10 Jul How Oracle CPQ puts the “price” in configure, price, quote
Determining your pricing strategy is one of the most difficult decisions for your company to make. Not only is it challenging when you’re first starting out, but it is an ongoing process to optimize profits for the rest of your business’ lifetime. Despite all the continuous practice, it seems few have figured it out: 85% of respondents from a recent survey believe their pricing decisions could improve.
But how do you improve? It starts at the strategy level: when you determine whether you’re going to be pricing in relation to the competition, doing value-based pricing, or some other pricing strategy. Once you’ve determined your strategy, or adjusted from one strategy to another, it’s important to empower your sales team with pricing tools that make it easy for them to focus on winning deals—rather than doing the math. Oracle CPQ places a major emphasis on the “P” of CPQ: “price.” Using Oracle CPQ makes it easier for salespeople to sell more effectively through consistent pricing, quick approvals, and automation.
Keeping pricing consistent can be a monumental task, especially when you have a large sales team, multiple SKUs, or complex product configurations. Spreadsheets just don’t cut it; you run too much risk that someone doesn’t receive an update here or a policy email there. No salesperson wants to go back to a client with a pricing adjustment that isn’t in the client’s favor. Doing so could kill the deal, and potentially the relationship. Oracle CPQ standardizes pricing for every rep, and it does so automatically. Not only is pricing updated, but discounts can be updated as well so that every salesperson is completely up to date. And, because industries, markets, regions, and customers are all different, pricing can be established for each of these variables and accessed through guided selling so that the client only ever sees the appropriate pricing. This pricebook feature is phenomenal for enabling customer segmentation pricing and optimizing revenue.
For your salesperson, deals need to move as quickly as possible. Competitors are circling every deal like piranhas, waiting for their opportunity to pounce. Any time delays leave the window open for someone to swoop in and steal the deal right out from under you. That makes fast approvals an underrated yet extremely vital part of what Oracle CPQ offers. Dynamic workflows can be built that notify the correct approvers immediately, and approvals can be given via smartphone. This saves time by eliminating the need for each salesperson to follow up internally with approvers. Instead, they should be following up externally with customers and trusting Oracle CPQ to do the internal follow-up.
Similar to the approval process, the entire sales process as a whole has several steps. Quotes have to be given, papers have to be signed, orders have to be sent. It can often be a time suck for your salespeople to keep track of all of these things in their heads, or to continually have to reference a process on an online depot. Oftentimes, salespeople will become accustomed to a process over time, and changing it can have catastrophic consequences. Even if the new process is more time or cost effective, many mistakes occur during a changeover because a salesperson forgets to check the updated rules or goes off of memory. Oracle CPQ removes that portion of time for the salesperson by making all of those steps automated. Not only that, but you gain more transparency by being able to see exactly where each deal is on the sales process, as well as analytics on those deals. Learning how long the process takes, the potential bottlenecks, and many other data points makes it easier to adjust your process to be more efficient.
Oracle CPQ removes so much of the pricing pitfalls that can befall salespeople. Since so much of your client’s decision-making is based on pricing, it’s necessary to remove any potential stumbling blocks. Delivering correct pricing with confidence, getting quick approvals, and using an automated process to keep it all on track can remove those pitfalls and make your sales process efficient and error-free.
For help making your pricing correct every time, contact Simplus today for more info.