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Equipment manufacturing companies are increasingly recognizing the value of upselling their product lines by bundling them with advanced service offerings. This strategy creates a new revenue stream with minimal risk and lower overhead. It also accelerates time to market, which is a significant competitive advantage.
Significant Benefits
Bundling products and services offers substantial benefits to customers, who can save between 7% and 15% compared to purchasing services separately. For manufacturers, the rewards are even greater, including increased revenue, reduced operational costs, and improved profitability. Many manufacturers have seen revenue increases of up to 60% through bundling, outpacing their competition by over 30%.
Effective Strategies and Tools
Combining multiple products and services, however, does add complexity to your sales process. Without in-depth expertise and approval oversight, what seems like a profitable strategy could negatively impact your company’s bottom line.
To capitalize on the benefits of upselling, it’s essential to develop a strategic approach and utilize tools that make it faster and easier to sell related items together without increasing risk. This will determine your success or failure.
Leverage CPQ Software for Maximum Impact
This is where Configure Price Quote (CPQ) software comes into play. Business rules configured within the CPQ software ensure that bundled products and services are compatible and can be sold together.
CPQ solutions consolidate complex product and service information and business rules into a single, real-time accessible platform. Guided selling features assist sales reps in quickly understanding options, configuring customized quotes, and collaborating with experts and customers from any location. This technological edge enables your sales team to efficiently sell more and outpace the competition. Which increases your revenue and drives growth through accurately and consistently bundled products and services.
CPQ systems also provide a significant advantage over outdated spreadsheets and file-sharing methods. Manual methods are time-consuming, error-prone, and lack the necessary features for measuring service-based programs, especially when intertwined with equipment. CPQ software, on the other hand, accelerates the sales process without the errors, inconsistencies and risks.
By bundling with CPQ, you capture additional revenue that might otherwise be missed in a traditional equipment-only sale. You meet your install base's evolving needs and fully optimize every customer's revenue potential.
Best Practices for Maximizing CPQ Upselling
- Configure Services as Products
Today’s customers prefer personalized solutions over one-size-fits-all options. One in five buyers is willing to pay a 20% premium for customized products. Configuration is a key area to leverage for personalization. With CPQ, you quickly tailor and bundle products and services through a single, intuitive interface. For companies with extensive product catalogs and diverse service options, CPQ's configuration features facilitate the creation of customized bundles that meet customer needs effectively. - Define Your Pricing Strategy
After configuring an offering to meet a buyer’s preferences, use CPQ's flexible pricing functionalities to automatically optimize the final price. Consider factors such as purchase nuances and the customer relationship. Implement various pricing models—competition-based, cost-plus, rate-based, and value-based—to create a deal that works for both parties. Extend additional incentives and incorporate any applicable discounts or taxes to finalize the offer. - Utilize Reporting Features
Post-sale, the value of CPQ extends beyond the transaction. CPQ software enhances pipeline visibility and reporting practices to drive future sales. It also seamlessly integrates with CRM systems like Salesforce, MS Dynamics, and HubSpot for consistent data use. Maintain accurate records of each deal’s details, including pricing and discounts, within your CRM to inform future strategies.
Conclusion
Automating and streamlining the sales process with CPQ leads to upselling best practices that boost revenue for equipment manufacturers. By consistently delivering accurate, compelling quotes and proposals faster, sales teams secure more profitable deals. For your clients, this approach makes you easier to buy from, so they keep coming back for more.
