Closing the most anticipated deal with prospects is a top priority for businesses. It is always better to avoid time-consuming procedures for the clients to get a deal closed. The lesser the hassle, the better the relationship you can forge with the client. Also, you can close more deals while generating higher revenue incrementally.
Sales reps know that their work with customers is never over. Not even when they buy your product. Traditional quoting processes and tools result in pricing as well as order errors. Businesses that can produce more accurate and high-quality quotes in minutes grab the deals easily.
The increasing competition in B2B sales needs highly specialized and customized products. There is no one-size-fits-all. Buyers now end up receiving a personalized product crafted specifically for them. However, for sales reps, this can create some complications in a key area like pricing. But now you have Salesforce CPQ software to your rescue. Salesforce CPQ architecture is extremely beneficial in dealing with customers’ pain points including, pricing, discounts, and product building. Well, if you are the one struggling with all the issues, implementing a CPQ quoting tool could be an effective solution.
In this blog, you will see what Salesforce CPQ is and why your business needs one!
What Is CPQ Software?
CPQ stands for Configuration, Price, and Quotes converge together as a CRM extension known as Salesforce CPQ. It is cloud-based software designed to help companies sell complex products and services. The correct price of any product depends on a number of variables, like competition, local economic factors, and the costs associated with production. Highly customized products and services are sometimes extremely difficult to price accurately. CPQ software is a modern solution to address these problems.
CPQ quoting tools help businesses streamline the configuration management quotes process of their complex products.
Customers can add customized configurations to the product and avail of accurate pricing from your side. Apart from that, Salesforce CPQ will guarantee accurate quote generation within no time to the customers.
CPQ stores and accesses product data, pricing data, and data utilized for quotations. It then automates those processes and ensures 100 % accuracy.
How does Salesforce CPQ software work?
Business needs to implement a Configure, price, and quote Salesforce software to obtain fast and efficient sales growth. CPQ along with billing helps in increasing Salesforce cloud revenue growth.
The three-stage process of a CPQ software-
In a Salesforce CPQ software, configuration means configuring your products. Businesses today are inclined toward offering more customized solutions, experiences, and products, as per the requirements of the users. While this is a huge plus for buyers, customization is a pain in the neck for sellers.
A CPQ software will configure complex product offerings exactly what the customer wants. CPQ software can also detect cross-sell and upsell opportunities that are hard to recognize for sales reps. It also reduces the risks of human errors.
The “P” in CPQ refers to price. Complex solutions give rise to complicated pricing structures. It is impossible for any organization that is offering a customizable product to have a predetermined price laid out before they’re configured.
CPQ software ensures that you are offering a reasonable and personalized price to your customers and also see that you maintain profitability.
“Q” refers to Quote in a CPQ software. When you are done with Configuring and pricing, you will need to send the customer a finalized, error-free quote. Customers often request quotes from more than one vendor.
CPQ software comes with the ability to create personalized quotes for customers. It also allows sellers to review the quote before sending it to the customer.
CPQ software accelerates the entire process of Quote-to-cash in Salesforce which includes many sales, account management, and billing. It is an important portion of the buying cycle that starts with customers buying the product and ends with the seller receiving revenue.
Top reasons to choose the Salesforce CPQ Software
Professional Quote Generation
A vital aspect of the company’s identity is its level of professionalism in approaching customers. By implementing highly customized and smart quoting templates, it is simpler to provide the customers with great sales promotions, accounts, and expertly branded offers, and incorporate them with your e-signature to easily close deals.
With guided selling, Salesforce simplifies and optimizes the sales process. It is a fascinating function that enables entering the information obtained from prospects through a convenient tool and delivering optimum product packages according to specific requirements. It eliminates time and effort in manual quotations and gives customers the best-suited solutions.
Subscription Billing and Management
Salesforce CPQ is a smart investment when dealing with goods or services, which are retailed and billed on a recurring basis. It optimizes repeated accounting and management of revenues by the automation of the whole subscription billing process. It also assists you in the administration of Free Trials, setup costs, refunds, discounts, and renewals in one dashboard and provides flexible billing requirements for individual customer requests.
