When working with complicated products or services, or huge product catalogues, sales teams often struggle with price quote configuration. Manual methods are often used by sales teams, resulting in errors, inaccuracies, and wasted time.
And these manual processes divert salespeople’s attention away from their primary task: selling.
Sales reps often leave price and discount restrictions, whether on purpose or by accident. Discounts are given too generously or too rapidly because of this, lowering sales margins, and making it more difficult to meet revenue projections.
Effective leaders understand that investing in the correct technologies will streamline and standardize their sales processes, resulting in a happier and more productive workforce. Companies of any size can gain scalability and overcome the above challenges with Configure Price Quote (CPQ) software.
What is CPQ?
CPQ is an abbreviation for Configure Price Quote. CPQ software’s purpose is to simplify complex pricing and speed up the quote-to-cash process. Sales leaders and their teams can use CPQ software to configure their product and service offerings, enforce pricing guidelines, manage discounting and margins, and generate correct price quotes and proposals.
Configure – By configuring your goods and services, you can make sure that they are genuinely offered, that they fit the requirements of the customer, and that they can be provided by the terms of the contract.
Price – Sales teams are given the authority and flexibility to offer various product packages and options and to offer discounts allowed to customers who meet certain criteria thanks to pricing laws and regulations.
Quote – Sales teams can quickly produce standardized quotes that are complete with all the required information and are consistent with the law. Sales representatives can be confident that orders based on quotes supplied to customers are valid and will not be turned down thanks to this.
What type of industry needs a CPQ?
Although CPQ software is intended to improve the sales process and simplify complex quotations, not every business should use it. A CPQ system might not be necessary if you just sell a small number of goods or services or have a very straightforward pricing structure.
However, in general, mid-size and large businesses need a CPQ tool. This is the case because they either have a sizable or quickly expanding sales team, offer a wide range of goods and services, or have a complicated pricing system.
Implementing a CPQ has a significant positive impact on three industries. CPQ software is often used by the software as a service (SaaS), service, and manufacturing industries to streamline their sales processes, automate time-consuming manual procedures, drop inaccurate quoting, speed up sales response times, and enhance customer satisfaction.
Who should think about buying a CPQ?
The following three roles or departments are normally in charge of making the decision to buy a CPQ:
- Revenue Operations: With the use of CPQ tools, leaders in revenue operations can streamline all business departments’ sales-related procedures, including sales, account management, and customer success. They can adopt a more systematic approach to reaching revenue targets and coordinating various departments along the sales pipeline by putting in place a unified sales stack that includes CPQ.
- Sales: Sales executives are crucial decision-makers when it comes to introducing sales solutions that boost performance and profit tremendously from CPQ software. They can automate manual sales tasks, manage administrative oversight, and make sure sales teams are selling as effectively as possible by deploying CPQ.
- Finance Department – Decide which tools will help to maximize revenue by consulting the finance department. CPQ software enables finance teams to assure compliance and obtain more precise revenue insights by enforcing pricing policies and enhancing cooperation with sales and revenue departments.
Salesforce CPQ vs. Valorx Fusion Solution
What are the primary distinctions between the Salesforce CPQ and Valorx Fusion Solution? Their breadth of capabilities, ease of use and adoption, and length and difficulty of installation are the usual differences. Each of these has an impact on how well they perform and how quickly sales teams accept them.
The process of implementing Salesforce CPQ is typically time-consuming and expensive, lasting anywhere from three months to more than a year, and often needs the pricey aid of a third-party vendor. They require coding on the customer’s end, both during implementation and maintenance, which makes it challenging to regularly adjust pricing, packages, and product catalogues.
Fusion, on the other hand, ought to be easy to implement in a matter of minutes. You should aim for 100% adoption by your sales reps because this is the best indicator of CPQ performance as it shows how well the software functions, how simple it is to use, and how well it fits your current processes.
Valorx Fusion won’t require the customer to do any difficult code. Instead, by using business rules, its excel-functionality makes it simple for your sales team to set product prices. Without any coding knowledge, reps or admins may manage these rules with ease. The dynamic excel-based flow and completely customizable spreadsheets make it simple for salespeople to follow pricing policies and industry best practices without the need for administrative monitoring.
