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Enterprise AI for sales teams
A
re you getting maximum value out of your configure, price,
quote (CPQ) selling system? Defining and tracking KPIs
help you see how your CPQ process is performing. KPIs provide
measurable metrics, as opposed to subjective feedback from
employees, customers, or even yourself. This type of feedback
is important, but to properly assess ROI and performance
you need to see performance numbers. You need facts.
In this article, we'll look at six of the
best KPIs for tracking CPQ performance
in any industry.
1. Percent of Quotes Created via the
New Quoting Tool
A tool is only effective when it is used. This KPI is the number
of quotes created through the official quoting solution and
process (vs. being created manually or by-passing the official
process) as a percent of all the quotes sent to customers.
If the CPQ tool is good, all sales people should want to use
it for every quote. Ideally you would have a 100% rating
here, however you may have some sales people still using a
manual process. What you really want is one comprehensive
experience through a single CPQ solution that gives you
greater adoption, consistency and benefits. This is a
core KPI, because get this process right and you should
see a knock-on improvement in most of the other KPIs.
We've seen customers achieve a 90-100% adoption of a CPQ
tool when they found the one that best suited their business.
2. Elapsed Time to Respond to Customer
This is the number of business days from when a customer
requests a quote to when they receive it.
How fast are you replying to your customers or potential
customers? This speed keeps customers happy and is so
compelling that they don't look to your competitors for
solutions. The right CPQ solution enables your sales team to
quickly create, get approved, and issue accurate quotes for
your customers.
Typically, we've seen time reduction rates of 60-85% by using
the right CPQ. For one of our customers, Manitou, this KPI
went from 30 days to 1 day.
3. Revenue from Existing Customers
This is your total sales revenue per month from
existing customers.
Six KPIs to Measure CPQ Performance
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