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Showing posts with label price. Show all posts
Showing posts with label price. Show all posts

Tacton CPQ Enterprise vs. Tacton CPQ Professional

Posted On Thursday, September 26, 2019

Tacton CPQ is available in two editions – Tacton CPQ Enterprise and Tacton CPQ Professional.

The Professional Edition is an out-of-the-box solution with predefined industry-specific workflows, templates and processes. This typically meets the needs of small and medium businesses looking for the advantages of a standard CPQ solution.

The Enterprise Edition can be more tailored to meet specific business requirements and extends the functionality of Tacton CPQ with even more configurability.

So, what’s the big difference?

In Tacton CPQ there are different objects very much in the same fashion as you find in CRM-systems like Salesforce and Microsoft Dynamics. Standard objects are Account, Opportunities, Solutions, Approvals, just to name a few.

In Tacton CPQ Professional all necessary objects are already predefined but new objects can not be created, but the existing objects can be tailored. In Tacton CPQ Enterprise it is possible to create new objects.

So, what does this mean? 

Let me give an example…

Say that you have something called “Purchasing agreements” that gives certain customer an extra discount for selected pricelists. Both Tacton CPQ Professional and Tacton CPQ Enterprise supports pricelists, but if you want to add additional business logic to your pricing combining pricelist with account one way to do this would be to define a new object, a purchasing agreement object.

In practice this means that if the initial CPQ-analysis shows that there might be a need for one extra object there is usually no need to worry. If we wanted to solve a few “Purchasing agreements” we could extend the pricelist objects, add a few extra pricelists and the problem would have been solved. 

The real difference is when there is a need for multiple new objects to sort out complex business logic. So, rule of thumb is to move to Enterprise once such complexities gets too tricky.

There are a few limitations to Tacton CPQ Professional that one needs to take into consideration. In the table below we point out the major differences in the table below.


Tacton CPQ Professional
Tacton CPQ Enterprise
Advanced Configuration
X
X
Advanced Pricing
X
X
Simple document generation
X
X
Advanced document generation
-
X
CPQ Branding    
-
X
Workflows
X
X
Lead generation
-
O
Industry-standard User roles
X
X
Custom User roles
-
X
Business approvals
X
X
Technical approvals
X
X
Visualization
O
O
iPad App
O
X

Tacton CPQ Professional is set up based on years of CPQ-experience to give an out-of-the-box setup ready to tackle the common CPQ challenges. In the illustration below the standard workflow and supporting objects are displayed. To put it simple; if you need to define more blue or gray boxes Tacton CPQ Professional is not for you. If you think that your business operates like most businesses, you should probably get started with Tacton CPQ Professional. 



So, what about the price? Is there a difference? What do I need to pay?

We’ll let you do the math and give you a clue; if you pay the same amount of dough Tacton CPQ Professional will increase your number of users by 50 % compared with Tacton CPQ Enterprise.

It’s our firm belief that 90 % of small and medium business will be more than satisfied with Tacton CPQ Professional. After a CPQ Analysis workshop we can tell you for sure.

CPQ meaning

Posted On Wednesday, August 28, 2019

CPQ meaning


Definition

The meaning of CPQ is Configure Price Quote. The acronym is used to describe a system to support sales by guiding selling, governance of pricing and automation of document creation.

Configure Price Quote (CPQ) is the combination of techniques, strategies and technologies that companies use to manage and customize products throughout the customer lifecycle, with the goal of improving customer service and assisting in customer retention and driving sales growth.

CPQ systems compile product and pricing data across different channels, across the company, which usually include the product management, sales, marketing and R&D.

A CPQ systems can also give customer-facing staff detailed information on buying preferences thru a guided sales process.

CPQ has historically been used by larger enterprises, but the market is now moving toward small and medium sized businesses mostly due to cloud technology lowering the overall cost.

Components of CPQ


At the most basic level, CPQ consolidates product information, pricing and documents into a single “CPQ database” so business users can more easily access correct information. Business logic explains dependencies and ensure product correctness, pricing alignment and unified quote documents.

Over time, many additional functions have been added to CPQ systems to make them more useful. Some of these functions include automating various workflows, various calculations, advanced pricing structures and pricing models. Analytic capability gives managers the ability to track customer preferences and product inefficiencies based on information logged within the system.

