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Essential CPQ Features Every B2B Business Should Make Use Of

Note: CPQ Process
Essential CPQ Features Every B2B Business Should Make Use Of
Essential CPQ Features Every B2B Business Should Make Use Of

Aditi Tripathi

Content Writer

The trend “give me my money” is catching on worldwide, but the humour fades when you replace “money” with “time.” The saying “time is money” rings especially true in sales, where efficiency and time-saving can provide a crucial competitive advantage. While immediacy is a given in the B2C world of instant gratification, why isn’t the same urgency applied in the B2B sector?

Sales teams often grapple with a labyrinth of quotation-related tasks, especially in companies offering complex, customisable products or managing extensive catalogues. From selecting the right products and configuring compatible bundles to applying various markdowns and special terms, the process is fraught with challenges. 

Each step—from calculating the price to compiling accurate, error-free quotes—must be completed swiftly, as prospects don't linger long. In fact, research by HubSpot states that 50% of potential buyers choose the vendor with the quickest response time.

So, how can your b2b business get ahead? By making use of an easy-to-use CPQ (Configure, Price, and Quote) software. Explore which CPQ features and capabilities you should prioritise to enhance your sales processes and gain an edge in your market.

What is CPQ?

Configure Price Quote system is a comprehensive solution that streamlines complex sales functions such as configuring products, pricing, quoting, and handling approvals. It enables businesses to efficiently manage pricing rules, offer tailored discounts, and produce precise, professional quotes that meet buyers’ specific needs.

Must-Read: The Complete B2B eCommerce Guide: Your Key to Success

Top CPQ Capabilities B2B Businesses Should Look For

  1. Product Rules

Product rules are foundational to a robust CPQ system. They streamline the configuration of products and services by automating selections and preventing incompatible combinations. For B2B businesses, where product offerings can be highly complex, these rules ensure that sales teams provide accurate configurations. By setting up product rules, companies can facilitate cross- and upselling opportunities, guiding sales reps toward optimal configurations and preventing costly errors.

2. Price Rules 

Effective pricing is crucial for B2B sales, and price rules in CPQ systems make this task manageable. These rules automate the application of discounts and pricing structures based on various criteria such as customer segment, order volume, or product configuration. Dynamic Pricing features within CPQ systems allow for real-time adjustments and updates, ensuring sales reps have access to the latest pricing information and can offer tailored pricing strategies to meet customer needs, thus enhancing satisfaction and reducing errors.

Without CPQ software, sales representatives spend 73% more time creating standard quotes or proposals, significantly impacting productivity.

3. Guided Selling 

Guided Selling simplifies the sales process by providing a structured set of questions to help sales reps understand customer needs and filter out irrelevant options. This feature aids in presenting the most suitable products or services, ensuring that sales reps recommend the best solutions. It’s particularly valuable for B2B businesses with complex product lines, as it removes the guesswork and ensures that the sales process is both efficient and accurate.

4. Contract Amendments 

Contract amendments functionality allows for easy adjustments to existing agreements without creating new contract records. For B2B transactions that often involve ongoing relationships and modifications, this feature helps manage changes like adding or removing items and extending contract durations. It keeps all amendments consolidated under one contract, which simplifies management and maintains a clear record of all changes.

5. CPQ Favourites 

The favourites feature helps sales reps by allowing them to save frequently used products, bundles, and quote line items for quick access. This is particularly beneficial in B2B environments where certain products or configurations are regularly requested. By reducing the need to repeatedly search for and add popular items, this feature speeds up the quoting process and enhances efficiency.

6. Advanced Approvals 

The advanced approvals feature streamlines the process of getting quotes reviewed and approved. It enables the setup of approval chains, automatic escalations, and notifications to ensure that no opportunities are missed due to delays in approvals. This is crucial for B2B transactions, where approvals often involve multiple stakeholders and complex decision-making processes.

7. Subscription and Renewal Management 

Managing subscriptions and renewals can be complex, but CPQ systems with automated features handle these tasks efficiently. These tools help track contract terms, manage auto-renewals, and identify upsell opportunities. For B2B companies with recurring revenue models, this feature ensures that renewals are handled smoothly, and sales teams can focus on driving new business.

8. Quote Line Groups 

Quote Line Groups help organise and manage complex quotes that involve multiple products or services. By grouping quote line items based on criteria like product categories or customer preferences, this feature improves quote readability and accuracy. It facilitates easier management and editing of quotes, which enhances the overall sales experience and helps maintain a professional presentation.

By streamlining the quoting process through automation, CPQ solutions can enhance sales efficiency, leading to a 36% increase in close rates.

9. Product Configurator & Catalogue Management 

Product configurators are vital for businesses with customisable products. They enable real-time visualisations and simplify the creation of product catalogues and bundles. By allowing customers to see and select from predefined options and recommendations, configurators enhance the quoting process and ensure that the resulting quotes accurately reflect customer preferences and requirements.

Related Read: A Comprehensive PIM Buyer’s Guide for Retailer

10. Platform Capabilities and Security 

Finally, robust platform capabilities and security features are essential for any CPQ system. Custom branding and field options expedite quote creation and processing. Multi-language support and multi-currency conversion cater to international customers, ensuring a smooth global sales process. Additionally, user-based permissions control access to pricing rules, approvals, and discounts, safeguarding the integrity of the quoting process.

Is Your B2B Business Ready for a Sales Upgrade?

If your B2B sales process feels slow, error-prone, or overly complex, it might be time for a CPQ solution. Answer these questions to see if your business is ready for a sales upgrade!

  • Does your business offer highly customisable products or services?
  • Do you manage an extensive catalogue with multiple configuration options?
  • Are you experiencing challenges in generating accurate and error-free quotes?
  • Do you rely on multiple spreadsheets or disparate tools to create quotes?
  • Do you have a pricing model with multiple layers, such as discounts, promotions, or special terms tailored to different customers?
  • Do you need real-time pricing updates based on changing conditions?
  • Do you need to speed up the quoting process to reduce customer wait times?
  • Are your sales reps bogged down by manual tasks and inefficiencies?
  • Do you frequently amend contracts, such as adding/removing items or extending durations?
  • Is it important to maintain a single, consolidated record for contract changes?
  • Are quote approvals delayed due to manual review processes?
  • Do you need automated approval workflows to streamline the process?
  • Do you manage subscriptions or recurring contracts that require automated tracking and renewal?
  • Are you looking for tools to handle upsell opportunities and contract renewals efficiently?
  • Is real-time product visualisation and customisation important for your sales process?
  • Do you need a solution that helps customers configure bundles and related products?
  • Do you handle complex quotes involving multiple products or services?
  • Is improving the organisation and presentation of quotes crucial for your sales team?
  • Do you require support for multiple languages and automatic currency conversion to serve a global customer base?
  • Is robust user-based permission and security control necessary for managing pricing and approvals?

Conclusion

Hmmm…take a moment to assess your current quoting process. If it’s bogged down by manual tasks, prone to errors, or just too slow, it might be time to consider integrating CPQ into your B2B sales strategy. The investment in CPQ could be the leap forward your business needs to achieve greater accuracy, faster sales cycles, and ultimately, a stronger bottom line.

CPQ solutions automate the nitty-gritty of product configuration, pricing adjustments, and quote generation, allowing your sales team to focus on what they do best—closing deals. With features like guided selling, contract amendments, and advanced approvals, CPQ helps ensure that every quote is accurate, every pricing rule is applied, and every contract is managed seamlessly.

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