Xait Blog

Why CPQ Software?

Written by Kevin Geraghty | Oct 9, 2024 9:44:26 AM

Product configurators have been around for a while. But increased product complexity and changing buyer behaviors are driving greater demand for this game-changing software. Bold benefit claims abound, especially for businesses adopting ‘mass customization’ and similar business models.

Successful implementers understand that software alone is not the answer to today's sales challenges. However, when CPQ software is properly aligned with sound business rules, pricing models, and partners, it can deliver a wide range of tangible, revenue-generating benefits for your business. 

Here are some of the claims that are being made by successful implementers - and why CPQ should be part of your growth strategy.  

Improved accuracy

Productivity gains are secured through quoting process automation. Sales representatives select the correct product and service features and combinations the first time. This allows front-office staff and channel partners to deliver accurate quotes that don't get stuck in approval. 

Shortened response times

More individuals can correctly answer product, and product compatibility, questions real-time. That's because your expert knowledge is backed into the CPQ system. This allows your team to respond to more requests faster, and even offer the self-service business model today's buyers are looking for. 

Increased volume throughput

The time required to create quotes is reduced. Sales reps and suppliers, and even self-service clients, can only select approved options that automatically calculate price. This eliminates compatibility errors, and produces professional documents ‘at the touch of a button.'

Reduced learning needs

The learning curve for users, even with complex products and services, is shortened. Good CPQ applications guide sales reps through product, service, and project configuration based on your business rules, including upsells, cross-sells, and discounts - requiring minimal training and product knowledge.  

 

Consistency of approach

Accelerate time-to-market, especially for new or enlarged products. Again, CPQ guides sales reps and channel partners through configuration and pricing, providing them with the expertise they need to answer questions and deliver accurate quotes. In fact, Sales Administrators point to the fact that they are more confident in the results. 

Enhanced market image

Greater consistency of presentation enhances your brand and market image. CPQ curtails use of old templates or past documents that don't put your best business foot forward. You control the layout and formatting - and integration with document automation accelerates creation based on product configuration.  

Empowered employees

Well implemented CPQ solutions empower and motivate the sales organization. Companies claim workflow frees-up time to build stronger relationships and close more deals. Accuracy reduces the risk of errors and time-consuming revisions. On-board expertise drives faster decision-making. This positions people for success while reducing their workload. 

Reduced cost

In the final analysis, successful businesses claim reduced costs and fast returns on investment. Just by eliminating quoting errors, they achieve a quick payback on their CPQ investment. In fact, many companies now consider this as one of the most significant areas for cost reduction – and one that is seen as extremely positive by customers and employees alike.

Many of the companies that are now making a case for CPQ have seen the benefits - and are taking this opportunity to increase their client satisfaction and competitive edge. 

CPQ solutions are enabling today's businesses to quickly respond to their buyers with 'mass customization’ business models. This allows them to enhance product differentiation, reduce stock holding, and improve profitability.