What is CPQ and what can it do for your business?
You might have heard about CPQ before. Most of the time the term CPQ goes hand in hand with great benefits like: sell faster, less errors, higher conversion rates and improve margins. But, what is CPQ specific and what are the benefits for your company?
Configure, Price, Quote
CPQ stands for Configure, Price, Quote:
Configure, configuring the product or service in a user-friendly interface
Price, connecting a price to the specific product or service. Price varies to chosen options.
Quote, generating an accurate professional quote as part of an automized process.
CPQ Software is build for salespeople to accurately define the price of complex goods across a spectrum of variables. It allows companies to configure products or services according to possibilities, costs, reductions, competition and local factors. With this knowledge, you can create an accurate quote for your customer. CPQ can be used for products as well as services. For example: the Dynamic Configurator CPQ software) is implemented at a stairlift producer and at a bicycle retailer, among others.
Why CPQ?
When your company grows, when your product offers gro or when the product you offer is complex and has multi-layered dependencies, it could be quite difficult to manage and create accurate quotes in-time. With no-doubt that this is not manageable in spreadsheets any more. Configuration through CPQ takes away the need to know every detail of the product, for example if color A is compatible with model B or C. Even so it takes away the time spend on price calculation and creating a well-designed quote.
Sell faster
One of the most mentioned benefits: sell faster. It’s all about reducing wasted time spent by researching, pricing and writing a quote. In only several minutes you have the correct configuration and corresponding price. On the other hand, there is “the momentum”. The focus your client has on your offer is time limited and external factors can change the situation of your client and make them decide to spend their money otherwise. You can imagine in these times of crisis. Especially now there is a need to quickly provide an accurate quote!
Integrate
CPQ solutions can easily be used as a stand-alone solution. The solution alone will give you already many benefits. But integrated with and within your CRM– and ERP-system it will offer you more. When the deal is closed your back office will immediately have all the necessary and accurate information. A configuration with rules creates orders with products that are deliverable. Your logistic department will receive BOM-lists (Bill of Material) from the configurator to start their process immediately.
Which solution?
There are several CPQ solutions available in the market. Dynamic People uses Dynamic Configurator. A CQP solution developed by Dynamic Products and fully integrated within Dynamics 365 (CRM and ERP) and other web-based platforms. The CPQ-solution deals with complex business rules with ease.
Want to know how your company can profit from this solution ? Please contact us via 020-3032470 or e-mail: info@dynamicpeople.com.