CPQ (Configure Price Quote) helps companies drive revenues, profits and customer satisfaction ratings by automating the quote to order process. Companies that use CPQ are assured that their sales people and partners are quoting the right products at the right price and producing professionally branded proposals and contracts all day, every day. The fact is, CPQ does not just benefit the sales rep though. All areas of the business are impacted positively when the decision is made to implement CPQ.
So, what are the top benefits of CPQ? The following list is based on 12 years of working with companies of all sizes in every region of the world. While the order could be argued, and perhaps omissions as well, Endeavor sees the following as being the Top 5:
- Become easier to do business with
- Shorten the sales cycle
- Increase deal values
- Increase productivity across the company
- Improve brand awareness
Shorten the sales cycle: When someone asks for a quote, they don't mean later today or even tomorrow. They mean now. The old selling adage holds true: "Time kills all deals". If you keep the opportunity open by making the quote process long and unpredictable, your sales cycles will remain long and you are leading them to No Decision. When they raise their hand for a quote, if you don't deliver right away, your competition will.
Increase deal values: "You want fries with that?" McDonalds learned a long time ago the value of an upsell, and it works. New reps need suggestions and help when quoting and often leave money on the table without it. Seasoned reps get in the habit of always selling the same thing. Both new and seasoned reps benefit with cross and up sell suggestions throughout the quoting process. By including higher margin items or recommending to a client to purchase additional items, deal values increase.
Increase Productivity: How many people are involved in your quoting process. If your reps and partners cannot quote on their own 100% of the time, then too many people are involved guaranteed. With CPQ handling all product and pricing rules as well as all approval processes, companies can put their resources to work doing the things that are most valuable for it. Engineering, product management, sales engineers, marketing, management needs to get out of the quoting process. Productivity empowers your reps to quote and close.
Improve Brand Awareness: Marketing departments spend a lot of time and money publishing a brand into the market. A brand is a company's promise. Each quote either supports that promise or takes away from it. Companies now know not to leave that to chance. CPQ provides the ability for Marketing to ensure that 100% of all quotes are not only perfect in the product and pricing arena. With CPQ, brands are protected and advanced.
While there are other benefits of CPQ, these are Endeavor's top 5. The power of CPQ is that the decision to implement has a significant impact on each of these areas that ultimately define top and bottom line financial results. If CPQ does not return the highest level of ROI in the technology arena, it must be close to the top.
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