A digital reform that works well can completely change the game. When Nike, a world leader in athletic wear, started to fall behind its digital competitors, it put a lot of money into digital marketing campaigns, new apps, and e-commerce choices.
In 2017, the company leaders said they would double their innovation, speed-to-market, and direct customer contact places in ten years. In the end, they got to their goals a lot faster.
And that’s just one case. If you want to be successful, you need to use the newest digital tools. For example, Netflix beat Blockbuster in video on demand, Apple changed how software is sold with the App Store, and Spotify changed how we buy and listen to music.
Digitization projects don’t have to change your industry to affect your business significantly.
Business-to-business sales need to go digital.
A McKinsey study says that well-executed digital changes to pricing can increase margins by two to seven percentage points over time. The first gains can be seen in as little as three months. This is done in several ways, including lowering the number of mistakes made when quoting by hand, stopping unfair discounts, improving the management of renewals and contracts, and making more money.
Few sales tools are as robust as CPQ for streamlining the sales process and making more money. CPQ stands for configure-price-quote, for those who don’t know. This group of business-to-business (B2B) programs is made to help sellers quote complicated goods with many options, packages, and other factors that can change.
This is why sales teams need the newest CPQ software: most old software tools can’t handle the task. CPQ tools can help B2B sales teams set up product offerings, price rules, and discounts. They can also help them make error-free quotes and professional proposals tailored to buyers’ needs. CPQ software also speeds up the sales process and makes it easier for sales reps and support teams to do their jobs.
Why should you care about CPQ?
These are some of the most critical business reasons why you might need a CPQ in your sales stack:
The quotes are given faster and more accurately. Many companies change their prices to digital ones to get more money coming in and less money going out (called “revenue leakage”). This is possible with CPQ software because it lets sales reps quickly make accurate quotes, change amounts, and apply discounts without doing a lot of math or entering a lot of data. It can also ensure that everyone in your company is charged the same amount of money, and it can handle any complicated quotes.
Make the process of buying and setting up easier. With CPQ software, sales teams can quickly send price quotes and offers. Our benchmark study for revenue leaders showed that 84% of SMBs with a CPQ can send a quote within 30 minutes. This is in contrast to 57% of SMBs that do not have a CPQ. And being faster is a big plus when it comes to closing deals. Customers will trust you and expect the speed, effectiveness, and delivery that come with superior momentum.
Consistency in price and best practices must be followed. With CPQ software, sales reps can quickly send custom quotes that follow the rules and strategy set by sales management. If you set it up right, it will make sure that sales reps price goods and offer discounts in a way that keeps profit margins high, even if they aren’t fully aware of it. Handling various languages and currencies is also simple and essential for companies with multiple sales teams or offices. If a company has a massive list of products that need months of training for salespeople, they need a CPQ system.
When is the best time to use the CPQ software?
Companies need to carefully think about when they should start using CPQ. You might not see a return on your investment if you do it too early. If the deals are straightforward, there might not be enough volume or complexity to justify buying a dedicated CPQ enterprise-grade solution.
But if you wait until the last minute, your business will already be behind because of wasted time and money on sales.
If you decide that your company needs a CPQ system, here are some things you should do:
- Simplify the pricing process and reduce the time it takes to make quotes.
- Set up prices and product options more correctly and quickly.
- Please get rid of quotes that are wrong or inaccurate, whether caused by reps’ mistakes or prices that are outdated.
- Make sure that your CRM has quotes and other deal information synced.
- Get rid of bad choices about discounting
- Set up price plans that make it easy to handle expansions and renewals.
- Ensure that business, pricing, and legal rules are followed more closely.
- streamlined the process for approving price quotes
- Make quotes and plans look the same.
