When it comes
to fulfilling complex requirements related to product configuration, pricing
and quoting, you can completely rely on a configure price quote (CPQ) software
application. Large organizations typically have complex products/ services to
offer. In such circumstances, a CPQ solution is recommended, as it enables you
to generate quotes in minutes despite having a complex quote-to-cash process.
However,
vendors offering CPQ services are numerous, thereby causing confusion about
choosing the right one. Following are the factors to keep in mind when choosing
a CPQ
software:
Cloud-based or On-Premise CPQ Solution
With a
cloud-based CPQ solution, you skip the software installation part altogether,
which mean you don’t face any technical challenges associated with
installation. The vendor provides CPQ services over the Web, which means an
internet access enables you to operate the software on desktops, laptops and
even mobile devices. Instead of your computer’s hard drive, the internet
servers are used for processing and data storage. The complicated job of
maintenance and adding new feature to the product is done by the CPQ software
vendor at his end. Isn’t that convenient? This enables you to focus on your
core business. You only to have to pay a monthly subscription fee in order to
access this web quoting software on your
computer.
Integrates well with your Existing
Software Applications
If your
existing system does not support integration required to incorporate CPQ into
your business, it doesn’t make any sense choosing such a sales quoting
software that brings data integrity issues. Entering the same
data multiple times in different systems is simply a waste of time and effort. The
addition should not be a burden on your business, rather the CPQ solution you
select should allow you to streamline your business processes. For instance,
the integration should automatically populate data for sales quotes into
opportunities in your existing CRM system.
Supports your Pricing Requirements
Your
organization will be having different pricing structures for different customers.
For instance, you might be using different methods for pricing your products
such as cost based pricing, mark-up pricing, customer based pricing and
competition based pricing and pricing based on Category/Subcategory. So the CPQ
software you select should support all pricing strategies that you are using
for establishing pricing of products.
Choose the Right Type of Software
Since every
organization is different, make sure the CPQ you purchase is able to address
your specific needs. To be more specific, it should meet you specific
configuration needs. Experts opine companies with complex product catalogs that
change regularly should prefer a CPQ with a constraint-based configuration
engine. On the other hand, organizations whose business activities are not
changing with time and have a fixed product catalog can go for CPQ with a
rule-based configuration engine.
In case you
have multiple sales channels, meaning you are also selling products through
your partners such as distributers. Moreover, you want your customers to view
your quote on different devices including mobile devices such as smartphones
and tablets. In such circumstances, it is advised to use a CPQ with
omni-channel capabilities.
Prefer Vendors that Offer Free Trial
Coming to
know that the software you have purchased actually does not meet your needs can
be a costly mistake. To avoid such a scenario, choose a vendor that is ready to
give you a free trial of the software. This way you can find out whether the
software is suitable for your organization.
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