7 things you wanted to know about CPQ… but were too afraid to ask!

Featured article by Mark Bishop, Product Marketing Manager at CloudSense.

1. I’ve heard of CPQ – what is it?

Configure Price Quote (CPQ) is a solution that refers to a set of software applications supporting the configuration, pricing and quote generation. However many modern CPQ systems have moved way beyond the classic definition of Configure, Price, Quote and now offer a range of enhancements such as contract approval and invoicing.

2. Is a CPQ solution just for use within sales?

CPQ is a fantastic solution for sales. It enables them to meet or exceed sales targets for new customers or renewals. However CPQ solutions have many benefits beyond the sales team. For example:

– Product Management use CPQ to help manage the entire product line life cycle, developing and implementing go-to-market plans.

– Marketing teams benefit from being able to easily develop and implement promotional plans to drive increased business.

– Customer support teams can ensure that the needs of customers are being satisfied through excellent customer service.

– CPQ provides the Executive team with ability to quickly react to changes in the market or competition. Leadership teams can identify the most efficient ways to fund growth.

Beyond these functions, CPQ typically integrates with other ERP systems. This provides a seamless transition of data and processes to other parts of the business such as fulfilment and finance.

3. What did businesses do before CPQ systems became available?

In the past organisations would often rely on legacy systems or even basic spreadsheets to manage product catalogues. Selling information was often knowledge that was locked up with individuals and difficult to share across the business. Where pricing and quoting systems did exist they often didn’t work well together which resulted in many manual processes, re-keying or multiple data entries. These processes often worked up to a point, but were not fit for purpose as businesses start to take steps to become more efficient and better serve their customers.

4. I have a really unique and sophisticated product portfolio, can CPQ tools model these?

Absolutely, CPQ solutions are used in a range of organisations across many different industries. CPQ tools have evolved to model highly sophisticated product catalogues. Hierarchical modeling allows sales and marketing teams to to easily create tailored products from the full range of products and services.

5. Most of my sales are through are through the web, can CPQ help with that?

Many CPQ systems have evolved beyond call centres and B2B sales to cover a range of channels. These include ecommerce solutions that expose the enterprise scale product design and management of the through all online channels. Equally, CPQ solutions are moving off-line and into the field with tablet and mobile based apps that provide CPQ capability on the road.

6. This solution looks really powerful, is it complicated to implement?

As with many modern technology solutions, CPQ tools can be delivered as a Software as a Service (Sass) through the Cloud. This provides a much easier and quicker way of delivering software. Most parts of the system will come preconfigured and ready to be setup to integrate into your business. One of the major benefits is that the responsibilities of running and maintaining the system are provided by the CPQ vendor. This allows the customer to focus on what they do best – selling the products and services their business offers.

7. I’m convinced I need a CPQ solution, how can I convince others in my business?

To convince decision makers it is important to focus on the return on investment. These should be highlighted as measurable improvements within business functions. For example by focusing on metrics such as; number of quotes per sales person, higher percentage of quota achieved, and increased retention – sales leaders will immediately understand the benefits. Equally metrics such as, shorter time to market, improved conversion rates and lower costs per lead are key areas that will get the attention of Marketing. Where end users are concerned it is also important to concentrate on the softer benefits. Modern CPQ systems have a focus on user experience and usability. Users of CPQ systems typically see an improvement in productivity through a reduction in administration, often leading to a more motivated workforce.