CPQ: What It Is And How It Improves The Sales Process

For any business that relies on sales, simplifying the process with automated options is key. Customers don’t want to deal with a lot of back and forth when trying to get information or a quote. They want to be able to get prices immediately and compare them before choosing what works best. If your competitors are offering automated quotes online, then they likely won’t even consider your business for their needs. You’re losing customers to them simply because you don’t have a proper system put in place. That’s where CPQ comes in.

What Is CPQ?

CPQ, or Configure, Price, Quote software is a sales tool that automatically generates quotes for your customers online. By programming several sets of rules, the program takes into consideration the customer’s needs, quantities requested, customization options and features in order to generate a quote in just minutes. Discounts can be applied as well so that the customer is given an accurate price quote without having to contact anyone directly.

Reviewing Each Quote Request Slows Down The Sales Process

Traditionally, a sales rep will offer their customers a quote based on what services they ask for. Since this isn’t a streamlined process, however, it often lacks consistency and leaves room for human error. When this happens more than a few times, a business will often attempt to take control of the process by adding a review step to the quotation process. So, not only does a customer have to talk to a sales rep but they then have to wait for the rep to create the quote and someone else to review it before they hear back. It can be an extremely slow process from a customer’s perspective, especially if businesses who offer the same services can provide a quote in just moments. Integrating CPQ software into your system is the best way to ensure there is consistency across the board and that your customers aren’t frustrated before they even start doing business with you.

Using CPQ To Improve Sales

Even though CPQ software has been available to businesses for decades, it hasn’t been used for sales optimization until recently. This is likely due to how dependent we have become on the internet as well as our collectively reduced attention spans. CPC software can provide a quote at any time of the day or night and works alongside most CRM and ERP programs to capture and store all of the customer’s information and quote details. 

Here’s a look at how CPQ software can improve your sales:

1. It makes your services more accessible to customers. When customers are shopping for quotes, they can use the CPQ software on your website when it’s most convenient for them. There’s no waiting on hold on the phone or wondering if their email was received.

2. The entire quote process is infinitely sped up. When customers can get an automatic quote they’re more likely to consider using your business. If they have to wait days or even weeks to hear back, they’re likely to get quotes from your competitors and go with them instead.

3. Customers will have a more positive experience. With speedy automated services, your customers will remain happy and are more likely to leave you good reviews on Google and Yelp.

4. There’s less room for error. When your sales team is using spreadsheets or online documents to determine the current costs of services, mistakes are more likely to occur. Someone might accidentally delete or edit the shared document, or a customer can receive a quote from an old price sheet. Using CPQ software eliminates room for error.

5. Prices can be updated without hassle. When service prices go up as they tend to do over time, you no longer have to rely on a company-wide email to inform everyone of the changes. Simply update the data in the CPQ software and anyone using the system after the update will be given a quote based on the new pricing.

6. The CPQ software allows input from other departments. A collaboration with IT can lead to a more optimized system on your company website that will attract buyers. Collaborating with engineers can ensure that all possible features and combinations are offered to the customers.

7. Improves employee efficiency. The time saved reviewing quotes and getting back to each individual customer can be utilized elsewhere when CPQ software is in place. Sales reps will have more time to focus on the relationship with their customers, making them feel valued and ensuring all of their needs are being met.

Integrate A QTC Engine To Take The Sale From Quote To Cash

To bring the sale full circle, CPQ software can be integrated with a QTC or quote-to-cash system. The Armatic Sales Module is a QTC engine that will take your automated services to the next level. It allows you to customize your proposals or quotes, taking a customer’s information directly from your CRM or ERP system. At Armatic, our unique QTC system focuses on automation, management, and insights to personalize your quotes, receive the necessary signatures, send invoices, and initiate the payment process. Closing the deal has never been easier!

With Armatic’s QTC workflow, you’re able to view reports on who the top sales reps at your company are, how long the average customer takes to approve their quote or proposal, where delays in the sales process are, and so much more. Since it works with the CRM or ERP system you already have in place, the QTC engine will automatically pull pricing and send customer information, subscription status, and invoicing, eliminating the need for entering information twice.

For businesses, the constant pressure to nurture leads, to close deals, and to fill up your sales pipeline quickly and effectively, the Armatic QTC tool to automate and simplify the quotation process for customers moves you one step closer to achieving your goals.

If you’re ready to implement a QTC into your sales practice, start your free trial now. Close sales faster and make life easier with our automated systems.