How A CPQ Solution Can Optimize Sales Configurations & Increase Profitability
No matter what industry your company belongs to, it values two things: efficiency and profitability. This universal truth means that every enterprise-level business should be investing in a CPQ solution. However, digital transformations can be challenging. Before you commit to a technological change, it’s important to consider both the stumbling blocks you might face and the advantages you’ll gain. Below, Copado will explore the pros, cons, and strategic implementation of a CPQ solution.
What is CPQ?
CPQ or configure, price, quote is a sales optimization software. In short, CPQ allows companies to generate fast and accurate price quotes for product or service orders. However, its reach goes far beyond the sales department. Because CQP integrates with essential business technologies like enterprise resource planning software (ERP), it has the power to impact business processes as a whole, whether they’re directly related to sales or not. While the impacts of CPQ technology are inherently positive, it’s up to you to make the most out of the software’s features and operation.
What is a CPQ solution?
There is some ambiguity surrounding the term “CPQ solution” because people often refer to CPQ software itself as a solution, application, or system. In this context, a CPQ solution refers to a separate entity that works in tandem with your CPQ to support its critical functionalities. CPQ software is not a standalone product. A CPQ solution fills in the gaps created by implementation and maintenance requirements.
You’ll need to support this new technology with data migration and third-party integrations — and you’ll need a way to know everything is working correctly. In other words, CPQ testing is crucial to consider for the overall success of your digital transformation. A CPQ solution that addresses the security, quality, and efficiency of CPQ through vigorous testing will eliminate avoidable setbacks and enhance your infrastructure as a whole.
Benefits of CPQ
Now that we’ve defined the roles of CPQ and a corresponding CPQ solution, let’s examine whether it’s worth the trouble to implement. According to a study conducted by Salesforce, their CPQ users reported ten times faster price quote generation and a whopping 95% reduction in approval time. To achieve these figures, companies supported their CPQ processes and functionality with a highly compatible CPQ solution. The next couple of sections will take a closer look at the advantages of CPQ.
Better Collaboration and Streamlined Processes
As an organization grows, effective cross-departmental collaboration can become a challenge. For example, operational success requires smooth communication between the sales team, subject matter experts (SMEs), and customer service agents. If the SMEs are unable to anticipate the sales team's needs, price quotes and service offerings could be inaccurate, resulting in loss of revenue. Poor communication between the sales team and customer service agents could result in miscommunications regarding offer availability, creating a bad user experience and untrustworthy brand image. Here’s how a CPQ solution can help:
- CPQ leverages AI to generate accurate quotes, providing sales representatives with the confidence of pre-approved pricing.
- A CPQ solution like Copado Robotic testing manages workflows and utilizes robotic process automation (RPA) for routine tasks, streamlining the approval process for everyone involved.
CPQ software is highly customizable, meaning renewals, subscriptions, and other special pricing methods will be accounted for as long as they’ve been programmed into the system.
CPQ test automation also allows for near-immediate personalized quotes for repeat orders or add-ons. This type of technology leverages AI and automation to help eliminate the margin of human error and support the decision-making process with proven, measurable data.
Potential Problems with CPQ Implementation
A bundle of pros cannot exist without a few cons to balance the scales. CPQ is no exception, especially if you plan to implement it without a CPQ solution. Below, Copado has outlined a few of the most common stumbling blocks regarding CPQ. We’ve also included some tips to mitigate these potential problems.
Many modern enterprises have built their business operations upon a complex infrastructure of software and applications. The primary issue with implementing CPQ in a complicated network environment is integration. If you’re considering CPQ, you probably already have a customer relationship management (CRM) platform in place at the very least.
Just like you need clear cross-departmental communication in your organizations, your entire technology stack needs to be able to seamlessly and accurately transfer information. A CPQ solution with end-to-end testing capabilities is crucial to combat integration issues. Expand the scope of your testing coverage to encompass integration and regression testing. Then, you’ll be able to catch defects before they have the opportunity to disrupt operations.
Your CPQ can only be as good as the data you provide it. This is another reason CPQ testing is so important. Data quality should be an area of utmost importance, whether it’s regarding customer information or price calculations. The information you feed your CPQ must be current, reliable, and as comprehensive as possible.
To achieve this, your recording and reporting methods must be airtight. A CPQ solution like Copado Robotic Testing uses AI to automate reporting tasks, organize data, and present information in a user-friendly, digestible format. It can also self-heal broken test cases and take automatic screenshots of system errors.
Before expanding to meet even more of our clients’ needs, Copado was made for Salesforce. That’s why we’re #1 in low-code DevOps and testing tools for Salesforce. To learn more about why Copado Robotic Testing is the best CPQ solution for modern businesses, contact us or schedule a demo.