Sales automation: CPQ tools with sales automation capabilities can automate customer interaction offering a 24/7-service for advance product enquiries. For example, as sales prospects come into the system, it might automatically send the prospects marketing materials, budgetary pricing indications typically via email, with the goal of turning a sales lead into a full-fledged customer.

Workflow automation: CPQ systems help businesses optimize processes by streamlining mundane workloads, enabling employees to focus on creative and more high-level tasks.

Lead management: Sales leads can be tracked through CPQ, enabling sales teams to input, track and analyse data for leads in one place. This is often combined with online presence of the configurator.

CPQ Analytics: Companies are keen to capture customer sentiment, such as the likelihood that they will recommend products and want to measure the overall customer satisfaction to develop marketing and service strategies. Companies can integrate CPQ data with other customer data from sales or marketing departments to provide a consistent view of the customer. Analytics in CPQ help create better customer satisfaction rates by analysing user data and helping create targeted marketing campaigns.

Geolocation technology: Some CPQ systems include technology that can create geographic sales campaigns based on customers' physical locations. This is important to make the product offering more adapted to the country or region. Geolocation technology can also be used as a networking or contact management tool in order to find sales prospects based on a location.


Types of CPQ technology


Some major players within CPQ systems are Apptus, Salesforce and Oracle. Other providers are popular among small to mid-market businesses, but these three tend to be the choice for large corporations with simple configuration problems. Some CPQ providers offer more advanced solutions for specific business segments such as Tacton that offers advanced CPQ with primary focus on the manufacturing industry.



The types of CPQ technology offered are as follows:

On-premise CPQ: With this system, the information about the company needs to be managed, controlled, backed up, and maintained using the CPQ software. With this approach, the company acquires licenses in advance rather than purchasing annual subscriptions from a cloud CPQ provider. The software resides on the company's servers and the user pays for upgrades. In addition, a longer installation process is usually required to fully integrate a company's data. Companies with complex CPQ requirements can benefit from a local deployment.

Cloud-based CPQ: Cloud-based CPQ, also known as SaaS (Software as a Service) or on-demand CPQ, stores data in an external remote network that employees can access anywhere, anytime. Sometimes an internet connection is established with a third party who oversees the installation and maintenance. The cloud's fast and relatively simple provisioning capabilities address companies with limited technological expertise or limited resources.

Companies might consider cloud CPQ as a more cost-effective option. Vendors such as Tacton charge by the user on a subscription basis and offer the option of monthly or yearly payments.

Data security is a major concern for companies using cloud-based systems because the company does not physically control the storage and maintenance of their data. If the cloud provider gives up the business or is taken over by another company, a company's data can be compromised or lost. Compatibility problems can also occur when data is first migrated from an in-house system to the cloud.

Finally, the cost can be an issue because paying subscription fees for software can be more expensive over time than with on-premise models. On the other hand, with a hosted SaaS solution improved functionality is constantly added to the CPQ platform.

CPQ examples in practice


Direct sales: Traditionally, data intake practices for CPQ systems have been the responsibility of sales and marketing departments. Sales and marketing teams procure leads and update the system with information throughout the customer lifecycle, and with the help of CPQ they gather data and revise customer history records through calls, meetings and technical support interactions. The CPQ system provides accurate pricing, correct product selection and impressive quotes.

Digital twin CPQ: CPQ can interact directly with customers thru a 24/7 business portal. CPQ gives the customer the possibility to investigate and understand the product offering prior to contacting a sales representative. This gives the company the possibility to find new lead thru automated channels and it give the customer a digital sales companion to guide thru the early phases of the sales journey.

Mobile CPQ: CPQ applications for smartphones and tablets are a must for salespeople and marketing professionals who want to access customer information and perform tasks when they are away from their office. Mobile CPQ apps use features that are only available on mobile devices, such as mobile devices. For example, GPS and voice recognition capabilities enable sales and marketing professionals to access customer information from anywhere.

Business-to-Consumer (B2C) Practices: A CPQ system in a B2C environment helps monitor sales as they go through the sales funnel and enables a business to solve any issues that may arise during the process. CPQ systems in the B2C market help improve the transparency of leads and thus increase the efficiency of the entire sales process.

