Do a Quote: Finding the Right CPQ Solution

Hire a consultant and ask them. But seriously, this is a complex question that requires knowing what solutions are available on the market and how they are built.

Recently, I was choosing a hiking backpack. I googled, researched, and seemingly chose a great model that, in theory, should have removed loads of weight from my injured back and shifted it to my hips.

Then I went on holiday and decided to stop by a well-known tourist store where backpacks were sold. I located the department with backpacks and decided to try some of them on. A few moments later, I discovered the model I had previously researched and almost bought.

“Do you need some help?” a young lady approached me, asking if I would like professional advice.

“Sure, I’m looking for a backpack that would remove weight from my back and shift it to my hips, so I can hike with my condition,” I replied, just to be polite, even though I had already made up my mind.

“I see that you did some research. Why are you holding this bag?” she asked, looking a bit surprised.

An hour later, I left the store with a completely different backpack, with a design that had nothing in common with the one I had researched. I had missed a very essential aspect of backpacks that I wasn’t aware of at the time—sizing.

I did my research, I tried it in person, I liked its cost, and I almost purchased it. But then a professional approached me and saw that what I was about to buy would not only fail to help me but could make my condition worse simply because it didn’t fit, and I didn’t know that.

Reference Point

You see, more often than not, when we research a new topic, we miss a very important aspect that professionals with years of industry experience possess by default—a reference point. What are we comparing against?

When I tried the backpack, I had no idea how it should fit. Subjectively, it felt fine and had good features, but when the salesperson filled the pack with a huge, heavy bundle of rope, it became evident that under load, the pack wasn’t doing its job because of the size. I hadn’t noticed this in the store, but she immediately pointed it out due to my posture. She knew how it should look—she had a reference point. She made the sales process completely different, which influenced my customer experience.

When choosing a solution for your business, not just a CPQ system, you should have at least some reference point. When you see a demo from vendors, what consultants see and what you see are often two different things. (And yes, in this article, I will insist that you hire a consultant like myself.)

Since a consultant knows what to look for, they can immediately point out what works well and what doesn’t. Think of your business and your clients, who may not be as experienced with your product. Imagine how you would evaluate a solution presented to you if you were solving your customer’s issue, versus how someone not from the industry would approach it.

The Basics of CPQ Software

Now, let’s take a step back. As you may already know, CPQ stands for Configure, Price, Quote. The benefits are numerous. This CPQ software solution enables your business to digitalize complex quoting processes and, in some cases, even eliminate the need for expensive quoting personnel who hold the knowledge of how to quote, what products should be bundled, and what maintenance should be offered.

The right solution should, in theory, enable even the most inexperienced sales team to sell your most complex products and services. For example, Salesforce offers features like guided selling, which leads the rep through a series of questions and then presents options that fit the answers.

It’s almost like having your most experienced sales manager or another professional standing in front of your customer, asking the right questions, and preparing accurate quotes while knowing all those small details about how your products bundle together.

The Dark Side of CPQ Software Solution

But there’s a dark side to this. Your business is unique, and so are CPQ systems. So choosing the right CPQ is not an easy task. Some are tailored for software sales, others for manufacturing, and still others for service providers. This is because the processes and logic by which you apply the solution for your customers vary significantly.

You’ll need to do extensive research and, through trial and error, figure out which of the many solutions on the market fits your specific business case. If you only rely on vendor demos, you risk falling into the dangerous trap of a great presentation.

Overexcited pre-sales reps might answer all your questions positively or so vaguely that you won’t even realize the product you’re considering isn’t capable of meeting your needs.

The Homework

Before hiring anyone, there are certain things you can do to get started, and you can familiarize yourself with the available solutions without stretching your corporate budget.

Begin with problem definition. Why are you looking for a complex quoting solution? What specific problem are you trying to solve? Grab a pen, digital notepad, or even a napkin—whatever works for you—and write it down. Then, set it aside for at least a week and revisit what you’ve written. Once your problem definition remains consistent for at least a week, you’ll be ready to reach out to consultants.

If I were your first contact on this journey, I would have asked you to do this exercise anyway. Problem definition is the most important aspect of implementation and has a massive impact on the choice of the solution.

Importance of CRM

Before I wrap up, I wanted to share one more thought. The best CPQ software is a solution that operates within your CRM (Customer Relationship Management system). This means that if you already have a CRM system, your choice of the CPQ tool is limited to those available on the platform you’re using.

My company works exclusively with Salesforce (for good reasons, though we won’t dive into that now). Salesforce offers multiple CPQ solutions—some great, some not so great—including their own homegrown CPQ tool.

If you don’t have a CRM system yet, you might want to start there. The process of choosing a solution for your business will be slightly different, but the homework remains the same—begin with problem definition.

On the other hand, if you already have a CRM and your choice of CPQ solutions is limited… well, you know what I’m getting at. Prepare yourself for the possibility that you may need to switch solutions in the future.

Final Word

Thanks for reading to the end. Make sure to subscribe to our mailing list, where I share valuable insights from projects with clients and businesses.

If you’d like to discuss the CPQ software benefits, find the right CPQ software or just need a sympathetic ear, don’t hesitate to reach out. I’m sure we’ll find the right solution for you.

Cheers,

J.