Have you ever been really excited about pitching a new project or solution to your superiors, one that could have a huge ROI for the business, only to have it rejected?
This can happen if you’re unsuccessful at showing just how the project or solution in question can benefit the organization, both financially and culturally.
When it comes to CPQ, this type of solution can provide a very high ROI, which means your business case needs to convince senior management to prioritize this project.
However, building a strong business case that captures the true ROI of a CPQ solution is different than building one for a solution that involves only a single line of business. That’s because CPQ benefits the entire enterprise, so the key is to highlight how CPQ will affect ROI in many business areas.
What’s more, a strong CPQ business case will protect other, lower ROI projects from being prioritized ahead of your CPQ project.
So, how do you go about building one?
7 Items to Include in Your CPQ Business Case
Here are just a few factors you should consider including in your business case:
1. Cost savings of a more efficient CPQ process.
Manual sales processes and a one-size-fits-all approach to pricing mean rarely selling at the listed price and waiting for quote approvals, which lead to eroding pricing and profit margins.
2. Reducing the cost of fixing problems when products are incorrectly configured.
Having configuration rules already in place will lead to fewer operator errors—meaning the CPQ solution can ensure fewer deals are lost due to human foibles!
3. Incremental revenue from giving your sales team more time to sell instead of preparing quotes.
Enabling automated renewals and order processes for online customers through your ecommerce site allows your sales reps more time to focus on high-touch accounts.
4. Incremental revenue from providing channel partners with a CPQ tool with their specific products, configurations, and prices.
CPQ technology can help augment your company’s ecommerce strategy, making it easier for channel partners to buy and sell your products via configuration capabilities, automated workflow and discounting processes, guided buying and selling, and more.
5. Higher average selling price by giving your salespeople a tool for providing solutions to customers that include more options.
CPQ allows your sales reps to easily take advantage of upsell and cross-sell opportunities.
6. Incremental revenue generated by being the first vendor to submit professional, personalized, and error-free quotes to your prospects and customers.
More efficient and technologically-backed processes mean getting quotes ready and out the door faster and error-free, resulting in more won and closed deals!
7. Higher average selling price by reducing unauthorized discounts.
Employee inexperience, lack of training, and overzealous salespeople can all lead to a culture of excessive discounting. Businesses that conduct their sales processes manually are also susceptible to “make it right” costs to answer for quoting inefficiencies and order errors.
The Bottom Line
A CPQ solution will generate a positive ROI in the short term and continue to do so in the long run IF you future-proof your technology ecosystems. How do you do that? Choose a CPQ solution that’s platform agnostic and flexible enough to work with your system as it evolves.