The sales process in an organization often demands the participation of various teams in tandem. A team including sales, finance, manufacturing, legal, and IT need to communicate with each other to ensure the success of a deal and realize revenue. CPQ (Configure Price Quote) streamlines the communication amongst the teams and ensures quicker revenue realization.
How CPQ helps businesses?
Quote generation is the start of the detailed process where most teams of the organization have their role to play. CPQ minimizes manual errors along with overcoming the silos in inter-team communication.
The benefits of CPQ come into the picture at every step of dealing with quotes. In general, once a quote is signed, the following events follow it:
Order generation -> Sending of invoice -> Payment Receipt -> Revenue recognition -> Analysis of audit trials -> Order fulfilment.
Thus, the efficacy of the quote creation process impacts all the teams involved end-to-end.
Benefits of CPQ #1: Enhances accuracy
CPQ automates the quote generation. It seamlessly integrates with existing ERP programs and CRM platforms. With a well-established CPQ , organizations can generate error-free quotes that are accurate in terms of discounts, revenue types, compatibilities, product features, and quantities.
Benefits of CPQ #2: Saves time
According to a Salesforce report, 66% of sales reps time goes wasted in unproductive activities such as sorting and searching excel data. Such outdated tools and measures waste the valuable time of the sales team. Besides, they slow down the deal closures creating a negative impact on cash flow and customer satisfaction.
Studies find that CPQ cuts down the sales cycle by 28%. It eliminates the time take for waiting for approvals by 95%. It empowers the sales team to make faster decisions and generate quotes ten times faster.
Benefits of CPQ #3: Generate professional quotes
According to HubSpot, 50% of buyers prefer the vendor that responds first. It explains the need to create an elegant quote the first time to generate the best impression.
CPQ helps reps to speak efficiently about the competitors and differentiators. It standardizes the quote generation and the quote format. Thus, your sales reps can generate standard and branded professional-looking quotes that are smarter enough to create the first impression.
Benefits of CPQ #4: Close bigger deals easily
According to Super Office, companies that use CPQ can witness a 105% larger average deal size. CPQ enables you to track your customer preferences to suggest the products and services they would prefer. It helps the sales team to cross-sell and up-sell, thus widening the client pool.
Benefits of CPQ #5: Enjoy more conversion and revenue
According to Aberdeen, CPQ users display 45% higher proficiency at rapidly responding to RFPs. It also observes that CPQ can empower companies with five times greater revenue year-over-year. In addition, it brings 8.2 times higher margins and 7.5 times increased customer renewal.
Benefits of CPQ #6: Empower reps with guided selling
Salesforce CPQ empowers the sales reps with guided selling. It is a feature that displays the best-suited product packages based on the customer preferences entered by the salespeople. Thus, with the help of CPQ, your sales team can generate the optimal quotes that are the best match for your customer needs.
The potential of CPQ in closing deals and revenue realization is attracting attention from B2B businesses. The CPQ adoption will continue to grow owing to its attractive benefits and seamless integration with CRM and ERP systems.
Still confused about the benefits of CPQ? At Cloudely, we have been offering successful CPQ implementations to global businesses since 2013. Please reach us at hello@cldystage.wpengine.com to know how your business can benefit from CPQ. Connect with us on LinkedIn for latest updates.