Having proven its value to the enterprise, CPQ is something that SME players should consider.
For our purposes, we classify SMEs as small to mid-size enterprises that:
- Have 100-999 employees and few to several (10-50) IT staff
- Report approximately $250 million to $1 billion in revenue
- Have multiple (often global) office locations with a large remote workforce
So why should CPQ tools have a home in a SME’s toolbox? Because it can deliver many of the same advantages to small to mid-size enterprises as it does to enterprise giants.
That’s because CPQ isn’t just another behemoth sales automation tool, it’s a strategic application that can be a force multiplier for businesses that need to quote faster, quote more accurately, and start bringing revenue back into the company through a more efficient sales process.
In fact, statistics prove that CPQ and other automation tools are most successful with small-to-medium enterprise businesses overall. That’s because:
- Nearly half of all businesses who buy automation solutions are new to using software to replace a manual task.
- 28% of companies that purchased a CPQ, CRM or other automation tool did so because they wanted to be more organized.
- Marketers say the biggest automation benefits include saved time (74%), increased customer engagement (68%), more timely communications (58%), and increased opportunities including upselling (58%).
CPQ Can Help Your SME Grow
While CPQ may be more well known to bigger corporations and still new to small enterprise businesses, it can make a huge impact on both, and it’s time SMEs started incorporating it in their suite of tools.
If you’ve ever read our blog before, you’re probably already familiar with the many benefits CPQ can provide, including:
- Cost savings of an automated vs. manual sales process
- Cost savings due to reduced human errors (incorrect configurations, etc.)
- Incremental revenue via channel partners with access to a CPQ tool programmed with their specific products, configurations, and prices
- Higher average selling price due to sales reps having easy access to upsell and cross-sell opportunities
- Incremental revenue generated by being the first vendor to submit error-free quotes
- Higher average selling price due to an overall reduction in unauthorized discounts
The speed and agility of traditional “big business tech” like CPQ tools is more needed by SMEs as the competition is far more fierce, and these benefits mean SMEs that use CPQ tools can compete with much larger competitors.
That’s because not only does it allow salespeople to have internal data at their fingertips (including product availability, new product information, accurate pricing, etc.) they can also access market variables (local economic factors, trends, competition, etc.). All of this information enables reps to provide accurate, on-the-spot quotes without the pesky delays that can kill a sale.
This is especially true for smaller enterprise businesses that have to manage a large inventory, connect a global staff, produce highly-customized or configured offerings, or rely on field reps as well as vendors and distributors to go to market.
The Bottom Line
No longer are CPQ tools out of reach for SMEs due to price, integration issues, or complexity. Advances in overall technology and within the CPQ sphere, in particular, have allowed these tools to be tested and improved for all.
Today, most CPQ solutions like FPX CPQ are cloud-based and offer scalable features and functions that fit every business’s specific needs and budgets. Modern CPQ is a standard operating tool that can help any business decrease the length of its sales cycles, increase revenue, and boost overall productivity of direct and indirect sellers.