6 Best Practices for Implementing CPQ Systems

1. 6 Best Practices for Implementing CPQ Systems ============================================================================= For most manufacturers operating without CPQ software, generating instant and accurate quotes can be a real struggle. This is because the data required to prepare accurate quotes are frequently dispersed across multiple siloed teams that use different systems. You can, however, significantly improve your sales cycle by implementing robust CPQ software that automates sales, connects departments, collects data from across your organization, and eliminates errors. As great as this sounds, CPQ systems are only as good as their integration, implementation, and application. For a successful CPQ software implementation, you will need the right: ● Product design ● Set-up ● Project strategy Here are some best practices for implementing a highly effective CPQ system in your organization. 1. Clearly Define Project Goals Internally and with Your CPQ Vendor To achieve an objective in business, you must start by clearly defining it. One of the main reasons business owners buy a CPQ tool is to improve the sales process, streamline communication bottlenecks between manufacturing and sales, or simply connect with their clients better by giving them access to certain features such as 3D product configuration. The right CPQ tools have all these key features and can help achieve these objectives if implemented correctly. The best way to do that is to start by clearly defining your goals and the desired outcomes. For example: ● Faster sales cycles ● Reduced quoting errors ● Enhanced sales productivity ● Increased customer satisfaction These goals or objectives must be SMART:Specific, Measurable, Achievable, Relevant, and Time-Bound.

2. 2. Choose Top CPQ Software with the Right Features High-end CPQ software has a lot of powerful features, including but not limited to the following: ● Visual product configuration ● Pricing management ● Automated quoting ● Guided selling Implementing all the available product features at once can be tempting, but this would be a mistake. For one thing, your team will struggle to master them all. Secondly, your business might only require a limited number of features–anything more will only increase complexity. The best approach is to focus on the product features you need to meet your defined project goals. Once you are clear about what you want to achieve as an organization, it's easier to prioritize the CPQ software features that will help you get there faster. Sticking to the stock features built into the product is also advisable instead of customizing your own. The best strategy would be to use the built-in features first and ensure everything runs smoothly and effectively before adding any customizations. 3. Collate Your Data One of the most significant advantages of implementing CPQ tools into your organizational operations is that it helps to centralize your data. As such, the system you choose will require data from several different sources. To get this right, you must ensure that the CPQ system you implement integrates seamlessly with other organizational systems, such as ERP and CRM, whether on-prem or in the cloud. This will keep teams in sync and enable the automation of cross-functional workflows. 4. Configure the Approved Features After collating the necessary data and installing the approved CPQ package, it's time to configure your chosen features. While these features will vary from one implementation process to another, a few are paramount to each CPQ system. These include: ● Product and Pricing Rules: These rules determine how products can be configured, priced, and sold. The best CPQ systems, like Epicor CPQ, have a no-code rules engine, enabling non-technical business users to configure the solution.

3. ● Approvals: A complete and accurate quote may go through several departments, depending on your organization. It’s essential for every party involved to understand how the quote process progresses from one approval level to another and to automate approvals where possible. ● Quote templates: Formatting your quote templates is one way to ensure uniformity throughout the process and enhance efficiency. You can customize your quote templates with your company name, logo, and terms and conditions. Properly configuring these features creates well-defined rules, making the right CPQ environment for your teams to output accurate quotes quickly and efficiently. 5. Proactively Manage the Change and Get Buy-In The CPQ implementation process should involve the entire organization. Involving every stakeholder in the implementation process will help shed some light on the following: ● The necessary features ● User experience ● Desired outcomes Stakeholders should all agree on what is an essential part of the CPQ solution and what is considered non-essential and unnecessary for inclusion in the initial implementation phase. Remember to consult customer support. They may not use the CPQ system but interface with customers daily and understand their perspectives and pain points. 6. Test and Track Project Progress One of the most critical parts of the implementation project is the "User Acceptance Testing" phase. This is where employees and customers are trained on the CPQ tool, test it out, and see if it meets spec and their expectations. Most issues are identified and corrected at this stage before the system is rolled out organization-wide. Here are some steps you can follow when testing the implemented CPQ system: ● Clearly define the testing schedule as well as the timelines ● Identify testing scenarios ● Use a corresponding test case for each feature that needs to be explored ● Confirm whether the system met business objectives It's essential to set up a "sandbox" where you will be conducting all the necessary tests on the newly implemented CPQ system. This ensures data-to-day operations are unaffected and vital

4. production data is safeguarded. You can also use this sandbox during demos and training sessions. Finally, as part of the testing phase, it's necessary to conduct several user satisfaction surveys. These will show you whether or not the new CPQ tool has a positive impact. You should note that the user adoption process is just as important an implementation step as any mentioned here. If the intended users find the CPQ system challenging, not only will it slow down the return on investment, but they may resist embracing the change altogether. To avoid this, ensure adequate user adoption support regarding training materials, real-life case studies on the positive impacts of CPQ adoption, and user involvement from the beginning. The Bottom Line: Implementing CPQ Software Solutions Doesn’t Have to Be Challenging As you can see, CPQ implementation can be complicated, and it often requires the help of a technical CPQ installation expert. However, by following the six best practices above, you can achieve systematic implementation quickly and efficiently, experiencing rapid time-to-value and adoption.