As the economic recovery continues, we’re slowly starting to see growth around the world.
If your company is entering a growth phase, you might want to consider using Configure, Price, Quote (CPQ) technology. These powerful tools help your sales team become more efficient and productive, driving more deals through the pipeline and increasing sales velocity.
Here are three ways CPQ improves efficiency to keep your sales pipeline moving:
1) Fast quote generation: A salesperson only has so many hours in the day, and many would tell you that getting quotes out is highly time-consuming. When you use a CPQ solution, it increases sales productivity by improving quote generation. The average sales rep generates 14 proposals, quotes or RFP responses per month, according to research from the Aberdeen Group. When a rep uses CPQ, however, that number jumps to an average of 20.9 proposals per month.
The statistics are particularly interesting when you consider that these aren’t simple, straightforward proposals. Typically, a CPQ solution means you’re dealing with a complex, configurable product. So you’re looking at a 33 percent productivity increase for quoting products that are probably quite complex.
2) Reducing the number of interactions: To move deals through the pipeline, reps need to be faster and more efficient when it comes to interacting with customers. That means eliminating unnecessary sales activities and touch points whenever possible, and getting the necessary activities done right — the first time.
For instance, when you use CPQ to arm sales reps with accurate and winning information, salespeople deliver more precise sales offers. That increases speed and efficiency, because they deliver fewer versions of the quote before closing the deal. Salespeople who use CPQ solutions deliver an average of 2.42 versions of a quote, figures from the Aberdeen Group show. That represents a 13 percent reduction compared to the 2.74 versions delivered by reps that don’t have CPQ.
This is just one example of how CPQ solutions help to reduce or eliminate touch points, increasing the sales velocity as opportunities move through the pipeline.
3) Shortening the sales cycle: According to the research from CSO Insights and Accenture, for companies that use CRM systems alone, less than 20 percent have seen any improvement in terms of incremental revenue, shortened sales cycles or increased win rates. Almost no one is seeing margin improvement.
Companies that use CPQ solutions, however, are achieving dramatically shortened sales cycles. According to the Aberdeen Group’s research, CPQ users have an average sales cycle of 3.42 months, compared to 4.68 months for non-CPQ users. This suggests that adopting CPQ technology could reduce your sales cycle by one-third, helping you move sales opportunities through the pipeline much faster.
If your company is entering a growth phase, it’s essential that you find ways to increase velocity and be productive at every stage of your sales cycle. By reducing the number of interactions and adopting a fast quote generation process, you shorten the sales cycle and ensure that your sales reps are highly efficient and effective. CPQ solutions improve efficiency at each touch point, ensuring that those opportunities are constantly moving forward.
Ready to learn more about using CPQ to improve your sales process and productivity? Download our free e-book , “5 Ways CPQ Keeps Your Sales Pipeline Moving.”