One of the most effective ways to sell more products for higher prices is to give your customers options. Research shows 1 in 5 customers are willing to pay 20% more for a personalized or exclusive product.
Configure Price Quote (CPQ) enables manufacturers to offer customers an extensive range of personalization options, encompassing colors, sizes, components, and functionalities. Furthermore, it generates an instant, accurate quote.
But CPQ is about more than just generating a quote that customers can run with. When used to its full potential, the same software can create a fully immersive customer experience and unlock unparalleled back-end capabilities for engineering, manufacturing, sales, and more.
This article will reveal how to unleash the full power of your CPQ to bring product proposals to life and supercharge efficiency.
Getting the Most Out of Your CPQ Process
Implementing Configure Price Quote (CPQ) systems can significantly improve your sales results, with research from Epicor showing up to a 40% increase in conversion rates and up to a 105% increase in deal size.
However, not all CPQ systems are created equal. To truly maximize the benefits of this technology, it’s essential to identify and utilize the right features and take the necessary steps to optimize your system.
In the following section, we’ll explore the key features and strategies to help you get the most out of your CPQ solution and achieve the greatest return on investment.
1. Leverage Visual Product Configuration with 3D, VR, and AR
Let’s begin by discussing the power of visualization. An advanced CPQ solution empowers users to effortlessly create a strikingly realistic 3D visual representation of their personalized products, showcasing all the unique features and options they have chosen.
This cutting-edge technology can also use 3D modeling to create an engaging and immersive virtual reality (VR) and augmented reality (AR) experience for the user, enabling them to visualize the product in unprecedented detail.
Customers can dive into the experience, looking at their configuration from all angles, exploring the features, and truly getting a feel for what they have configured. This enhanced transparency makes the customer more confident in their purchase decision, increasing the likelihood of making a sale.
2. Integrate Your CPQ Tool with Other Back-Office Systems (Especially CRM and ERP)
CPQ configurators can be integrated directly into your back-office systems to provide more detailed information on what customers are buying and how these custom purchases will influence your business.
For example, you can plug customers’ product preferences into your CRM to make more compelling upsell/cross-sell opportunities and inform salespeople when working with customers in the future.
Additionally, syncing custom orders with your ERP allows for real-time sharing of lead times with customers and efficient reconciliation of inventory levels.
3. Implement Engineering Automation (CAD and Design)
Once a product is configured, it will need to be engineered and manufactured. Fortunately, an advanced CPQ can provide the quote and CAD and design files that can be pushed directly to Engineering. Engineering can then review the generated orders, confirm details are correct, and send them to the shop floor.
4. Democratize CPQ with a No-Code Rules Engine
A no-code rules engine revolutionizes the CPQ process by enabling non-technical staff to create and manage product and pricing rules. This innovative approach reduces reliance on expensive IT experts and makes companies more agile and cost-efficient–they can quickly adapt to changing market conditions and customer needs.
Keeping rules updated ensures users consistently create products that customers fall in love with and can be produced with zero risk of engineering errors, delays, and other disappointments.
5. Provide Self-Serve Options with B2B eCommerce Integration
Self-serve options have become increasingly popular, enabling customers to research, compare, and purchase products without interruptions. Customers can quickly configure a product, generate a custom quote, and place an order within minutes instead of waiting days, as was traditionally the case. A visual CPQ solution allows customers to configure their orders in eCommerce settings, resulting in faster conversions.
6. Leverage Dynamic Pricing
Epicor CPQ’s dynamic pricing is a critical feature that allows users to see real-time price updates as they configure products. This feedback empowers customers to make instant purchasing decisions, reducing the risk of losing interest or turning to competitors while waiting for a quote. Epicor CPQ not only factors cost prices into its calculations but also factors in fluctuating variables such as demand, competitor pricing, and inventory levels.
7. Increase Productivity and Performance with Guided Selling
Guided selling enhances efficiency and win rate by streamlining the sales process for both sales reps and customers. It simplifies the customer journey by utilizing visual and text-based prompts and explainers, eliminating confusion and ensuring a seamless transition to the shopping cart.
This approach benefits new hires by providing them with tried and tested instructions. It also supports seasoned sales reps in identifying upselling and cross-selling opportunities.
8. Extract Data-Driving Insights from Analytics and Reports
After fulfilling orders, a CPQ system can offer invaluable insights through its analytical and reporting capabilities.
By analyzing data such as the number of products utilizing specific materials, designs, or parts; the total production volume across various production lines; and the amount of labor required for the assembly of each product, companies can uncover critical business intelligence.
Additionally, CPQs can identify the most popular product options and track where customers are abandoning the purchasing process. These statistics can be transformed into actionable insights, dashboards, and reports and seamlessly integrate with any existing BI software.
9. AI and Machine Learning for Intelligent Upsells and Cross-Sells
By leveraging the insights provided by your CPQ and analyzing the patterns of product configurations chosen by your customers, you can fuel a cutting-edge predictive engine powered by AI and machine learning.
This technology enables you to automatically generate customized upsell and cross-selling options tailored to each customer’s individual preferences based on their selected colors, materials, and styles.
10. Automate Approvals and Workflows
Manufacturers often experience unnecessary delays as they wait for leadership to approve quotes. Emails can be overlooked, staff members feel swamped, and customers may find themselves in a frustrating cycle of seeking updates on prices and quotes.
To streamline this process, configure-price-quote (CPQ) solutions can either expedite or altogether bypass the approval process. Often, product and pricing rules can autonomously approve quotes, eliminating the need for manual intervention.
In cases where a quote falls outside the automated approval parameters, an approval request can be seamlessly dispatched to the appropriate decision-makers.
With just a single click, leadership can grant quote approval. The entire process remains transparent on the back end, fostering accountability and collaboration among team members.
Configure Price Quote CPQ systems are powerful tools that significantly improve sales results and overall efficiency.
By leveraging advanced features such as visual product configuration, back-office system integration, engineering automation, and AI-driven insights, businesses can create a fully immersive customer experience and unlock unparalleled capabilities across various departments.
Adopting a comprehensive CPQ strategy–including self-serve options, dynamic pricing, and guided selling–drives higher conversion rates and deal sizes, maximizes return on investment, fosters continuous growth, and enables you to get ahead of competitors–and stay there.
Want a CPQ Demo?
Now you know how to unleash the full potential of CPQ, it’s time to witness the impact first-hand. Contact one of our CPQ experts today for a personalized demo and see how it can revolutionize your sales and manufacturing process.