In today’s fast-paced business world, time is the most valuable commodity. Everyone wants to close deals faster so they can move on to the next thing. From a sales perspective, you want to close a deal quickly so you can start engaging the next lead. From a buying perspective, you want to close a deal quickly so you can focus on other important areas of operations.
Closing deals quickly starts with being able to provide accurate product and pricing information to customers in a timely manner.
Getting a fast, accurate proposal in front of a customer is only possible with configure price quote (CPQ) software. The technology enables sales professionals to easily produce accurate product and pricing information for customers—even when the solutions they’re considering are completely customized. For this reason, it comes as no surprise that the market for CPQ software is expected to grow at an annual rate of 14.5% through 2021, according to Research and Markets.
Imagine a salesperson works for an old-fashioned company that is always slow to adopt new technology. They don’t have a CPQ system in place.
During a sales meeting, the professional shows a customer a solution that fits their need. Immediately, the customer requests a pricing proposal. Without a CPQ system to leverage, the salesperson ends up calculating the price using Excel.
Because time is of the essence, however, they are only able to come up with an estimate they believe to be in the right ballpark. But they aren’t 100% sure the number is correct.
When you can’t confidently tell prospective customers how much your products cost, you’re less likely to make a sale. It’s that simple.
Put yourself in your customers’ shoes. If you’re unable to give them an accurate quote, why should they take you seriously? Remember, we’re all busy and we all want to close deals faster. Nobody wants to waste time. When things don’t work out as well as they should, the customer experience suffers.
Further, when you don’t provide an accurate quote, it could affect your margins. Quote a price that’s too low and you’ll have to circle back to the customer and let them know you were wrong. Even if they decide to continue doing business with you, that’s certainly not the best way to establish a professional relationship.
In addition to speed, CPQ software also provides insight into what’s selling and what isn’t. Armed with that information, sales professionals can intelligently increase the chances they offer the right product at the right price at the right time — which should help the organization achieve better results.
Because the technology enables sales professionals to serve up quotes quickly, companies that use CPQ solutions enjoy a number of benefits. Consider these recent statistics from an Aberdeen study:
- 58% of CPQ users achieve their quotas compared to 46% of others
- CPQ users enjoy a 35% lead conversion rate compared to 30% of others
- CPQ users deliver 20.9 proposals each month compared to 14 for others
- The average sales cycle is 3.42 months for CPQ users compared to 4.68 months for others
Simply put, CPQ software enables your sales team to provide the best customer experience by helping them to be incredibly more efficient, more effective and more intelligent in each client and prospect interaction.
To learn more about how your sales team can benefit from a modern CPQ solution, check this out.