Why do we need CPQ implementation?
Setting up CPQ software so that a group can use it is called implementation. Setting up CPQ product rules, pricing structures, and quoting methods is part of this. Implementing CPQ can be done by an organization’s IT team or a CPQ vendor or consultant from outside the organization.
Companies that use CPQ solutions to handle their pricing and quotes must ensure they have an excellent CPQ application. These steps can be streamlined and made more efficient with the help of CPQ software. CPQ implementation can help a business ensure its CPQ system is set up correctly and can work for the business.
Working with a CPQ vendor or expert with CPQ implementation experience is essential because it can be hard to do right. Companies that sell and work with CPQ can help businesses plan and carry out their CPQ adoption projects. They can also help with training and support before, during, and after CPQ deployment.
Like words
- Putting quote-to-cash into action
- Steps for Putting CPQ into Action
Following these steps will help you ensure that CPQ is put into use successfully once you’ve decided the time is right.
Write down your goals.
Setting goals is the first thing to do when using CPQ. Do you want to spend less Time selling in general? Reduce the Time it takes to get a quote. Boost the average order value. Make the quote less accurate. Cut down on churn and boost win rates. These are great ways to determine how well your CPQ program is doing. But before you set up your CPQ system, we suggest that you start with the following key performance indicators (KPIs):
- Lead time saved
- Accurate quotes · Time to respond ·Churn rate ·Win rate ·Renewal rate
Find Out What You Want and what CPQ Can Do
CPQ has a lot of valuable tools. You should, however, be very selective about the features you want to add. Your sales team might be unable to add all the features at once. Just start with the basics and add things as you see fit.
Here are some essential things to look for:
- Ease of use: Both managers and end users should be able to use the CPQ solution quickly easily. It should have a layout that is simple, easy to understand, and quick to move around in.
- Flexibility: The CPQ should be adaptable and quickly changed to fit your business’s needs. Adding, removing, or changing goods and pricing rules should be simple.
- Scalability: The program should be able to grow with the business as it does. More goods and users should be able to use them without slowing down or becoming unstable.
- Integration: CPQ can work with other programs you already use, like your CRM and accounting tools. It will be possible for data to flow smoothly, and you won’t have to put the same information into multiple systems again.
- Reporting: The CPQ program should have robust reporting tools. You can then see how sales, success, and trends change over Time.
- Help: The company that sells the solution should offer full help. This will ensure you can get help when you need it and that any problems are resolved quickly.
Make your quote-to-cash process work better.
For CPQ adoption to work, your company’s current system needs to be carefully examined to find any holes and determine how a new solution can fill those gaps. You can determine what changes and improvements need to be made by looking at the quote-to-cash process from every angle. Many quote-to-cash tasks can be automated with CPQ software. These include price, configuration, approval workflows, and contract management. This can make it possible to get quotes faster and more accurately. CPQ can also help you get the most out of your pricing plan and make your customers happier.
Pay attention to managing data.
Data handling is one of the most essential parts of CPQ. CPQ systems need to access and understand data from many different sources to make correct quotes and proposals. It can be hard to do this because data formats and guidelines differ. Before data can be used for quoting or proposals, CPQ systems need to be able to clean it up, make it regular, and add to it. One thing that makes CPQ different from other quoting and proposal tools is that it cares about data management. By making data management a top concern, CPQ systems can help businesses make quotes and proposals that are more accurate and take less Time.
Track Your Progress
As soon as you’re done setting up CPQ, you should check your work and make any necessary changes. By checking on CPQ’s performance regularly, you can be sure that your solution is working as it should and having a good effect on your business. Here are some essential things to keep in mind:
- Scores for sales: How does your CPQ system affect sales?
- Are quotes being made more quickly?
- Are mistakes being cut down?
- What are people doing with CPQ?
- How are they adopting it?
- Are all of the tools being used?
- Are there any places that could use some work?
CPQ data:
- How correct is the CPQ data?
- Are there any holes or mistakes that need to be fixed?
Process improvements:
- Have you found any ways that CPQ has made your processes better?
- Are there any other chances to make things better?
Mistakes People Often Make When Implementing CPQ
When adding CPQ software to your sales stack, please don’t do things that could go wrong and make it harder to adopt, like
Not Setting Out First the Business Processes
When CPQ is being set up, one of the most common mistakes is not defining the business tasks that CPQ will help with. Setting up the software correctly and getting the most out of CPQ will be hard if you don’t know how it will be used to streamline and handle important sales tasks.
Not Keeping CPQ Data Up-to-Date
Another common mistake is not keeping CPQ data correct and up-to-date. Product and price information and customer and order information are all part of CPQ data. CPQ needs this information to be correct to make the correct quotes and offers. Quotes and offers can be wrong if CPQ data is not kept up-to-date, hurting sales.
