How CPQ Can Work For Your B2B Business
B2B has become a welcome development for buyers since they now receive products specifically configured to suit their preferences. On the other hand, this has led to a more complex pricing situation for sellers. If sellers were selling a regular product to different customers, pricing would be straightforward.
That isn’t the same with B2B sales. Well, thanks to the CPQ software, there is a solution. This article will look at CPQ and how this sales configurator can work for your B2B business!
CPQ: What You Need to Know
CPQ is an abbreviated term for Configure, Price, Quote. This software is a vital tool that sellers use in creating accurate quotes for customizable products. One of the main reasons for implementing a CPQ is to boost sales efficiency. When the product proposal and configuration procedure is fast and efficient, it creates room for more accurate quotes. It will help sellers provide customers with a good buying experience.
How CPQ Works
We mentioned earlier that CPQ is implemented for fast sales and productivity. To understand how CPQ works, let’s take a comprehensive look at how it functions:
Configure (C)
The configure stage is the beginning stage of the CPQ process. It is the stage where the customer’s product is configured. Companies offer customers products and solutions configured to their standards and preferences individually. Every buyer loves this process.
Without a CPQ, this process can make a seller’s life miserable. CPQ helps sellers configure complex products and even create opportunities for cross-selling and upselling. At this stage, the software helps reduce the risks of error.
Price (P)
When customers demand more complex products and solutions, the pricing becomes even more complicated. You can’t conjure a price out of thin air when the product is yet to be customized. That is where the CPQ software comes in handy!
This software uses artificial intelligence to search for the customer’s purchasing pattern. These patterns will help the software estimate a price that will fit into the price range the customer has in mind. So it is clear: This software makes sure that the prices fall within a reasonable price range! Keep in mind that the price estimated by the CPQ also maintains the profitable value of the product.
Quote (Q)
The configuration and pricing aspect of the product has been concluded. It is time to send the quote to the customer to know the details. The quote to be sent to the customer has to be error-free. When customers request a quote from you, they expect a fast response. You can only do so with the help of CPQ. CPQ can configure a customized quote for any of your customers. When the quote is processed, a seller can quickly review it to ensure that details are in place before sending it.
Final Thoughts
Every B2B Business needs a CPQ to make the sales process smooth and productive. This article explains CPQ and how it can work for your B2B Business. An ideal CPQ that can help connect your production and sales procedure is the Elfsquad CPQ. It will enable you to configure error-free solutions and products for your customers!
