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If you’re a manufacturing business, it’s likely that your product catalog is complex and requires a CPQ system to manage it effectively. A CPQ tool is a powerful sales solution that can automate much of the quote-generation process, freeing up engineering and production teams to focus on more valuable projects.
Look for a user-friendly CPQ tool with an intuitive interface your team can use and understand. Ensure it’s fully integrated with your business’s other digital tools, like CRM platforms and ERP systems. As a result, errors will be avoided, and time will be saved as you may move data across applications rapidly.
Look for CPQ software solutions that offer cloud deployment. This will give your team the flexibility to work on the go so they can use a product configurator at client meetings and update customer data on the fly. It will also make it easier for them to generate proposals, track e-signatures, and manage contract negotiations. These features will help you streamline your quoting and increase your manufacturing sales.
A great CPQ tool will allow you to customize how it works for your specific needs. This may include adding your company logo, modifying the look and feel of the system, or making other minor adjustments. It also may consist of a variety of pricing models to choose from. Some CPQ tools will require monthly fees, while others will offer a flat fee right out of the gate. It is essential to understand all of these options before choosing a vendor.
CPQ software uses interactive product configurators to simplify product selection, eliminating manual steps and errors. It also provides predefined product rules to determine viable product configurations and automatically optimizes each for engineering efficiency, profitability, and customer satisfaction—without requiring input from the engineering department. This eliminates the need for lengthy quotes and rushed decisions, which can lead to lost sales opportunities and frustrated customers. Mobile compatibility makes it easy for modern business professionals to share product information and contract terms and conditions, create quotes, and sign off on deals from any location.
To get the most out of a CPQ system, integrate it with your existing digital tools. A seamless integration minimizes disruption to your sales process and allows efficient data synchronization. Look for a CPQ solution that easily integrates with CRM, ERP, and eCommerce platforms for a unified customer experience.
The right CPQ tool will automatically calculate prices based on product configuration, reducing the need for manual calculations. This ensures your quotes are accurate and fast, even when volume increases. It also helps you minimize margin erosion by allowing you to set advanced approval triggers.
Suppose you’re looking for a more innovative way to present your quotes; look for a solution with 3D visualization, VR, and AR features to deliver an engaging, lifelike product configuration experience that wows customers. These features make it easier for non-technical users to set CPQ logic and constraints, improving collaboration with engineering departments. CPQ solutions can also auto-generate CAD models and BOMs to streamline engineering, boosting efficiency and sales-to-engineering collaboration. Moreover, the right CPQ solution can help you shift from selling products to services and implement new pricing strategies like servitization or outcome-based pricing.
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The scalability of CPQ software is vital because it should be able to support your business as it grows. For example, if you have a product with many different options, CPQ software can help streamline the configuration process by limiting the number of possible combinations. It can also guide salespeople through upsells and cross-sells to maximize deal size and customer satisfaction.
Additionally, the perfect CPQ solution needs to work with the other technologies in your stack, like ERP and CRM. This will ensure a harmonious workflow and prevent manual information input into different systems. It’s also important to consider whether the CPQ solution will be compatible with mobile devices so your sales team can use it on the go.
Last, the CPQ system needs to offer frequent data reports that let you assess and evaluate performance. This will enable you to make improvements and boost productivity. Once you’ve interviewed all stakeholders and compiled their requirements, prepare a document detailing the must-haves and nice-to-haves for the ideal CPQ solution. Then, compare your findings against each vendor’s capabilities and see how they match up.
In our digital world, CPQ software must take security measures to prevent hackers from breaching information or accessing sensitive data. Ensure your CPQ solution has security features like encryption and password protection to safeguard your company.
Also, check that a support team backs the CPQ software and offers regular updates. This helps your team stay fluent with the new technology and ensures they know of any changes or upgrades.
Lastly, you should ensure that your CPQ tool will easily integrate with other systems in your line of business, like CRMs or payment platforms. This ensures that your data stays organized and that your team doesn’t need to juggle between different software platforms. A sound CPQ system should be able to configure your product offerings automatically and price them based on the customer’s needs. This is a crucial feature because it eliminates the manual process of configuring products and pricing them for each quote and frees up more time for salespeople to connect with customers.