If you expect your B2B company to grow in 2015, you’re hardly alone. But do you have the right tools and strategy in place? For successful growth, you need to focus on enabling sales, product innovation and understanding your buyer’s journey. No wonder many companies today are adopting Configure, Price, Quote (CPQ) tools.
According to a 2014 study by research and advisory firm SiriusDecisions 90 percent of B2B companies expect to grow this year, and 60 percent expect to grow by at least 20 percent. Of the companies surveyed, 88 percent expect positive growth in the industries they sell into, and 77 percent expressed optimism with the economic forecast.
If your sales process relies on CRM technology alone, you’re probably not prepared to capture this growth. Recent research from CSO Insights and Accenture shows that CRM has a significant impact on the sales process, but less than 20 percent of companies that use it are seeing any increase in revenue or win rates.
When your company is trying to capture growth, it’s important to cover your addressable market as efficiently and fully as possible through multiple sales channels. New capabilities are needed to make meaningful progress.
If you’re selling your product through partners, e-commerce and direct sales, you want to increase the efficiency without having to use three different solutions.
A good CPQ solution should offer multi-channel capabilities supporting sales effectiveness across all channels, giving your partners tools that make them more effective and efficient within their part of the market. Extending these CPQ capabilities to your partners helps them achieve a faster time-to-revenue and accelerate the capture of your fair share of the total addressable market.
Combining CPQ with pricing guidance technology is a great way to enable sales, focus on product innovation and understand your buyer’s journey while keeping your sales pipeline moving.
When you want to increase sales velocity, your sales team needs to be able to manage the increased capacity. Is your current sales staff covering the accounts effectively, or do you need to hire more reps? When you’re considering your capacity, you also have to consider the impact that employee turnover has on your sales velocity.
In general, best practices suggest planning for an 8 percent turnover rate in your sales team. As our economy improves, however, reps are starting to move around more, with turnover rates in B2B sales closer to 14 percent.
With such high turnover rates, it’s important to decrease the amount of time it takes for new salespeople to get up and running. Using a CPQ solution with guided selling, cross-sell, upsell and pricing guidance helps new reps quickly become effective by providing them with information, market insights and pricing strategy that would ordinarily take years of experience to accumulate.
In the end, CPQ’s ability to drive and support growth makes it an excellent tool for companies today as they try to capture their fair share of our emerging economic recovery.
Ready to learn more about using CPQ and pricing guidance to improve your sales process? Download our free e-book, “5 Ways CPQ Keeps Your Sales Pipeline Moving.”