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Well, CPQ stands for Configure Price Quote. It is a software tool which is widely used by
sales personnel. So basically with this tool, the sales executives within an organization will
have an overall view of different aspects of a project quote and help them to reach an
optimum level when it comes to the price quote.
With the help of this tool, it gives the flexibility for the sales executives to work on the price
quotes based on the latest approved pricing structures and discounting rules and approvals
already predefined.
So basically all these factors are taken into consideration while generating a particular price
quote. All this can happen anywhere and right at their fingertips as on when there is a need.
Thus making it a flexible tool and independent tool for all the sales executives within the
organizations.
It not only makes your sales executives' or officials' life easier and efficient it also adds to
the overall execution of the organization's selling strategy.
Well, when it comes to CRM systems most of them do not cater to the option or flexibility of
automating their price quote processes and thus making life hard. With the existing CRM
applications that are out in the market, it is difficult to automate the price quote process.
Thus forcing the employees to rely on standard Microsoft Word or Excel. By following this
process, the entire flow of quote generation is slowed down to a maximum extent. Further,
they might not be 100% accurate and prone to unidentified risks.
This being said about the slow price quote process, will further affect the next steps like
having low win rates and also more obstacles to make from potential lead to a customer.
Thus, ultimately affecting the revenue for the organization.
4. What are the primary factors that are usually encountered within an
organization where it calls for a need for CPQ software?
The primary factors that are encountered within an organization where they see a growing
need for CPQ software:
If you observe any of these challenges are actually bringing your sales team to
underperform it is your responsibility to invest in a good CPQ software that helps you to be
in a good position.
The following ways are the key aspects of transforming the organization's sales, as follows:
Increase Speed
Eliminate Errors
Maximize the Deal size
Provide accurate and updated information
The major roadblocks that actually slows down the sales in an organization are as follows:
It is practically impossible to find out all the product-related offerings and detailed
information about the latest products.
Not able to judge what products would suit the customer as per their requirement.
This is pure because the sales executive is confused about the product offerings
itself because there is no repository of all product offerings and the latest information
about them
No proper discount rules defined for products
Following up with the approvals from the managers will increase internal follows
even before sending the quote to the customer
Manual quote creation, prone to a lot of human errors
All these obstacles will be well handled and managed by the team if they have automated
software that helps them to get their price quote up and running in few minutes. All this can
happen by using a CPQ tool
7. Can you list out few bullet points why a CPQ tool will have your sales
increase faster and make you more productive straight away?
The following are the bullet points that actually let the users why the CPQ tool is so
important and why it makes such a good impact.
8. How does the CPQ tool helps you make money apart from the sales?
As we all know, the only way to make money is to sell the products to the market, and
based on the margin an organization is evaluated in terms of profit.
If the price quotes for the requirements are done manually then usually they are provided
with deep discount deals where they have only one intention is to close the deal with the
customer at any given point of time. This way, the profit margin is reduced to a very low
value.
If this process is automated with a CPQ tool, we add value to the price quote by providing
the right product information and the right product price in an organized manner. During this
process, all the discounts are actually set and approved so thus there is no manual
intervention.
Based on the price quote, the profits are actually agreed upon by the team rather than a
single executive. Thus it helps in making more money and profit to an organization.
Well, pricing the product at the appropriate level is one of the important factors which has
an immediate impact on the revenue and margins of the organization.
10. What are the different factors that are taken into consideration while
pricing a product?
The following are the different factors that are taken into consideration while pricing a
product are as follows:
All of these are the different factors that have a dynamic impact on product evaluation and
product pricing.
11. Why does the CPQ tool is considered a modern-day utility tool for an
organization?
12. How does the CPQ tool actually helps you to turn all your quotes into
contracts?
Well, it is a known fact that the sales process doesn’t stop after just sending out the price
quote to the customer. The sales user should be able to follow up and make sure that the
customer is turned from potential lead to actual customer to the organization.
Thus, the modern-day CPQ tool actually helps you to simply transfer all the information from
the Quote to the contract management system, thus eliminating the effort of putting all the
price quote information into a contact management system manually. This helps to reduce a
lot of time and gives power to the users to close the deal much faster when compared to the
traditional way.
13. Why does the CPQ tool help your sales executives with Influencing
behavior?
Well, it is a known factor that the more they sell the organization does make more profit
from the sales so it is evident for the organization to actually invest in some sort of a tool
that actually makes or inculcates a motivation.
So one such tool is nothing but CPQ, it does provide the right information about the product
at the right time. Thus giving out a positive feeling for the sales executive and ultimately
motivates him to do this over time.
14. What is the future of the CPQ tools with machine learning?
There is a lot of future to CPQ tool when it is coming up with machine learning concept.
With the help of machine learning concepts, it helps the sales users to compare their
current price quotes with all the previous price quotes of their prominent sales executives,
thus providing a comparison environment.
This helps reduce the mistakes in the current price quote and modify it according to the
suggestion that was provided by the system itself. All together this will help the price quote
to be excellent and attract the customers because we are quoting exactly what they were
looking out and especially when they see a well-drafted quote they don’t mind spending a
premium amount because it creates trust in the services angle.
Because the tool actually helps the businesses to be more competitive in terms of
competing with the target marketing and also become more agile and dynamic while
following up with the customers providing them with a customized environment. In general,
using the Apttus CPQ tool one can observe a straight jump in their sales revenue as it is the
right mixture for the current market need.
16. So what does ABO stands for in the Apttus CPQ tool?
17. Does the Apttus CPQ tool has an API where they can connect to
third-party systems to do more?
Yes, absolutely. The tool has APIs available so that they can connect to any other third-
party systems where they can manage and do more. The integration process is very
smooth and easy to start off with.
Yes, the Apttus DocuSign package can be integrated and thus enables the users to avail
the signature facility within the Apttus interface.