Product and services companies each have their own complexities that need to be addressed, but the need from a CPQ platform remains similar. Product companies might have a more complex data repository while services companies might have a greater need to enhance their repository. But both have data that needs to be processed through CPQ to quote efficiently still has to be optimized. (Check out our previous blog on data optimization in CPQ.)
When choosing a CPQ solution, it is important to consider how flexible and powerful the rules engine is in order to accommodate your companies’ product data.
CPQ usefulness is dependent on a few different factors, including:
- The number of resources you have to dedicate to the platform
- The frequency in which you are actively engaged with your product data and administration console
- How much time your company invests in properly structuring product or services data
- How efficient your product rules are written
Some CPQ platforms are not as flexible as others. If your company needs a lot of control over your rules and customizations, native CPQ platforms, those offered as an add-on by a specific CRM, are generally too limited to accommodate. We find that companies that focus strongly on products and services typically need a higher degree of customization and control over their quoting needs.
Those needs often expand into areas like margin control, user guardrails, guided selling capabilities, and granular analytics. These types of customizations can add to the setup time and cost. Additionally, implementation costs can vary greatly across CPQ vendors.
Aside from the ease of setup and implementation cost, product data does not remain static; companies need a CPQ solution that can scale, or at least handle changes without major barriers. As business needs or products change, the only way to easily accommodate those changes is through a service-based architecture.
Multi-tenant SaaS offerings are quick and easy to provision, accommodate rapid innovation, connect easily to any on-premise or cloud system, and deliver content to all devices in a much thinner and better format. EndeavorCPQ utilizes a multi-tenant architecture to accommodate the need for scalability and business continuity. Our cloud-based platform enables companies to have greater control over their CPQ implementation in the long run.
Finally, for product and services companies, a CPQ platform can tell you a lot about the health of your sales team by looking at data that CRMs don’t have access to. Your sales efficiency can be better monitored by looking at your quoting and sales trends.
We cover this more in depth and provide an example of those data types here: http://endeavorcpq.com/blog/quoting-tools/extracting-sales-data-and-statistics-from-endeavorcpq
To learn more, contact us.