CPQ software centers the configuration, pricing, and quotation processes of vending a product. The adoption of CPQ software is most commonly used to shorten the length of the sales cycle, whilst also upscaling businesses.
Yet, CPQ is most commonly adopted amongst medium to large sized businesses, despite still being suitable for smaller businesses in a variety of ways.
In What Ways Does CPQ Level Up Small Businesses?
Now that the meaning and main functions of CPQ software have been established, in what ways can a small business CPQ software lead to leveling up?
The Simplification Of The Quoting Process
As previously stated, one of the three key elements of CPQ software is the automation of the quoting process. The key to attaining success for an initially small business is through the insurance of efficiency and fast customer service.
When quotes are made manually, they can be extremely time consuming for sales teams, meaning time is deducted from solidifying customer relationships. In situations where there are a limited number of members operating in sales, designating time to quotes can be a crucial situation.
The software actively diminishes the length of time needed for quotes through a number of means. For example, CPQ software documents signatures. Once these are stored, the required documents are then sent to specific team members and stakeholders.
This means that quotes will be approved more quickly, and in turn, deals will be finalized at a faster rate. In addition to the above, automation means that quotes will improve in accuracy.
Overall, these factors mean that small businesses will build a positive reputation with good customer reviews, expanding their clientele.
Offering The Opportunity To Cross And Up-sell Products
CPQ software stores information about an organization’s product catalog, alongside data regarding customer tendencies and preferences. Such details are then utilized to cross and up-sell products at various stages of the sales cycle.
This occurs through suggestions for other items which adhere to the stated needs of the customer, with these suggestions being flagged to the sales team. Cross and up-selling is accompanied by an additional benefit, with this being the increase of deal sizes.
The demonstration of understanding your customers will improve their experience of your services, and the likelihood of them becoming a loyal customer also grows. Ultimately, through the opportunities CPQ software has to offer, the generation of revenue is supplemented.
For those looking to expand the size of their business, this revenue influx can be reinvested into the business for elements such as introducing more members to your team or widening your product catalog.
Ascribing Flexibility To Configurations
For businesses operating within the B2B industry, the task of managing individualized product configurations is particularly common. Whilst this task is complicated for everyone, it is more complicated for small businesses who have less team members to tackle it.
The use of CPQ software means that the different components of personalization tend to be automatically filled in. This is because CPQ is integratable with ERP and CRM systems. Once integration is complete, information regarding products becomes more accessible.
Furthermore, CPQ means that changing prices and applying discounts is easier. This feature is ideal for making individualized configurations, therefore heightening the ability of a small business to reach the needs of its customers.
Key Factors To Prioritize When Selecting A CPQ Provider
- There are many CPQ providers available on the market, all of which promising the world to their clientele. It can be incredibly easy to be awestruck by the promises which are made, running the risk of adopting an overly complicated CPQ service.
Before your search can begin, it is of utmost importance for you to evaluate the most pressing needs of your company. If the service you choose is good quality, you will be able to scale your CPQ alongside your business and introduce new tools when necessary.
For example, many small businesses will begin by selling simple products/services. Therefore if you are at this stage, it is not necessary to use a CPQ with a wide variety of features.
- Linked to the above is the importance of considering your budget. The more features available with a service, the more costly it will be. Solely pay for what you need, as mere desires can be adhered to once your business increases its revenue generation.
With CPQ being a significant revenue generator for many businesses, its benefits and appeal are extensive. Whilst less commonly used for smaller businesses, CPQ software is extremely efficient at upscaling a company and increasing their revenue generation.
This materializes in three key ways: the simplification of the quoting process, the opportunity it gives to cross and up-sell, and the flexibility CPQ gives to the management of individual configurations.
If you are a small business who is currently selecting a CPQ service, it is recommended that you keep in mind what you absolutely need to fix. Following this advice means that you will avoid an overly complex and unusable service, as well as remaining within your budget.