Three Keys to Closing Deals Faster with CPQ in 2024 

In November, I hosted a webinar with Mobileforce Software (a CPQ company) and Walpole Partnership (a CPQ systems integrator) called “Future-proofing Your Sales: How to Close More Deals, Faster in Challenging Times. That webinar highlighted some key points that I believe are worth sharing in a separate blog post.

Key Point 1: Business Process Automation is a Prerequisite for CPQ Success

Before implementing any CPQ solution, it is crucial to have a solid foundation of business process automation. This means ensuring that your business processes are clearly defined, documented, and streamlined. By taking this step up front, you can identify the specific requirements that your CPQ solution should address. In selecting the most suitable CPQ solution, it’s essential to conduct thorough research and consider the out-of-the-box features that align with your CPQ-related business processes. Engage with CPQ experts as needed to gain insights and guidance during the selection process.

Key Point 2: Prioritize the Customer/User Experience

A clean and simple user interface (UI) is paramount to ensuring a positive customer/user experience. Consider the different routes-to-market (RTMs) that your business employs to reach its customers. Omni-channel RTMs involve three primary routes:

  1. Direct Sales: Your sales team utilizes the CPQ solution to generate quotes and proposals.
  2. Selling Partners: Distributors or resellers who sell your products also use the same CPQ solution to prepare quotes and proposals.
  3. Self-Serve: Customers interact with the CPQ solution online without any direct support. This typically involves a website, app or digital marketplace.

Catering to the diverse needs and expectations of users across these different RTMs can be challenging. Sales team members for example are well-versed in your products and work with the CPQ solution regularly, while website visitors may be unfamiliar with your offerings. The CPQ solution should provide a seamless and adaptable customer experience that caters to all RTMs. As Mobileforce CEO Jagadish Bandhole puts it, “It is important to select a CPQ solution that is able to optimally adapt to your company’s and team’s specific workflows and sales motions, which will highly increase the chances of user adoption and increase value.”

Key Point 3: Minimize Complexity in CPQ Solutions

Simplicity is key when it comes to CPQ solutions. Complexity can manifest in various forms, including:

  • Application Complexity: The CPQ application itself may be overly complex, with a multitude of menu options, buttons, and screens.
  • Implementation Complexity: Implementing a CPQ solution can be complex due to factors such as customization, integration with other IT systems, and training requirements.
  • Product Configuration and Pricing Complexity: Maintaining product configuration rules and pricing structures can be complex, especially for businesses with a wide range of products and pricing options.

Prioritize the difference-making capabilities of the CPQ solution consistently and leverage out-of-the-box features whenever possible.

Focus on reducing overall CPQ solution complexity to ensure a successful implementation. Keep in mind that it is better to have 60% of the functionality used by 80% of the users instead of having 80% of the functionality used by 20% of the users. In addition, you may want to consider using a no-code/low code CPQ platform to allow RevOps teams to incorporate the most vital characteristics, rules and guardrails they need into their specific quote-to-cash workflows quickly.

If these high-level key points are considered, then a CPQ implementation project is a lot more likely to be successful. To gauge the success of your CPQ implementation project, consider utilizing key performance indicators (KPIs) or metrics such as:

  • Time it takes to setup the CPQ solution and also integrate with an existing back-end system (e.g., ERP, inventory management)
  • Training time needed for users to proficiently use the CPQ solution
  • Time required to set up a new and correct quote or proposal, particularly one involving multiple products from multiple sources
  • Number of users actively using the CPQ solution that claim they are satisified with the solution
  • Time it takes for all relevant approvals to be procured in order to finalize and send a quote or proposal
  • Time it takes for a RevOps team member to create a new CPQ-oriented rule or guardrail (i.e., constraint) that is then applied to all CPQ users

Note that in uncertain economic times, it is even more crucial to prioritize these three key points to ensure you select the right CPQ solution, optimize the user experience, and achieve your business goals.

To delve deeper into these key points, I encourage you to watch the webinar recording at https://mobileforce.ai/webinar/future-proof-sales_nov23 . By implementing these strategies, you can effectively leverage CPQ solutions to close deals faster and drive business growth in 2024 and beyond.