Businesses are changing, and companies that still use old CPQ (Configure, Price, Quote) systems find it hard to meet their customers’ rising standards. For a customer-focused selling experience and access to unified data, the current CPQ landscape needs more personalization, self-service options, visible configuration tools, and seamless data synchronization.
It’s too bad that these essential tools aren’t always available in older CPQ systems. Companies still using old software often have trouble with CPQ software, which is rigid and hard to adjust, and it takes a lot of work to make even the most minor changes. Businesses are moving away from rigid solutions and toward more flexible, new ones that can quickly adapt to changing market conditions and modern customer needs while giving sales teams the tools they need to provide more personalized service. So, let’s look at old systems, the pros of flexible CPQ solutions, and where CPQ is going.
The reason why old CPQs are becoming outdated
The business world is changing quickly, and companies that want to do well must stay ahead. This is especially true for sales teams that must meet more prominent and significant customer standards while closing deals quickly. Once thought to be cutting-edge, old CPQ software shows signs of not working with current business methods. As companies change, they must look at the pros and cons of old and new CPQ options to make decisions that will help them grow. Let’s look at how the move to digital changes the game in CPQ.
Changes in CPQ: adjusting sales to meet customer needs
We need to know how the needs of both sales teams and customers are shifting before we look into next-generation CPQ software. Today’s sales teams need tools that help them work smarter, not harder. Modern sales teams increasingly seek products that offer simplified processes, real-time data, and built-in personalized customer experiences to increase sales and maintain high customer service standards. In the same way, buyers want an easy, streamlined experience at every stage of the buying process. They want goods tailored to their needs, let them do things independently, and give them quick, accurate quotes. To keep up with the latest CPQ trends, you need a CPQ solution that can meet both sales and customer expectations, boost overall satisfaction, and offer efficiency.
What do people want these days?
Clients are clear about what they want, and from a customer service point of view, what they want makes sense. They want a business that can do the following:
Access to product listings and prices is made more accessible.
Customers want to be able to view complete catalogs of products and price information easily. They want an easy-to-use experience with many different product choices and variations they can freely try.
Making things unique
Customers today want events that are unique to them. They want suggestions based on their needs, tastes, and past interactions with the business. Being flexible and offering different prices and product bundles can help sales teams close more deals.
Setting up visually
Customers now expect a dynamic interface that lets them see how different product setups would look and work. Visual configuration tools are an essential part of CPQ. This feature makes people more interested, reduces mistakes during purchases, and raises the chance of making a sale.
Quick quotes
Customers want things done quickly, and business goes faster than ever. They want quotes that are quick, correct, and fit their exact needs. A CPQ system that can make quotes as quickly as the client wants makes the customer happier and gives sales teams an edge.
Why you should switch to agile CPQ
As customer needs change, old CPQ software has difficulty keeping up. Newer B2B CPQ options have many significant benefits for companies that want to grow and become more efficient.
Make the sales team more productive.
Older CPQ systems require manual labor for many tasks, which slows down the sales team and reduces productivity. With agile CPQ solutions, the tedious administrative tasks are taken care of automatically, giving teams more time to build customer relationships and close deals quickly.
Automate the sales process.
By automating key processes, Agile CPQ speeds up the whole sales cycle. Automation in agile CPQ products reduces mistakes, speeds up reaction times, and builds consistency that benefits the entire sales team. It handles tasks like product configuration, pricing calculations, quote generation, and approval management.
Better integration of data.
Legacy CPQ systems can make it harder to combine data. Still, agile CPQ solutions eliminate data walls so data can flow easily between CRM, ERP systems, and other essential business tools. When statistics from different sources are combined, the information stays correct and up-to-date.
Get facts and reports in real-time.
The move to digital in CPQ gives sales teams access to data and reports in real-time, making the sales process more transparent. Sales teams learn about what customers want, how products work, and sales trends. This helps them make intelligent choices and customize their approaches for each customer to build relationships and close deals.
Make the sales cycle shorter.
By removing bottlenecks and reducing manual labor, agile CPQ software makes the sales process more accessible. Sales teams can quickly complete the whole sales process with the help of automated workflows, streamlined approvals, better order management, and quick access to product information.
Faster quote-to-revenue
It’s essential to turn quotes into sales quickly. Agile CPQ solutions speed up the quote-to-revenue process in many ways, such as eliminating delays, automating reviews, and giving customers quotes immediately. Companies can take advantage of chances and make the most money possible with a faster process.
The pros and cons of old and new CPQ software
Scroll down to learn more about the pros and cons of old and new CPQ software.
