Every salesperson understands that their work with customers is never truly done. It’s only the beginning once they agree to buy your solution. The growing competitiveness in B2B sales has necessitated the development of highly specialized and tailored products. This is wonderful news for buyers because they will receive a bespoke product made just for them.
CPQ stands for configuring, price, quote, and is a software solution that allows vendors to generate correct estimates for complicated and configurable products. Businesses will use a CPQ solution to boost their sales productivity and velocity.
The three stages of CPQ
Let’s break down the three-stage process that CPQ software follows to gain a better idea of how it works.
Configure – Configuration refers to the process of configuring your items in CPQ software. Businesses are tailoring solutions, experiences, and goods to every customer on an individual basis. While this is a big benefit for consumers, it makes life more difficult for sellers. Best CPQ software can spot cross-sell and upsell chances that some salespeople might have missed. When you use the software as your configurator, you eliminate the danger of human error and give your sales staff more time to focus on building relationships with customers.
Price – Price is represented by the letter “P” in CPQ. Complex solutions necessitate equally complex price structures. You can’t have a set pricing before the product is configured if you’re offering customized products. Artificial intelligence is used in CPQ software to detect client buying habits and market research to discover what your consumers are truly prepared to spend. In essence, it may ensure that you are charging your consumers fair and individualized pricing while yet remaining profitable.
Quote – After figuring out the configuration and cost, you’ll need to send the buyer a finalized, error-free estimate with extra information. Fast response times are a crucial advantage because prospective consumers frequently request quotations from multiple vendors. However, because of the complexity of precise pricing and configuration, this can be difficult to achieve. CPQ software allows you to produce tailored quotes for your consumers. It also enables sellers to quickly examine an estimate before sending it to a customer, allowing them to make any last-minute changes.
Benefits of CPQ
The most obvious overall benefit of integrating CPQ software inside your sales force is that it automates your sales process, allowing salespeople to spend more time getting to know their customers and developing mutually beneficial relationships. It reduces the need for sales professionals to sift through multiple spreadsheets in search of a client, pricing, and quote information.
Every possible configuration, price, and discount combination may be made automatically with a CPQ system. As a result, you’ll be able to provide your consumers with the most straightforward quote possible.
SmartQuote from Vistaar is a cutting-edge solution to the CPQ process. Sales can quickly grasp pricing alternatives within predefined criteria with the help of quote invoice software, increasing the possibility of auto-approval and providing visibility to deal score when permission is required. This reduces the time it takes to get a bid and enhances win rates.