Advantages of CPQ software for manufacturers

More accurate pricing

In the manufacturing trade, pricing requires a fragile balancing act: set prices too low, and also you’ll eat into the general profits of the business. Set them too high, and you risk driving away customers. Your sellers could put their greatest efforts into creating accurate prices, however the truth is, pricing is simply too necessary to only rely on guesswork and gut feelings. A CPQ software answer can arm your sellers with pre-established pricing models that make it quick and easy to turn out accurate costs, even for very complex product configurations.

Sooner quotes

A recent report from CRM Search factors out that standardised product choices are on the decline in the manufacturing business, that means that made-to-order choices are more and more important. These types of customised orders place quite a burden on sellers, and the longer it takes for a seller to turn out a quote, the more likely the customer is to walk away from the sale. CPQ software speeds the process of creating the quote and getting it into the shopper’s hands, which in turn relieves some of the pressure positioned on sellers.

Automation of the tedious, error-prone configuration process

There’s a reason spreadsheet-based configuration processes result in so many errors: they are manual, which means there’s plenty of room for the seller to make a mistake, and tedious, which compounds the problem and makes the seller even more likely to make a mistake.

With CPQ software, a corporation can overcome this problem by moving away from spreadsheets and automating among the most time-consuming aspects of the configuration process. The CPQ software guides customers by means of the product configuration process, only allowing the seller to choose appropriate options and options. In consequence, the potential for the seller to make a mistake through the configuration process is removed altogether.

Enables sales to concentrate on selling

Selling must be your sales employees’s key focus, and each hour they spend building configurations, creating proposals, and pricing orders is an hour they won’t be working directly with customers. By automating time-consuming configuration and pricing processes, a CPQ software answer helps sellers spend a bigger portion of their time with customers. Because of this, your sellers will be able to satisfy with more leads in a day, and establish more sales opportunities.

Current, accurate sales data to assist forecasting

In the manufacturing industry, having an up-to-date and accurate understanding of what you’ve sold prior to now is a key part of predicting what your future product demand will look like. Many companies have attempted to implement sales forecasting, however have been stymied by sales data that is out of date or inaccurate. With a CPQ resolution, you sales data can flow directly to your customer database, so that you can feel assured your sales data is always correct.

Final ideas

In business, there will always be transformational technologies that fully rewrite the way key processes are performed for the better. CPQ software is an instance of one such resolution, but a company should implement CPQ before it can start to reap its benefits. Start considering if a CPQ solution could be proper for your business today.

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