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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

Callidus Software Inc will use any of the data provided hereunder in accordance with the Privacy Statement.

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 Quoting was a time-consuming, manual process; reps often used outdated material and inconsistent branding, causing many mistakes.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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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

 

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.

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Gartner Magic Quadrant CPQ – Configure, Price, Quote

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3 CPQ Lessons from Smart Companies

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Improving the Sales Experience with Holistic Sales Enablement

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CPQ Buyer’s Guide: Ask the Right Questions about CPQ

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