Configure Price Quote or CPQ software is radically transforming traditional sales processes. CPQ integration with other applications such as ERP, charging, billing and CRM solutions can help CSPs quickly transition to DSPs.
With the explosion of devices and networks, there has been a corresponding rise in the number and complexity of variables involved in any product configuration and sale, particularly for B2B/enterprise customers where every sale is different. The end-product itself is not a single product, but an ensemble of component products whose costs hugely depend on customer segmentation and product choice.
Additionally, separate charges for each component product in a package , can lead to complex quotations and potentially, unsatisfactory customer experience. Employing traditional sales techniques for services and/or products that come from different divisions and departments (or industries) leads to wasted time and effort on generating customised quotations for a specific customer. This is exactly where Configure Price Quote (CPQ) software can have such a huge impact on modern-day sales processes.
What is CPQ?
As the name suggests, CPQ is used to configure, price and quote products in real-time using the latest business rules based on market economics along with company strategy and decisions. CPQ can help an organisation form various ‘logical’ product combinations and can assist in relative pricing and bundling in real-time, thus improving customer experience.
How does CPQ help deliver a superior customer experience?
Gone are the days when a sales person could blame the backend operations team for delays in quotations, prices and upsells. With the market being so competitive today, more industries need a quality CPQ solution to enable guided selling, quote/order accuracy and margin analysis based on a variety of factors such as costs, competition and local economic factors.
The importance of CPQ can be demonstrated with the following example:
A company X provides end-to-end smart home infrastructure and products including installation and maintenance. Using a traditional sales approach, the company will have a hard time to provide a real-time quote as they will need to have teams from different departments to manually check the cost of the wiring, range of the sensors, size of the devices, frequencies to be used and so on. The company will be able to provide a quote only after a manual analysis of the end customer’s requirement.
However, CPQ systems provide the capability to configure parameters like size of the house, number of rooms, room dimension parameters, customer budget range and various other factors. Based on these parameters, along with the company sales strategy, CPQ can provide the environment for sales teams to select eligible products (à la carte) or suggest pre-defined packages (bundles) based on inputs in real-time.
As the integration between CPQ and other supporting applications like ERP, charging, billing and CRM matures, sales teams can really simplify what were previously complicated sales lifecycles and deliver a seamless experience for the company as well as the customer. Furthermore, a successful sale will automatically trigger and schedule appointments with the installation team for different devices and network entities, ensuring the most efficient service fulfilment.
Apart from the core benefits of automation such as lower costs and reduced errors, the use of a good CPQ solution will lead to quicker Q2C (Quote-to-Cash) enhancing customer experience, improving sales and increasing revenue.
At Cerillion, we are focused on helping CSPs transition towards becoming Digital Service Providers (DSPs) with our broad range of solutions. Feel free to get in touch.