Let’s get to the heart of what makes Configure/Price/Quote (CPQ) tools so valuable to sales organizations. You might think that the advantages of CPQ tools lie entirely in the process and technology realms. But there’s a little bit more to the story.
Earlier this year, Aberdeen surveyed 159 end-user organizations to determine what the strongest-performing sales organizations do right. We weren’t surprised when the survey results across the board showed that CPQ users outperformed non-users:
Fifty-eight percent of sales reps using CPQ achieved sales quota, versus 46 percent of non-CPQ users.
Fifty-six percent of sales teams using CPQ achieved sales quota, versus 52 percent of teams not using CPQ.
The lead conversion rate for companies using CPQ tools averaged 35 percent, a full 5 percent higher than companies not using CPQ.
Perhaps the most impressive finding to come out of Aberdeen’s study is that companies using CPQ tools closed deals amounting to twice as much as those closed by non-CPQ users: an average of $432k versus $211k, with a shorter sales cycle and fewer conversations required to clinch each deal.
So what is it about using CPQ tools that gives companies such a strong selling advantage?
The Bottom of the Funnel is a Scary Place for Sales Reps
No doubt, companies that use CPQ tools are more streamlined and efficient when it comes to creating quotes. CPQ tools tighten the selling process by eliminating errors in quotes and proposals, but these practical benefits are not the only reasons that CPQ tools speed up the selling process and boost revenue. The true value in CPQ tools is emotional. Yes, emotional.
The bottom of the sales funnel is rife with friction: stress, fear, anxiety, and doubt. During the final hours of a selling period — “the last mile,” as Aberdeen calls it — fired up sales reps, who are hell-bent on making their quotas, often succumb to the urge to add promos and perks to a deal in an overt attempt to get customers to sign. But these desperate tactics don’t always result in the best deals for the rep or companies.
“The stress levels commonly associated with the final days and hours of the selling period — ‘Am I going to close this deal and make my number?’ — are too often addressed by throwing discounts or extra deliverables at the situation, rather than by deploying technologies and best practices that will actually more effectively seal the deal.”
Current adopters not only perform better around quota attainment and lead conversion efficiency metrics, but also around proposal volume, with 49% more (20.9 vs. 14.0) contracts, proposals, quotes, and RFP responses sent out to prospects and customers.
CPQ Tools Reduce the Fear Factor
Good sellers reduce bottom-of-funnel friction with lead-to-win best practices that include using CPQ tools to automate the quote process so they can relax and focus on making less emotion-driven, more time-tested decisions. Using CPQ tools helps sales departments stick to company best practices and calmly deliver proposals that are accurate and comprehensive, thanks to the flawless data-management technology that drives CPQ quoting.
Getting your sales reps to their happy places by arming them with CPQ tools doesn’t just make for more content sales reps; Aberdeen’s survey proves that CPQ tools also lead to better attainment of quota, a higher lead conversion rate, more proposals delivered per month, a quicker sales cycle, and a much higher average deal size. That’s something any company can feel thrilled about.
Want to get yourself (and your team) some sweet emotion? Request a demo of QuoteQuickly.