CPQ challenges


For all the advancements in CPQ technology, without the proper management, a CPQ system can become little more than a glorified database in with product information is stored.

Companies may struggle to achieve a single view of the product portfolio. Challenges also arise when systems contain inconsistent data or outdated information. These problems can lead to a decline in customer experience due to lack of trust in the CPQ tool.

CPQ systems work best when companies are able to keep the product information up to date without involvement of consultancy services.

Multi-channel sales CPQ with ease

Posted On Wednesday, August 21, 2019



Multi-channel sales are made simple with CPQ. Managing multiple sales channels within the same tool can be troublesome but, this is a worry of the past. This might be a bumpy road, but in this article will sort out what you need to consider in order to support your multi-channel sales challenges.


What is multi-channel sales?



Multi-channel selling is the process of selling your products on more than one sales channel. Multi-channel management includes a mix of your own sales representatives, partners, OEM-suppliers and maybe directly on your website.

Selling on multiple sales channels increases your exposure to potential customers and will increases your sales opportunities. Multi-channel sales are also a way to minimize risk, especially for niche buyers and markets.

In the age of digitalization there is an increasing demand for online presence. In the time of of self-service sales, it’s important to minimize the product complexity and the potential errors due to misunderstanding. This is one of the main drivers for guided selling and high-level product guidance in the CPQ software.

Multiple sales channels give the opportunity to differentiate prices to match your service level commitment. The delivery terms and after-market commitment can also differ between channels.
The three main challenges in multi-challenge sales are the following;

Product offering per sales channel
Pricing and discounts per sales channel
Term and conditions per sales channel

Let’s dive deeper into each one of these topics and how a multi-channel CPQ can support these requirements.

Product offering and guiding your customer

The CPQ solution must be able to easily handle variations in the product portfolio. To start, not all products are sold to all markets. In the same way, it must be possible to control what options and features that are available for different sales channels. Obviously, all CPQ systems can manage this – the key questions is the effort to keep this kind of information up to date.

The second thing is the possibility to communicate and speak the language of the end customer. Different sales channels have different knowledge about your product. Where users in one channel care more about the overall performance of your product is in big contrast to a sales channel with very much focus on details. Here you want to keep the same “core product logic”, but be able to adjust what kind of questions to ask depending on sales channel.

A modern CPQ solution will provide effective tools to tailor general product logic to a specific sales channel.

Pricing and value


Price lists and discounts will most likely be different when you do multi-channel sales. Depending on the perceived value of the product and services provided thru a sales channel it’s very likely that prices are adjusted accordingly.

With multi-channel sales it’s possible to sell both highly standardized products and highly customized products at very different price points. A customer asking for higher level of customization will likely have a more expensive products as their next-best alternative.

A customer looking at a very standardized product might not expect to get the extensive know-how your company can offer and will therefore not value the product at the premium price point normally used. Selling a limited product portfolio thru a dedicated sales channel can be an opportunity to reach these customers that in other cases would have chosen a different vendor.
A modern CPQ solution will provide multiple price lists associated with specific markets or customer types in a multi-dimensional fashion.


Terms, conditions and appearance


Selling thru multiple sales channels will require different content and branding of the generated quotes and proposals. With multiple sales channels it’s possible to deliver exactly the same product but with different terms and conditions to match expectations within a certain sales channel or industry vertical.

A CPQ solutions can produce much more than just line-item prices; it can automatically create a full-blown proposal including customized 2D- and 3D-drawings. This is especially important in sales involving complex products or applications and can create a unique conformity in the quoting process.

The content is likely specific both to country and sales channel. For a global company it’s also important to support quoting in more than one language.  When it comes to multi-channel sales it’s equally important to align sales pitch as getting the language correct.

Bottom line


With modern CPQ software you can address all of the issues of multi-channel sales mentioned above with ease. With a CPQ solution it’s possible to deliver market and channel specific proposals, priced correctly and, of course, only with products available in alignment with your overall product strategy.

If you need advice on multi-channel sales CPQ, please get in touch.

Why use CPQ?

Posted On Monday, August 12, 2019


As the product portfolio grows many companies choose to use a CPQ system. A typical CPQ-user works for a company that offers a very wide range of products or services. The sales representatives (and to be honest usually others in the staff as well) have a hard time managing product prices and product dependencies. The products sold often have many options with critical technical/commercial dependencies.

