X Benefits of CPQ Software

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    The number of tools the business professional has at their disposal today are numerous. Many of the tools developed through technology, the internet and software are aimed at maximizing the efficiency of said business professionals. Software for CPQ, also known as Configure, Price, Quote, is one of those tools.

    Here are six benefits and reasons to acquire software for configuring, pricing and quoting.

    Scales with Business

    A small business might wonder why they should begin acquiring software and programs when the team may only consist of a few people. Those who are in the startup stages can develop great habits that customers and investors will appreciate. Software offers a digital, centralized system where the most important information is stored. Original documents and other paperwork must be still be kept safe in case of an audit or dispute, but digital copies can be uploaded to the software, too. Then, as the company begins to grow, the software has the capability of scaling with it. If a company is already a large enterprise, they can be confident the program will be able to handle the load.

    Generates Sales Agreements

    When the sales team manages to show a potential client why they will benefit from a product or service, time is of the essence. This is especially true if the sales team is tasked with selling big ticket products or expensive services. Clients want to know how they will benefit from their investment. If they are on the fence and the information they are requesting is not readily available, they could change their mind. Understandably, customers want to ensure they receive what they have agreed to during meetings. Software designed for configuring, pricing and quoting has the ability to generate sales agreements. The sales agreements include all terms from the negotiation including the price. The agreements protect both parties and builds trust. This feature is available for negotiations, new purchases and renewals.

    Real-Time Collaboration

    The sales team of a company is the most important component of profit. While the marketing department or the accounting department might have something to say about their critical importance for the sales pipeline, the sales team is the staff who makes or breaks deals. Software designed for configuring, pricing and quoting allows for real-time collaboration. When the client has a question, the sales staff can easily get in touch with the key individuals who provide the correct and important answers. Sometimes, concessions have to be made, but those concessions are not always optimal for the decision-makers. Real-time collaboration prevents errors and miscommunication.

    Analytics

    Correctly pricing products and services is just as important as the sales team completing a deal. When the price is set too low, it cuts into the profit margin. If the price is too high, less clients may complete a deal with your company. CPQ software allows pertinent staff members to understand how each price point affects the rest of the company. Industries that are impacted by fluctuations in the prices of raw materials have to be more mindful of the final pricing of their goods. Pricing software gives a company’s staff the opportunity to see many scenarios so that they can make informed decisions.

    Customer Experience

    Customers can be fickle. This is probably due to the fact that they are trying to get the best deal possible. They also have bosses they have to answer to and budgets they have to work within. It is a delicate juggling act, and most of the time, the sales team is not aware of all the constraints. Pricing software gives the sales team the ability to deliver an outstanding customer experience. As the negotiation progresses, constraints brought up by the client can be entered into the program. The program executes high-level mathematical problems and algorithms that deliver case-by-case scenarios. Those scenarios paint a picture. It tells the sales team what can happen based on certain parameters. Then, a decision is made. If a sales member cannot compete on price, it gives the client the opportunity to take the deal as is or negotiate other terms. The most important point is that the customer is kept in the light instead of the dark, which leads to an outstanding customer experience.

    Sales Team Empowerment

    Keeping peace among the various departments of a company, even when the company is small, is a challenge. Ideally, everyone is invested in the health of the company. Plus, they all want to remain employed. The success of a business ultimately depends on how well the sales team delivers results. So, they have to be empowered. Software gives them the empowerment they require because all the departments can contribute their part. More importantly, each deal is more likely to be profitable because it was optimized.

    Software offers several benefits. Pricing software is not an exception.

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    • Tom La Vecchia

      Founder of New Theory & X Factor Media

      Founder and Publisher of New Theory Magazine and Podcast. Serial Entrepreneur who loves wine, cigars and anything that allows to people to connect and share experiences.

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