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What exactly do you mean by CPQ (Configure Price Quote)? Do you need it for your company? -

Dec 30, 2022

Find the most effective strategies to reduce the complexity of the process of selling could be the key to running a more successful and profitable business. A very popular techniques for automating and managing parts of the sales procedure is by using CPQ (Configure Price, Configure, and Quote) Software. What exactly do you mean by CPQ and what are the primary advantages? Most importantly, do your company require it?

What is what is a CPQ? What are the benefits to it?

CQ (Configure Price Quote) is a form of software for selling which allows sales reps to rapidly and easily configure the products and services they offer, and create exact price quotes and pricing that can be sent out to clients.

Here are the major benefits associated with a CPQ:

  1. Correct Product ConfigurationIt's easier for sales reps to develop a custom-designed bundle of goods and services according to the customer's specific desires and requirements. Since they're integrated within the existing system, CPQs also reduce the chance of miscommunications or errors.
  2. professionally designed quotations for prospective customers:CPQs usually have custom templates which can be used to standardize the design of quotes. This makes them simple to read to customers and prospects. This increases the chances of closing deals more quickly.

What is the best the right time to use a CPQ?

Most businesses are considering the CPQ approach when they want to do this once they attain a certain amount of growth

  1. Price compliance and consistency in sales reps
  2. The procedure of creating and maintaining quotations is streamlining.
  3. The sales cycle is being shortened all over.

Each of these is essential for when your sales team gets caught up in many administrative tasks they're capable of handling as well as when you want to implement scalable processes within the organization. Furthermore, price compliance and consistency is crucial at the time you need to be sure that your sales force isn't making prices that don't have authorization to meet goals.

What most are unaware of is that CPQs are costly complex, complicated, and time-consuming to set up and operate.

What are the benefits from using the CPQ?

There are several negatives that should be considered when using CPQ Systems: CPQ systems:

  1. It isn't cheap. There's a price upfront for the implementation of the CPQ as well as the monthly fees to subscribe and could end in an important investment for businesses.
  2. The procedure can be long. Due to the complex nature of CPQ software, it can take months to implement it and often requires the help of specialized experts to help get it off the initial stage.
  3. It is difficult to manage and use. The CPQ process can be inflexible, and are difficult to change in many cases, which requires an extremely strong RevOps/Operations department that can ensure that it's properly maintained. The process often calls for an overhaul when packaging or pricing has to be updated.

Though CPQs can be advantageous especially for ensuring price compliance and consistency, any difficulties in the implementation and maintenance of this software could be negative to operational and sales reps team's performance.

So, do you really require it?

The majority of CPQs were specifically designed for large companies that have an extensive product catalogue. There are however some things to take into consideration, particularly for smaller-medium enterprises.

  1. Size and Complexity of Sales and Operations Teams
  • If you've got a tiny sales team, then the use of a CPQ isn't necessary. It could overpower what you're trying do, even more so if don't have a solid operations team that can support the sales staff. The effectiveness of CPQ software is heavily dependent on the upkeep and implementation which are usually managed by the Revenue Operations / Sales Operations team. Being a well-established RevOps and Operations team is crucial to getting the most out of an application like CPQ.
  • If you do have a large sales teams as well as a seasoned RevOps team to maintain your CPQ system, then it could potentially make sense.
  1. Product and Service Catalog
  • If you provide basic, standardized items or services, then the usage of a CPQ is not essential. The instrument CPQ is a great tool to develop complex services or products which need customisation and setup for each account. But, there exist other programs that can provide this benefit and without all the steps of setting up a CPQ.

What's your alternative? (Especially specifically for SMBs)

In accordance with the application subject to the purpose There are a range of equipment that are appropriate for use in your company.

The majority of small-sized businesses can benefit from the CPQ software, which aids in the creation of quotations swiftly and efficiently. Many of these programs include features like price and product templates that are customizable along with the capacity to deal with complex configurations - which are the main features you'd want from a CPQ software anyway. They are often a scalable and effective tool when compared to the manual software for spreadsheets. If you're seeking a complete list of quoting tools, you can look at HubSpot's list below.

However, one tool specifically that offers all the advantages from an CPQ tool is called IQ.

"IQ" (which means Interactive Quotes) is a lighter CPQ option that's designed especially for medium and small enterprises.

For RevOps as well as Teams in Operations, it's a better solution that is more adaptable to apply price conformity and consistency among reps. It also provides a good process for approving your quote procedure.

The platform also provides real-time analytics in the form of ESignatures, Payments and eSignatures to facilitate an easier and faster quote-to-cash.

Ysa Gonzales Ysa Gonzales is the Marketing Manager for 's"IQ" (Interactive Quotes) Product.

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