CPQ can help you solve a lot of problems—which is why, as a CFO myself, I recommend the tool to other CFOs 1000%.
Here are some problems I’ve seen teams have over the years and how CPQ has helped.
6 Problems CPQ Can Solve
1. We’re not getting quotes out fast enough
CPQ can help your team get correct quotes out, faster. Essentially, CPQ can help accelerate your overall sales cycle. That’s because CPQ helps take out the human error aspect of quoting, ensuring the right mathematical and technical aspects are implemented 100% of the time—ultimately helping you get quotes out the door faster.
2. Our quotes aren’t accurate
When it comes to accuracy, getting a good set of billable materials is important for the backend. You need answers to questions like: What did that customer actually purchase? What do they need? For example, when it comes to order forms, they may be customized or there might be certain agreements with certain customers. However, if you have a templated process, it helps you standardize the entire quoting process, ensuring quotes are accurate.
3. We lack insight into our pipeline
CPQ helps you understand your pipeline better with the data it provides. Insight into what and how your team is quoting is an essential part of knowing your pipeline and it's hard to inflate the stats. For example, let’s say you’re currently quoting more fire pumps than waste water pumps. You know you can redirect your resources to different areas, but you may not know what you’re quoting if you don’t have the data to support it. As we’ve previously discussed, this level of understanding also aids in forecasting. With CPQ, you can quantitatively say “my forecast is red hot in this segment and not so much in this segment” and redirect resources accordingly.
4. We’re leaving money on the table
Pricing matters. If you have a product that’s in high demand, CPQ can help you make sure your sales team isn’t continuing to sell it at the price point it was before, leaving money on the table. If you’re quoting things too low, your margin will be at too low of a point. CPQ can help you put pricing controls in place to avoid such problems.
5. We’re not configuring properly
Your team might be selling pump X with widget Y, but pump X doesn’t work with widget Y. CPQ ensures your team configures correctly so that when orders get to fulfillment, they can actually be fulfilled. It also saves your team a lot of time not having to go back and repeat the process, redoing everything they got wrong the first time.
6. Our departments aren’t talking to each other
Selling is a team sport. A quote gets touched by at least the sales, product, finance, and legal departments. Thankfully, CPQ provides the collaboration needed to bring people together. Whether your team is moving lightning-fast and isn’t the most organized, or you’ve recently lost team members and your sales team needs extra support (e.g. someone to review a quote before it's sent out), CPQ can help you wherever you’re at.
Ultimately, CPQ can help you sell more, protect margin and improve pricing, while providing the competitive intelligence your company needs to evolve and grow.