Can CPQ Software (Really) Increase Your Conversion Rate by 40%?

1. Can CPQ Software (Really) Increase Your Conversion Rate by 40%? ============================= CPQ software encompasses a set of powerful tools designed to automate and optimize product configuration, pricing, and quoting activities within an organization. It's used by many of the world's most innovative businesses, but will CPQ software boost your company's conversion rate by 40%? Short answer; no, not necessarily. It all depends, of course, on your business case and the specific CPQ software you employ. 40% is the experienced by KBMax CPQ users. But while it's impossible to predict with complete accuracy which companies post-implementation, we can still make a pretty solid guess. rate this average conversion increase threshold will surpass Manufacturers of complex, engineer-to-order goods stand to gain the most from CPQ software due to simplifying their sales processes, shortening sales cycles, and improving engineering efficiency. Massive gains are currently being made in biotech, but CPQ software is widely applicable. Read on to find out how CPQ software could impact your conversion rate right now. CPQ software enables the rapid, accurate configuration of complex products by non-technical sales reps (and even end-customers themselves!) Demand for customizable products is snowballing, and manufacturers are struggling to cope. Sales reps might have the skills required to configure products with a handful of different product options, but when this number proliferates to hundreds, thousands, or even more, configuration becomes an "impossible" task. Even the most knowledgeable product experts lack the mental agility required to build-out perfect configurations satisfaction, engineering efficiency, and margin maximization every time. If they could, it might take weeks! optimized for customer The internet has opened up a global pool of competition and consumer-like buying experiences, leaving buyers with higher expectations and less patience than ever before. We're living through a personalization revolution,

2. and CPQ software is uniquely placed to cope with the new set of challenges currently presenting themselves. Perhaps the most fundamental feature of CPQ software for manufacturing is the "product configurator." It's a tool that sales reps (and even buyers themselves - more on that below) can use to quickly and efficiently carry out complex ​product configuration with no in-depth technical knowledge or engineering input required. Product configurators come in a variety of different flavors. On the more basic end of the spectrum, you have your standard text-based configurator. These are typically designed for internal use by sales reps working from the office (wherever that might be) or in the field. And although simplistic compared with visual CPQ alternatives explored later, they can still be a total game-changer. Basic product configurators guide sales reps through a series of calibrated questions designed to uncover each configuration. Product rules coded into the backend of the tool ensure reps put together optimized products and bundles every time, without having to worry about compatibility or suitability issues, leaving reps to focus on providing an engaging sales interaction while CPQ software does all the heavy lifting in the background. case's customer ideal product On the more advanced end of the CPQ software spectrum, you have visual product configurators. These can provide anything from a 2D or 3D visual buying experience, right up to an AR and VR configuration process carried out within a simulated reality. Visual product configurators perform the same function as their text-based cousins; they just do it more quickly, efficiently, and engagingly, from both the buyer and sales rep's perspective. Here's why. Rather than labor through a series of questions and text-based prompts, users of visual product configurators can rapidly assemble products within a highly intuitive visual interface, pointing and clicking to select various options and dragging and dropping them into place. Sales reps gain a rich understanding of the products they're selling, becoming trusted advisors to buyers, connecting with them on a more emotional level.

3. One of the most exciting CPQ software features is the ability to embed visual product configurators into external, innovation enables buyers to configure and purchase goods independently, self-serving without any human input. With 3D product configuration, buyers gain a clear visual understanding of products before they ship, reducing purchase anxiety—the rollout of 5G promises fully immersive AR and VR configuration experiences from anywhere, through any device. customer-facing websites. This The best CPQ software calculates prices that trigger a purchase response while ringfencing margins. Buyers need to have all the requisite product information at their fingertips before making a favorable purchase decision. Visual product configuration gives buyers the ability to actually see finished products, rather than relying on imagined pictures in their heads, reducing uncertainty, ambiguity, and information-overload. But the reality is: you can furnish buyers with the most hyper-realistic product rendering possible, but it means nothing without a price accompanying it. The average sales rep spends just 34% of their time actively selling, and the remaining 66% knee-deep in Excel, number-crunching, creating proposals, and seeking approvals for discounts. The more complex a product, the more complicated the pricing calculation, and the longer buyers have to wait to receive a quote. CPQ software slashes milliseconds. Pricing rules built into product configurators recalculate prices in real-time as users play around with various product options so buyers can always stay within budget constraints. from quote times weeks to With ​CPQ software solutions​, pricing isn't just fast. It's "intelligent." A broad and fluctuating range of internal and external conditions can be worked into pricing calculations, helping form intelligent pricing strategies that maximize revenue and margin. Said variables could include order history, order volume, customer prices, market demand, cost prices, incentives, and any case-specific alternatives. Monitoring and incorporating all of this data into every pricing decision lies way beyond the scope of any human-only pricing team. Still, the best CPQ software solutions enhance rather than constrain sales reps: Reps can easily override automated pricing calculations and assign discounts and special

4. pricing conditions as they see fit (bound only by the software's permission settings.) Custom approval loops streamline discounting, improving oversight and control while clearing bottlenecks. When a rep oversteps a certain discount threshold, CPQ software automatically sends out an approval request to the right manager, who can sign off or reject a price with a single click. No more missed calls and protracted email transparent pricing hub keeps everyone on the same page and accountable. - threads having one centralized, CPQ software instantly generates quotes, proposals, and estimates. But the best CPQ software solutions can produce much more than run of-the-mill PDFs. There's no greater waste of time than that spent creating quotes manually in Excel. It's the most menial and repetitive task. And it's so easily replicable that there's no reason why a machine shouldn't do it. CPQ software users can simply click a button to produce beautifully-designed, brand-correct quotes, with other simple docs like proposals, marketing collateral, and terms and conditions generated just as swiftly. Human error is eradicated. KBMax CPQ takes document generation a (big) step further. With ​CAD design automation​, non-technical users can produce technical drawings in CAD, BOMs, cut sheets, and instruction documents without contacting the engineering department for help. Engineers can spend their working hours focussed on innovation (what they spent all that time and money studying for) without being preoccupied with everyday mundanities.