What is a CPQ Strategy?

Peculiarities of CPQ Strategy in Large Organizations

The first place among the advantages is revenue growth. Thanks to a well-designed system, attractive product bundling is complemented by a favorable cost, which is regulated by discounts. In addition to increased profits, CPQ software like Pandadoc CPQ features include:

1. High quality of customer service. Quick answers to customer questions increase customer loyalty.
2. Informed decision-making. Information about customer preferences is generated automatically.
3. Staying ahead of competitors. With a small market, the company is clearly visible among possible alternatives.

What goals are driving pricing transformation? There are three of them to mention:

• setting up adjustments to improve profitability;
• optimizing operations to improve efficiency;
• generating data for rapid decision-making.

In the first case, profitability increases already in the next financial year. When automatic calculations are implemented, errors are reduced. In the second case, time spent on preparing quotations is reduced. All employees can be taught the nuances of using the software. In the third case, advanced analytical documents are implemented, and pricing for different groups of customers is optimized. A control panel is created for sales representatives, which can work in real-time.

How to Define a CPQ Business Strategy

Price is used as the lower limit. How does it change when the CPQ tool is used in each specific company? Five other criteria are taken into account to increase sales:

1. Evaluation. The analysis identifies problem areas. What areas need improvement?
2. Implementation of innovative technologies. Off-the-shelf software suitable for a particular organization can be purchased.
3. Cooperation of different departments. Productive communication between finance, marketing, IT, and sales specialists is necessary.
4. Change management. For a smooth transition to a new strategy, it is recommended to retrain employees.
5. Continuous improvement. Innovations and the results of their implementation are tracked. What other improvement can be added?

What the CPQ Results May Be

The transformation is immediately visible in the IT companies or relevant departments. The integration of the CPQ solution with other systems already in use in the enterprise is important. This includes all security tools, including the prohibition of unauthorized users from accessing computer programs. The system must remain cohesive and efficient.

Significant amounts of data are generated and must be managed. Once analyzed, they are used to provide valuable information for setting modified prices. The new system must be supported by the IT department's architecture. The hardware can be combined with cloud storage.

Security is on one side of the scale, and compliance with legal requirements is on the other. Most often it is enough to use data encryption technology to prevent the leakage of confidential information. It is impossible to do without training users - they must be familiar with all the nuances of the implemented software. In the latter case, the company's productivity will increase.

Its programmers should start with the configuration of the software. In some cases, it is worth inviting a third-party specialist. After adaptation, changes in business processes should be noticeable at all levels. Constant updating will be required, taking into account bug fixes and enhancements.

Regular performance monitoring is needed to identify problem areas. How does the program behave during peak hours? Can it be used as part of the chosen strategy? One of the options for data storage is cloud technology. The only important nuance is choosing the right vendors.

Successful Cases of CPQ Strategies Implementation

The software, which has the words configure, price, quote in its name, has boosted revenue for the world's leading road construction equipment manufacturer. Dynapac has been able to centrally manage prices and also reduce discounts on certain items. The innovation was explained by the commercial director, Stefan Fessner.

Tasks that used to take days are now done in seconds. Profitability has increased across all product lines. The software is now used across the company's operations - Dynapac aims to replicate the success. Pricing is automatically set for 70,000 products.

Dell Technologies, a multinational company with more than $60 billion in annual sales, used a similar strategy in education. All department heads had access to the software. The results were reported by CEO Arunkumar Narayanan. New information on 90% of the offers appears online within four hours of a price change. 75% of the work is done automatically (without prior approval).

A third example is the success of Silverpoint Homes, a company that retails modular homes. Now the work that used to take several days can be done in two hours. They've gotten rid of manual calculations, so they no longer have to call manufacturers and ask for the price of a particular item. As a result, the level of customer confidence has increased, which has led to higher sales.

Is It a Good Ideal to Use PandaDoc?

There is ready-to-use software that can be customized to meet the requirements of a particular customer. For example, when using PandaDoc, the customer's business is taken into account. All work that was previously done manually is automated. Specialists have access to up-to-date information when they need it. For example, a department head before a meeting.

The software should include ready-made templates. With their help, it is easier to form proposals for each product. The application of best practices can be combined with the setting of a tariff plan. The software manufacturer uses artificial intelligence that helps to generate recommendations on articles and prices. It also focuses on incremental and cross-selling.

A commercial offer for potential customers is automatically compiled, taking into account the data accessed by the software. Conditional cooperation with all parties is practiced. A personalized offer can be made that displays the company logo.