CPQ software is useful by companies that need to quickly calculate prices. If a sales representative needs to quickly prepare a quote for a customer, the CPQ software automatically sums up all important information. This means that the representative can produce the quote and come back to the customer far quicker. Time is an important differential factor for all companies, regardless of whether the company works in faster or slower markets. Speed ​​is always important.

Global companies, large and small, use CPQ to quickly and effectively send pricing information to partners and customers. This means that customers can get the information right when they need it.

CPQ software is an effective way to unify how the products are presented to the customer. By using an automated tool for quote documents product can be presented in a consistent way and critical information is never missed due to human errors.

Studies show that the companies that respond the fastest have the greatest chance of finally winning the deal. This means that the speed offered by a CPQ system can have a major impact on the company's bottom line results.

In the past only large corporations could afford to use CPQ, but nowadays we see a big expansion of CPQ in small and medium sized business.

Configure Price Quote Software

Posted On Friday, July 5, 2019


CPQ is normally a cloud-based software that helps sales teams to automate their quotation routines and manage interactions with clients.

Configuration

The C in CPQ stands for configuration. This means keeping track of all the logic that goes into a complex product. Certain options are required, others can not be combined.
The number of permutations is normally enormous. Even simple products often have millions of possible ways of combining a product. This means that the maintenance-effort required to keep the product logic up to date is one of the most important factors when evaluating the configuration engine.

Pricing

The P in CPQ stands for pricing. The next set of logic to master is the rules and constraints regarding prices and discounts. Certain items come cheaper as a bundle, some item are alliable for bigger discount while other can not be discounted at all.
This means that workflow and organizational hierarchies are needed to do pricing effectively. Keeping track of prices and the possibility to escalate the sales opportunities to management is all part of pricing.
Support for different pricing models, pricelists and purchasing agreements are essential in pricing.

Quotation

The Q in CPQ stands for quotation. Texts, specifications and images all come together in an advanced template that dynamically adjusts the quotation for each customer.
The ease of use and flexibility of the document generation is a very important factor when evaluating how the quotation can meet your business needs.

For a global company it’s often a requirement that both configuration and quotation must natively support multiple languages.

Vendors

According to analysts the leading vendors in CPQ are Apttus, Oracle, Salesforce and SAP. Niche players in manufacturing are PROS, FPX and Tacton. 

How diverse products can ruin your business

Posted On Sunday, June 23, 2019

Yesterday I talked to a dear friend who is also a web shop owner. She sells STEM-education kits to Swedish parents and sometimes to Swedish schools. If you didn’t hear the term STEM before it stands for Science, Technology, Engineering, and Mathematics. These skills are most likely good to know in the future.

In kids-electornics we have two big-sellers” she told me. “One small kit retailing around $60 and a bigger kit retailing at around $130.

Then we have some other similar kits in the range from $80-$100. You basically get what you pay for, the more expensive the more STEM-experiments you can do.

There’s basically only market demand for the big-sellers and therefore she decided to lower the price on the mid-range products to reduce stock. This is when something strange happened…

The surprise

Instead of an increase in sales (when prices were cut) there was an overall reduction in sales.
After some analysis there was one obvious but maybe not intuitive conclusion.

When prices of the mid-range kits came to close to the small kit (with the discount there was only a 10 % difference) it became more difficult to decide what to buy. And when it becomes difficult to decide there will be no sales.

What can we learn?

When deciding how to price make sure that it’s easy to differentiate products. Remember that price is a very important factor in making this decision. By keeping a clear separation of prices you help your customer to decide what to buy, and thereby speed up the purchase processes significantly.

Prices don’t need to be logical, just make sure they help the customer decide how to pick and choose your various options. It's equally important, no matter if you run a web shop or if you're responsible for a CPQ-system.

As a "pricing officer" you need to do quick changes and sometimes quick adjustments. Don't forget that the correct prices will help you both to sell and earn some money while doing so.

Five common pricing mistakes a CPQ solution will address

Posted On Friday, September 2, 2016

Pricing is difficult and also very sensitive. Changes in pricing is one of the most effective way to level overall profit.

This list of pricing mistakes can be used to build a good business case for a CPQ (Configure-Price-Quote) investment.

