What is Configure Price Quote (CPQ)?
If you are engaged in sales, you might know how difficult it is to provide pricing to a prospect or customer. This is particularly true when your company offers many complex products/services. Managing the entire process can become a challenge that is difficult to overcome. But it’s not only about the quote and contract management.
Preparing a quote of a highly configurable product with actual pricing can take a ton of time. It is critical that you don’t keep your prospect waiting when they are ready to buy your product. So why not to be prepared?
There are tools that will support you during your sales pipeline, like Configure Price Quote Software. In this post, you’ll learn the basic information about CPQ tools.
What is CPQ software?
CPQ software helps companies to work with pricing. With constantly changing variables of goods, it helps to define pricing with more accuracy. It is difficult to provide the best solution when a company offers a lot of different products or services, so CPQ software becomes an effective way to handle it.
This software combines all necessary information and makes everything centralized.
The final goal that CPQ tools look to pursue is to increase sales, therefore, revenue. So, sales reps get a real solution that help saves time and provides actual and reliable information on goods and prices.
CPQ products also give possibilities into setting a successful selling strategy. It helps better define what channels to use and what prices to set for each of them. They give access to all discounts, partners, and other groups. As a result, managers can choose the best combination of products with the best prices for each customer.
Let’s get a closer look at each phase.
Whatever industry you’re in, you’ll see that the market offers a variety of solutions. But very often customers don’t need something out-of-the-box. Instead, they may need products that will meet their exact demands. To get new clients, businesses have to deliver product configurations and services according to those demands.
At the same time, unique offers are supposed to have different prices. Sometimes it is very difficult to determine the rate to sell products and services. To prevent financial losses, it is necessary to work with certain pricing.
Often times, a company’s pricing is ever-changing. Marketing teams often make discounts, limited time offers, etc, and market research could require you to increase prices. Therefore, it’s crucial to keep track of current and original prices. Because pricing is what customers see before they try your products. So it is of high importance to have the right up-to-date pricing wherever your product is sold.
Making a proposal with up-to-date pricing and sending it to a customer is essential in sales. It is a starting point before a sales team and a customer sign a deal. CPQ software makes working with quotes super easy. Generally, it only takes a few clicks to send a ready-made accurate quote to a customer and start working on the next steps.
As you can see, CPQ helps with all these three core sales operations. Products and services along with current prices is what helps you to stand out among your competitors.
How does CPQ work
If your company faces the following problems, CPQ is your solution:
- You need to improve pricing policy;
- You have issues with a slow quote process;
- You lose money because of a slow quote process;
- You need to make a convincing quote.
As we previously mentioned, when companies make changes to lists of products and services, they face issues with price control. Also, they need to keep track of previously signed deals and identify opportunities for bundle or upsell. CPQ software is the right choice to handle all those issues and make sales cycles faster. As a result, you save time, get more accurate pricing data, and increase sales.
How CPQ helps:
- It gives sales managers more time to spend more time selling, not on inefficient processes.
- It creates winning proposals that will maximize deals.
- It eliminates common quoting errors.
- It gives the right information about current prices.
- It shortens the sales cycle.
Here are examples of some great software.
PandaDoc will make your sales workflow easier and smarter. It integrates with all major CRM platforms. The tool merges customer and product data from your CRM. Then in seconds, you can generate quotes for your new orders. Moreover, this tool will notify teams to start fulfillment after signing of a quote.
With the help of PandaDoc CPQ functionality, the sales team doesn’t have to worry about any errors. It simplifies quoting with the help of responsive pricing tables. And of course, it is always great to have built-in secure electronic signatures.
PandaDoc provides you with document analytics. Our dashboard also provides additional info about your sales team as well as individual reps, giving you even more insight into how everyone performs. You can choose how to track sales quotes and trends as well as build forecasts.
Also, PandaDoc is the great choice to support the entire quote-to-cash process. Read more about it in this «What is quote-to-cash» article.
You can also watch our product video here:
PandaDoc CPQ vs. Salesforce CPQ
If you are looking for robust alternatives to Salesforce, PandaDoc will meet your requirements. Here is why.
You can work directly in Salesforce if you like. But with integrated PandaDoc functionality, you get a robust system that also includes electronic signatures. Meaning you will save lots of time creating, sending, and signing your quotes as it only takes a few clicks them. Also, products and pricing will automatically sync from Salesforce or any other CRM you work with. Simply customize your pricing tables and add optional items, special offers, taxes, etc.
With the PandaDoc document builder, it is easy to create documents inside the Salesforce platform. Add your personal content, contact data, and other relevant information to the PandaDoc CPQ and build your own custom templates.
QuoteWerks vs. PandaDoc
Being a powerful QuoteWerks alternative, PandaDoc CPQ offers users an intuitive interface. Even if you work with the system for the first time, you will understand how everything works. All the dashboards and menus are easy to find and use. With this CPQ solution, you get an intuitive tool with powerful features.
With PandaDoc, users can create documents and templates in seconds. This CPQ software is web-based and is the biggest differentiator from QuoteWerks. You can access your documents and work with pricing tables, quotes, and proposals from any place with better document creation capabilities.
PandaDoc CPQ offers only three pricing plans where everything is transparent. There are no hidden fees or extra charges in the software. You only need to choose the plan with the price that works best for you and pay the per-user fee.
Also, PandaDoc CPQ provides companies with advanced analytics. You can get a deeper understanding of customer experience and behavior. Send your quotes and track how your recipient interacts with them. You’ll receive a notification when someone views, opens, as well as how much time your customer will spent on reading your quote.
PandaDoc vs. Zuora
You can’t succeed if the CPQ software you use has limitations. Lack of integration possibilities limits business opportunities and impedes business processes. Zuora software doesn’t offer a bunch of integrations. At the same time, PandaDoc CPQ tool as one of the Zuora alternatives integrates with top-notch leading solutions. Thanks to those integrations, you can take the whole sales cycle under full control in one CPQ system.
Moreover, PandaDoc, being one of the most widespread eSignature solutions, allows you to significantly save time signing your quotes and proposals online. With this CPQ software, you get not only price control, but also unlimited legally-binding eSignatures to attract even more customers to your product.
Reasonable pricing make products stand out among others. With PandaDoc CPQ, you get affordable plans exactly for your business needs. Whether you own a small or mid-sized company, this CPQ will meet your needs. Large companies will benefit too from an individual approach to pricing.
Summing it up
CPQ software is a great solution to increase revenue. But it doesn’t necessarily mean that you have to buy one. If your company offers a limited number of products and services and is small in size, you, probably will not benefit much from CPQ.
On the contrary, you need to have a full understanding of sales processes. Talk to your sales reps and figure out whether you are in a need of CPQ software or not. If they encounter problems with prices and quotes, you should give it a try and implement one of the most efficient CPQs on the market – PandaDoc CPQ.