What manufacturers are trying to solve with CPQ

All businesses, regardless of what they offer, need to be able to identify clients’ needs and show those clients that their products can satisfy those needs.

This is particularly true for manufacturers. The products they offer are often complex and the clients they serve have specific requirements that need to be accurately identified, understood and met.

When talking to potential clients, sales reps need to be able to draw on their organisation’s full knowledge fund and present it clearly. That includes configuration possibilities and limitations, variable-based pricing and knowing where cross-selling and upselling opportunities exist. They need a tool that can deliver a buying experience that is both-user friendly and accurate.

CPQ (configure, price, quote) software is such a tool. It allows sales reps to offer new clients the full range of configuration options and to build the right product, the right way, the first time.

Because guided selling features and options are built into the CPQ, the customer drives the selection process. Configuration errors are therefore minimised.

Configuration options are accompanied by different prices. Again, using CPQ, sales reps don’t have to remember the range of pricing parameters, volume discounts, national account discounts, government discounts, international pricing and so on. They can rely on the software to do it for them.

Guided selling takes the client through the configuration options and the CPQ assigns the price. The task is clear and the outcome is fast, for both the rep and the client.

Another benefit of CPQ is that it reduces the need for engineering oversite. For manufacturing companies, it minimises the need for their experts (product engineers) to oversee the sales process. Their expertise is actually written into the CPQ, so they don’t have to help fill the gaps in the knowledge of sales reps.

Engineers are therefore free to do what they were employed to do. Their time away from the job, travel expenses, and inconvenience are reduced and they rarely need to be called upon by sales.

For manufacturers, CPQ does more than deliver clients a user-friendly experience. It helps cut costs by ensuring that products are spec’d once, sold once and built once. It reduces configuration errors and pricing errors, and therefore, the sales cycle.

With the sales task completed, reps are free to move onto the next potential sale. Cost are cut, efficiency is improved and the bottom line is looked after.

For more information about how manufacturing remains essential to our economic well-being, click here.