Timely drafting and sharing of sales quotes with prospects and clients is a crucial part of the sales process. But, sending generic quotes and proposals to meet the timelines does not always prove fruitful for the business.
The increased competition in the B2B industry has seen a rise in demand for highly customized products and services. As a result, the “standard rule” policy doesn’t hold true anymore.
73% of non-CPQ users take more time to produce a typical quote or proposalSource: SoftClouds
But manually configuring a long list of products and services can occupy the sales teams for hours on end. This has paved the way for a versatile and scalable digital sales platform – Configure Price Quote or CPQ software.
Sellers use a CPQ solution to create accurate quotes and handle complex business rules for configuring highly customized products and services.
Understanding the CPQ software functionality
CPQ or Configure-Price-Quote software simplifies the quoting process by enabling users to configure product and service offerings, lay down pricing rules, manage discounts, etc. In addition, it facilitates the generation of error-free quotes with real-time pricing details
Let’s break down the process of CPQ software to better understand its functionality –
The “one size fits all” theory does not hold strong grounds in the SaaS world anymore. Business offerings today, be it a product or service, need to be highly customized. Configuring the products and services based on the product family, attribute-based products, required/suggestive add-ons, etc., makes the offering more contextual and helps accelerate the deal process. A CPQ solution enables complex product configurations, minimizes the possibility of human error, and simplifies the life of sales reps working on customer-centric offerings.
When your business offers straightforward products, the pricing structure in such cases is relatively simple. But the ask for customized offerings has led to complex product configurations leading to complicated pricing structures. The pricing capability of a CPQ solution ensures accurate pricing and also takes into account the variable components like – discounts, tax calculations, etc.
Once the configuration and pricing process is figured out, the next step is to successfully communicate your offer to prospective clients through a quote.
It is common for customers to request for quotes from multiple sellers. Leveraging CPQ solutions to send accurate quotes within stipulated timelines increases the possibility of beating the competition. The best CPQ software enables its users to easily collaborate with their team, seamlessly review quote details, and send them for acceptance – all in a single platform.
Finding and adopting the ideal CPQ software for your business is like choosing a multi-talented salesperson with the ability to do things like a supercomputer.
CPQ solutions have a CAGR (Compound Annual Growth Rate) of 20%Source: Forcetalks
How to decide whether your business needs CPQ software?
Now that you know what a CPQ solution can do for you, it’s time to take the next step – ask the right questions before making the final decision.
- When does your business need a CPQ tool?
- What key features make up an ideal CPQ software?
It is very critical for businesses to have clarity on what exactly they need before investing. The increasing demand for tailored buying experiences and cut-throat competition to reach prospects (within a specific time frame) has intensified the need for companies to streamline their business operations.
Intending to keep up with the market, businesses are focusing on creating a tech stack that delivers required outcomes. Any addition in the tech stack should go through a suitability and applicability check for achieving the desired results.
Here are some questions to help you make a judicious decision when finalizing your CPQ software –
When does your business need a CPQ tool?
To answer this question in the best way possible, you need to understand the already established quoting process in your business. Highlight the pain points or the bottlenecks which are causing the shift to another CPQ tool or adoption of a CPQ tool for the first time.
No. of products you manage
If you are an SMB, the number of products you offer might not be a lot. But there are high chances of you selling different variations of a particular product that the customer is looking for.
Let’s take an example; a customer calls your handloom business looking for twenty handmade woolen scarves. If you have CPQ software in place with all your products listed, you can discuss and inform the customer about the different types of woolen scarves you make, which they might not know about. Here, you are basically creating a path for upselling.
Incorporating a CPQ tool in your SMB can make your business organized and selling cycle more streamlined.
If you are a large-scale enterprise, the number of products and services you offer will be significantly high. Large-scale companies also have more customers and prospects in the pipeline to manage and close.
CPQ solutions aid sales teams in reinventing the buying experience for customers. It configures and lists all the products and services to be offered in a single product catalog. All the heavy lifting takes place in the backend of the cpq application for generating quotes on time.
No. of quotes created by sales reps
The role of CPQ software does not limit to configuration and pricing. The ability to send well-drafted quotes also plays a critical role in determining the need for CPQ software.
In SMBs, even if the number of quotes created daily might not be very high, the manual updating of products in G-Sheets, Excel, etc., can lead to delays and errors. And drafting a quotation from scratch can be time-consuming, with the possibility of omissions and errors.
With large-scale enterprises, this need is inevitable as the daily count of quote documents will possibly be high. Manually exporting pricing and product data from Google Sheets can be tiresome and prone to error.
Transitioning to CPQ software will accelerate sales and improve the deal size for your business, whether big or small.
Product configuration and pricing by sales teams
If you are an SMB or a large-scale enterprise, adopting a CPQ tool will make it faster and easier to update and configure existing products and add new products to the product catalog.
These changes reflect real-time, allowing sales reps to access the most updated product catalog and price list. It also brings a whole new level of speed and efficiency to your sales process.
Why can’t an SMB with fewer products, a smaller sales team, and lower quote generation rate use G-Sheet for product listing and maintenance instead of CPQ software?
Ans – It’s a fair ask. A small business wouldn’t want to invest in an expensive product to manage a few products that can be done manually. But as mentioned earlier, the configure-price-quote process has three stages. The last stage requires generating quotes.
Revv, a cloud-based quoting solution, allows users to manage their product catalogs, price books and create quotes in their rich & intuitive document editor. In addition, you can easily integrate the document in Revv with Google-Sheet, and transfer the data without any delays and errors.
