models to coexist (top tier customers may receive pricing incentives)
- Minimize pricing errors or omissions enabling your sales team to sell more profitably
- Handle a robust range of product offerings while standardizing available options
- Assist with new product introductions as well as the training of new sales people
Reasons to Implement CPQ
Companies are increasingly considering CPQ solutions for the reasons mentioned above and more. Often the pain points relating to Excel, lost bids, manual quotes taking too long, etc., reinforce the realization that automation can help. We often get asked questions if CPQ software can be integrated with existing systems, and the answer is usually yes. It can be part of a larger software package or it can also be a standalone option.
CPQ solutions also provide valuable analytical data to management as to which products are best sellers. The software is highly configurable offering a pathway for developing the most “complete quotes” (think cross-selling or upselling). From managing your inventory to fostering relationships, the benefits of CPQ can be transformational for a company that has relied on manual quoting processes.
We touched on many positives of CPQ software, so what are some of the challenges? They include:
- Organization change. You are now instructing your sales team to change how they sell
- Putting rules and governance around your products and configurations can be complex
- CPQ will reveal product gaps. It will highlight combinations prospects are asking for
- Ensuring manual workarounds are not being used (circumventing the software advantage)
Software is a financial investment and CPQ software is no different. As independent ERP consultants we can assist in analyzing the benefits vs. the costs. We are also trained to find which CPQ software fits your business best and help you implement it. We are ERP Advisors Group.