Measuring Business Success with CPQ
Manufacturing businesses are investing in digital technologies more than ever before and reaping multiple benefits, including increased productivity, improved products, reduced waste, and labor efficiencies. 71% of manufacturing companies agree that digital tech will drive productivity in 2024.
As businesses look for new ways to streamline their processes, enhance customer experience, and improve efficiency, Configure, Price, Quote (CPQ) software is one of the digital technology solutions that is being adopted across a range of industries.
According to research from PWC, companies that have a CPQ tool report significant improvements in key business metrics across the sales lifecycle.
Key Metrics for Measuring Business Success with CPQ
Sales Volume: Enabling Sales Teams to Sell More
CPQ technology makes it easier for sales teams to quickly create accurate quotes and proposals. This increased efficiency not only saves time but also enables sales teams to be more productive, as they can focus on selling more products.
Using a 3D product configurator, customers see a real-time 3D visual representation of their customized products, improving the customer sales experience and the likelihood of purchase.
CPQ technology also enables sales teams to identify cross and up-sell opportunities for existing customers.
Sales Cycle Time: Efficiency in Closing Deals
Sales teams can lose their momentum and sense of urgency when custom products take too long to configure and quoting becomes complicated and slow. Sales opportunities can be lost if prospects receive quotes from your competitors ahead of a quote from your business.
CPQ technology enables quicker and accurate custom product configuration and quoting. Sales documentation is automatically generated and sent to the customer, leading to shorter cycle times and increased sales.
Insight from PWC states that CPQ technology reduces sales cycle time by 30-60%.
Time to Quote: Improved Speed and Accuracy
Manual errors, delays, and inconsistencies in quoting can lead to reduced customer satisfaction and lost sales.
CPQ reduces the time taken to produce accurate quotes and enables businesses to consistently generate quotes rapidly and accurately, giving them a competitive edge.
Average Sales Value: Understanding Revenue Generation
With CPQ, it is easy to show customers other products (which usually are higher-margin products with greater profit) that complement the main product.
Rules-based guided selling also makes it easier for sales teams to identify and offer cross-sell and up-sell opportunities to increase average sales values.
Quote to Order Rate: Conversion Effectiveness
CPQ helps with pricing options – it makes it possible for customers to get insights into different pricing options from the start of the buying process, making it easier for them to make purchasing decisions.
Efficiencies in the quoting process mean that quotes are produced accurately and quickly, increasing the likelihood of customers accepting their quotes and placing an order.
Quote Error Rate: Accuracy and Quality Control
CPQ helps ensure error-free sales quotes and proposals match customer requirements. As customized products are visually configured, CPQ technology automatically calculates the cost based on pre-set pricing rules. Prices update automatically with no need for sales teams to manually calculate complicated pricing options.
Instant and accurate quotes are generated, including any applicable discounts, together with drawings and 3D models. This reduces sales cycle times and increases sales conversion and customer satisfaction rates.
CPQ for Manufacturing technology also automatically creates order-specific manufacturing data and documents, such as 3D drawings, BOMs and specifications, further reducing error rates and ensuring accuracy in production.
Manufacturers Using DriveWorks CPQ for Manufacturing Have Achieved
Learn more about how different businesses are using DriveWorks CPQ to improve business metrics
Take a look at how different businesses across a wide range of industries are using DriveWorks design automation and CPQ technology to deliver tangible business benefits.
Join Us at DriveWorks World 2024 to Learn More About CPQ
Have you registered for DriveWorks World 2024? DriveWorks World is a value-added virtual event, hosted by DriveWorks experts. It’s a celebration of innovation, knowledge sharing, and technical expertise free for DriveWorks Customers with Active Subscription, Resellers, and Partners to attend. Our team of DriveWorks Technical Experts will be hosting a number of sessions designed to explain how CPQ can enable you to improve your key business metrics.
