Last week in the series, we discussed the key challenges organizations faced before implementing a CPQ solution.
These were taken from Forrester’s study of the total economic impact (TEI) of FPX CPQ. You can read about why and how we commissioned this study here.
The challenges these three FPX CPQ customers in industrial manufacturing, diversified manufacturing, and high technology faced included:
- Uncertainty with regards to employing digital transformation
- Siloed solutions and fragmented processes
- Costly errors and lost opportunities
- Existing solutions didn’t serve business requirements
So how did FPX CPQ help them overcome these challenges and what were the key findings the study unveiled? Let’s take a look.
1. Transformation of the business via transformation of the CPQ process
An investment in CPQ allowed organizations to accelerate the digital transformation of both commerce strategies and sales processes. CPQ enabled the configuration of optimal quotes of complex products and services while in front ofcustomers, improving the buying experience for customers andthe selling experience for sales teams. Ultimately, the more automated and standardized process CPQ provided allowed sales teams to configure more accurate quotes and spend more time in customer-facing situations.
We were able to turn a complex process into something simple and reliable, bringing a more connected approach to customers.
2. Reduction in average sales cycle time, improved order accuracy, increased margin, and higher ROI
A standardized CPQ process across an organization’s global team provided all the aforementioned benefits. FPX CPQ allowed organizations to streamline from a technology perspective as well as implement and define standard processes on pricing and discounting. It allowed for processes to be centralized but also for local customizations, enabling all global sales teams to optimize results. The resulting impact on revenue, margins, and efficiency created significant ROI that allowed the organizations to prioritize the FPX investment over other major IT projects.
We selected the CPQ project over CRM and eCommerce projects because we projected a first-year return of more than $5 million to the business, representing a higher return profile than any other project in our IT portfolio.
3. Agility for businesses as they evolved
Because FPX CPQ integrates seamlessly with existing systems andis easily configurable, it provided organizations agility as they changed and evolved. Not only were businesses able to easily integrate it with any existing enterprise system, they were able to migrate to new CRMs and not have FPX CPQ impacted. This provided cost avoidance and protected existing investments.
[FPX CPQ] worked with the system that we had in place when we selected them, and it was multiple vendors. It also worked with new systems as we changed our business.
4. Partnership led to acceleration of success
The interviewed organizations found that their partnership with FPX accelerated the success they were able to achieve with their CPQ investment. This came primarily from deep domain expertise provided by FPX consulting services.
They knew the whole industry and market — they knew our competitors. They came across as being very knowledgeable.
Our series isn’t over yet! Keep an eye out for the next installment in which we’ll look at what Forrester uncovered when they created a composite organization, constructed a TEI framework, and conducted an associated ROI analysis illustrating the financially affected areas.