A CPQ solution can reduce actual costs, such as manual quoting and rework. It can also reduce implied costs, such as those caused by a lack of visibility into component availability and production capacity.
Ensure the best results from your CPQ implementation by setting clear goals and evaluating potential solutions. Then, implement a no-code solution to handle your product’s complex pricing and configuration options.
Streamlined Sales Process
CPQ can streamline the sales process by simplifying it and providing a more accurate, consistent experience. This reduces the number of errors caused by manual processing and eliminates delays due to miscommunication between departments. In addition, it can automatically route the quote to the appropriate parties for approval, further reducing processing times.
For instance, if a customer requests a special discount, the CPQ system can prompt the sales manager to approve or reject the request. This helps ensure salespeople aren’t ordering discounts the company cannot afford.
Similarly, if the customer wants to change the specifications or options, the CPQ system can check that the changes are feasible based on existing production capabilities and stock levels. This ensures that the customer will be satisfied with a quote that is impossible to fulfill, saving time and money for the company.
CPQ software has become an integral part of efficient operations in industrial manufacturing, enabling seamless configurations and accurate pricing; companies often seek integration with the best industrial manufacturing software systems to optimize their production processes and enhance overall efficiency.
Moreover, the company wants to offer customers a choice of bundles or add-on items. In that case, CPQ can make this easy by creating configurations and pricing rules based on BOM characteristics, production costs, optional features, and more. This can provide a customized experience that wows customers and increases product understanding. Lastly, the CPQ system can auto-generate CAD models and BOMs to expedite the engineering process further and improve sales-to-engineering collaboration.
Increased Sales Efficiency
CPQ systems make it easier for sales reps to create quotes more quickly and accurately, reducing time spent on product configuration and pricing. It also helps them identify upsell and cross-sell opportunities, boosting revenue potential. This increased efficiency allows manufacturers to deliver a superior customer experience, leading to better retention and referrals.
Using CPQ software, your team can automate pricing based on BOM characteristics, production costs, optional features, or any combination of these elements. The pricing rules are pre-generated and enforced without manual intervention, eliminating error-prone human intervention. This means that even the most novice or new reps can be productive immediately, delivering a superior customer experience.
In addition, using a CPQ system can help reduce quote errors that lead to costly manufacturing delays. It also allows the quoting process to be entirely self-service, eliminating the need for sales reps to configure products or generate quotes manually. This allows your sales team to spend more time selling and engaging with customers, which is a massive win for any business.
CPQ solutions are designed to integrate with your ERP system so your sales teams can access the right price lists, discounts, and product availability for any configured order. This integration enables them to provide accurate, up-to-date quotes that meet the requirements of your engineering and purchasing departments.
Increased Productivity
The time and resources absorbed by manual quoting processes can be invested into other opportunities. Manufacturers can identify upsell and cross-sell opportunities that result in increased revenue. In addition, CPQ allows for faster and more accurate quotes that enable salespeople to respond quickly to customer requests, which is critical to improving customer satisfaction.
CPQ software eliminates the need for manual product configuration and pricing calculations. It automates the process using a product configurator, which features predefined rules determining viable product configurations. During the configuration process, CPQ analyzes each choice to ensure it is profitable and manufacturable. It also optimizes every design for engineering efficiency and customer satisfaction without requiring input from engineers.
With the rise of new business models like value-added offerings and selling solutions as a service, manufacturers are increasingly configuring products to customers’ specific needs. This requires more flexibility and a self-service buying experience that isn’t possible with traditional quoting methods. CPQ makes it easier to deliver these options by offering a flexible, user-friendly interface for sales reps and customers.
A good CPQ solution will also help manufacturers control pricing and margins by limiting discounts to only a percentage of net or gross sales. This helps to avoid discounting below a certain threshold, which can significantly affect profit.
Increased Customer Satisfaction
CPQ software can help manufacturers improve customer satisfaction by offering customers self-service sales options. This helps to reduce the time that salespeople need to manage sales inquiries and orders, reducing operational costs while allowing them to focus on more complex sales opportunities.
Many manufacturing industries produce highly configurable products with complex specifications, and implementing a CPQ solution can help these businesses streamline their internal processes and provide a better overall customer experience. CPQ solutions designed specifically for manufacturing can also help these businesses reduce product configuration errors and optimize pricing and quoting methods to stay competitive.
As a result, CPQ software can help manufacturing companies increase revenue and boost profits by enabling them to serve more customers with the same number of salespeople. Additionally, CPQ software can allow manufacturers to offer discounts to loyal customers and incentivize new customers with bundles or loyalty savings. In addition, CPQ software can make the sales process more efficient by reducing the manual processing required for each quote. This allows for more accurate and consistent quotes, increasing customer satisfaction. Lastly, CPQ solutions can also integrate with existing sales systems, including CRM and ERP platforms, ensuring that all data is synchronized and always up-to-date.
