How to Double the Value of Your Configured Software Deals

1. How to Double the Value of Your Configured Software Deals? ========================================================================= You have several sources of incoming leads. You’re training your sales reps to produce the best results for your business. The more money you put into training, the more salespeople you can hire and, consequently, the more money you will make. The catch is that investing in sales staff through training and expansion is not a scalable method of driving growth. Not to say investing in reps isn’t worthwhile. However, as you keep spending money on people, you'll need a more effective strategy for driving top-line growth that doesn't require constant increases in spending. According to Epicor, configured software (also known as configure, price, quote software, or CPQ) can improve your average transaction size by 100% without increasing headcount. In this guide, we'll define CPQ and show you how to put this powerful solution to increase your win rate and average transaction size, two critical metrics for boosting income. What is Configured Software (CPQ)? How do you define CPQ (Configured PQ) Software? Manufacturers can benefit from CPQ because it is a software solution for the following tasks: Configure Numerous options are available for customization when purchasing a sophisticated product from a manufacturer. Agents selling these items must be able to assess a client's situation and come up with workable arrangements. The client opts for one that best suits their requirements, then makes a price inquiry. It's not a scalable solution, is it? You'll also need a skilled sales force to evaluate opportunities and visualize intricate setups. By automatically creating workable configurations, CPQ shortens the buying process and gets customers to the next stage of the buying experience faster. Price Mistakes in pricing can be pretty costly. Often, they can significantly shrink your margins. Worst case scenario, you'll come out even. Changing prices at the last minute can be disastrous for businesses. Another major problem with pricing for manufacturers is the time it takes between a client requesting a quote and the manufacturer’s ability to offer that quote. B2B buyers want fast responses, and 71% of B2B buyers want a B2C-like experience where they can get questions answered quickly. You could leave money on the table if you take too long to quote a price.

2. CPQ solves both of these problems. An instant quote is generated by CPQ based on a set of rules. There won't be any miscalculations in the price because a human is not determining it. Quote When just 34% of a salesperson's time is spent really selling, automating quotes is a great way to give them back part of their time. Potential buyers may ask for price quotes on a variety of different combinations. Instead of having sales reps work on mundane tasks that you can automate, like creating quotes, allow them to direct their efforts towards tasks that need a human touch. Customers buying from you will also value quick quotations. 60% of B2B buyers prefer not interacting with sales reps, so why not give your customers what they want with configured software (CPQ)? What Does CPQ Software Do To Deal Size? How configured software can increase the size of your deal was outlined in the section before this one. But let’s dig deeper and more clearly establish how CPQ can increase your average deal size by 100%. 1. Enables customers to investigate high-value configurations The average time B2B buyers desire to spend with a sales representative is 5 to 6%. You have much information to cover in that brief span, including choosing a configuration, giving them a demo, and determining a price. Buyers might not have enough time to investigate additional high-value setups. Your top line can increase dramatically if you address this problem, which is where CPQ can be of assistance. Faster delivery of possible configurations is possible with CPQ. It can also offer multiple designs based on the buyer’s needs, allowing them to explore a more extensive list of offerings. Integrating the CPQ with your B2B eCommerce website may also do away with the sales representatives' involvement in the selection process. Customers can watch a real-time 3D rendering of the settings. This gives buyers a clearer understanding of what the final product may look like and if the design matches their needs—without speaking to a sales rep. 2.Configure Price Quote Software to Boost the Efficiency of Your Sales Force Sales representatives can use CPQ to upsell and cross-sell opportunities quickly. Sales representatives won't need to actively search for these chances because the program offers recommendations based on previous purchases and product regulations. Your average transaction size will grow when your sales staff can present customers with valuable products that complement their prior purchase or a better configuration than what they had in mind. Additionally, CPQ helps sales professionals save a tonne of time each week.

3. Sales representatives might use this time to focus on retargeting marketing for current clients with goods that could complement their first purchase. Your revenue may rise over time due to cross-sells and upsells that enhance revenue. 3.With CPQ Sales Features, pricing errors are eliminated. Sales representatives may need to gather information from several sources and channels to propose a price. They put all the data into a spreadsheet and try to determine a price. The problem? There’s a lot of room for error. But that’s not all. Your business may also use arbitrary discounting. You may have a different price list based on a buyer’s location, quantity, and the sales channel the buyer came to you from. This could make pricing even more difficult and increase the risk of mistakes. This procedure is automated by CPQ, which guarantees that you never lose business due to a pricing error. Additionally, it ensures that your average deal value is correct, safeguarding your profit margins. Final Thoughts: How to 100% Increase Deal Size Utilizing Configured Software? Since configured software offers immediate, revenue-focused benefits, it might be an excellent investment. In addition to raising your average deal size, CPQ may enhance client satisfaction, streamline internal operations, and automate procedures like making CAD files. Long-term customer experience may be a significant growth driver, while efficiency and automation can help you increase profitability. Unsurprisingly, CPQ provides an ROI of 622% on average. If that sounds interesting, try using a Epicor CPQ for your business.