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What is CPQ Software and How Does it Work?

CPQ is a Configure, Price, and Quote software application that helps organisations streamline their sales processes by automating the creation of quotes and proposals. The software can be used to create both simple and complex quotes and can be customised to fit the specific needs of an organisation. In addition to simplifying the sales process, CPQ software can also help improve accuracy and consistency by ensuring that all quotes are generated using the same pricing rules and specifications.

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What Is CPQ Software?

Configure, Price, Quote (CPQ) software is a valuable sales tool that enables sales staff to quickly and accurately produce a price for a product, even if it has complex customisation.

By implementing CPQ software, businesses can transform their sales cycle, making it more productive, efficient, and successful.

Staff can focus on striking up the positive relationships with customers that are crucial to securing lucrative sales, confident that their quotations will be accurate and prompt. And, because customers aren’t subjected to extended delays while they await quotations from a supplier, they are less likely to take their business elsewhere.

With a CPQ sales tool, quotes can be accurately tailored for each customer using:

  • Product customisations
  • Optional features
  • Quantities
  • Economic factors
  • Loyalty discounts
  • Price competition

What is CPQ Cloud?

CPQ software simplifies the entire configuration, price, and quoting process, providing a Cloud-based system that is incredibly easy for sales professionals to use and configure. CPQ Cloud supports businesses in all areas of the CPQ process:

  • Configuration: determining which products or services to include and in what format.
  • Pricing: deciding how much customers will be charged, taking into account variables such as raw materials cost, location, selling rules, and competition.
  • Quotation: ensuring customers receive the information they need to make an informed purchasing decision, including details of the product or service, prices, and terms and conditions.

By eliminating much of the administration involved in generating quotes and placing all tools in one convenient location, cloud-based software allows sales staff to focus on active selling, so their business benefits from improved productivity and healthier bottom lines.

quote creation tool

How Does CPQ Software Work?

Costing software is intentionally simple to use. There are three stages to the CPQ process:

1) Configure

When a customer contacts a supplier with a particular product in mind, the outside sales team can enter the information into the CPQ software, including any customisations that have been requested. Once this stage has been completed and the quote has been accepted by the customer, the inside sales team can collaborate with the design and manufacturing teams to commence production to the required specifications.

2) Price

Complex product configurations require complicated pricing structures, often meaning that predetermined prices aren’t feasible. At the pricing stage of CPQ, the software will calculate a fair and acceptable price for customers that is still profitable for your business. Artificial intelligence is used to analyse purchasing patterns and market research to determine the price that customers are prepared to pay.

Additional tools, such as discounting logic, enable sales specialists to apply multiple tiers of discounts, such as volume or distributor discounts, without the risk of sales margins being squeezed too tightly.

3) Quote

Once the price and discounts are approved, the customer can review the quote to check terms and conditions, before the final quote is created for approval.

Automated CPQ Software

CPQ software is an automated solution that takes the guesswork out of configuring, pricing and quoting products and services. By automating, centralising, and systematising the quoting process, businesses can quickly and accurately generate quotes for their customers. This saves time and ensures that customers receive accurate pricing information.

In addition, the tool helps businesses to improve their margin by ensuring they are not overpaying for materials or labour. This allows businesses to focus on providing their customers with the best possible service, rather than worrying about whether they are making a profit.

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What are the benefits of QuoteWerks CPQ?

With CPQ software by QuoteWerks, businesses can benefit from:

1. Improved Accuracy

Inaccurate quotes are a nightmare for customers and suppliers alike and may give a business a bad reputation. Mistakes are particularly common when products have many optional extras or customisations, as a ‘one price fits all’ strategy simply doesn’t deliver a healthy return. CPQ software allows you to easily calculate prices for customisable options, so that prices can be tailored for each customer, with no manual checking required.

2. Lower Costs

With CPQ software, you can benefit from reduced costs and a fast return on your investment. Its innovative tools enable you to produce quotes more quickly, resulting in better productivity and a higher conversion rate. Faster time-to-quote means customers are more likely to agree on terms instead of pursuing leads with other suppliers, raising your turnover while improving operational efficiencies that deliver tangible cost savings.

3. Faster Sales Cycle

Any wasted or misspent time in business is costly. Poor levels of productivity stunt business growth and put an artificial ceiling on turnover and profits. CPQ software eradicates the causes of a sluggish sales cycle, such as outdated prices or product information, quoting errors, and approval bottlenecks. With more time to focus on attracting customers to your business, your sales team will win more orders and be able to create more profitable relationships.

4. Enhanced Customer Service

Being forced to wait for quotes to arrive is frustrating for customers and a poor reflection of your business’s customer service. Customers will naturally seek quotes from multiple suppliers, so being able to respond quickly, with a competitive price, will increase the chances of securing lucrative orders. CPQ will improve your business’s responsiveness making higher conversions more likely.

5. Business Growth

Finally, a CPQ solution can increase your business’s revenue and profits, improve cash flow, boost your organisation’s growth, and make expansion more achievable. You’ll benefit from a streamlined workflow that saves time and increases sales. With these benefits in mind, it’s difficult not to be persuaded that, with CPQ, competitive advantages are within your business’s grasp.

Does My Business Need CPQ Software?

Statistics show that salespeople spend less than 36% of their time actually selling, and 18% using the CRM (Customer Relationship Management) platform. The rest of the time is spent on administrative tasks, such as generating quotes and estimates, chasing prospects, and seeking approval. This can be a frustrating and lengthy process when you don’t have a CPQ application in place. According to a study, CPQ users reported being able to generate quotes up to 10 times faster than traditional methods, and approvals were obtained 95% quicker than without the dedicated software.

As a result of implementing CPQ software, businesses can move from quote to cash twice as fast. In today’s competitive marketplace, a CPQ platform can give your business the edge it needs to close more deals and increase the productivity of your sales team.

Proposal software

Why Choose QuoteWerks CPQ Software With Quintadena?

By partnering with Quintadena – the market leader in QuoteWerks software solutions your business will be working with a CPQ software supplier who has the experience and know-how to deliver an outstanding solution that transforms your organisation’s sales force:

  • A customisable quoting platform that supports effective CPQ-CRM integration, so your business can enjoy streamlined processes to achieve immediate cost savings.
  • A team of dedicated software engineers who can provide real-time, responsive support.
  • A comprehensive range of add-ons to enhance the functionality of your quotation software.
  • Large project implementation team to manage the most complex of sales systems and workflow.
  • Integrated tools to improve business processes, including management report generation; sales targets; native CRM and accounting integration; complex production and delivery documentation; invoicing; and POP and SOP functionality.

Streamline the Quoting Process With Custom CPQ Integrations

In order to find the right CPQ software for your business, it’s important to understand the different features and options available. We generally recommend a multipurpose application with a wide range of tools that can be configured to the needs of different sectors such as QuoteWerks. An easy-to-use and reliable application that quickly generates customisable quotes and estimates and integrates with a wide variety of third-party applications.

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Contact Quintadena for the Latest CPQ Solutions

Quintadena are a leading provider of customised CPQ solutions, which are tailored by our experienced specialists to meet the unique needs of our customers. Our competitive pricing, real-time support, and expert training make us the first choice for CPQ software solutions, whatever your business’s size and structure.

To request a free, no-obligation demonstration or to find out more information on CPQ tools, please get in touch online or by calling 0121 669 1111.

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