Select the best CPQ (Configure, Price, Quote) software.
Businesses always aim to deliver reliable products and services to its customers. To increase client satisfaction, companies offer products and services with optional features, quantities, and other customizable elements. However, these services create complex transactions that are difficult to price accurately.
Fortunately, CPQ (Configure, Price, Quote) software can help. This application is an excellent sales tool that allows businesses to configure their sales quotes appropriately. In this way, companies prevent overpricing their clients, as well as earning less from their services. Using CPQ software impacts your business significantly, so it’s paramount to choose the best CPQ software fit for your business’s goals and needs. Here are some tips that can help entrepreneurs, like you, select the best CPQ solutions:
Assess usability across your team:
Before looking into the software’s detailed technical features, you should prioritize selecting a simple CPQ platform. Take note that your team isn’t an expert in this field, so make sure the software doesn’t require a lot of training to operate.
To evaluate the software’s level of usability, the CPQ software should have these functionality features:
- Personalized video tutorials before software use
- Seamless CRM integration
- Guided selling
- Adjustable rules and pricing
- Document customization
- Quote document generation
- Product catalog
No matter how elegant the software’s design is, you can immediately differentiate a good CPQ software from a bad one if it’s challenging to use and can’t be configured according to your specifications.
Differentiate SaaS vs. On-Premise CPQ Software:
In this part, knowing the difference between SaaS and on-premise CPQ software affects the user experience of your team and clients. There are different types of CPQ software with exclusive specifications. Integrating the right type into your business guarantees that you can meet your client’s needs and overall business.
Software as a Service (SaaS) CPQ software offers cloud-based CPQ solutions. Essentially, individuals have access to your CPQ software anytime and anywhere, real-time, as long as you provide them access. SaaS technology is widely used in different business settings, even in the Animation and VFX industry.
Since they’re hosted on the internet, the software provider contributes to software updates, maintenance, and upgrades. Also, there are no upfront costs but monthly or annual subscription to enjoy the software’s benefits and features. On the other hand, an on-premise CPQ software only provides access to the right, authorized users. The service provider directly installs the program on the user’s computer. There are no monthly subscriptions, only a one-time payment. On-premise CPQ solutions are relatively costlier than SaaS, but you can take full control of your data privacy and security.
Try out free demos:
To confirm the features of your chosen CPQ software, software providers should provide free demos and tutorials to help businesses decide if they want to proceed. Before submitting any payments, have a comprehensive overview of the software, its owners, and some customer stories and feedback.
Considering they have free trials, don’t be afraid to watch a free demo and participate in guided tours offered by CPQ software providers. Trying out demos help in foreseeing the compatibility and success of the CPQ software on your business. Implementing free trials and quotes from your CPQ software is also a profitable way to invite customers.
Check out real-time pricing availability:
If your business focuses on franchise and distribution, you should ensure that products and services pricing are up-to-date on your CPQ software. Vendors update their item quantities and pricing regularly, and your CPQ software should be able to reflect these changes in real-time.
Real-time pricing information is essential to providing the lowest and most accurate prices to your customers, particularly during last-minute events. If your CPQ software can’t display the right information on your website, your transactions are at risk.
Look at configuration engine architecture:
Every CPQ software has a different level of configuration, which allows business owners to set their own specifications. When looking for a CPQ software, you’ll encounter a rules-based configuration engine versus a constraints-based configuration engine.
In simpler terms, a rules-based configuration system on your CPQ software is ideal for companies who offer simple products requiring little to an average configuration in the CPQ administration tool. If your products and services need a higher configuration level or will undergo future configuration, CPQ software with a constraints-based configuration system suits your business better.
See CRM Integration:
CPQ is an extension of your Customer Relationship Management (CRM) system. The main purpose of a CPQ software is to make processes easier and more accurate, but it can become complicated if your desired CPQ software doesn’t align with your CRM system.
The CPQ software architecture determines how seamless you can integrate the software into your CRM system. There are two general CPQ architectures: native vs. hybrid architecture CPQs.
- Native Architecture CPQs: Custom-built on the CRM system and can’t be utilized in other CRM systems. They have more purposeful and customized features targeted to your CRM system.
- Hybrid Architecture CPQs: Works with any CRM solution, reducing risks of reimplementing the CPQ progress when transferring in another platform.
Takeaways:
CPQs guide businesses toward success and transformation, but they’re not created equally. By looking at the tips and considerations discussed, you can find the best CPQ solution for your business. Subsequently, you can increase customer satisfaction by providing tailored services, while ensuring that you’re getting paid enough.