Difference Between CPQ vs CRM

Difference Between CPQ vs CRM – The Key Differences You Should Know Before Using It | Two acronyms, CPQ and CRM, are widely used to increase sales productivity. CRM (Customer Relationship Management) is a platform for managing relationships between the firm and its present or potential clients, and it functions as a kind of institution in the management of business processes and sales. Whether they are connected to online or offline actions, it can monitor and optimize every customer relationship experience.

CRM keeps track of contacts, previous interactions, professional connections, sales prospects, and much more. CRM software is used as a cooperation tool that enables the business to develop customized marketing campaigns or give the sales force instructions for managing the client connection. The CRM is most efficient in sales processes during pre and post-sales activities, but it is less useful during the actual transaction.

CRM is actually a technology that enables an organization to establish commercial plans and manage relationships with the entities with which it has (even merely potential) business links through the interaction of several business departments like sales, marketing, and customer care.

What is CPQ?

CPQ is a sales tool that makes it simpler for sales representatives to create product quotes and gives customers a platform to personalize products to meet their needs. In order to guarantee accuracy regardless of the specific purchase circumstance, it also saves all of a company’s pricing and configuration information.

Any business that offers complicated, flexible products and services need CPQ software to power its sales cycles. It is more crucial to assist sales efforts with a CPQ solution that scales across all selling channels the more customization a product has.

Finding a customer can take longer without a CPQ tool. The approval process is prolonged because managers must ensure that sales representatives are not providing discounts that are prohibited and must verify the validity of the configurations they provide.

Additionally, it offers cross-selling and up-selling advice and helps sales representatives with additional settings. A CPQ system can direct your agents to add line-item or package rebates because it already has your pricing and discounting rules loaded.

The main benefit of CPQ software is that it makes sure your quote is client-ready. For a unique touch, you can add brand-specific themes, formats, cover pages, and terms and conditions.

CPQ Surmounts Sales Obstacles – Advantages of CPQ

A CPQ solution is similar to a comfortable mattress in that you don’t realize how much you need it until you have it. While you may think your current sales operations don’t need to be optimized, your processes may be inefficient.

• Your profits are being lowered by inaccurate sales estimates.
•  For settings and pricing, you use spreadsheets or outdated systems.
•  You have overly long sales cycles.
•  Simple chores are done manually by your sales representatives.
•  The quality of your client service is lacking.
•  Your team’s capacity to work is being outpaced by the growth of sales.
•  It’s challenging to manage pricing and renewals when your product portfolio expands.
•  You want to increase your output.

Why CRM with CPQ is the Best Deal? – 7 Benefits of Integration of CRM and CPQ

1) Recognize Sales Opportunities
For sales teams, finding sales leads is a challenging endeavor. Many spend endless hours each week deciding to whom to market what items. Your salespeople can find and explore new sales prospects with the aid of CRM and CPQ connectors, increasing revenue.

These integrated solutions, like PROS Smart Configure Price Quote, use AI algorithms to find these leads in the customer accounts of current clients. Why is this crucial? Customers who have already purchased from you are five times more likely than new ones to do so again.

2) Reduce Administrative Time and Speed Response
Sales representatives typically devote 60–75% of their time to administrative work and preparation, which includes setting up items, producing precise price quotations, and delivering estimates to clients.

As a result, far less effort is spent actually selling goods. You can automate and give them back a significant portion of their workweek to do what they are good at selling by integrating your CPQ with your CRM.

The program will also assist your sales representatives in personalizing product options and generating a quote in a matter of minutes. Additionally, you won’t need to be concerned about misquoting a client because the software eliminates the possibility of human error when computing quotes.

3) Utilize a Digital Catalog to Select the Best Products for Customers
Instead of making a product specifically for each customer, salespeople frequently just sell the products they are familiar with. Your sales team will have access to a digital catalog of all your products and configuration options at their fingertips thanks to a smooth CPQ and CRM connectivity, as well as clever strategies that will make selecting the right products easier.

In order to better satisfy the demands and needs of the clients, they will be able to collaborate closely with them and make changes to the products in real time. Additionally, they will be able to locate and suggest other products that are suitable for particular clients.

4) Utilize a Digital Catalog to Select the Best Products for Customers
Instead of making a product specifically for each customer, salespeople frequently just sell the products they are familiar with. Your sales team will have access to a digital catalog of all your products and configuration options at their fingertips thanks to a smooth CPQ and CRM connectivity, as well as clever strategies that will make selecting the right products easier.

In order to better satisfy the demands and needs of the clients, they will be able to collaborate closely with them and make changes to the products in real time. Additionally, they will be able to locate and suggest other products that are suitable for particular clients.

5) Identify Lucrative Cross-Sell Opportunities
When clients add additional products to a previous order, cross-selling can increase the size of a small purchase. Cross-selling will be made simpler for your sales personnel with CPQ software, ensuring that it happens more frequently. Leading CPQ programs go a step further by using AI algorithms to tailor product recommendations to each customer.

A better customer experience and more sales will emerge from these AI-based CPQ solutions because they will also learn from consumer behaviors and modify the product recommendations to be even more tailored.

6) Price Recommendations Help You Close Deals More Quickly
According to a study by HubSpot, 28% of salespeople claim that completing the transaction is the hardest aspect of the sales process.

CRM and CPQ connectors help your sales professionals close deals much more quickly and boost their chances of success. They will be able to provide consumers with an estimate with fair pricing nearly immediately because the software suggests appropriate price information. Customers will be less likely to second-guess their decision or explore for alternatives as a result, boosting the likelihood that they will buy your product.

7) Shorten Training Periods for Complex or New Products
Typically, you have to invest a lot of time in training your sales crew when you offer new or exceptionally difficult products. You must discuss all of the product’s features and functions, as well as the many customization options, customer benefits, and consumer demographics who are most likely to buy the product.

Since your sales agents will be able to rapidly access information on the product, as well as customizations and pricing information, CPQ can significantly reduce this training time.

8) Receive Performance-Related Analytical Insights
You can get insightful information about your sales force and the numbers pertaining to their product sales by using PROS Smart Configure Price Quote. Viewing their sales records will allow you to determine which goods they are selling the most.

Additionally, you can look for trends and view the quotes for non-selling products. This can show you if your pricing strategy or promotion for particular goods or features needs to be adjusted.

Conclusion on CPQ vs CRM

No matter the size of your company, CPQ technologies provide essential features that empower customers, address supply chain pain points, and significantly streamline the quotation generation process.

Additionally, your business may increase productivity, free up sales representatives to concentrate on selling, control costs, spur revenue growth, and ultimately satisfy customers with CRM CPQ integration.

It’s critical to have a strong CRM system in place if you want to fully utilize CPQ. For your convenience and to provide you with further information, we have put together a free CRM comparison study. Learn more about the leading providers so you can master your CRM and CPQ strategy and be aware of the market.

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