Not Seeing CPQ as a Way to Make Money
CPQ can do more than make the sales process easier and faster. CPQ can also make more money through upsell and cross-sell possibilities if set up correctly. Companies are missing out on a huge chance to grow their businesses by not seeing CPQ as a way to make money.
CPQ isn’t used early enough in the sales cycle.
Regarding the sales cycle, CPQ should be used early, ideally when leads are found and qualified. CPQ lets you make customized quotes and offers for each customer based on the information you have about them. This can help you close deals faster. Companies lose out on this great chance when they add CPQ later in the sales cycle.
Sales Reps Not Being Trained How to Use CPQ Tools and Methods Correctly
CPQ software can be hard to understand, so people who want to use it should be taught how to do it right. Users might be unable to get the most out of CPQ if they aren’t adequately trained, which can cause mistakes and waste.
Not Making Changes to CPQ Settings Every Time
Regular updates should be made to CPQ configurations to represent changes in how sales are made, the products offered, and the prices. CPQ settings that aren’t updated can cause mistakes and slow the sales process.
Not Making Plans from the Start for CPQ Scalability
If a business grows, its CPQ software should be able to adapt to that growth. It’s possible to lose data and make mistakes if you don’t plan for CPQ scaling from the start.
How much does it cost to set up CPQ?
The average cost of setting up CPQ can change based on the size and scope of your project. Prices for CPQ implementations can range from a few thousand dollars to several hundred thousand dollars. The price will also change based on whether you install the CPQ software yourself or with the help of a CPQ consultant or the vendor’s implementation team.
If you are putting in CPQ software yourself, you will need to think about how much it costs and how much Time and money it will take to teach your staff how to use it. If you hire a CPQ consultant or service provider, they usually take care of the whole implementation process, from paying for the software to giving you training and help.
A few more things will affect how much it costs to adopt CPQ.
Size of the Business
Businesses of all sizes must pay more for a CPQ service than small businesses. CPQ systems need to handle a lot of data and people, which is why this is the case. A CPQ for a small business might only need to be able to handle a few hundred items, but one for a big company might need to be able to handle millions of items.
Simple Product Catalog: If you have a simple product catalog, you may be able to get by with a CPQ system that costs less. On the other hand, if your product catalog is very complicated, you will need a CPQ system that is more powerful and costs more.
Changing things
A cheaper CPQ solution might be enough for small businesses that only need to set price quotes for simple items. However, a more powerful CPQ with more advanced features will work best for businesses that need a custom solution because of the complicated price and product configurations. In both situations, a simple no-code CPQ to set up and change without IT help or an in-house CPQ expert is the most cost-effective option.
A flexible, customizable CPQ is easier to set up and fully ramp up, so sales teams can immediately start seeing benefits. A no-code CPQ is excellent because it can quickly grow with your business, regardless of your company size, how you set prices, or how complicated your products are.
How CPQ Tools for Deployment Make Implementation Easier
CPQ deployment makes it easier for organizations to set up and connect CPQ tools. Some critical parts of the CPQ setup that make it easier to set up are:
Integration Tools: Customer relationship management (CRM) systems, enterprise resource planning (ERP) systems, and e-commerce platforms are just some of the business systems that CPQ systems need to work with. Deployment tools help CPQ work well with other systems, ensuring that data is always correct and that business processes can talk to each other easily.
The CPQ rollout helps move and change data from old systems to the new CPQ solution using data migration tools. This includes customer information, products, prices, and other vital data.
Tools for Customization: Each group has its own needs and ways of doing things. You can change how the CPQ system works to fit the needs of your business with CPQ deployment. Setting up workflows, making custom fields, and setting business rules are all customization examples.
Testing and Validation Tools: It is essential to try CPQ solutions thoroughly before putting them to use in the real world so that any problems can be found and fixed. Tools for testing and validating ensure the set pricing rules and methods for making quotes work correctly.
Tools for Training Users: The CPQ system may have features that help train managers and end users. For example, documentation, tutorials, and training modules may help users learn how to use the system properly.
Version Control: CPQ deployment tools help keep track of different versions of price models, quote templates, and rules for configuring products. Version control keeps track of changes and lets you undo them if needed. It also makes it easy to see how the system was at different points in Time.
Monitoring and Analytics Tools: Once CPQ is set up, monitoring tools can show how well the system works, how well users are adopting it, and how it affects the sales process. Analytics tools might help you find places to improve and make things work better.
CPQ deployment aims to simplify the implementation process, take less time and work, and cause as little trouble as possible to current business operations. These steps are essential for businesses that want to successfully adopt CPQ solutions, which help them improve their sales processes and work more efficiently overall.
