CPQ solutions have become a key tool for manufacturers of custom products to streamline their sales processes. But amidst all the hype, there’s a lot of confusion and misinformation about how CPQ works and what it can actually do.
In this blog, we’ll take a look at some of the common myths and run through the real-world benefits of CPQ.
Myth #1: CPQ Is Only For Large Enterprises
CPQ solutions can deliver business benefits for organizations of all sizes, in any industry. CPQ software can deliver benefits for any business that sells custom products. CPQ enables businesses to configure custom products, set pricing, and generate accurate quotes faster. These are benefits that companies of all sizes can take advantage of to streamline their sales process, improve customer satisfaction, and drive growth.
Myth #2: CPQ Replaces Sales Reps
CPQ helps sales reps to work more efficiently. It enables them to spend more time selling without having to waste non-selling time on tasks such as preparing quotes, calculating prices, and keeping up to date with complex product configuration options. Rules-based guided selling also makes it easier for sales teams to identify and offer cross-sell and up-sell opportunities to increase average sales values.
Myth #3: CPQ Is Only for Quoting
CPQ is a complete solution that involves configuring a product to meet specific customer requirements, setting the price based on the configuration chosen and then generating a detailed quote. CPQM solutions also generate all of the documents and data required for manufacturing teams to produce the custom product.
Myth #4: My Products Are Too Complex For CPQ
CPQ solutions deliver benefits for many businesses, including those with complex product lines. Regardless of the level of product complexity, guided selling and product visualization functionality will enable sales teams and customers to select appropriate and compatible custom options and automatically generate complex custom quotes. CPQM solutions are rules-based, meaning only valid options can be configured and sold. CPQM solutions also generate all of the manufacturing data and documents required to accurately produce complex custom products.
Myth #5: CPQ Is Difficult To Integrate
CPQ solutions are designed to integrate with other business systems to streamline and enhance different processes across your business. Here are some common types of integrations that CPQ systems often have:
- CRM (Customer Relationship Management)
- ERP (Enterprise Resource Planning)
- E-commerce Platforms
- Billing and Invoicing Systems
- PLM (Product Lifecycle Management)
Myth #6: CPQ Solutions Aren’t Web or Mobile Device-Friendly
CPQ solutions enable sales teams and customers to configure custom products online at any time. Interactive product configurators can be used in a browser on any device, anywhere, at any time of the day or night. As an increasing number of B2B customers want to buy online the ability to offer interactive product visualization becomes increasingly valuable.
Myth #7: CPQ Takes A Long Time To Implement
CPQ solutions can take anywhere from a few weeks to several months to implement. The implementation timeline will vary according to several different factors including business size, and product and process complexity. Our recommendation is for businesses to start small and take a scalable approach. Starting with more simple products enables you to reap benefits sooner, and use that saved time to build on your CPQ solution, with the knowledge you have gained.
Myth #8: CPQ Is Only For Internal Sales Teams
CPQ solutions can be used by customers, dealers, distributors, and resellers who have access to your product configurator. CPQ rules-based guided selling functionality enables anyone to configure custom products anywhere, at any time on any device. You set your own permissions, security and workflows to control who can access your CPQ solution, and who can perform specific actions.
DriveWorks CPQM
DriveWorks CPQ for Manufacturing software enables you to build and manage your own custom configure, price, quote solution that automatically generates all of the documents and data you need for sales and manufacturing.