How Does CPQ Return $6.22 for Every Dollar Spent?
There are so many reasons to invest in configure price quote software (CPQ), such as automating and speeding up the sales process, but, from a profitable growth standpoint, the reason that speaks the loudest is this: CPQ returns $6.22 for every dollar spent. A study by Nucleus Research revealed this figure and explained why and how CPQ delivers businesses that value in all use cases.
So, how does it work? There are five value drivers that each play their own part:
- Increased revenue
- Reduced operational costs
- Increased sales employee productivity
- Faster time-to-close
- Improved customer satisfaction
When it comes to increasing revenue, businesses can leverage CPQ to incorporate current and historical customer data, and then AI will take over, optimizing pricing to maximize the return on closed deals and generate product mix suggestions for cross and up-sell opportunities.
To reduce operational costs, CPQ first reduces quoting errors by providing the most accurate and updated pricing and product options. It then reduces human error and speeds up the quote-to-cash process with configurable controls that, when integrated with CRM, project management, and ERP solutions, allow users to feed CPQ-generated product configurations straight to the buyers.
Increased sales employee productivity is achieved via self-service portals and auto-generated pricing/product mixes. Simply put, the first reduces touchpoints during the sales process, while the second streamlines it.
Faster time-to-close and improved UX are both achieved with automations in CPQ. For example, one of the most cumbersome and error-prone parts of the sales process is quote generation. If you’re working with spreadsheets, it could take as much as two weeks. No one wants to wait that long. With a CPQ solution, you can reduce the quote TAT to less than an hour in virtually all cases. With that kind of reduced wait time, you get reduced frustration, reduced friction, and as a result, improved customer satisfaction.
Though the Nucleus Research discusses that all software in the general class of CPQ software “demonstrated track record of delivering value-add CPQ solutions with positive ROI,” PROS stands out from the crowd. PROS Smart CPQ provides these key value-driving features:
- Performance Quoting is how to accelerate your sales cycles and increase deal size, because PROS Smart CPQ can seamlessly scale to support up to 10,000 line items without sacrificing speed or functionality.
- Product and Service Configuration is how to deliver the right offers with accurate configurations at prices your customers are willing to pay. PROS Smart CPQ gives your customers a superior experience and your business what it needs most – closed, profitable deals.
- Sales Growth & Opportunity Insights, powered by AI and machine learning, helps identify opportunities with existing customers, essentially empowering sales reps to increase both customer loyalty and wallet share.
To transform your sales experience into what today’s customers expect—and demand—contact PROS to learn more about Smart CPQ or click here for an interactive demo.