When it comes to laying the groundwork for a successful configure, price, quote evaluation and implementation, you first need to assess how your company handles configuration, pricing, and quoting today.
That’s because by doing some due diligence upfront, you’ll avoid the delays that can hamper an enterprise-wide technology implementation and get to ROI faster.
What are some of the returns you can expect? For starters:
- Less time drafting quotes
- More deals closed
- More incremental revenue
- Cost savings
- Visibility into sales revenue
- Better business decisions
So take a little time before you jump into an implementation project to ensure you have all of your CPQ processes and priorities established. This will help you avoid implementation hiccups, meaning you can reap the above rewards and improve overall company performance sooner rather than later.
8 Questions to Ask when Conducting an Assessment
Your assessment should be frank and honest in order to discover areas that can be improved.
As part of the assessment, answer the following questions; details count, so be as specific as possible.
1. Do you have a documented process for configuring products, pricing, and quoting today?
If so, what is that process? Moreover, is it followed uniformly throughout your organization?
2. How many quotes do you generate in a year?
Once you have the answer to this question, try to figure out how many hours it takes to generate them.
3. How often are you the first vendor to submit a quote?
This is important because, as we’ve discussed in a previous post, the first vendor to provide a quote often wins the deal.
4. Does your current system effectively handle omnichannel sales from both direct and indirect sales channels?
More so, does it accomplish this with a consistently friendly user interface?
5. How much do you spend on fixing problems when products are delivered with the wrong configuration?
How many of these errors do you experience annually?
6. What is your win ratio for the quotes you submit?
Furthermore, what’s the revenue generated by the deals you win?
7. How often do quotes have to be revised due to errors in product configuration or pricing?
How many of these revised quotes actually win the deal?
8. Is your CPQ process scalable?
What’s more, will your CPQ system still work if core applications of your technology stack are changed whether due to the addition of new tech or a merger or acquisition?
Once you have a clear understanding of where you are today, determine 1. Where you want to go, and 2. What problems you’re trying to solve. This will help you figure out what type of CPQ solution fits how you do business today, and works in the future as your technology and processes evolve.