Intelligent Analytics and Automated Reporting
Salesforce CPQ will combine the sales process with sales profitability-based applications and tools that allow you to decide better. By utilizing in-built platform tools like Salesforce Einstein Artificial Intelligence, you can use logic to boost sales activities, data gathering practices, and alter pricing based on market realities, such as trending market rates. Salesforce also enables you to create automated reports of performances and profitability with the CPQ tool.
Cloud & Mobile Compatibility
The Salesforce CPQ is entirely cloud-based and 100% mobile. It is a highly protected cloud-based solution developed by experts from Salesforce to set up, price, and quote complicated goods & services. It helps you to deliver smart, reliable deals to customers on the go.
Increased Revenue and Decreased Costs
Amongst the many benefits of CPQ software include formalizing rules and pricing, establishing standardization across the company, increasing efficiency, and more. CPQ software makes automated up-sell and cross-sells suggestions. It enables your sales reps to quickly increase the average quote and order size. Companies that use CPQ are estimated to see an increase of 105% in their average deal size.
It increases revenue by offering tools for sales to upsell and cross-sell, Reduces admin time to focus on selling, and enables new pricing structures. It also decreases costs by reducing staff turnover, reducing errors, and ensuring discount levels.
Help Departments Collaborate Easily
Well you know that CPQ helps salespeople create accurate quotes quickly, But, there is a lot more it can do. CPQ has a far-reaching effect on efficiency. One of the biggest advantages that CPQ software offers is that the entire organization can be involved. CPQ deployments, if done right, allow sales, renewals, finance, and legal teams to each come together in different configurations. So, Your salespeople don’t have to sell configurations that are impossible financially or legally.
Integrate With Other Systems
CPQ programs can be integrated with enterprise resource planning (ERP) systems. These integrations help in streamlining the entire process. CPQ and ERP integration offer a connection between the sales and operations team and are probably the major reason to implement salesforce CPQ. Bringing together the CPQ with ERP results in a reduction in operating costs, and higher on-time production because operations and materials, and manufacturing departments are in the loop. Organizations can make better data-driven decisions.
Focused sales and revenues
Do you know that sales reps spend only 34% of their time actually selling? For the unversed, a large part of a sales team’s time is spent on generating quotes, and proposals, and gaining approvals. CPQ is an extremely beneficial solution to this. CPQ benefits your business and helps your sales reps in overcoming common sales hurdles. If your reps use legacy quote configurators, are manually reviewing quotes, or seem to have a habit of sending inaccurate quotes to prospects, CPQ might be a better choice. It results in 10 times faster quote generation and a reduction in approval time thus increasing the efficiency of the sales reps.
Also, as we told earlier, CPQ along with billing helps the Salesforce marketing cloud revenue software to take better control of their revenues and growth.
Why Should Salesforce CPQ Be Your Priority?
We’ve already discussed the top reasons to choose Salesforce CPQ software for your business. Now, here are some facts that expand your capabilities with Salesforce CPQ.
Salesforce CPQ guarantees 10x faster quote generation when compared to others. This will allow you to quickly respond to your customers with accurate pricing based on their configurations.
The approval time is reduced by 95% for every sales order. Therefore, your customers can enjoy quick service.
The quote-to-cash movement represents the speed at which you convert your leads into sales. Interestingly, Salesforce CPQ has 2x the speed of quote-to-cash movement as others.
New Reps take a longer time to settle in and work according to their full capability. This is where Salesforce CPQ provides a 30% quicker ramp for new reps.
Conclusion: Invest in CPQ Software Now!
An advanced CPQ platform is a worthwhile investment for businesses that want to improve their productivity and automate administrative tasks in the sales process. The Salesforce CPQ Software is designed by experts and provides a number of configurable features that optimize the whole process from one end to the other, helping you improve your sales productivity and generate sustained revenue.
To know about Salesforce CPQ consultants in India and the USA for your business read about Ksolves Salesforce CPQ consulting services.