Configure-Price-Quote (CPQ) systems can change the way you make things. They automate many of the most labor-intensive engineer-to-order tasks, boosting both process efficiency (the effort required to achieve a business objective) and production efficiency (the maximum quantity of units you can produce without impacting quality.)
This article talks about CPQ systems, how they work, and how they can help your modern manufacturing business be more efficient and make more money.
What is a CPQ System (Configure Price Quote)?
CPQ systems are software solutions that help manufacturers price and quote any product configuration quickly and easily. They automate the process so your sales reps can provide buyers with a price in real-time—no need to keep customers waiting and risk a competitor swooping in.
Modern CPQ vendors, on the other hand, have added sets of features to their software that make it much more robust than older CPQ tools. Solutions like KBMax CPQ take configuration, pricing, and quoting to a whole new level, as explained below:
The first step in your buyer's journey is to choose a product configuration. This is your opportunity to differentiate yourself and make an excellent first impression. With a CPQ system with a visual product configurator, customers can interact with 3D models of your products. This makes it easier for customers to choose products and improves the customer experience.
Visual configuration sets you apart from competitors who use long product descriptions instead of engaging images. Salespeople can spend less time explaining products to existing customers and more time seeking out new business. It also makes customers less nervous about buying your products because they know everything about them and how they work. This makes the deals bigger and more likely to be won.
The CPQ pricing process is automated, so there is no chance of a mistake being made by a person. Sales reps can accurately price configurations in real-time, making it easy for buyers to decide whether they’re interested in your product based on their budget.
Buyers of today, who are used to easy B2C transactions, don't want to wait days for a price. The best CPQs provide instant feedback and gratification. Not only that, but they can also change their prices based on a wide range of internal and external factors, such as changing costs and sales by competitors. Sales reps don’t have to waste time on manual calculations that can lead to embarrassing, costly mistakes.
Instant Quotes
Only about a third of a salesperson's time is spent selling. A lot of their time goes into getting price approvals and creating quotes. CPQs automate the process of putting together quotes, which speeds up the sales cycle, increases productivity, and helps close more deals in less time.
CPQs automate several steps in your workflow, which enhances the customer experience and speeds up sales, engineering, and production.
Here are the CPQ features that make the most significant difference.
Modern CPQ systems have a built-in visual configurator that lets sales reps or buyers make 3D images of different ways a product could be set up. Users can drag and drop to change colors, dimensions, parts, materials, and features–anything’s possible.
Visual configurators take configuration requirements and pricing information digitally and send it to the proper departments automatically. They provide an immersive experience and boost efficiency by funneling accurate data to the right people at the right time.
The CPQ automates the generation of all production-related documentation after customers choose and confirm their setup, reducing your internal procedures.
By eliminating engineering bottlenecks and shortening lead times, CPQ provides documentation, including CAD drawings, CNC cut sheets and BOMs. It also updates relevant information in your other core back-end systems like your CRM and ERP, keeping teams and projects in sync.
CPQ requires "rules," or small pieces of code, to efficiently configure and price products. These rules specify how users can assemble products and how various options affect costs. These rules are built using a rules engine, which is essentially the CPQ’s brain.
The difficulty in creating rules in CPQ is a challenge. It can be incredibly complicated, requiring a high degree of coding skill. However, the most remarkable modern CPQs have no-code rules engines. They have a drag-and-drop interface enabling general business users to create and maintain rules for the most complex products.
The fewer faults, rework, and defective manufacturing you encounter, the higher the organization's overall efficiency.
Customers may access your visual configurator by integrating modern CPQs with your e-commerce website. This integration lets buyers configure products independently and–depending on your requirements–place an immediate order.
What happens, though, if the purchaser errs? Or selects an unviable design? Rest assured that this won't occur because of the rules engine. It only permits buyers to move forward with configurations it determines are viable.
It is significantly simpler to present configurations to buyers or buying committees when CPQ is integrated into your website. You can reach a global audience for whom arranging an in-person product demo would take a lot of work.
Making the selling process more effective will allow sales representatives to concentrate on the strategic aspects of the process. You can sell faster with self-serve and give buyers more independence, which is essential in a world where virtually 100% of buyers want to self-manage their buying experience.
Implementing an on-premise (on-premise) or cloud-based solution is an option for manufacturers to evaluate their configure price quote (CPQ) alternatives. On-premise software is stored on your in-house server, giving you total control over management and data security, which, for some companies, is non-negotiable.
However, a cloud-based solution (one that you essentially "rent" from a provider and access in your browser) is a better option for most businesses. Here’s why:
Gain Complete Efficiency and Future-Readiness With CPQ
You may position yourself as a digital industry leader who values customers and strives to deliver the greatest possible customer experience when you adopt a CPQ system. Buyers appreciate the option to self-serve and the speed and accuracy with which your business operates.
However, Configure Price Quote CPQ transforms more than simply the beginning of your sales process. Today’s leading CPQs automate the end-to-end engineer-to-order process from sales through engineering and production. As a result, you can serve more clients more quickly and at a reduced cost to your company.