What is CPQ?
The positive impact of digital transformation means that many businesses, from SMEs to multinationals, are now leveraging advanced technologies to create highly configurable products.
At the same time, there is a huge demand for customized products that are tailored to specific requirements and delivered via a quick and frictionless customer buying experience.
CPQ (Configure, Price, and Quote) solutions enable businesses to automate and optimize their sales and quoting processes. CPQ enables companies to configure complex products, determine accurate pricing, and generate quotes quickly and efficiently. For sales teams, the integration of CPQ solutions enables them to easily configure and quote valid and accurate product options and provides all the documents and data needed to sell highly configurable products.
CPQ is experiencing huge growth and the CPQ software market is predicted to grow by $1.49 billion during 2021-2025.
The Key Components of CPQ
Configure
CPQ solutions enable sales teams to configure products and services according to different customer specifications. Combinations of different product options are set up using a pre-defined configurable set of rules.
Pricing
Built-in pricing is generated from pre-determined variables, such as discounts, special offers, and volume pricing. This can be done accurately because CPQ software uses a pre-determined rule set that automatically determines an order’s price.
Quote
With a CPQ system, every single potential configuration, price, and discount combination can be automatically displayed in an error-free customized quote document.
The Key Benefits of CPQ
CPQ solutions are sometimes referred to by other names such as Q2C (Quote to Cash), sales/product configurator or digital selling tools.
According to research from PWC, companies who have a CPQ tool report significant improvements on key business metrics across the sales lifecycle.
Companies with CPQ software see a 10-15% increase in revenue
The benefits of CPQ for businesses include:
Streamlining and Simplifying the Sales Processes
CPQ refines and automates key aspects of the sales process.
It enables organizations to effortlessly configure intricate product specifications, determine correct pricing, and quickly generate accurate quotes.
Increasing Efficiency of Sales Teams
CPQ software makes it easier for sales teams to create quotes and proposals, reducing the time spent on monotonous tasks and minimizing errors.
This increased efficiency not only saves time but also enables sales teams to be more productive, as they can focus on selling more products.
Improving the Customer Experience
CPQ helps organizations respond to customer inquiries and generate customized quotes more rapidly.
This speed is crucial in today’s fast-paced business environment, where customers expect quick responses and personalized solutions.
Cost Reduction
CPQ software, by automating and optimizing the pricing and quoting process, can help businesses save money by reducing the time and resources required for these tasks.
How are DriveWorks Customers Benefitting from CPQ?
DriveWorks enables businesses to build a comprehensive CPQ solution that provides a seamless selling process for configured products.
This streamlined selling process ensures accuracy from the point of order to final product delivery. In addition, DriveWorks CPQ enhances the overall customer experience through guided selling and 3D visualization, making it easier for customers to interact with and understand the products they are interested in. This combination of capabilities makes DriveWorks CPQ a great asset for manufacturers looking to streamline operations, provide better service, and ultimately thrive in today’s competitive market.
WEATHER GUARD, a WernerCo brand, is an industry leader in truck and van storage equipment, including truck boxes, drawer units, shelving, cabinets, and racks for trucks, vans and utility vehicles. Their products allow for more organized trucks and vans for greater productivity, whilst providing superior protection against break-ins and weather.
WEATHER GUARD are using a DriveWorks CPQ solution, not just as an engineering automation tool, but to drive sales and also generate more revenue than ever before.
