CPQ for Enterprise
What is CPQ for Enterprise?
Enterprise CPQ (Configure, Price, Quote) is a software solution that helps large businesses streamline and automate their quote-to-cash processes. It provides a centralized platform for managing all aspects of the quoting process, from creating and configuring customized quotes to generating contracts and invoices. CPQ for Enterprise also includes powerful tools for pricing and discounts, approval workflows, subscription management, and reporting.
With CPQ, enterprise businesses can improve efficiency and accuracy in their quoting process while ensuring compliance with company policies and procedures. The software also provides a foundation for integrating with other enterprise systems, such as CRM and ERP.
How SMB Sales Differs from Enterprise Sales
When it comes to sales, small and medium-sized businesses (SMBs) have different needs and expectations than enterprise organizations. Here’s a look at some of the key ways that SMB sales differ from enterprise sales:
- Enterprise sales cycles are usually much longer than SMB sales cycles. This is because enterprise organizations tend to have a more complex decision-making process with multiple stakeholders involved. As a result, enterprise sales require a higher level of relationship building and account management.
- SMBs are typically more price-sensitive than enterprise organizations. This is because SMBs have limited budgets and often need to make decisions quickly. As a result, SMBs may be more likely to respond to discounts or special offers.
- Enterprise organizations tend to have more sophisticated products than SMBs. This is because enterprises often operate in highly competitive industries and need to have cutting-edge products to compete in their market. As a result, enterprise sales reps may require a higher level of product knowledge or understanding of a wider array of products.
- SMBs are often more relationship-driven than enterprise organizations. This is because SMBs typically have smaller teams and may be more reliant on personal relationships to get business done. As a result, SMBs may be more likely to work with salespeople they know and trust. On the other hand, enterprise sales teams tend to rely on technology to help them reach a larger numbers of prospective customers.
Sales Challenges Facing Enterprise Businesses
Sales teams in enterprise organizations face many challenges. They may be working with long-term customers who are resistant to change, or they may be competing with established companies with larger budgets and more resources.
Some common enterprise sales challenges include:
Long sales cycles: Enterprise customers often take longer to make buying decisions than other types of customers. This can extend the sales cycle and make it more difficult to close deals.
Difficult decision-makers: Enterprise customers may have complex decision-making processes involving contract negotiations and multiple stakeholders. This can make it difficult to identify the key decision-makers and get them on board with your proposal.
Budget constraints: Enterprise customers may be more budget-conscious than other types of customers. They may be less likely to invest in new products or services, preferring to stick with what they know.
Competition: Enterprise sales teams may be up against other companies that have more resources or are better established in the market. This can make it difficult to win enterprise customers over.
To overcome these challenges, enterprise sales teams need to be adaptable and have a deep understanding of their market. They must also be able to build strong relationships with enterprise customers.
One way that enterprise businesses can overcome these challenges is by using a CPQ solution.
How CPQ Helps Enterprises Scale Quote Generation and Deal Management
CPQ software helps enterprises overcome the sales operations challenges by leveraging efficiency and sales productivity through automation and integration with other enterprise software. Here’s how:
Manage Complex Sales Processes and Lengthy Sales Cycles
Enterprise businesses often have complex sales environments and lengthy sales cycles. Manually creating proposals is a time-consuming process, especially in industries with complex or customizable products and services. In these circumstances, salespeople spend a significant amount of time researching product mixes, negotiating pricing with their supervisors, verifying discounts, and gathering documentation for legally enforceable contracts.
CPQ enables enterprise companies to accelerate the sales cycle by streamlining the entire sales process from opportunity to quote to order. Guided selling built into the software walks sales reps and buyers through product configuration, pricing, quoting, ordering, and approval with automated workflows.
Using a clause library, CPQ can generate contracts which streamlines the contract generation process, making it easier for the deal desk to move the proposal forward and minimize the deal approval process.
Guided Selling Helps Sales Reps Adapt to New Processes
Guided selling is a CPQ methodology that helps enterprise sales teams sell more effectively and efficiently by automating the quoting process and providing real-time pricing and product recommendations. CPQ software provides a configurable product catalog that includes pricing, product options, and bundle recommendations. The sales rep enters customer information (such as industry, company size, geographic region, etc.) and the CPQ software uses this data to recommend the best products and services for the customer.
Guided selling CPQ software takes the guesswork out of working with customers to find the right product configuration and pricing. It helps sales reps who are unfamiliar with a product or service or those who are adjusting to new sales processes.
Scales Quote Management and the Decision Process
CPQ simplifies the entire sales process by automating key steps and reducing the need for manual input. This means that businesses can generate accurate quotes faster, which can lead to more sales and happier customers. CPQ gives sales channels a competitive advantage and an accelerated path to conversion by eliminating costly errors and duplicate efforts while speeding up the sales cycle.
