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CPQ for SAP: We Uncover the Good and the Bad

CPQ for SAP lets you quickly configure complex products, calculate prices, and generate proposals. Itu2019s a powerful tool. But itu2019s not without its faults.

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CPQ for SAP: We Uncover the Good and the Bad

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  1. CPQ for SAP: We Uncover the Good and the Bad ============================= CPQ for SAP (Configure, Price, Quote) lets your sales reps quickly configure the most complex products, calculate generate compelling proposals. It’s a powerful piece of software with lots to offer. But it’s not without its faults. optimized prices, and instantly In this piece, we take a deep dive into CPQ for SAP, discover out how it operates, and find out if it achieves its aim of making it effortless to offer customers the right product, at the right price, at the right time. How does CPQ for SAP actually work? At its core, CPQ for SAP operates in much the same way as Salesforce CPQ and the other CPQ solutions on the market. It has a visual interface that sales reps use to configure complex Embedded AI guides reps through the configuration process, ensures they pick out the right products at the right price and instantly generates a proposal. manufacture-to-order products. What’s GOOD about CPQ for SAP? The visual interface is highly intuitive. CPQ for SAP’s visual interface is so easy to navigate that even new hires can learn how to use it in a matter of hours. Within days they can be providing expert-level customer service, regardless of product complexity. Users simply point and click to assemble products and proposals, while logic built into the backend prevents nonviable configurations. Channel partners can be bought up to speed in no time, and new product launches are seamless. Embedded AI improves conversion rates. CPQ for SAP features so-called “embedded augmented intelligence.” It learns what makes customers convert, and what doesn’t. It’s like having a team of virtual data scientists on your side, transforming failing sales reps into top performers. “Guided selling” increases deal sizes.

  2. CPQ for SAP carefully guides sales reps through the configuration phase, recommending up-sells, cross-sells, and price augmentation opportunities along the way. Deal sizes are increased at every opportunity, but in a way that’s helpful to prospects and doesn’t come across as “pushy.” Prices are optimized in line with your pricing strategy. Product, customer, and channel price controls can be configured according to your pricing strategy, whether it be profit maximization, market penetration, cost-plus, or a hybrid. Optimized prices are calculated automatically, meaning reps no longer have to speculate over which prices and discounts will secure the best deals. Meanwhile, over-discounting and rogue trading. you’re protected against Error-free quotes are generated instantly. CPQ for SAP creates compelling quotes and proposals in seconds, while e-sign functionality ensures they can be approved just as fast. Far from generic, these sales documents are beautifully designed in line with your company’s branding guidelines. They can be thousands of lines long but will always be error-free. Cloud deployment improves accessibility and collaboration. CPQ for SAP lives online and is offered as software as a service (SaaS) through a subscription fee. It’s accessible by employees wherever they are, through any device, and everyone has access to a central hub, promoting transparency and accountability. It’s reliable (99.95% SLA with 24/7 monitoring and proactive health and performance checks), scalable, compliant, and secure. Assisted Service Mode offers real-time customer support from customer service agents who have access to all the relevant information. Operational efficiency shortens sales cycles. As discussed, CPQ for SAP increases sales effectiveness by streamlining complex configuration, pricing, and quoting. But it also boosts operational efficiency by simplifying the approval process. Price and discount approvals are a massive drag for sales reps that need sign-off from managers - emails are missed, phone calls go unanswered, disappear on leave. All the while, customers are left hanging and reps lose valuable selling time. and managers mysteriously

  3. CPQ for SAP automatically sends approval requests to managers who can sign them off with a single click. It all happens within the CPQ solution. Sales teams and managers have visibility collaboration and accountability, reduces delays, and keeps negotiations on track. over workflows, which increases It integrates well with any CRM or ERP platform. CPQ for SAP is great for omnichannel. It has the connectivity required to sell through any channel, on any quote-to-fulfillment processes. It works particularly well, however, when integrated into a unified SAP model with SAP Sales Cloud, SAP Commerce Cloud, and SAP Service Cloud (if you can afford it.) platform, while streamlining It’s a truly global tool. SAP, headquartered in Germany, is a massive corporation ($27.5 billion revenue compared with $17.1 billion for Salesforce) with global reach. It provides excellent internationalization currencies - ideal for companies with multinational operations. with 30 languages and multiple It provides excellent business insights. CPQ for SAP provides a wealth of data-driven insights designed to enhance decision-making and maximize sales opportunities. Users can identify new product and pricing trends, identify channels, and react faster to market changes. poorly performing products and What’s BAD about CPQ for SAP? It’s expensive, which might make it unsuitable for smaller businesses. CPQ for SAP doesn’t come cheap, so it’s best suited to large companies with big budgets. Companies paying over $1 million annually for their SAP Hybris platform (not unusual) should probably everything unified. On the other hand, if you’re not currently using SAP, you can find the same functionality elsewhere, for less. for use CPQ SAP and keep Implementation is tricky (and, again, expensive). SAP usually requires specialist implementation by an agency partner, which takes a long time and comes at a cost. It’s yet another reason CPQ for SAP might not be the best option for small businesses.

  4. It’s not the most user-friendly tool. There’s no doubt CPQ for SAP is a robust tool, but its power comes at the expense of usability. Non-technical users will require specialist training to master what is essentially a rather developer-centric tool. You’re just another user. SAP is the third-largest software supplier globally, with 41,200 customers in 120 countries and a staggering 12 million users. Customer support is excellent, but your business might mean more to a smaller CPQ supplier that’s vested in your success and wants to see you grow. It lacks CAD and design automation. CPQ for SAP creates quotes and proposals, but other CPQ tools can automatically generate much more. With KBMax, sales reps can produce technical drawings through SolidWorks (AutoCAD, Autodesk Inventor, PTC Creo, etc.) at the touch of a button without any engineering input. It’s designed for use by sales teams rather than buyers. CPQ for SAP’s ​3D product configurator is a gamechanger for those reps used to dealing with paper catalogs or their iPad equivalents. Still, other CPQ tools feature product configurators designed for customers too. These can be embedded into ​B2B eCommerce websites for buyers to self-serve at their own pace with virtual reality (VR) and augmented reality (AR), providing a fully immersive shopping experience.

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