B2B is known for selling complex products. Some of these products require customization and configuration before they can be added to a shopping cart.
To implement this, Merchants have two options:
- Build its own configurator or
- use 3rd party CPQ (Configure, Price, Quote) system.
CPQ platforms used in manufacturing offer powerful modeling and visualization tools, manage configuration lifecycle, generate a bill of materials, and have sophisticated pricing engines. Many of them have already partnered with leading Ecommerce software providers and offer pre-built integrations.
SAP, Salesforce, Oracle, and other vendors offer various CPQ systems. Configurable products help businesses to reduce complexity and extend the types of products that can be sold online. You can significantly improve customer experience and get better business results by implementing product configurators and integrating them with your digital commerce system.
Quotes produced with CPQ software are automated according to a preprogrammed set of rules, ensuring error-free pricing that considers quantities, discounts, customizations, optional features of products, multiple revenue types, and incompatibilities.
According to a report from Salesforce, Sales reps spend just 34% of their time selling, and research shows that part of a sales team’s non-selling time is spent generating quotes, proposals, and gaining approvals.
When CPQ is deployed and used correctly, users have reported:
- Ten times faster quote generation,
- 95% reduction in approval time,
- Two times faster moving from quote to cash, and
- 30% quicker ramp for new reps
With its functionality and potential for an excellent return on investment (ROI), CPQ software is on the horizon for many companies. CPQ adoption will continue to grow as companies see the benefits of using it with their CRM and ERP systems.
