The global B2B ecommerce market is expected to grow at a CAGR of 19.7% between 2022 and 2030. That’s almost a 150% increase in less than a decade. As your competitor soars, are you prepared to retain your competitive advantage?
It turns out many B2B businesses aren’t prepared enough. 53% of B2B buyers have switched suppliers over the past 12 months, and 52% of firms experience frustration buying from a B2B brand online, according to a 2021 report by Wunderman Thompson.
Modern B2B ecommerce businesses have a tricky question to answer. With buyers only offering 5% of their time to sales reps, what’s the best way to enrich the buyer’s CX and make it frustration-free? A configure, price, quote (CPQ) system could be just what you need. Let’s find out why.What is a CPQ tool?CPQ (configure, price, quote) software benefits manufacturers on the front and back end. It transforms your customer experience while significantly improving efficiency and profitability.
According to the latest research from Epicor, implementing CPQ software increases conversion rates by 40% and accelerates sales cycle speed by 38%. These improvements alone can put you ahead of the competition.
Below are the three core functionalities CPQ vendors provide:
1. Configure
CPQ software guides users (sales reps or end customers) through the process of configuring products. It auto-generates 3D renderings of configurations, making it easier for sales reps to communicate design specifications to buyers.
You can also integrate a CPQ tool into your website to enable buyers to self-serve. Virtually 100% of B2B buyers want a self-serve option, and CPQ can be a perfect tool to fulfill your buyer’s expectations.
You’re probably wondering how CPQ ensures technical accuracy when buyers select a configuration independently. It’s all thanks to the internal rules engine (Epicor CPQ’s rules engine is no-code). Designs are validated automatically based on a predefined set of rules, making configuration mistakes impossible.
When buyers select unviable configurations or design products with out-of-stock parts, they’re automatically guided to a better alternative.
2. Price
Mispricing is generally a result of human error. CPQ takes humans out of the equation, providing accurate pricing 100% of the time. Pricing rules coded into CPQ ensure you never underprice your product, safeguarding your margin and reputation. Multiple factors, including inventory levels, fluctuating costs, and current demand, can all be factored in.
3.Quote
Manually generating quotes can be a massive resource hog. Sales reps spend less than 36% of their time selling because of manual processes, but CPQ systems can help them focus more on their role’s strategic aspects.
Once the CPQ system receives an order from the buyer, it automatically generates a price and a quote. The buyer can examine both immediately and place an order if they’re ready. Meanwhile, sales reps can continue optimizing the sales experiences and strategizing sales campaigns.
Why Use Advanced CPQ Software?
Advanced CPQ software solutions give you an edge over your competitors.Many businesses use traditional CPQ systems that do the bare minimum—help reps select configurations, calculate prices and prepare quotes (essentially the above features). Today, this is table stakes. You need additional CPQ functionality to stay ahead of the curve.
Here are the key benefits of using an advanced CPQ system over a traditional solution like Salesforce CPQ.
Improve Customer Experience with Visualization
As a B2B manufacturer, you know that customer experience is just as important as product quality and price. A Gartner report reveals that more than two-thirds of marketers responsible for the customer journey said their companies compete primarily on CX.
Delivering a top-notch CX to buyers who prefer to self-serve is tricky, but advanced CPQ systems equip you with the right tools. Embedding a CPQ tool on your website allows buyers to use its visual configurator to configure complex products without the aid of a sales rep.
The best systems come with a 3D, AR, or VR visual configurator, providing fully immersive buying experiences. The buyer can visually examine the design using the configurator, making them feel more confident about their choice. Without a visual analysis, buyers can only guess how the final product will look when it arrives at their warehouse.
Another factor that improves customer experience is speed. With visual CPQ, buyers can select configurations and obtain a price and quote within minutes—no need to place requests and wait for sales to revert with a concrete proposal. Everything is instantaneous.
Remove Bottlenecks to Accelerate Sales Cycles
A faster sales cycle can boost your profitability. The more you sell, the more you earn.
The problem? Internal processes are often inefficient, and no matter how hard you try, there are always bottlenecks stalling progress.
CPQ systems help eliminate this problem by automating a large portion of your internal processes, making them more streamlined.
For example, when a buyer initiates an order via your website, the configuration details are automatically sent to your internal systems like your CRM and ERP.
The CPQ system also auto-generates CAD drawings, CNC cut sheets, and other production documentation so the engineering team can focus on other strategic tasks.
As a result, you’ll be able to deliver products to buyers faster and complete more orders during a given period. The benefits ultimately trickle down to your bottom line, improving your company’s profitability. That’s why configure, price, quote (CPQ) software can generate ROI of up to 622%.
Reduce Costs at Every Stage
Since CPQ systems can automate processes, they remove the frequency at which errors occur. Fewer errors translate to savings because you won’t waste raw material and wages on defective products and will save on the opportunity cost.
Throw in the efficiencies introduced by the CPQ system in the form of automated documentation and streamlined approvals. Add the guaranteed error-free pricing. And you’ve got a good amount of savings, thanks to the CPQ tool.
Reduced costs and higher margins give you an edge over your competitors. You’ll be able to sell more, earn more, and reinvest more into the customer experience you provide.
Final Thoughts: Beat Competitors With Configure, Price, Quote (CPQ) Software
A CPQ tool can give you a technological edge on multiple fronts—customer experience, cost, and efficiency. If you sell complex, configurable products, implementing CPQ is a no-brainer. An advanced CPQ software solution comes with a price tag, but the benefits far outweigh the costs. Research suggests CPQ returns $6.22 for every dollar spent. That’s money you can invest in product development, automation, and customer experience, giving you a significant edge over competitors.