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CPQ and CLM: Better Together

CPQ and CLM: Better Together

An automated configure, price, quote (CPQ) system arms sales teams with the tools they need to sell faster and provide optimal customer experience. With CPQ, they can quickly and easily provide accurate quotes to customers, avoiding the time-consuming and error-prone process of sifting through multiple spreadsheets.

By Matt McEnerney | October 3rd, 2018

Cleaver-Brooks Makes Quotes for Complex Boilers in 15 Minutes Flat

Industry – Manufacturing

Quotes generated in 15 minutes –
down from 4 hours

Eliminated errors in quotes

New reps productive in first week, despite very complex product

 

The Challenge

In the early 2000s, executives at Cleaver-Brooks realized they had a problem: sales quotes were inconsistent, error-prone, and time-consuming to create, given the complexity of their products. They tried a distributable product selection and an online ordering system, both of which failed to take off. Boilers are complex products with numerous controls and components. For instance, to sell a Firetube Boiler, the company’s bread-and- butter business, one would have to choose what fuel it would run on, drives, controls, safety valves, etc. Some of this was driven by specs, others by customer requirements, code, and how the equipment was to be applied. There are thousands of options and millions of different combinations for just the Firetube boiler. Due to the complexity, it was impossible for reps to be experts on all the products. So reps would quote equipment they were more familiar with, rather than what the customer really needed. To sell, reps needed to lug around some heavy material: a 575-page price book and a 1,000-page boiler book listed all the product specifications. Quoting was a time-consuming, manual process; reps often used outdated material and inconsistent branding, causing many mistakes. And mistakes were expensive to fix, running into tens of thousands of dollars, especially if the equipment had already been deployed.

The Solution

In 2005, Cleaver-Brooks adopted SAP’s CPQ and has used it ever since. The entire product portfolio was built into CPQ with 43 different configurable products, representing five different divisions, two different channels, operating under unique brands with thousands of variables and tens of thousands of rules built-in. With CPQ, all the complexity is still there, but it is all buried behind the scenes so the rep no longer has to deal with it directly, with calculations done automatically, and appropriate options listed. In order to smooth the transition from the paper world to the online world, the company created the same tabs within CPQ that the reps were used to in the offline world. So if reps knew where a particular option was in the price book, they knew immediately where to find it within CPQ. That really helped people get comfortable. Cleaver-Brooks now generates accurate, consistent proposals all of which carry the most up-to-date pricing, correct options, uniform branding, and terms and conditions in a 30- to 35-page indexed format for million-dollar boilers in a matter of minutes. Based on the configuration, the pictures, diagrams, and copy change automatically. No longer can the reps configure something the company can’t build. CPQ enabled the sales force by putting information at their fingertips, making selling easier, faster, and repeatable, thereby increasing sales and margins. The tool encourages reps to upsell; if a rep is preparing a quote for a boiler, the tool suggests an economizer, which the rep can select in a series of clicks and put in front of the customer along with its performance information and potential for monetary savings.

The Value

Generating a quote for a complex product was a four-hour process, which CPQ reduced to just 15 minutes. Between the company’s reps and distributors, about 1,200 people use CPQ to generate some 500,000 quotes. New reps are onboarded faster because CPQ puts all the information at their fingertips. Despite the complexity of the equipment, new reps have actually gone from quote to close in their first five days with the company. In terms of intangible benefits from CPQ, the company reexamined and simplified its business processes, filled gaps in its product definitions and pricing, and captured tribal knowledge.

 

You basically give the sales rep 1-2 days of their week back (with CPQ)…When you give back time to reps you are encouraging them to sell solutions to customers instead of just reacting to specifications.

Chris Weckler – Chris Weckler, Development Manager - Sales Tools, Cleaver-Brooks

 
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October 10-11, 2018 | Barcelona, Spain

Verizon Connect Increased Quote Output by 300%

Industry - High Tech

Increased the accuracy and consistency of quotes by 100%

Improved quote process by reducing review time from weeks to hours

Automated various selling methods from three product offerings to one selling process

"With CPQ, our salespeople can provide a consistent, optimized quote every single time. Sales improved immediately and we can continue to grow our business thanks to the solution’s nimbleness and flexibility."