Over the years, many people have tried and used legacy CPQ software, showing that it works well and is stable. One big problem with old systems is that they are not very flexible. They might not be very customizable or scalable, which makes it hard to keep up with changing business needs and market trends. Getting it to work with other current tools and technologies can also be challenging and take time and effort. Next-generation B2B CPQ options, on the other hand, are quick and flexible. Since they are in the cloud, they can be constantly updated so teams can use the newest tools and trends. As CPQ software has improved, it has become easier to customize and expand, which helps businesses adapt to changing market needs and their specific needs.
There may be learning curves and initial challenges when switching to a next-generation CPQ solution, like moving data and ensuring it works with a company’s ERP and CRM. However, the increased flexibility and access to new features make it an excellent choice for companies that want to give their sales teams technology that can keep up with the fast-paced changes in today’s businesses.
Things to think about when switching from old to new CPQ
When moving an organization’s CPQ from old to new software, several essential things must be carefully considered. Setup and training will be a breeze if you think about these things and make a plan before you start using them.
1. Getting business wants and goals to match
It is essential that the CPQ software you choose fits your business’s goals and wants. Before you pick a solution:
Look at your unique needs and plans for growth.
Find out how scalable the answer is to see if the product can grow with the business.
Think about things like business specialization, the ability to integrate, and the ease of customization.
2. Setting up and training
Ensure you know what kind of help and training you need for a smooth shift. Consider how long it will take to adopt, whether operations will be interrupted, and what training and support are available for your team. You must plan and handle change well to make the migration go smoothly.
3. Moving and integrating data
Check how easy and accurate it is to move data from these systems to the new CPQ solution. Check how well it can work with your current CRM, ERP, and other essential business tools. Integration and smooth data flow will keep things running smoothly and get the most out of a next-generation investment.
4. Price and Return on Investment
Look at more than just the price! Think about how much it will cost to switch to next-generation CPQ software. Look at the one-time and continued costs, like licensing fees, setup, training, and any customizations that might be needed. Also, look at the possible ROI (return on investment) and any other long-term benefits that a new solution can give your business.
New trends in CPQ are coming up next.
As technology keeps changing and forward-thinking businesses get rid of their old CPQs in favor of more flexible ones, here are some new trends to keep an eye on:
Quick CPQ
More and more people will use next-generation CPQ options because they can be changed to fit the needs of both businesses and customers.
CPQ in the sky
More and more people are using cloud-based CPQ systems because they are easy to use and can grow as needed. Cloud-based CPQ is simple to set up, gets updated often, and requires less upkeep, which makes it easier for internal IT teams to do their jobs. Easy access from afar, better teamwork, and real-time data synchronization are other perks.
Using a mobile device
As mobile devices continue to free customers and sales teams from desks and offices, CPQ solutions keep up to make the experience better on the go. When you optimize for mobile, sales reps can access CPQ tools and customer information while on the go. This lets them give customers quotes in real time and interact with them whenever and wherever they are.
Machine learning (ML) and natural language processing (NLP)
Every field that AI and NLP touch changes and CPQ is no exception. AI-powered algorithms that look at customer data, historical patterns, and market trends to make personalized product suggestions and price plans could benefit CPQ. NLP also makes it possible to understand everyday language, which lets customers use conversational language to talk to CPQ systems, improving the whole experience.
Seeing how to buy things
Visual configuration tools are improving and giving customers more complex and interactive experiences that let them interact with product options in a visually exciting way. Virtual reality (VR) and augmented reality (AR) can change the buying process, allowing customers to see and adjust how goods look in real life.
Connecting to tools for customer experience (CX)
CPQ is increasingly working with CRMs and marketing automation tools. This makes it easy to share data and see all customer contacts so sales teams can tailor quotes, offers, and suggestions based on how customers behave and what they like.
Advanced analytics and views into the future
CPQ tools use advanced analytics and predictive insights to help users make decisions based on data. Better analytics make it easy for businesses to spot chances and upsell. Predictive insights also help make sales predictions more accurate.
Configurable business
CPQ solutions are changing to offer fully customizable shopping experiences from start to finish. CPQ tools can easily connect to e-commerce platforms to make buying more seamless than just making quotes.
Adding the Internet of Things (IoT)
As IoT technology improves, CPQ integration with IoT products could help improve customer service and boost sales simultaneously. When CPQ systems are connected to the Internet of Things (IoT), they can use data from connected goods to suggest accessories that work with them, perform remote diagnostics, and set prices based on usage or subscription models.
As companies determine how to make the most of the CPQ landscape’s ever-growing possibilities, now is the ideal time to learn about and adopt the game-changing potential of next-generation CPQ options. Companies can make intelligent choices that help their businesses grow, make their operations run more smoothly, and give their customers the best experiences possible by understanding how the needs of their sales teams and customers change over time, weighing the pros and cons of old and new software, and thinking about the movement of data. Accept the future of CPQ and help your sales team reach their full potential!