Learn how to integrate G-sheet inside your quote with Revv.
Also, Revv offers a fair pricing plan that includes the needs and requirements of small-scale businesses.
Turnaround time in your sales process
Time is crucial when running a business. The faster you get back to customers, the higher are the chances of closing a deal successfully. This is valid for both SMBs and large-scale enterprises.
A CPQ software acts as a catalyst to improve the sales cycle time. It is a tool that maintains and tracks critical updates and provides better visibility on what’s working and not working in the quoting process.
Such inputs improve the process and help convert one-time purchasers to repeat buyers, expanding the existing customer base. In addition, customers remember a smooth buying and satisfying experience made possible by companies that use a CPQ platform.
A salesperson spends only 35.2% of their time on selling. 65% of their time is spent on non-sales-related activities like administrative tasks, managing CRM data, attending meetings, etc.Source: Forbes
What key features make up an ideal CPQ software?
Listed are some of the prominent features that the best CPQ tools in the market must possess –
- Seamless product configuration – It should be easy for the user to easily configure products in the tool without extra training or hand-holding.
- Incorporate advanced pricing rules – Businesses have various products with complicated and tricky pricing rules that an ideal CPQ software should incorporate.
- Ease of quote creation – A user should be able to draft documents with the support of a rich document editor and share the sales quote with customers on time.
- Integrations with third parties – The CPQ system should swiftly integrate with third-party tools like CRM systems, ERP, Google Sheets, etc., for smooth data transfer.
- Process automation capabilities – The tool can automate repeatable and redundant tasks like admin work which saves time and allows users to focus more on selling and less on trivial tasks.
- Quote status tracking – Sending quotes to customers is not the end game. However, checking whether the quote was opened or viewed can help the sales team determine the next steps.
- Device friendly – The flexibility to access quotes and other documents from any device benefits both sellers and customers enjoy. It eases the process and ensures faster responses.
Why should you choose Revv as your CPQ software?
Revv is an all-in-one CPQ software that manages your offerings in terms of configuration, product listing, pricing, and quote creation. It has the capability to manage the end-to-end sales cycle.
Listed below are some key features Revv offers to give you a competitive edge and help your business grow.
The product catalog
Revv’s product catalog enables users to add, manage, and update all the products and services offered by their business. The product catalog layout is designed like an excel spreadsheet to give users a familiar experience and ease the transition process.
How to use the product catalog in Revv?
You can access the catalog by clicking on the product icon on the left pane.
The catalog will show the list of all the products and services configured and added to date which your business sells or is planning to sell.
Here’s how you can add a product inside Revv’s product catalog –
- Open the product catalog screen and click on “Add new product.”
- The “add new product” window will appear. Enter all the required details such as product name, code, SKU, product configuration, and product type. These are all mandatory fields that need to be filled for the product to be configured to the product catalog.
- Click the “active” checkbox. (If the box is left unchecked, then the product will not be visible for adding it to the price book.
- Click “Add,” and the product will be added to the list.
Creating price book
The price book lists the products and services with their pricing details. In addition, Revv allow users to create multiple price books depending on the currency, geography, product lines, buyer group, etc.
Some standard price book elements are –
- Add new products to price book
- Powerful search functionality to find any product from the list
- Add and manage columns in the price book
Revv offers five different pricing types for product configuration – flat price, volume pricing, tier pricing, stair-step pricing, and DIY pricing.
Learn more about price books and the pricing types offered by Revv.
Working with Quote tables
A quote table helps you list your offerings inside your document. You can add configured products and services you would like to quote your prospects and customers and price them as needed.
Here’s how the quote table works inside Revv –
- Drag and drop the quote table component in your document. A quote tab will appear next to the document
- Choose the price book to add products in your quote document
- Select all the products and services you want to quote in your offerings and click “Add to Quote Table”
- The products will be added and listed inside your sales quote
Pre-designed quote templates
Revv’s template library has over 1000+ legally vetted templates that are easily customizable and ready to use. This allows CPQ users to get a head start on creating quote documents and ensure timely submission of quotes to targeted customers.
Rich drag and drop editor
The rich document editor lets you easily customize your quote templates or upload your document to work on. You can drag and drop various document blocks like images, texts, tables, add signature blocks for eSigning, and even integrate your G-Sheet inside your quotation.
You can set up approval workflows attached to the quote or specific products or services being added to the quote. These workflows act as guardrails to ensure the defined rules for the particular deal are complied with.
Business app integrations
Connect your CPQ application to third-party systems like salesforce CRM, ERP solutions, etc using Revv’s native API integration or Zapier. This helps reduce the chances of errors and omissions of data that were quite possible with manual copy-pasting of data from one system of record to another.
Sending the quote to your customer is not the endgame. Instead, you should follow up if you get no response from them after a certain period of time. Revv makes this process easier because it provides an activity tracker inside the quote that shows customer activities like who opened the quote, who viewed it, who has accepted, and who hasn’t. This helps the sales teams decide the next steps and prioritize tasks accordingly.
Get your CPQ software today!
The new-age style of selling has more inclination towards customizing and enriching the customer buying experience. CPQ software, with its dynamic features on pricing and configuration process, increases efficiency and streamlines the overall sales cycle for businesses across industries. It is time for you to make a move and enjoy the benefits of implementing a CPQ system inside your organization.
Learn more about Revv’s quoting solution capabilities!