Adopting a CPQ solution often grows out of a need for better business processes. If any of these 10 situations sound like your manufacturing company, a CPQ solution can help take your business and profitability to the next level.
One way your company will benefit from a CPQ solution is if your quote turnaround takes longer than it should. If the pricing process for an order extends over days or even weeks, a CPQ solution becomes essential. The delay in generating and approving quotes can result in idle time for your manufacturing team, leading to reduced capacity utilization and financial losses.
Providing a customer with an inaccurate quote can lead to costs, either when they decide not to place an order or when you miscalculate your product cost and have to absorb the difference. A CPQ solution will ensure that you’re pricing based on the most accurate data and includes prefigured profit margins so that it is almost impossible to generate a bad quote.
Too many manufacturers use outdated solutions (like Excel) to handle configuration orders or do it all by hand. Relying on legacy solutions like Excel can make version control a real issue, allowing sales teams to lose track of documents and important data as files are duplicated and saved locally with poor naming and filing conventions. CPQ solutions keep everything centrally located, serving as a central source of truth for an entire company.
Upselling and cross-selling is a notable sales advantage of a CPQ solution. By closely tracking sales data, your CPQ solution enables your sales team to gain valuable insights into the orders and reorders your customers are making. This knowledge empowers your sales team to generate additional income.
A huge sign that a company needs a CPQ solution is one that relies on one internal expert to handle all of the quotes for your company. Think about it this way: If only a few people are your in-house “quote specialists,” what happens when those individuals have a sick day? Your business will suffer as their inboxes fill up and the production team lies idle. Even worse, if one of those specialists quits the company, how long will it take to train someone new and get your quoting process back up and running? A CPQ solution allows just about anyone to generate a quote with a little training.
Sales training generally relies on the complexity of the products being sold and the system in use. Because CPQ solutions streamline the process, it can dramatically reduce training time. Before using CPQ, full training may take years or months, but a CPQ solution can reduce training to weeks or a few days depending on your business’ complexity.
A CPQ solution allows sales to see customer interactions in one place, providing a wealth of data on engagement, satisfaction levels, and how likely leads are to convert based on past sales. This capability enables your team to better forecast deals and predict revenue streams.
Automating the configuration and quoting process doesn’t just help sales — it frees up a lot of engineering time. You hire your engineers to design new products and to find ways to make your existing products better, but without CPQ, their time is often eaten up by checking order specifications. CPQ software solutions automate that configuration process so your engineers can focus on creating new products.
The final sign that you need a CPQ is that you’re ready to step up your customer experience. Offering configuration, especially with the option to configure products directly online, empowers your customers with control over the desired product. No longer will they have to settle for a one-size-fits-all product; instead, they can get the product that meets their individual needs. This will give your business a consistent brand that makes you popular in your market. There will no longer be scattered quoting and configuration. Everything can be run directly through the CPQ to generate the professional, sharp look that is essential.
If your company shows any of the above signs, considering the addition of a CPQ solution to your business model is a wise decision. By doing so, you can streamline your quoting process, improve your standing with customers, increase sales, and ensure that your employees are working to their full potential — all while staying ahead of your competition.
