Shorten Sales Cycles
The more complex your products are, typically the sales cycles are longer. It takes time to convince the prospect and you will often need to revise the quotation several times, which extend the Lead-to-Order time.
Very often, it takes longer to reach a ‘no-decision’ than to obtain an agreement with the customer due to complexity of the sales project.
A CPQ-user was asked to issue a quote, clearly was to be used as a price check against the customer’s normal supplier. Because they had just implemented CPQ, they were able to respond to the request very fast and with precise specifications already next morning. The prospect was impressed and asked for an alternative solution, which could be completed within the same day. The result was that the company using CPQ got the order and is still the main supplier for the customer in question.
Raise Customer Satisfaction
The easier it is to deal with a supplier and the better he can meet or exceed the expectations, the higher is the chance that this supplier will obtain the order, compared to another supplier where you might not be sure that you actually get exactly what you have asked for and when.
The faster your respond to a request and with better match to the expectations, the more satisfied your customers are – it is easy to deal with you !
Because the CPQ system will guide the sales rep to quote the optimal products, which are synchronized with the ERP-system in terms of both specification and price, there is a better chance that you can meet your prospects expectations. You might even be able to exceed them if you can propose options or complementary products or services, which obviously will increase the order.
Secure higher Sales Hit Rates
When your quotations takes less time to prepare, are more accurate and closer to your customer’s requirements, the higher is obviously the chance that he will order from you. The Industry Analysts report up to 40% higher hit rates.
With a good and completely integrated CPQ-system you will not only get more and larger orders. You will get them both faster, with higher accuracy and better value and create satisfied customers who most probably will buy from you again.
When the CPQ-system helps your sales reps to select products and configurations that can actually be built with up-to-date prices and automated generation of the entire quotation, the risk that they might offer something that will not work and therefore will require rework is minimized.
Instead of copy and paste from previous quotations with possible errors, you can automatically update the configuration models with the newest components and prices and make sure that the quotation template contain all the corporate legal sections etc. You can also update the system based on experience from completed projects and thereby share best practices across the organization in order to minimize risk and optimize profit.