Integration of CPQ software with customer relationship management tools helps to increase the efficacy and impact of CRM.
In recent years, the customer relationship management (CRM) software category has experienced rapid growth. They have proved invaluable for lead enrichment, financial modeling, human resources, presales prospecting, and configuring price quotes.
Most CRM platforms include native modules and third-party tools. They serve as a starting point for sales workflows. They provide a clear and efficient platform for identifying, connecting, analyzing, categorizing, and ranking sales leads.
CRM platforms integrate several applications to provide support for sales. Using a Configure Price Quote (CPQ) tool can significantly increase productivity for revenue teams. As the complexity of sales processes increases, CPQ tools become crucial in the sales function.
Globally, sales performance management is expanding quickly to enhance revenue velocity through optimizing sales processes. CPQ is a valuable tool in this industry, helping to increase quoting precision and effectiveness.
This set of tools enables companies to
- Configure their goods and services,
- Modify their prices by guidance margins, and
- Quickly produce accurate sales quotes for new potential clients.
Using CPQ software, salespeople can quickly and accurately derive quotes. These tools create competitive offers using information from current price margins, stock levels, and potential discounts. They also account for market data for deriving these quotes.
In recent years, CPQ tools have helped boost the efficiency and productivity of sales teams.
What is the difference between CRM and CPQ?
CRM and CPQ software are essential for many businesses. They can be used in an integrated form or individually.
Both software products have many features that can send quotes and close sales. But, each has advantages and disadvantages.
Here are some points of similarities and differences:
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Price Agility
CPQ systems offer far more customization options when it comes to pricing than traditional CRM programs. You can develop unique pricing models with CPQ to suit specialized goods and services.
This flexibility makes it possible to respond quickly to market changes while maintaining a competitive price. CPQ can assist in developing a pricing model that considers the various configurations while selling a product with numerous configuration options.
On the other hand, a unique price for each set of options with a CRM system is necessary.
This may result in a great deal of duplicate data. Additionally, it results in a significant loss of resources and makes it challenging to keep an accurate pricing structure.
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Customized reporting
The reporting and analysis tools provided by CPQ software for delivering quotes and closing deals are more robust.
CPQ systems are generally useful for businesses that must regularly update their terms. They may want to update their prices or differentiate them. They offer numerous configuration options due to their flexibility.
CRM systems track a customer’s life cycle and have detailed reporting set up for customer communications and interactions. Even the best CRM reporting falls short in actual sales and quotations regarding capability and detail.
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Adaptive Quoting
CPQ quotes change over time. The data will automatically appear if there is a requirement for special conditions, modifications, add-ons, or payment options for the quote.
Once more, this improves effectiveness. To make the process faster, there is also a provision for incorporating E-signature software into the quotes.
However, these tools must be implemented properly to deliver to their strengths.
Implementing a CPQ solution can be challenging and complex, especially for large organizations. However, once it is deployed correctly, the result is much higher conversions and increased customer satisfaction.
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Discover Sales Opportunities
For sales teams, identifying sales leads is a challenging task. When CPQ and CRM work together, they use AI algorithms to find these leads in the customer accounts of current clients. With this data, the sales team can retarget existing customers and also discover and pursue new sales opportunities.
Why is this crucial? Customers who have already purchased from you are five times more likely than new ones to do so again. This way, integrated CRM and CPQ drive increased revenue, too.
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Reduce Admin Time and Increase Responsiveness
Sales teams invest much time configuring products, generating accurate price quotes, and delivering them to customers. These activities take more time than actual selling.
A CPQ that works with the CRM frees up the sales time for actual selling. The software will also assist your sales representatives in personalizing product configurations and generating a quote in minutes.
Additionally, there will be no concerns about misquoting since there is minimal possibility of human error when calculating quotes.
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Utilize a digital catalog to find the ideal products for your audience
Typically, sales representatives sell only the products they are familiar with instead of customizing for each customer. A digital catalog of all your products and configuration options is available for the sales team to customize products with seamless CPQ and CRM integration.
They will also benefit from strategies that make selecting the best products easier. They can collaborate closely with clients to find the closest customized solutions. They can also locate and suggest extra products appropriate for particular clients.
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Identify Profitable Cross-Sell Opportunities
Cross-selling occurs when customers add additional products to an existing order, which can increase the size of a small purchase. Using AI algorithms to customize the product recommendations for each customer leads CPQ solutions to go one step further.
These AI-based CPQ solutions will adapt the product recommendations to be even more personalized based on customer behaviors, improving the customer experience and increasing sales. With CPQ software, cross-selling is possible more often.
Also Read: Ways CPQ Transforms B2B Marketing
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Close Deals Quicker with Price Recommendations
CPQ tool on the CRM can immediately provide customers with the best quote because the software suggests accurate pricing information. This helps close deals faster.
Customers will be less likely to second-guess their purchase or look for alternatives, increasing their likelihood of buying your product.
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Reduce Training Time for Complex and New Products
Much time is typically invested in training the sales team when introducing new or especially complex products.
Since the CPQ provides data on product information, customizations, and pricing, its use can significantly reduce this training time.
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