This article breaks down everything you need to know about CPQ systems. Read on as we answer the following questions:
- What are the core features of a CPQ system?
- What additional features does KBMax’s CPQ system provide?
- How can a CPQ system increase your revenue and reduce costs?
What are the Core Features of a CPQ System?
Every CPQ tool is built around the same core features of Configure, Price, and Quote, as broken down below:
In a CPQ system, sales reps or customers can configure products by selecting from menus of available options, such as color, size, parts, add-ons, and accessories.
Visual CPQ applications like KBMax use visual product configurators, which makes the entire process a drag-and-drop affair. Customers select their options visually and see a 2D or 3D rendering of their custom-configured product onscreen in real-time. It’s immersive and interactive, unlike picking part numbers out of a paper catalog.
Learn CPQ Implementation from Start to Finish
It’s no mystery that CPQ has a major impact on customer experiences, but what can it do for your organization?
As the sales rep or customer configures the product, the CPQ system dynamically prices the configuration. Customers can see, again in real-time, how much the options they select cost and adjust their configuration as necessary. Prices in a robust CPQ system are always up to date and constantly tweaked to reflect changing market conditions and your current pricing strategy.
Instead of requiring a sales rep to return to the office and type up a manual quote, a CPQ system automatically generates a detailed quote based on the customer’s final configuration.
This auto-generated quote can include terms and conditions, delivery schedules, BOMs, marketing collateral, and more, automatically inserted as desired. Because the CPQ system knows the precise options selected, the quote is highly accurate – no more going back to the client to correct inadvertent mistakes.
What Additional Features Does KBMax’s CPQ System Provide?
KBMax’s CPQ system was designed with manufacturers of complex, configurable products in mind. It goes beyond the basics to offer several additional features that add even more power and usability.
KBMax’s visual product configurator displays lifelike 3D renderings of your product onscreen as it’s being configured. The rendering is updated in real-time as the rep or customer selects different options, letting the customer see the product exactly as ordered.
Advanced Rules Engine
The visual product configurator used in KBMax’s CPQ system is driven by an advanced rules engine called Snap. Product rules determine which options can be used together and ensure every product is optimized for engineering efficiency.
Snap is powerful enough to handle the most complicated, highly technical products for all types of manufacturers. Still, it’s so easy to use that even non-technical users can build and maintain rules. No coding is required.
Embedding into B2B Ecommerce Websites
You can embed KBMax’s visual product configurator into your existing B2B ecommerce website. Visitors can self-serve online without any input from sales or engineering.
KBMax’s CPQ system features AI-guided selling. This functionality guides sales reps and customers quickly and logically through the configuration and sales process. It provides an easy-to-follow roadmap, suggests the most popular and appropriate features and options, and recommends upsells and cross-sells.
CAD and Design Automation
KBMax’s CPQ system integrates with your existing CAD and design automation software, streamlining the entire engineer-to-order process.
Once the product configuration is finalized and approved by the customer, the CPQ system automatically generates detailed CAD files and drawings for your engineering department. This eliminates human error in translating customer requests to final production designs.
One crucial feature in KBMax’s CPQ system is its ability to quickly and easily integrate with existing CRM and ERP systems and platforms, including Epicor and Salesforce. There’s no need to give up the data and processes you’ve worked so hard to gather and devise.
Augmented and Virtual Reality
The KBMax CPQ system can utilize augmented reality (AR) and virtual reality (VR) technologies in its visual product configurator. AR and VR have the potential to revolutionize product configuration by providing an incredibly lifelike immersive experience to buyers, wherever they’re situated.
How Can a CPQ System Increase Your Revenue and Reduce Costs?
CPQ technology dramatically changes the way customers purchase customizable products. There are numerous benefits to employing a CPQ system, all of which work to increase your revenue and reduce your costs. These benefits are listed below:
1. Provide an Immersive Sales Experience
A CPQ system’s visual product configurator helps immerse customers in the product and configuration process.
In fiercely competitive markets, where products and buyer journeys are practically identical, visual product configuration can be a critical differentiator. Buyers know exactly how products will look before they arrive, which reduces anxiety and supercharges conversion rates.
2. Reach More Customers Online
By embedding a 3D visual product configurator in your eCommerce website, you can reach more customers in more places than you can with a traditional rep-based sales team.
3. Use Guided Selling for Higher Win Rates and Bigger Deal Sizes
Guided selling helps sales reps and end customers make better-informed decisions faster. This AI-driven functionality also generates additional revenue by directing customers to high-margin options, product add-ons, and other upsells.
4. Start Selling More Collaboratively
By automating the configuration, pricing, and quotation process, CPQ systems enable collaborative selling with your channel partners. You can put your visual product configurator on partner websites to reach their customers and generate additional sales.
5. Gather and Analyze More Customer Data
A robust CPQ system will gather behavioral data about customers as they interact with different products and options. When you reach out to prospects via phone, text, or email, you’ll know exactly which products they’re interested in. This data will also help you fine-tune your product offerings and better market your products.
6. Ramp New Hires Faster
Training a new sales rep to sell highly configurable products has a steep learning curve, especially if you have massive product catalogs and endless dependencies to learn. Using a CPQ system makes training new hires a lot easier – the system does more of the heavy lifting, letting new hires start selling and advising customers in days, not months.
7. Streamline Manufacturing
CPQ technology isn’t all about sales and revenue; it can also significantly reduce your costs. CPQ for manufacturing provides highly accurate product data that streamlines your entire end-to-end sales-manufacturing process. A robust CPQ system outputs CAD files, BOMs, and assembly instructions, sending them downstream automatically to engineering and the shop floor.
8. Shorten Sales Cycles
Automating the CPQ process shortens sales cycles dramatically. Take the simple act of proposal generation – according to Proposify’s State of Proposals report, it takes an average of 2.3 days from starting a proposal to sending it. With a CPQ system like KBMax, it’s instantaneous.
9. Lighten Sales and Engineering Loads
With less busy work on their plates, your staff will be able to focus on more creative and productive work to help you grow your business. Sales can start actively selling, and engineers can concentrate on R&D.
10. Improve Order Accuracy
CPQ software doesn’t make human errors. According to research by the Aberdeen Group, CPQ software can reduce errors in quotes by as much as 40%. You’ll also receive highly accurate data for your engineering and manufacturing departments, making for fewer design errors.
11. Cut Lead Times
A CPQ solution reduces the lead time for manufacturing by providing more accurate instructions and reducing the amount of rework necessary. This shortens the amount of time from the initial order to final delivery, delighting customers.