Fusion completely automates the processes involved in quotation generation, discounting, pricing setup, subscription management, and contract management.
Benefits of Valorx CPQ Software
Companies are becoming more interested in adopting sales technology that gives them a competitive advantage in the crowded market of today. Businesses have an advantage over rivals if their CPQ system offers a comprehensive view of the full sales process from start to finish.
There are many advantages to having a top-notch CPQ, but the following are the most crucial ones which you can easily achieve using Valorx Fusion:
- An improved buying experiences
Sales managers may guarantee correct pricing among clients and throughout the company by using CPQ software. Productivity is directly affected by CPQ’s ability to automate crucial steps in the sales process, which lowers human labour costs and frees sales representatives to concentrate on closing deals rather than doing paperwork.
With a connected sales process, they can close agreements more quickly, and managers may reduce income leakage by removing errors and inconsistencies from the quoting process. Sales teams will gain more credibility and improve the B2B buyer’s experience if quotations and proposals are more exact and clearer.
- A shorter time to income
Sales teams can send out expert, precise, and customized quotes in a lot fewer time thanks to CPQ. In comparison to small firms without a CPQ, 84% of small businesses with CPQ software can send estimates within 30 minutes, according to research. And compared to only 75% of small firms without a CPQ, 95% of small enterprises may give bids within an hour.
According to Aberdeen Research, it has also been proved that CPQ software may reduce the typical B2B sales cycle from 4.68 months to 3.42 months.
- More successful revenue generation
Through improved discount governance, the abolition of errors and inaccuracies in the quotation process, and the growth of revenue prospects, businesses can use CPQ to safeguard sales margins.
According to studies by McKinsey & Company, CPQ can increase pricing to result in sustained margin improvements of two to seven percentage points, with the first gains seen in as little as three to six months.
The average contract size rises because of this. The average deal size for businesses using a CPQ is $432k as opposed to $211k for those without, according to Aberdeen data.
Additionally, CPQ software enables the development of a precise price structure for renewals, upsells, and cross-sells. This makes it possible for sales representatives, CSMs, and account managers to automate expansion possibilities and manage renewals, two important sources of new revenue growth.
- Scaling sales efforts
Scaling up sales operations successfully is one of the major problems businesses meet when they experience expansion. Because CPQ automates key steps in your sales process, your sales teams can work effectively and achieve repeated success, enabling your reps to manage more prospects, a growing product catalogue, and more complicated products. It is also simpler to ramp more salespeople and require less change management if you have an intuitive and simple-to-use CPQ, particularly if it integrates with the rest of your sales tools.
- Accurately estimating sales
The revenue and finance departments benefit from enhanced data accuracy and revenue visibility thanks to CPQ software. This makes it simpler to locate causes of revenue loss as well as chances for revenue expansion. To understand the potential revenue effects of similar deals and price models in the future, they might also gather and evaluate data from earlier quotes.
With this information, they can more accurately predict revenue, set more realistic revenue goals, and perfect pricing.
Features and characteristics that are crucial in deciding that Fusion is the right choice for you.
Here are a few essential things to watch out for:
- Pricing and product configuration with no coding, allowing for simple CPQ setup and maintenance. You won’t have to rely on developer resources or outside implementation specialists.
- Integrates with Salesforce, making it simpler to synchronize information about pricing and products, customers, and deals.
- Create error-free quotes in minutes.
- Automatic creation of quotations and proposals with a uniform appearance.
- Supports subscription-based pricing and offers simple tools for controlling and automating chances for upsells, cross-sells, and bundles.
- Customizable workflows that automate and speed up the process while ensuring sales representatives are adhering to company price and discounting policy.
- Effortlessly integrates with other deal-closing tools including contract management software and your sales space.
Product quotations are helpful for a variety of reasons but setting them up can be challenging. Companies often have distinct specifications for the many sorts of product bids that they generate. Check out Fusion which can be quickly customized without the need for specialized ability or an implementation team. To learn more, schedule a call with one of our product experts.