1. Improved Product Management and Engineering
With manual configuration processes, the sales team depends on engineers to review and approve every single configuration for viability and pricing. CPQ solutions free up product
managers and engineers from this process entirely, so they can spend more time making better products.
CPQ software can also help with product management and engineering by analyzing CPQ data to decide where to spend money on the research and development of new products and product improvements. By looking at which combinations of product options are popular and which are not, your engineering department can better understand what customers want and
Product managers can also use these data points to determine how to extend or expand the reach of the company into new regions or niches. If a product manager can see the opportunity to retool or expand a product line to reach a new market, they can widen the customer base and drive new revenue.
2. Streamlined Operations
Your company is probably already using an ERP or CRM system. The right CPQ solution can seamlessly integrate with your existing business systems and enhance their capabilities. CPQs
data-tracking capabilities can help you identify your best-selling products and ensure they are properly stocked and shipped for your suppliers.
For those companies that produce their own parts and supplies in-house, this same data can be used to analyze what’s needed in advance of orders so there’s less “lag time” between the order and the actual production of the configured items.
3. Increased Finance Visibility
Your financial and accounting departments will appreciate the level of data that a CPQ solution can generate for your company. Pricing, revenue, and cash flow data will inform your finance team of exactly how the company is doing in detailed, real-time reporting.
This data can show predictive trends, such as downturns, as well as increases in sales and
orders so you can know what to expect at regular intervals. This, in turn, can help your company prepare for those changes in your revenue streams.
4. Higher Marketing ROI
The last area where CPQ can help you (outside of sales) is in your marketing department. We live in the era of “big data,” and the data that comes from a CPQ system can help in a number of ways.
CPQ software allows you to use data to drive your decision-making. Today, business decisions shouldn’t be made solely on a “gut feeling.” Solutions need to be backed up with numbers, showing that an idea will work and provide a measurable return on investment.
CPQ provides insight into what’s currently selling in the market, so you can then look for opportunities in other areas. Marketing can also use sales data to spot product and market trends before your competition — positioning you to be the first company to offer a specific type of product or configuration.