New economic impact study found FPX customers experience a 70 percent reduction in length of overall sales cycle, on average
MINNEAPOLIS, Minn (November 13, 2018) - FPX, a global leader in enterprise Configure Price Quote (CPQ) solutions, today released a new commissioned study conducted by Forrester Consulting on behalf of FPX to display the Total Economic Impact (TEI) of deploying FPX technology in the direct sales channel. Forrester conducted the independent study by interviewing three customers of FPX, creating a TEI framework and analyzing a composite organization to determine the points of financial impact. Among other findings, the study found that FPX has a direct impact on improving margins: organizations increase operating margin by one percent, on average, for revenue transacted through FPX CPQ.
The study, The Total Economic Impact™ Of FPX CPQ, found FPX can be a key player in an organization's digital transformation goals and in improving the buying and selling experience.
FPX Drives Efficiencies Across Business and Sales Processes
The study shows that implementing FPX’s solution led to process improvements for the companies in the study: “Organizations streamline the sales cycle with FPX CPQ, increasing customer support representative (CSR) efficiency by 40 percent and sales engineer efficiency by 60 percent. Through process automation and integration with enterprise systems, organizations reduce time spent on manual tasks and enable staff to support a higher volume of deals.”
The study also found that “organizations increase operating margin by 1%, on average, for revenue transacted through FPX CPQ. Interviewed organizations use FPX CPQ to define and enforce pricing rules and discount approvals, and to reduce the impact of concessions on margins by improving quote accuracy.”
“B2B organizations face an incredible amount of complexity in their sales cycles due to product intricacy, but FPX significantly streamlines their processes across all distribution channels,” said Mark Bartlett, Chief Experience Officer of FPX. “The Forrester TEI study provided an independent and rigorous research process to verify the value our CPQ application provides to our client’s top-line revenue, buying and selling experiences and profit margins.”
FPX Accelerates Revenue
As a result of streamlining these processes, FPX drives revenue growth for organizations. The study revealed that “on average organizations achieve a 4% increase in revenue due to FPX CPQ by Year 3. Several factors contribute to this topline growth, including an average 70% reduction in the overall sales cycle, improved sales efficiency (driving higher volume per sales person), improved average deal size, and improved customer satisfaction.”
In addition, the study found “improving order accuracy with FPX CPQ results in cost savings of up to $1.1 million per year, on average. Interviewed organizations all saw an improvement in order accuracy with FPX, reducing the cost to the business of delivering inaccurate configurations.”
FPX Proves the Value of Shifting from Legacy Systems
By integrating FPX and shifting away from legacy systems, organizations can achieve significant cost savings. “Organizations avoid an average of $8.8 million in legacy system and support costs over three years by consolidating with FPX CPQ. Interviewed organizations replace multiple tools and both internal and third-party support costs by standardizing on FPX CPQ.”
According to an FPX customer interviewed for the study, “FPX CPQ continues to outpace the rate of return of all other IT spend. We recently re-platformed our CRM system. This was a multi-year, multi-million dollar project. It did not come close to the return on investment that FPX provided. I know many companies are re-platforming their CRM and eCommerce system and I can say from experience, start with CPQ and then implement these other systems, as you will create quick wins and tangible ROI.”
To speak with an FPX representative about the ROI of CPQ for your business, click here.
FPX helps some of the world’s leading and most innovative organizations realize their full business potential. Its Configure-Price-Quote (CPQ) application gives businesses the resources to deliver a better B2B buying and selling experience across direct, indirect and ecommerce channels. Powerful enough to handle any level of complexity, nimble enough to advance your commerce strategy, and simple enough to seamlessly extend and enhance the capabilities of direct and indirect sales, FPX CPQ is integral to facilitating a successful B2B Digital Transformation for Fortune 500 companies including Honeywell and Dover Corporation. For more information, visit http://www.fpx.com
Walker Sands Communications