Why modern SaaS businesses need CPQ solutions
Modern business solutions have taken center stage in today’s technological world, focusing on transforming how everyone does business in better ways for people, corporations, and the globe.
It is simple for “old-school” businesses to generate a quote. Deals are typically one-and-done, products are identical, and the process is similar for everyone.
A quote, on the other hand, might turn into a logistical headache for a company offering complex SaaS goods. How do you ensure that every product configuration, pricing option, discount, and client data is included every time?
This is where specialized SaaS CPQ software comes into play.
Understanding CPQ software
A quote is one of the first bespoke documents your prospects will get from you. It’s an excellent opportunity to leave a lasting impression on potential customers. However, if you’re not careful, your well-intentioned salespeople could make a variety of costly mistakes, including:
- Incorrect pricing.
- Grammar and spelling mistakes.
- Including useless or obsolete data.
- Going off-brand in their approach.
Wasting too much time developing the proposal and ultimately losing the sale.
Unlike traditional quotes, CPQ software has grown to handle more complicated proposals. CPQ software should cope with complex contract structures, allow finance to invoice and collect revenue effectively, and manage subscription changes.
CPQ is software designed to assist sales organizations in mitigating these risks and eventually closing more sales by providing consistent quotations and proposals that leave a lasting impression each time.
SaaS-focused CPQs: How are they different?
While traditional CPQ systems are applicable to a wide range of enterprises, CPQ systems created expressly for SaaS (Software as a Service) businesses have specific significant characteristics.
The first is that they often interact with other cloud-based systems used by SaaS companies, such as customer relationship management (CRM). These integrations allow CPQ systems to swiftly and precisely gather critical data from various systems and incorporate it into sales proposals.
The second noteworthy feature of such systems is that they enable the quoting process to be optimized across various sales channels. Leads can be generated through content marketing, advertisements, or word-of-mouth and sent to the CPQ.
Another distinction is that SaaS-focused CPQ systems are very adaptable to meet the unique needs of each customer. This is due to the fact that SaaS solutions frequently feature a variety of price models, such as subscription-based plans, usage-based rates, and pay-per-use alternatives.
To guarantee that customers obtain accurate quotations, SaaS-focused CPQ solutions can reliably and efficiently determine the price for each of these models.
Benefits of CPQ
One thing is sure – CPQ is full of advantages.
Better turnaround and workflow
If you’re still processing quotation approvals manually, delays and process stumbling blocks might have a negative impact on your bottom line.
Re-routing of approval requests and auto-approval workflows for predetermined packages with preset discounts are all considered in automated approval workflows, maximizing efficiencies, optimizing the process, reducing approval time, and assisting in the maintenance of audit trails.
Generating precise and easily amended quotes
Initial quotes are seldom approved. When done manually, the process can be time-consuming and labor-expensive. Whether a new contract or a contract renewal, simplifying the procedure and eliminating errors are critical.
Without automation, many manual processes are involved in contract renewals, such as pricing changes, upsells, cross-sells, and so on.
Document standardization
When companies write quotes by hand, the documents may need to be corrected regarding formatting, pricing, and phrases. Documents are standardized with CPQ, making interpreting and comparing various quotes easier.
Auditing, compliance, and reporting become easier after you streamline your documentation.
Improved analytics and reporting
Businesses, especially start-ups, can gain valuable insights into product and sales performance using CPQ software that uses a well-built inventory database with flexible pricing models, contract terms, and contract modification support.
An important note on integrations
Integration is a big CPQ buzzword, so let’s break it down: you need CPQ software that integrates seamlessly with your current technical infrastructure.
It is pointless to use CPQ if it is not connected with the other technologies your teams use on a daily basis. It would help if you had your applications share data to establish automation and eliminate errors.
In your CPQ, look for the following integrations:
- Billing and subscription management in CRM
- E-signature for CLM Document Management
- Collaboration/communication (such as Trello, Slack, and so on)
- Revenue information
You can streamline everything from sales pipeline deals to customer invoicing and revenue recognition when you integrate CPQ into the rest of your operational routine.
Wrapping up
A CPQ solution enables sales representatives to create complex quotes in minutes. It is a beneficial tool for a SaaS company since it helps close deals, makes quoting for customizable products more manageable, and helps win client trust.
In today’s fast-paced business world, there is little excuse to avoid CPQ adoption. For SaaS businesses and start-ups, a CPQ can help give your business a vital competitive edge.