– Eric Simon, Associate Director, Enterprise IT, Verizon Connect

 

The Challenge

With Verizon Connect’s homegrown pricing and quoting system, a majority of the quotes made by its 1,500 salespeople were inaccurate. Support staff had to review and validate every quote. In addition, the system could not handle dynamic change or scale to support the addition of new products and pricing from ongoing acquisitions and growth. Every product or pricing change required days or weeks for IT to implement. Verizon Connect needed to massively scale and automate pricing and quoting processes.

The Solution

After evaluating seven solutions, the company chose SAP CPQ. Salespeople like CPQ for the ability to provide accurate, consistent, optimized quotes in less time and no manual processing. With the automated, easy-to-use system, all of sales – from enterprise and field reps to tele-sales – could sell faster. The system also reduced administrative man-hours tremendously and lifted a huge burden from IT.

The Value

Improved consistency, efficiency, profitability, and a streamlined customer experience.

The C in CPQ actually stands for connection

Connectivity—it’s what Verizon Connect solutions are all about. But what about its sales force? On its home-grown pricing and quoting system, not so much. It couldn’t handle dynamic changes and therefore wasn’t scalable. Sales reps were making too many mistakes. But now, they’re on the other side—more connected, you might say. Come hear why CallidusCloud has the CPQ solution for Verizon Connect—with its ease of use, low maintenance, flexibility, and integration into other systems.

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SAP Customer Experience LIVE

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October 10-11, 2018 | Barcelona, Spain

Atlas Copco builds long term relationships across 180 countries, supplying quotes for thousands of very complex, highly configurable products and services in less than four minutes.

Industry - Manufacturing

Streamlined administrative roles from 70 to 5

Quotes of highly configurable products and services < 4Minutes

Fast solution adaption to meet new market demands

 

The Challenge

Atlas Copco is a multinational company with 200 sales teams serving customers across 180 countries. This required sharing best practices across all direct or indirect channels – and connecting front and back office data to deliver a consistent customer experience. They also sell highly configurable products with 52 billion possible unique combinations, numerous brands, customers from multiple industries, different languages and currencies, and complexity on steroids. No matter how elaborate or massive, spreadsheets could no longer handle the job as the company grew. Administrative staff spent all day, and sometimes multiple days, creating price quotes. In all, it took more than 75 people to price quotes and maintain and input data—and never in real time.

The Solution

To deliver an exceptional customer experience, the company created a standardized and transparent end-to-end sales process starting with optimized lead and opportunity assignment. Putting the right person in front of the right customer quickly generated more meaningful engagement and accurate quotes with the products and services. The system supports 26 brands, 53 currencies, 310 price books, 20 languages, and provides 30,000+ configurations and sales order creation anywhere anytime. Benefits have been enormous and widespread for users, administration, and the company’s bottom line. For instance, with same process across multiple countries company required less general managers and shrank the administrative staff needed to support pricing from 70 to 5 people. Centralization of master data and the connection of front and back office data allows benchmarking and comparisons across regions as well application of business intelligence for strategic purposes.

The Value

Lift Your Sales Up through a Better Customer Experience

“With SAP Sales Cloud we have increased efficiency, margins, deal size, order accuracy, and profit, but that’s just the tip of the iceberg.  We’ve experienced numerous benefits, starting with the ability to sell extremely complex products across the globe.  For instance, the resulting integrations, automation, and centralization of data have saved the company an incredible amount of administrative time and money.”

Louis de Jaegher – Louis De Jaegher, Senior Business Process Manager, Atlas Copco

 
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SAP Customer Experience LIVE

Plan for the future and connect with purpose at the CRM event of the year

October 10-11, 2018 | Barcelona, Spain

SAP Customer Experience LIVE

Plan for the future and connect with purpose at the CRM event of the year

October 10-11, 2018 | Barcelona, Spain

4 Ways to Empower Your Partners with CPQ

4 Ways to Empower Your Partners with CPQ

Working with your partners to generate and close new business can bring great benefits, but it can also be like navigating an iceberg—you can see a small sliver of what they’re doing, but they’ve got their own internal methods, and business practices in place that may be hidden and may not align with your own corporate processes. And vice versa.

By Matt McEnerney | July 25th, 2018

CPQ: The Quickest Way to Get a Sales Proposal in Front of a Customer

CPQ: The Quickest Way to Get a Sales Proposal in Front of a Customer

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.

By Matt McEnerney | July 18th, 2018
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