Study reveals biggest challenges buyers face when evaluating and implementing CPQ technology
MINNEAPOLIS, Minn. (September 05, 2018) - FPX, a global leader in enterprise Configure Price Quote (CPQ) solutions, has commissioned a study with Gerson Lerhman Group (GLG), the leading platform connecting business to insight, to uncover what B2B buyers wish they had done differently in the CPQ purchase process when working with other vendors. The report discovered that while 82 percent of B2B buyers have evaluated a CPQ solution within the last two years, nearly a fourth (23 percent) of those with a solution today would choose a different vendor in hindsight.
To help CPQ buyers better understand how to choose a vendor, FPX commissioned the study with GLG to survey 71 B2B firms in North America that had previously evaluated and purchased CPQ solutions with other vendors. As many companies were first-time CPQ buyers, the survey sought to understand what they would do differently after going through the process initially.
The report found that many B2B firms regret diving into a CPQ project without first conducting a thorough and honest evaluation of their current sales processes, which led to delays and solutions that didn’t ultimately fit their needs. Additionally, many organizations overemphasized features and functions that solved immediate challenges rather than looking at the long-term sustainability of the solution and how it aligned with their broader business goals. Top internal challenges and implementation roadblocks include:
- Insufficient research: 55 percent of organizations reported the biggest challenge for budgeting a solution as underestimating the scope of work, followed by not fully grasping the level of functionality needed at 54 percent.
- Lack of internal alignment: 70 percent of buyers saw longer-than expected delays in their CPQ buying process. Many of these delays came from organizational issues, such as lack of consensus in the steering committee or key stakeholders prioritizing other projects.
- Too much focus on features, functions and price: 32 percent of buyers said they over emphasized the cost of the application, while 31 percent said the same for features and functions. Instead of focusing on price as a deciding factor, many buyers said they wished they had considered the long-term value and scalability of the solution.
- Transparency is crucial: 42 percent of buyers believe their CPQ vendor over promised and under delivered. Organizations wish they had evaluated more CPQ vendors by doing their due diligence on understanding the technology and key solutions, and how each could meet their needs.
"When adding new technologies to deliver on the promise of an incredible digital experience, many buyers, as well as vendors, underestimate the level of effort required to be successful and don't adequately review their existing processes,” said Adam Hatch, CMO of FPX. “Too often, buyers can be led astray by vendors who over promise and under deliver to make a quick sale. Ultimately, these businesses are left facing significant delays, outsized implementation costs, and unfulfilled functional requirements — all stemming from the vendor’s inability to handle complexity.”
Companies interested in purchasing and implementing CPQ can download the survey at https://www.fpx.com/study-10-things-buying-cpq.
FPX simplifies the buying and selling experience to align enterprise businesses with the expectations of modern omnichannel customers. 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 is the business agility engine to power success in this era of Digital Transformation. With FPX enterprise CPQ, today's leading organizations are optimizing the experience of buying and selling across their sales, partner, and ecommerce channels, driving increased revenue and profit margins, increased loyalty and engagement and a consolidated IT footprint. More information is available at: http://www.fpx.com.
GLG is the world’s leading platform for on-demand professional learning. Business leaders, investors, consultants, social entrepreneurs, and other top professionals rely on GLG to learn in short- and long-term engagements from more than 600,000 members and other experts. Clients partner with GLG to address their most complex strategic challenges, make better business decisions, and advance their careers through conversations, mentorships, small group meetings, surveys, and other interactions— all within a rigorous compliance framework. Headquartered in New York City, GLG’s approximately 1,500 employees work from offices in 12 countries. More information is available at: https://glg.it/