All businesses need to present quotations to customers quickly and accurately. It is recommended to use the cpq system for this purpose. It is especially useful for companies that have products with extensive features and customization. Such businesses often face complex problems in performing even basic tasks.
The definition of customization, price and offer is used to simplify the process of solving individual tasks. The system provides an opportunity to save time for sales managers and improve the quality of work with potential customers.
Explaining CPQ
CPQ software is a well-known business practice that has been improved by information technology. There are more and more products that are easy to customize, but the rules and calculations are becoming complex.
It is difficult for simple sales representatives to determine correct and fair prices for services and products. Therefore, it is best to use CPQ software. The system automatically generates quotes and offers, considering the individuality of the product. The prices are calculated based on the configuration. Considering such data, the prices can be complex to the required goals of the company. Fairness and accuracy will not be lost at the same time.
It is wrong to think that such a system is used only in B2B type of transactions. Retail consumers can choose it every day. In the Starbucks app, users can customize drinks, determine the price (using special algorithms), and get complete information about the order. Accordingly, Starbucks employees will spend less time with the customer at the checkout and can better focus on making the drink.
The main conclusions are the folowing:
- CPQ systems allow dynamic and customized pricing, with sales representatives saving time and increasing their own productivity;
- reducing costs and errors;
- improving speed, accuracy and quality of service;
- providing configurability using rules and constraints.
A large number of companies can get customized configurations if they choose cpq tool. The system ensures the exchange of analytical data, removes necessary constraints and improves the flexibility of services/products.
CPQ Software Special Features
The abbreviation CPQ stands for configuration, price setting and quoting. Depending on the kind of business, pricing can be complex. The software has different options and components that are easy to use individually.
Configure, price, quote are the basic system functions. Most consumers prefer to interact with these basic systems. Especially if the purchase is related to food or computers. Applications such as Panera and Starbucks are popular as they provide a lot of customization.
Pricing is predominantly simpler than the sum of all the components and what is included in the base product that the customer chooses to customize. In more complex products, pricing may involve other mathematical schemes. Enterprise software has such factors. With CPQ, SaaS vendors can easily identify and deal with customer requirements, do custom configuration in real time, and open up customer access to options that interest them.
The systems of Pandadoc and other tools don’t just dynamically evaluate different configurations. The most important task is to make sure that products are possible. The tool is used to implement any type of product, but there will be certain limitations at the same time. Due to this, vendors or customers cannot enter an impossible order.
CPQ Functionality Description
Such software provides choices to clients, taking into account their potential actions. When designing this system, it is necessary to consider all the ways that users can use to break the system. It is important to have confidence that you do not accidentally exclude possible choices. If an order is possible, it does not mean that it will be the ideal option for the business.
A system cpq solution consists of three steps:
- configuration;
- pricing;
- quoting.
Each stage launches a separate process. Rules are applied to all data. Let’s take a closer look at each stage.
Configuration
Setting up the order is straightforward. Behind the screen, the software is constantly checking how correct the rule set is. It is possible that a selection in one area is not appropriate for another. For example, when setting up a vehicle, you might need a maximum level.
Options for mutual exclusion are also provided. Restrictions should be set in advance and then the system will be as accurate as possible. Keep in mind that prohibitions can be specific and variable. It all depends on the type of service or product offered.
Pricing
There can be various errors in the manual pricing process. With CPQ software, prices are updated in real time, depending on how customers make their selections. As options are added to the base models, prices will easily be adjusted. The prices are presented in a convenient way and always remain up to date. It is so important for the company’s reputation and potential customers.
Quoting
When configuration and pricing settings are finalized, quoting will be simple. Within B2B sales, salespeople take CPQ results and use them to generate an offer that will interest potential customers.
The system can add value by sending the necessary emails, automating the process and predicting the closing date of the deal. This kind of information is based on rules only. However, it can incorporate data from other business sectors.
Different companies use proven, basic tools to develop and meet customer requirements. One of the best software is CPQ. It is considered one of the best systems that is suitable for different types of businesses.
When you are working with a limited number of employees, it is better to implement a CPQ tool. Using this software, it is much easier to manage remote processes to generate quotations and provide configuration control. Without this tool, a business lags a bit behind in many processes and faces various challenges. It is possible to automate accurate quotations using the right software. Make sure that employees do not spend a lot of time on this.
