CPQ software is becoming an increasingly important tool for manufacturers that build make-to-order products. Here we test your knowledge on CPQ software’s capabilities and benefits.
True or False:
1. CPQ software improves sales team efficiency.
True. CPQ software was created to streamline processes and help sales reps be better at what they do. According to research from the Aberdeen Group, the average sales rep generates 14 proposals each month. For sales reps that use CPQ software, that number jumps to 20.9.
2. CPQ software is only for sales reps.
False. For many businesses, extending the configuration, pricing, and quoting process to customers and partners (dealers and distributors) significantly increases satisfaction and the likelihood for repeat business. While it's a very useful solution for your internal sales representatives, don't forget to share it with your customers and channel.
3. CPQ software helps sales reps generate more accurate quotes.
True. Configure-Price-Quote software provides sales reps with the most up-to-date pricing on all products and can reduce quote versions by 13%, according to the Aberdeen Group’s study.
4. CPQ software can help increase sales.
True. During its research, the Aberdeen Group found that the average deal size for companies using CPQ software was more than double compared to those companies not using CPQ, coming in at an average of $432,000 and $211,000, respectively. In addition, companies that use CPQ experienced a shorter sales cycle of 3.42 months, compared to an average of 4.68 months for non-CPQ users.
5. CPQ software can improve your customer service.
True. Based on our experience, some of the most common customer complaints are:
- It takes too long to get my quote.
- My quotes are incorrect.
- My sales rep doesn’t get back to me quickly.
- My sales rep doesn’t have enough product knowledge.
- My sales rep is trying to upsell me too much.
Because CPQ software is a tool aimed at providing real-time access to product details and pricing, sales reps are able to quickly generate accurate quotes and offer add-on suggestions for their customers. This streamlines the entire process and frees sales reps up to connect with other customers.
6. CPQ software can never be a stand-alone solution for manufacturing companies.
False. CPQ software is flexible to be deployed in the cloud or on-premise, on websites or web portals, and integrated into other business systems, such as CRM and ERP. While many use it as a stand-alone product, integration into other business systems significantly enhances its capabilities.
7. CPQ software simplifies complex product configuration for sales and channel partners.
True. With pricing and product information in one place, CPQ software provides real-time product details to sales reps and automatically notifies them of cross-selling opportunities. In addition, for those companies that work with outside partners to sell their products, CPQ software helps ease communication issues that may arise with changing product offerings or prices.
8. CPQ software does not support images/pictures.
False. For businesses selling software or services, images are not a critical piece to the configuration. Guided selling tools like base product configurator, price management, and recurring revenue management will meet those requirements. For manufacturers selling configurable, make-to-order products, adding visuals to the ordering process brings significant value. Look for 2D or 3D product configurators and proposals to meet those requirements.
Need a refresher course of CPQ software? Read CPQ 101: A Crash Course.