For manufacturing companies, selling technical products with a multitude of configuration options can result in a complex sales process. The more complex the product, the more challenging it can be to navigate the customer journey.
Experienced sales reps are crucial in managing the process in these situations. They work closely with customers to identify their needs and configure a product that best suits those requirements. They also ensure that the product design meets engineering specifications before calculating a price, creating a quote, and obtaining CAD files (if necessary.)
But the traditional approach to manufacturing sales has several downsides. It’s slow, error-prone, and tedious for the customer. Moreover, it heavily relies on experienced sales reps, who are becoming harder to come by in the current labor market.
That's where configure, price, quote CPQ software comes in. CPQ software for manufacturing is a one-stop digital transformation solution that revolutionizes the sales process for manufacturers. By automating many of the manual tasks associated with complex product configuration and pricing, CPQ software can help manufacturers reduce errors and speed up the sales process.
This article will explore what industry-leading CPQ software can do and how implementing such a solution in your business can dramatically increase profits. With the right CPQ software, manufacturers can streamline their sales processes, improve customer experiences, and boost their bottom line.
What Is Modern Manufacturing CPQ Software
Are you tired of the old-school, time-consuming process of configuring, pricing, and quoting your products? You're not alone. Luckily, modern manufacturing CPQ (Configure, Price, Quote) software has revolutionized the process, providing a range of features that not only automate the process but also improve the customer experience.
One of the most significant improvements of today's CPQs is their visual capabilities. With 3D visual product configurators, customers can design their dream configurations easily. The guided selling feature makes these visual product configurators accessible to customers and salespeople. Plus, product rules ensure that every configuration is optimized, eliminating errors.
The modern CPQ solution allows customers to self-serve, which is preferred by most buyers, especially digital natives, who make up the majority of decision-makers. Dynamic pricing calculation in real-time during the configuration process can be displayed alongside the configurator, enabling instant purchases. Customers can receive quotes and prices without going back and forth with sales reps.
But that's not all. Modern CPQ software for manufacturing integrates with CAD software to generate CAD files automatically. CAD and design automation streamlines communication between sales and engineering, saving the engineering department considerable time. Sales reps used to pass napkin sketches of configurations that would never work in the real world. But with modern CPQ software, there's no need for such confusion.
In addition to CAD files, modern manufacturing CPQ can create a range of outputs for the shop floor, such as BOMs, CNC cut sheets, and additive manufacturing files. These documents close the loop between the customer and the final product, enabling end-to-end automation. Customers receive products perfectly optimized for their needs faster than they thought possible without dealing with a sales rep or demoralizing back and forth.
How CPQ Software for Manufacturing Companies Boosts Profits
An Immersive Buying Experience
If you're a manufacturer looking to compete with the B2C world or outshine the competition, CPQ might be the answer you're looking for. CPQ software for manufacturing provides fully immersive buying experiences using 3D, VR, and AR technology. These experiences attract and engage customers and persuade them to spend more.
Integrating CPQ for manufacturing with CRM can pull customer-specific data into the configuration process. This feature can make intelligent recommendations for upsells and cross-sells, increasing deal size and win rate. You can provide a tailored experience for each customer, creating higher customer satisfaction.
Gone are the days of relationship selling. Customers want more autonomy, and with CPQ for manufacturing, you can provide them with an experience they'll love. By integrating CPQ with your e-commerce platform, you can embed your visual product configurator into your website, allowing customers worldwide to research and place orders.
Today's buyers conduct deep research on multiple manufacturers' websites before purchasing. To stand out from the crowd, you need to differentiate yourself online. By using 3D configuration, you can offer a unique and immersive buying experience, increasing the likelihood of making more sales. You can also use 3D visuals in your marketing efforts, broadcasting your digital credentials to the market and increasing the perceived value of your products.
Dynamic Pricing
Configure price quote (CPQ) software calculates prices in real-time, giving buyers instant feedback and the ability to buy on the spot and make immediate decisions. Customers are more likely to purchase when they can get a quote quickly and easily and feel like they're in the driver's seat.
But that's only part of what modern CPQ software can do. It doesn't just price fast but intelligently too. With the ability to change prices on the fly in response to various internal factors such as inventory levels or external factors like competitor pricing, you gain the agility and flexibility needed to maximize margins from every deal.
For example, if you have excess inventory of a particular product, you can lower the price on that item to encourage sales and free up space in your warehouse. On the other hand, if a competitor is offering a lower price on a similar product, you can adjust your pricing to stay competitive and win the business.
Rapid Sales Cycle
In today's fast-paced business environment, speed is vital. The manufacturing industry is no exception, and buyers are looking for quick, efficient solutions that allow them to make informed decisions without delay. Gone are the days when buyers had the time to wait weeks for a quote or were willing to engage in lengthy email exchanges. They want instant gratification, and they want it now!
Enter CPQ–a powerful tool that can give prospects and buyers all the information they need in seconds. Whether it's a configuration, price, quote, 3D render, CAD file, or any other relevant information, CPQ for manufacturing can deliver it instantly.
With CPQ, your company can move at the speed of modern business and beat the competition to the front of the quote queue. You can win more business and reduce costs by providing fast, accurate information to prospects and buyers.
Automation
The manufacturing industry is currently facing a significant challenge regarding hiring. The Great Resignation, a phenomenon where many employees are reconsidering their career paths, has led to a shortage of workers in this sector. Additionally, the existing manufacturing workforce is aging, with baby boomers set to retire soon. Unfortunately, younger generations don't find manufacturing an attractive career path, exacerbating the labor shortage.
As if that wasn't enough, even basic products like toothbrushes and toasters are becoming connected to the internet of things, making it imperative for salespeople to understand digital technology alongside the mechanical workings of their products. This requires additional training and expertise, which can be challenging for older people and companies with limited resources.
The good news is that there is a solution to the labor shortage in manufacturing: CPQ. CPQ streamlines and simplifies all engineer-to-order workflows. By automating sales, engineering, and shop floor processes, CPQ eliminates human error and speeds up production, increasing efficiency, throughput, and scalability.
Unlike hiring more people, CPQ can be scaled up or down in line with product demand, reducing operating expenses. Automating tedious and repetitive tasks frees up valuable time for employees to focus on more complex and creative work, leading to greater job satisfaction and higher-quality output.
3 Key Takeaways