In any new relationship, it’s important to keep an eye out for the red flags. When on the hunt for a new CPQ quoting tool, finding the vendor that is the best fit for your company is essential. You want the tool with the features you need, that is easy to use, and that enhances the customer service experience.
For those who are unaware, CPQ stands for Configure, Price, Quote, and it is a sales tool that generates quotes for configurable product orders. Essentially, it breaks down the transaction to compatible features & options, provides a competitive price based upon data, and then generates a quote and timeline for your customer. CPQ is designed to help with complicated, intricate purchases; it automates tasks that sales representatives or managers need in order to close a sale. With the help of data, it saves time and streamlines the process, allowing the customer to have an overall better experience. CPQ can be integrated with other software that will enhance your business such as ERP, CAD or CRM, and can also offer 2D and 3D visuals and dynamic pricing with instant quote generation. It’s a very helpful tool to have in your arsenal.
How do you know which vendor is the best fit? That all depends on what your business needs; however, it’s easy enough to help you rule out what you don’t want from a vendor. Here is a list of the qualities to avoid when searching for a CPQ vendor.
- It isn’t SaaS
SaaS is a term being used synonymously with the cloud. It’s important to take note of the distinction between SaaS (software-as-a-service), which is available third-party over the internet; PaaS (platform-as-a-service), which offers hardware and software tools available over the internet; or IaaS (infrastructure-as-a-service), which is a pay-as-you-go platform for services like storage and networking.
When utilizing a CPQ tool, SaaS is the most flexible model because you have total control over deployments and other vendors and operations.
- It doesn’t play well with others
Part of what makes CPQ so beneficial is its ability to collaborate with other software to simplify employee tasks and enhance customer experience. Therefore, it should seamlessly integrate with your CRM, ERP, and CAD software.
- Scalability is lacking or nonexistent
The goal of most businesses is to grow, and as you grow, your software needs to expand with you. CPQ must keep up with your needs, regardless of product volume, complexity, or workflow.
You shouldn’t need to pay more for demanding your CPQ work for you. Make sure to find a CPQ tool that will address your needs well into the future.
- Dynamic pricing isn’t an option
Dynamic pricing allows customers and sales representatives to see how the price of the product is changing as the product is configured. Because the pricing changes happen in real-time, it is clear how different customizations affect the overall price and helps customers to make decisions.
- Multiple sales channels can’t be maintained
If you balance unique pricing and product selections across channels like distributors, retailers, and Ecommerce, you need to make sure that you find a customizable omnichannel CPQ to provide differentiated user experiences that remain consistent.
- Embedding is a no-go
This is relevant if you intend to allow customers or dealers to self-serve. If so, your configurator must be able to be embedded into your website. If this isn’t manageable, you will have to hard-code everything yourself, which can be expensive and highly time consuming. Even if you haven’t ventured into the world of Ecommerce yet, keep it in mind for the future. Customers can play around as they like, point and click and drag and drop to build custom products, and they can do so independently and on their own time.
- No guided selling
Depending on how complex your product is, not having a guided selling option will make things challenging, especially to new sales representatives. Guided selling does exactly what the name suggests: it moves the sale along offering product options, upsells, cross-sells, and recommendations that are tailored to the customer’s product. With this, even new hires will be selling like old pros in no time.
- Your product is too complex for it
Some products are highly sophisticated and intricate and need very complex rules or detailed engineering. Make sure the CPQ tool can handle your highly sophisticated products and options.
- You can’t maintain the CPQ
As we all know, sometimes we want to make simple changes or upgrades to our software. If you are unable to make these maintenance changes on your own, find out who does it and at what cost to you.
- The visual capabilities are minimal
We are no longer a world that that can be enticed by text; we want to see everything, ideally in 2D/3D/ AR/VR representations. CPQ tools can provide buyers immersive buying experiences if you get the right tool.
There you have it – a list of warning signs to help you spot CPQ vendors that are not the best fit for you. The team at Godlan would be happy to address your CPQ needs and show you how your CPQ and ERP systems can work together to propel your business ahead of the competition. For more information, visit www.Godlan.com or call 586.464.4400 today.