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Everything businesses need to know about CPQ tools

Every salesperson understands that your work with clients has yet to be done. This is only the beginning, even if they agree to purchase your solution. The rising competitiveness in B2B sales has necessitated highly specialized and individualized products. The concept of “one size fits all” is no longer viable. This is where CPQ tools can come into play.

This is wonderful news for buyers since they will receive a customized product designed exclusively for them. This might cause issues for vendors in an incredibly critical area: price.

Pricing would be simple if you sold the same goods to every single one of your buyers. However, this is not the case for the majority of agile B2B businesses. Fortunately, CPQ software is a solution.

What is CPQ? Configure, Price, Quote

CPQ is an established business approach revitalized and elevated by information technology. More and more assets are becoming highly adjustable due to technological advancements, and the principles and calculations that go into pricing each carefully tailored version are getting rather complex.

Retailers are finding it increasingly difficult to determine the proper and reasonable pricing. Enter a CPQ tool, which automatically calculates pricing depending on the configuration to produce quotations and offers for bespoke items (rather than searching them up on a price sheet or tag). Configurations and pricing may be as complex and intricate as the organization needs with CPQ without sacrificing precision or fairness.

How does CPQ tools software work?

Businesses will use a CPQ solution to boost sales productivity and pace. To better understand how CPQ software works, let’s break it down into its three components.

Configure

Configuration in the context of CPQ software refers to configuring your goods. Businesses provide personalized solutions, experiences, and goods to every consumer. While this is a significant benefit for consumers, it complicates the life of sellers.

CPQ software solutions will design complicated product offers to meet the consumer’s demands precisely. CPQ software may also discover cross-sell and upsell possibilities that some salespeople may miss.

When you use the software as your configurator, you eliminate the possibility of human mistakes and give your sales staff more time to focus on building customer relationships.

Price

cpq-tools

Price is the second component represented in CPQ. Complex solutions necessitate even more complex price structures. If you’re selling customizable goods, you can’t set pricing before configuring them.

Sales teams who create their own prices risk losing business because they offer subpar prices and generate poor turnaround times.

CPQ software uses artificial intelligence to detect client purchasing habits and market research to assess how much your customers are ready to spend. Essentially, it may guarantee that you are charging your consumers reasonable and individualized pricing while remaining profitable.

Quote

After determining the configuration and price, your company should deliver the customer a finished, error-free estimate with further information.

Prospective consumers frequently request quotations from many vendors, making quick response times a key advantage. However, this cannot be easy because of proper pricing and setup complexities.

CPQ software is capable of producing tailored quotations for consumers. It also enables sellers to readily examine the quote before delivering it to the consumer, allowing them to make any last-minute changes.

Key advantages to using CPQ tools

There are several advantages to employing CPQ software for customizable goods, each saving time and money and improving the customer experience. It can also help you understand the value of your business. Here are the top five benefits of employing a CPQ solution.

Increased precision in customization and price

CPQ solutions can provide precise and real-time information about what is and isn’t doable. This means salespeople aren’t making mistakes, making educated guesses, or needing to consult with others to acquire answers. Pricing is quick and does not require as much examination for approval, which can speed up sales even more. This significantly enhances the average customer experience while saving time that would otherwise be necessary to correct errors.

Speed

CPQ solutions significantly improve a seller’s ability to get a customer from demand to a credible, verified quote. With a CPQ tool, the time to finish the process is frequently much faster than without. Shorter sales cycles save salespeople time and can result in better yearly revenues with the same size team.

Fewer mistakes

Manual methods are prone to mistakes ranging from minor misunderstandings and typos to fundamental misconceptions of what is practical and achievable. With a successful CPQ system, there will be fewer interactions in which salespeople promise something the business cannot fulfill.

The bottom line on CPQ tools

Obtaining business intelligence data may turbocharge price innovation inside your firm by expediting and enhancing decision-making, finding patterns and possibilities, and alerting you to possible dangers before they become harmful.

Understanding the worth of your company and its goods creates a massive opportunity for firms that opt to use CPQ solutions. With a CPQ, you can turn price into a competitive advantage for your business and begin focusing on consumers rather than calculators.

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