In our first installment of this series, we talked about why FPX partnered with Forrester to ascertain the total economic impact (TEI) of FPX CPQ and how it was carried about. We also discussed the key findings Forrester made. Are you behind in the series? You can read part one here.
In this installment, we’re going to dive into the FPX CPQ customer journey and the key challenges organizations faced before implementing the solution. Let’s get started.
Forrester began by interviewing three FPX CPQ customers, the first in industrial manufacturing, the second in diversified manufacturing, and the third in high technology, all are headquartered in the US and conduct operations globally.
Interviewees included the Director of Global Operational Excellence, the Global Director of Pricing, and the Director of Sales Enablement, respectively. These organizations have been with FPX for two to four years.
First, the study dug into these companies’ key challenges. What did they struggle with prior to their investment in FPX CPQ?
1. Uncertainty with regards to employing digital transformation
These organizations were just beginning to dive into digital transformation. Processes were outdated, with manual steps, homegrown applications, old third-party tools, pen and paper, spreadsheets, and software that wasn’t user-friendly or customer-facing. This resulted in long cycle times for each quote; it took one company 45 days from quote to order.
2. Siloed solutions and fragmented processes
Prior to implementing CPQ, some companies could not define a baseline level of performance for key metrics across global sales teams because each team used different tools and processes to deliver quotes. They realized they needed to standardize processes in order to create a more global, holistic process.
It’s hard to see where inefficiency is across siloed solutions. We were leaving money on the table, and what we had didn’t serve the business.
3. Costly errors and lost opportunities
This fragmented environment and these manual process ultimately resulted in costly errors and lost opportunities. Complex requirements and specifications for products and services increased the difficulty of creating accurate quotes as well as maintaining pricing and margin. Without a tool to help them streamline, companies experienced long and cumbersome sales cycles, resulting in a disadvantage against quicker competitors and a strain on salespeople to close deals in less time.
4. Existing solutions didn’t serve business requirements
Interviewed companies knew that the solutions they had in place weren’t cutting it. The inaccuracy, errors, inability to effectively control price, and amount of time spent on each quote meant they were leaving money on the table. This in turn restricted top-line growth and produced lower margins. They realized that in order to gain a competitive advantage and meet growth targets, they needed to streamline and standardize their tools and processes.
The only way we can hit those growth numbers is to add more people or automate further by consolidating IT systems and improving process execution.
So what did they do, and how did FPX CPQ help them accomplish these goals?
Stay tuned for part three of the series, during which we’ll discuss the key results from implementation, including transforming the business by transforming the CPQ process, reducing average sales cycle times, and generating a higher ROI.