The CPQ process is used in businesses that sell a product or service with multiple levels of customization. The latter is necessary to take into account the needs of each individual customer and put them into the final price of the product. This enables you to give the customer the best price, excluding unnecessary options, using individualб or seasonal discounts, etc.
By using CPQ software, the share of sales agents in the formation of the final offer is reduced. At the same time, the customer is provided with a high level of service because the software independently selects the goods in accordance with the set parameters. A sales representative will quickly and accurately provide a quote that will satisfy the customer. If the customer wants to make changes in the initial characteristics (for example, to increase the number of goods, and add the cost of delivery to the location), recalculation is carried out as soon as possible.
CPQ Process and Its Main Stages
The CPQ solution is used by both large and small companies. It reduces the time spent on basic work processes. In addition, the risk of errors on the part of your employees is minimized. To understand how CPQ works, you need to look at the process in detail.
First, pay attention to the acronym. It means configure, price, quote. Accordingly, each parameter represents a different step in the operation of the software.
Potential customers are interested in the product that best meets their needs and requirements. During the CPQ setup process, information about each individual customer is entered. As a result, the software displays results that are shaped according to individual characteristics.
The benefits of automatic configuration are as follows:
- accurate product line recommendations. Thanks to the built-in intelligent system, the customer is offered the products that correspond to his preferences;
- the possibility of self-service. The program can be used not only by sales representatives but also by customers themselves. However, only if the software is integrated into the corresponding sales service. Customers will be able to make customized purchases, which speeds up the process of finding products and placing orders;
- increasing customer loyalty. Account managers will be able to use their working time to interact with customers, instead of time-consuming generation of a commercial offer and reconciliation of all indicators.
Automation of settings is an important step in promoting the company on the market. It will enable you to work with clients quickly and error-free.
The CPQ solution for price formation is the possibility to automatically calculate the price, apply discounts, and optimize the processes of agreement and order approval. The advantages of the next phase of the system are obvious. They are as follows:
- flexible pricing. Data on the cost of goods and current discounts are displayed in real-time. This takes into account information from all sources (price lists, promotional sections, etc.);
- intelligent management of contractual processes. With the help of the software, accurate analysis of transactions and accounting of the main parameters are carried out. This enables you to focus on profitable contracts;
- the dynamism of the work process. Thanks to the automation of the process of verification and approval of commercial proposals, you will get a faster response from authorized employees or customers.
Automatic pricing is another positive thing in trading relationships. You don’t have to calculate the price yourself, checking many related parameters.
With the CPQ tool, you can interact with several sectors of your organization, for example, the sales department, lawyers, and accounting department. Specialists will be able to evaluate the commercial proposal in real-time and, if necessary, make changes. Advantages of the stage include:
- the convenience of creating offers. You will improve the quality of customer service because you will provide complete data. Information will be collected in a short time and its fragmentation will be eliminated;
- complete contract management. You can compare multiple agreements or combine them into a single project, highlight the difference between two contracts, or track existing changes;
- application of electronic signature. There is no need to print the document to certify it. Everything is done electronically, both on the computer and on mobile devices.
Coordinating the document in the shortest possible time is an important aspect that will increase customer satisfaction with the service. With a quote, you will be able to exchange data and opinions without a long wait.
Pandadoc: High-Quality Software for Work Automation
When looking for software to automate processes and implement CPQ, take a closer look at Pandadoc. It is designed for different business areas and enables you to improve the work of your sales department, legal sector, and accounting department. Thanks to the adaptivity of software for computers and smartphones, it is possible to be at the center of business events, being in any place. The program is distributed free of charge, which is important for first-time entrepreneurs.