Doug Wendt is a co-founder and senior partner with Wendt Partners.
Being an industry leader in an ever more technical marketplace means you know better than most the growing challenges for businesses, especially around managing sales and client relationships. Exploring what's suitable for your customers' needs, understanding the direction of your marketplace, and positioning your company correctly in an evolving enterprise environment are all challenges that have to be faced head-on. Thankfully, there are many B2B technology solutions available to help companies navigate the complexities of the modern business landscape. One of the most popular software systems is configure, price, quote — or CPQ.
CPQ software is hardly new, but more modern iterations go beyond simply generating prices and quotes to working with fully integrated data and customer relationship management (CRM) systems. The more business tools you use, the more complex your CPQ can be to configure. A successful B2B business strategy knows how to get the most out of your CPQ to grow sales and improve customer relationships.
Benefits of CPQ Software
One of the key benefits of CPQ is that it generates accurate prices and quotes fast, vastly reducing the time salespeople have to spend on administrative tasks. CPQs are ideal for B2B companies that offer complex or bespoke products or services that don't lend themselves to a simple price list. CPQs also help with:
- Payment processing
- Inventory management
CPQ Configuration for Sales Teams
Configure, price, quote sounds like a simple process, but with more B2B technology solutions available than ever, leveraging CPQ software to its greatest effect can be challenging without support. Partnering with a business growth solutions expert like Wendt Partners can help organizations navigate the range of options and strategize on how to maximize their usefulness. Here are the key steps most sales teams will have to follow or discuss with their B2B growth consulting expert.
"Configure" is the first step in the CPQ process, and it's one that will look very different depending on the unique value proposition of each enterprise. Are you creating a product list built on physical inventory or a range of bespoke services your expert team provides? Most companies you sell to want personalized solutions — and are willing to pay a premium for them. The Deloitte Customer Review indicates that 20% of buyers will pay 20% more to get a service that meets their individual needs.
Careful configuration of your products within your CPQ software can help auto-create completely custom offerings based on the selection of strategically tailored options. Customers can then select the options that work for them and skip the choices that aren't relevant — like choosing extras at a car showroom.
Your pricing strategy may be fluid, depending on your industry and market. For example, you can establish dynamic pricing that capitalizes on information about your competitors. If your primary competitor raises their prices, perhaps you want to undercut them — or you may wish to increase your prices in keeping with the cost of raw materials or changes in the market.
You can also base prices on supply and demand — raise your prices slightly when your products are in need, or implement discounts to draw in new customers. You may even combine dynamic pricing with value-based assessments of what individual customers can afford.
Effective CPQ software can factor in aspects such as discounts for bulk orders. Back to the car showroom — if you needed five cars instead of just one, you'd expect to get a great deal. Your pricing strategy can include automatic reductions for orders above a particular volume or perhaps subscriptions to services over the standard contract length. For example, an MSP may give a business one year at half-price when committing to two years of external IT support.
Correct configuration and a sensible pricing strategy allow your salespeople to generate quotes and invoices that customers can easily understand. These quotes are more consistent than their manually generated counterparts, increasing brand image and reducing the risk of miscommunication.
CPQ software with integrated payment solutions empowers customers to instantly accept quotes and make payments with ease. These solutions help convert leads quickly and reduce lost sales.
Use Your B2B CRM
Learning how to link your CPQ solution to your CRM means you can keep accurate records of all data pertaining to your sales. That includes sales volumes, allowing you to create meaningful reports that drive future B2B marketing campaigns, assessing which products are having the most significant impact. CRMs also store client contacts and allow regular outreach if the client has opted in for continued communication. This feature enables businesses to stay in touch, offer after-sales support, promote connected products, and seek feedback via client surveys. RJMetrics recently reported that repeat customers might spend 300% more than new buyers. Using your business tools to nurture these existing relationships can be the key to sustainable business growth.
Achieving Sustainable Growth
B2B growth consulting includes assessing your B2B industrial solutions or software such as your CPQ. Wendt Partners helps organizations navigate their business apps without getting bogged down in unnecessary complexities. Doug Wendt, founder and Chief Growth Officer at Wendt Partners, is keen to engage businesses with their technological solutions. He states, "Working with businesses to get the most out of their CPQ software and CRM platforms allows us to dive deep with the client in order to fully generate a solution that fits their needs and priorities."
Wendt Partners works on five essential pillars that underpin all aspects of business expansion. To help you get the most out of your enterprise tools, we'll help you understand and develop:
- Your B2B business strategy
- Your B2B brand strategy
- A dedicated B2B marketing strategy
We help sales teams leverage their available software and tools to maximize your relationships with customers and clients and boost B2B sales, leading to improved revenues and sustainable growth.
Are your sales teams equipped for the challenges of modern business? Schedule a free growth services assessment consultation call with Wendt Partners to determine how we can help you navigate the CPQ process to maximize sales.