CPQ also streamlines deal negotiation and acceptance by bringing stakeholders together in one document. Engagement tracking lets sales teams know who has viewed the quote and when, so sales reps don’t have any blind spots as the deal progresses.
Expands Deals and Renewal Opportunities
Enterprise businesses always have a keen eye on expanding deals. CPQ enables sales teams to easily recommend upsells, cross-sells, bundles, and renewal opportunities as they are built in to the guided selling engine. This is achieved through a combination of features such as constraint-based rules engines, natural language processing, and intelligent question-answering algorithms.
Unifies Distributed Sales Operations Teams
When sales reps, sales operations, and deal desk teams are all working from different locations with disparate tools, it creates chaos and data issues. In addition, it’s inefficient and wastes budget on overlapping tools that may have similar uses in the sales process. A solution to this is using a CPQ that brings all internal stakeholders and operations teams together in one unified platform. This results in one source of truth for all deal stages and all deal data.
Which CPQ Should You Choose for Your Enterprise Business?
Just because they have large sales operations teams spread out over the globe doesn’t mean enterprise businesses need complex, code-heavy software solutions which take months to implement. Nor do they need to build a customized CPQ system in-house to get the advanced functionality they require. The key to a successful CPQ implementation across an enterprise is to invest in a no-code solution that is easy to customize and maintain.
With DealHub CPQ, enterprise sales ops teams can update pricing and product configuration changes and handle the day-to-day management of the software without the need for hiring professional services or expanding the IT capabilities. In addition, DealHub replaces the need for multiple sales software by putting sales quote production, contract administration, subscription management, and e-Signature all in one platform. Furthermore, automated notifications ensure that every team (Sales, Deal Desk, Finance, and Legal) moves the deal forward quickly.
To prevent revenue leaks, DealHub utilizes existing product and pricing data and a sales playbook to automatically propose upsell, cross-sell, and bundling options based on relevant deal information. This allows anybody – from salespeople to account managers to customer success managers – to use guided selling in order to increase subscription revenue quickly, easily, and without making any mistakes.
With DealHub CPQ, your sales team will be able to:
- Automate your sales processes from quote to close
- Configure complex product and service mixes
- Produce error-free quotes based on your customers’ needs
- Generate personalized quotes in any branded format (e.g., DealRoom, PDF, Word, Excel)
- Easily cross-sell, upsell, and manage subscriptions to expand revenue
- Automate the quote approval process
- Sync data with your CRM automatically
- Use one software solution for generating quotes and sales documents, contract management, subscription management, and eSignature
Implementation of CPQ in Large Organizations
It is no secret that enterprise companies are under immense pressure to optimize their sales and operations processes. In order to stay competitive, these businesses need to be able to quickly configure and price complex products and services – a challenge that CPQ software can help with.
When implemented correctly, CPQ can automate and streamline the entire product configuration and pricing process, from initial inquiry to final quote. This not only saves valuable time and resources but also helps to ensure accuracy and consistency throughout the sales cycle.
CPQ can be a powerful tool for enterprise companies, but only when it is implemented correctly. In order to get the most out of CPQ, businesses need to consider the following:
- Their specific needs and objectives
- The size and complexity of their product catalog
- The sales process and workflows that will be using CPQ
- The level of integration required with other systems
Enterprise companies that take the time to properly plan and execute their CPQ implementation strategy can enjoy increased sales, improved efficiency, and enhanced customer satisfaction.
- CPQ for large corporations
- configure price quote for enterprise businesses
People Also Ask
Can CPQ be considered an ERP?
CPQ software helps businesses manage pricing and quoting, while ERP (enterprise resource planning) systems help businesses manage their overall operations. CPQ is typically used by sales operations teams and sales reps to generate accurate quotes for customers.
ERP systems are used by other business departments to manage many aspects of their operations, including financials, manufacturing, supply chain, and more.
Is CPQ a cloud software?
CPQ is a cloud-based software application that enables organizations to automate the process of configuring, quoting, and pricing their products and services.
CPQ is a cloud-based application because it is delivered via the internet and does not require installation on local servers or computers. CPQ is a software as a service (SaaS) application. CPQ is typically a subscription-based service with monthly or annual fees.
What kinds of enterprise businesses can benefit from CPQ?
CPQ software is designed to help businesses streamline the sales process by automating the creation of accurate, customized quotes, contracts, and proposals.
CPQ can be particularly helpful for enterprise businesses that sell complex products or services and require complex contracts such as healthcare, network security, and telecommunications, as it can help simplify the quoting process and ensure that all relevant information is included in the final proposal.
CPQ can also be helpful for in industries that sell to multiple markets, such as manufacturing, logistics, and supply chain companies, as it can help create quotes that are specific to each market. In addition, CPQ can help businesses manage discounts and promotions, as well as track sales performance, so it is well-suited for business services, e-learning, and food and beverage companies.