CPQ is an acronym for Configure, Price, Quote. Through the adoption of CPQ software, these three factors are all automated. Simultaneously, pricing information becomes centralized and data is streamlined. The main benefits of CPQ usage center on the eradication of human error and the reduction of the sales process. With this being established, this article will detail our top CPQ recommendation for 2022, commencing with a top CPQ provider.
Recommended CPQ provider
DealHub CPQ is highly recommended. They offer a zero-code platform which is simple to navigate and gives sales teams the ability to move leads down the funnel. Additional features offered by DealHub include: eSign, subscription management, a digital Dealroom, contract management, and finally is real time buyer intent insights. Out of 403 reviews in total on G2, 358 granted DealHub CPQ 5 stars. DealHub’s onboarding process has been in receipt of significant praise alongside its streamlining of the sales process. Many customers also report on its extensive flexibility and responsive customer service teams.
Recommendations on the implementation process
The CPQ implementation process can be lengthy and frustrating for new users. Below is a CPQ implementation guide to simplify this element:
- With a key part of CPQ being pricing, it is of utmost importance to avoid pricing errors. To maintain performance, strengthen profit margins, amplify the reputation of your company, and keep high rates of customer satisfaction, pricing must remain consistent. Whilst pricing errors commonly materialize in the form of pricing anomalies, they can also occur due to unclear pricing rules. Errors with pricing have a significant avalanche effect, directly impacting discounts. When configuring a CPQ solution for your business, the chosen service should simplify this process by ensuring accurate pricing. An efficient CPQ product will ascribe sales teams access to the most up-to-date information on discounting and will centralize pricing rules.
- Before CPQ can successfully be adopted, it is of great importance to define clear goals for the software. It is these goals which will play the role of informing your implementation process, stopping your company from going in blind. Defining such goals should include cross-departmental team members. Doing so not only means that departmental goals will be reached, but also avoids the risk of taking on more than your teams can cope with. Examples of elements to consider include: price estimations, desired outcomes, major dependencies within departments, estimated timeline.
- It is recommended that you run a series of tests on your CPQ configuration. This is to encourage your teams to uptake the software. This includes running a test on each feature, alongside performance and scale testing.
- To increase your average deal sizes and to strengthen revenue generation, the incorporation of cross and up-selling is key. Many CPQ solutions offer guided selling tools. When in use, these tools will automatically produce lists of potential upgrades and additional products based on the specified requirements of the customer. These additional products are often marketed to the customer in a cheaper bundle, encouraging them to accept the offer.
- No matter how effectively you plan your implementation process, without CPQ training your use of the software will lack efficiency and cohesion. Once teams fully comprehend the software, its features and benefits will be optimized.
- Sales representatives must be consulted on to decipher which issues need to be resolved. This commences with backlogs, bottlenecks, and inefficiencies plaguing the team. This is the best way to select a CPQ solution which meets all the needs of your company and eliminates the most pressing issues.
- The adoption of CPQ offers the opportunity to truly optimize workflow automation. This saves sales representatives time on admin tasks. When this time is saved, the length of the sales cycle decreases, increasing the likelihood of customer retention and attraction. CPQ can simplify processes such as contract renewals, approvals, and the conduction of follow-up emails. Such features increase levels of productivity and reduce inefficiencies within particular processes.
- Implementation teams need to have knowledge on the following: intended CPQ workflow, all systems being used by a business, and how these systems will interact with one another after integration. Luckily, CPQ systems are designed to be integratable with other means of automation and organization. Examples of these means are ERP and CRM platforms. A key problem which arises from integration is that the chosen customization does not successfully interact with existing platforms and tools.
- Finally is the importance of choosing a service which adheres to the needs of your customers. Things to consider include bundled services vs individual services, customer buying behaviors, global implementation strategies, and process delays.
Recommendations to improve CPQ performance
- The first recommendation for the improvement of CPQ performance is to minimize product visibility rules. By following this, the performance of the product catalog is optimized.
- On a similar note, it is recommended that bundles and thus product structure is used rather than product rules such as validation. This is commonly described as the optimal means of modeling.
- Deal guidance rules should be consistently managed. This means that rules will be consolidated, deal guidance limits will be effectively implemented, and cross object fields will be simplified.
- A final factor which can impact the performance of a CPQ is the use of filtered search columns in the shopping basket section.
To conclude, CPQ is Configure, Price, Quote software. Our recommended CPQ provider for this year is DealHub, who have received large volumes of praise for their flexibility and onboarding process. There are nine key steps to navigating the implementation process, with these majoritarily centering the definition of goals.