Advantages of CPQ software for producers

More accurate pricing

In the manufacturing business, pricing requires a delicate balancing act: set prices too low, and also you’ll eat into the overall profits of the business. Set them too high, and you risk driving away customers. Your sellers may put their greatest efforts into creating accurate prices, but the fact is, pricing is just too essential to only depend on guesswork and gut feelings. A CPQ software answer can arm your sellers with pre-established pricing models that make it quick and straightforward to turn out accurate costs, even for very complicated product configurations.

Sooner quotes

A current report from CRM Search factors out that standardised product choices are on the decline in the manufacturing business, which means that made-to-order choices are more and more important. These types of customised orders place quite a burden on sellers, and the longer it takes for a seller to turn out a quote, the more likely the customer is to walk away from the sale. CPQ software speeds the process of making the quote and getting it into the client’s hands, which in turn relieves a number of the pressure positioned on sellers.

Automation of the tedious, error-prone configuration process

There’s a reason spreadsheet-based configuration processes end in so many errors: they are handbook, which means there’s plenty of room for the seller to make a mistake, and tedious, which compounds the problem and makes the seller even more likely to make a mistake.

With CPQ software, a company can overcome this problem by moving away from spreadsheets and automating among the most time-consuming elements of the configuration process. The CPQ software guides customers via the product configuration process, only allowing the seller to decide on appropriate features and options. Consequently, the potential for the seller to make a mistake during the configuration process is removed altogether.

Enables sales to focus on selling

Selling should be your sales employees’s key focus, and every hour they spend building configurations, creating proposals, and pricing orders is an hour they won’t be working directly with customers. By automating time-consuming configuration and pricing processes, a CPQ software answer helps sellers spend a larger portion of their time with customers. In consequence, your sellers will be able to fulfill with more leads in a day, and establish more sales opportunities.

Current, accurate sales data to support forecasting

In the manufacturing business, having an up-to-date and accurate understanding of what you’ve sold in the past is a key part of predicting what your future product demand will look like. Many companies have attempted to implement sales forecasting, however have been stymied by sales data that is old-fashioned or inaccurate. With a CPQ resolution, you sales data can flow directly to your customer database, so that you can really feel assured your sales data is always correct.

Final thoughts

In enterprise, there will always be transformational technologies that completely rewrite the way key processes are performed for the better. CPQ software is an example of 1 such solution, however a company should implement CPQ before it can begin to reap its benefits. Start considering if a CPQ solution may be proper for your small business today.

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