In 2022, CPQ doesn’t really mean what it used to.
For most of the past 20 years, configure, price, quote software was viewed primarily as a B2B sales tool used to quickly generate professional proposals. It still does that, but consider this…
For most of the past 150 years, the phone was used primarily to make person-to-person calls. The device we still call a “phone” continues to provide that basic functionality, but has evolved to do…well.. just about everything.
We’re not saying CPQ does everything, but it’s currently evolving and being used to do a whole lot more than simply create sales proposals. Here are a few ways the meaning of CPQ is changing in 2022.
Less emphasis on the Q, more on the C and P
Perhaps the greatest change in the CPQ space in recent years has been businesses often “isolating” the product and pricing configurator (the C and the P), and creating customer-facing systems.
A product and pricing configurator both empowers your customers to create the exact solutions they require, and also frees up your staff to focus on driving new business.
This doesn’t mean people aren’t still using CPQ to build and send quotes. But many businesses are now realizing that the sales quote process–which can be lengthy– is typically only required for new business. Existing customers who need to restock or update or upgrade can, and should, be given the tools to do so themselves.
CPQ in eCommerce
In 2021, iQuoteXpress launched our CPQ B2B eCommerce solution, which allows B2B customers to “essentially direct the sales process, to explore product, pricing, and service options, and to navigate a B2B sale as easily as they shop on Amazon.”
Turns out we were ahead of the game, as most every provider in the space is now touting CPQ as an ecommerce solution.
In some cases, there are existing ecommerce companies adding product and pricing configuration to their sites (and even enabling customers to create quotes, when needed).
But what we’ve seen in our clients is kind of the reverse. Using elements of the Shopify platform, we’re empowering clients to add ecommerce shopping capabilities – adding products to a cart, processing payments, etc. – to their existing CPQ platforms.
The benefit is an easier means of meeting customer expectations. Why? Because by putting customers in the “driver’s seat,” as it were, they set their own expectations, dictate their own “shopping” experience, and are concurrently more engaged and satisfied. It’s an easy win-win.
CRMPQ?
More than a few of our clients are using CPQ solutions as a de facto CRM: in 2022, we have already received multiple inquiries from new prospects asking about CPQ as a “mini” CRM. For SMBs, this makes sense for a variety of reasons:
CRM solutions can be very, very expensive. For a business with revenues under $5m annually, the investment in an enterprise-level back-end is simply undoable.
Many of the functions in CRM are in CPQ. Contact storage, account management, sales analytics–all of these and more are standard with most every major CPQ solution.
Managing/tracking sales IS managing/tracking customer relationships. CRM (customer relationship management) solutions can be very helpful in larger organizations with complex lead generation programs and nurture campaigns that require detailed tracking and reporting.
But for most companies, the primary metric is sales: quotes sent, deals won. And CPQ has that covered, and in deep detail.
2022 should be a huge year for B2B sales and the technologies that power them. As we move on from the pandemic, we’re going to need to kick-start revenues, and CPQ–in itself and as part of other selling solutions–will be a cornerstone in helping drive more revenue more quickly.
The meaning of CPQ in 2022? It means business.
