If we sold the same product to all our customers, pricing would be of the greatest simplicity. However this is not the case for OYO, a manufacturer of specialty machining tools. Hence the consideration of using a software CPQ.
What is CPQ?
CPQ stands for “configure, price, quote” and is generally used to describe a software system used to produce accurate quotes for complex, configurable products, so OYO’s specialty tools fall squarely into this category. The overall goal of implementing a CPQ system is to make the sales cycle more efficient, productive, and successful. By speeding up the product configuration and proposal process and reducing the risk of producing inaccurate quotes, OYO side we will have a better chance of establishing a more positive relationship with the customer and delivering a positive buying experience, which is one of the strategic goals we set out to achieve as quickly as possible.
How does the CPQ software work?
The process behind the system has three stages: configuration, pricing, quotation
Configuration
In the context of CPQ software, configuration refers to the configuration of products. OYO special tools offer customized solutions, experiences, and products (the special tools) that target each customer. While this is a great advantage for buyers, customization complicates the supplier’s life. Unless, of course, a CPQ software system is implemented. This software tool allows you to configure complex product offerings that exactly fit the customer’s needs. When you use the software to configure products, you dramatically reduce the risk of human error and allow more time for the OYO team to focus on building customer ties.
Price
The “P” in CPQ stands for price. Complex solutions result in even more complicated pricing structures. Since we offer highly customizable products, we could not have a predetermined price before their configuration or we would run the risk of generating suboptimal pricing and slow delivery times.
Quotation
Once the configuration and pricing have been defined, OYO must send the customer a final, error-free quotation that provides all the details the customer needs to make their purchasing decision. We understand that customers often request quotes from multiple vendors-it’s part of the game, making quick turnaround time a valuable asset. However, due to the complex nature of accurate pricing and configuration, this can be difficult to achieve. The CPQ software, as we have designed it, can create customized quotes for clients. It also allows the OYO team to easily review the quote before sending it to the customer, allowing them to change any last-minute details.
Benefits of CPQ software (for OYO and customers): collaboration and integration
The obvious overall benefit of implementing CPQ software within OYO special tools is the acceleration of the sales process, which provides more time for the team to get to know customers and find ways to establish a mutually beneficial partnership relationship with them. The system eliminates the need to dig through various spreadsheets, notes, and emails in search of customer information, pricing and quote creation. With our CPQ system, every single potential combination of configuration, price, and discount can be created almost completely automatically. In this way, we will be able to offer our customers the easiest and most accurate quote possible, quickly.
Collaboration with the customer for accurate quote creation
Efficiency is paramount. However, accuracy also plays an important role in the CPQ system. The beauty of this tool is that within our company the team can have transparent access to it and everything is updated in real time. This is an indispensable element in creating accurate quotes. But it’s not just sales accounts that need to be involved in the quoting process, customer success and technical staff also have an active role in creating a quotation. We wouldn’t want to send a customer a quote that has compliance issues.
And then the customer also has access to it, as it is critical when “participating in the creation” of the quotation, providing technical and business information, which is collected in a structured way, which also creates historical memory for both parties involved.
The CPQ software system enables collaboration between internal areas and the customer to send the best possible quotation, all at the drop of a hat.
Integration
Because creating accurate and efficient quotes involves multiple areas there is a risk that necessary customer information remains isolated. Fortunately, a key feature we have implemented is the ability to integrate with other tools used by the OYO team, such as job order management and customer relationship management. In this way, communication and guidelines can be accessible to anyone who is part of the process. A quote for a client will undergo many stages over its lifetime. For example, the quote turns into an order, which is followed by invoicing and payment. The order must be fulfilled, and then production gets involved. So it is clear that based on all these activities, it is not to be understood as a mere sales tool, but as a cross-cutting element throughout the organization. The implementation of a CPQ that can integrate with existing or to-be-implemented business tools, primarily ERP systems, but also CRM, will make the workflows between sales, customer success and operations much smoother, enabling a positive customer experience.