Weak controls on discounting

It’s not uncommon that sales representatives are given a lot of freedom when it comes to negotiating the price. This means what the profit per deal is very dependent on the person executing the sales.

Discounts are often given without a controlled won/loss analysis and are more based on gut feeling. This means that prices will vary very randomly.

Without analysis and a proper approval process these issues will not go away. This is something a CPQ solution will address.

Inadequate systems for tracking competitor selling prices and market share

It’s difficult to understand the completion and most companies don’t put any effort into analyzing the lost deals.

With a CPQ solution it’s possible to benchmark the won and lost deals in a very structured way. It’s possible to find what key features of the product that correlates with won deals and also what features that are typical for lost deals.

Cost-plus pricing

Cost plus pricing is still very common in the manufacturing industry. The problem with this approach is that it assumes that the customer value is dependent on the production cost. Everybody knows that this is not the case.

A CPQ solution can price on factors that are actually valued by the customer and at the same time ensure that margin.

Price increases poorly executed

There is a problem when price increases can’t be motivated. If we’re not providing any new customer value, why should I pay a higher price?

It’s essential to plan ahead and do price increases as your product improves. If your new engine will cut fuel consumption there is no problem to pay a higher price.

That’s why price increase should be coordinated with product development. This means that timing is essential. Do the math and plan ahead. This is a process that a CPQ solution should support.

Worldwide price inconsistencies

In a global market it’s no longer possible to have inconsistent pricing.

By introducing a central storage for local price it’s possible to understand and correct price inconsistencies. A CPQ solution normally connects the global and the local prices. This means that a CPQ solution introduces the possibility to have governance for local pricing.

Configure Price Quote software - the key benefits

Posted On Monday, August 25, 2014

Configure Price Quote software shortens the sales processes by automating the configuration, pricing and quoting of complex products, services and bundles.

“configure price quote” software is getting attention from global companies looking to reduce errors and streamline sales of complex product. Configure price quote software will serve as a consistent front-office interface with all necessary integration to existing back-office systems.

CPQ (“configure price quote”) is more and more becoming a critical advantage in several industry verticals. Fast and accurate quotation processes is no longer something to strive for – it’s now a critical factor in the competitive landscape.

The primary benefits with Configure Price Quote software include:

  • Guided and automation sales process supporting your customers through important selection including configuration, quoting and ordering.
  • Central pricing processes for establishing, maintaining and publishing pricing for products, services and combination bundles.
  • Workflow for quoting including creation, management and negotiation of sales quotes.

Guided and automated sales process

  • Increased deal size by simplifying cross-sell, up-sell and solution bundles. Service contracts and other related services are quoted together with the product ensuring returning revenue for a longer period of time.
  • Reduced costs and increased customer satisfaction as incorrect orders are dramatically reduced.
  • Increased sales productivity when repetitive, time consuming manual work is eliminated.

Central pricing process

  • Pricing consistency and automatic pricing changes instantly available in all sales channels.
  • Defined structure for pricing to decrease the maintenance due to changing market conditions.
  • Pricing models based on customer segments with analytics feedback for continuous improvements. Built in dashboards for sales and pricing governance.

Workflow for quotations

  • Significant time savings to create, negotiate and convert quotes into orders.
  • Increased visibility and traceability in the quoting process.
  • Support for channel and partners sales for complex products.

What is CPQ?

Posted On Tuesday, August 12, 2014

Definition

CPQ is an acronym for Configure, Price, Quote. CPQ is used to describe the process of selecting components (configure), handling pricing (price) and generating documentation (quote). CPQ software is primarily used for complex products, services or a combination of the two.

CPQ solutions
  • supports a simple way to select valid product combinations with respect to product rules and limitations
  • price the product correctly according to bundling and discounts
  • creates an accurate and persuasive quote based on this information
CPQ software connects front and back end systems and automates the lead-to-cash process.

What is a CPQ process?

What’s included in a CPQ process? Is it all automated and in what way is it adoptable and flexible?

Configure: All complex products have limitations to how modules or sub-components can be combined. The user normally specifies key features and main products, a configurator handles all limitations and itty-bitty details.

Price: Manufacturing costs, geographies, competitive situation, and local protocols - the pricing can be just as complex as the product itself. The price adjustments should both be automatic but also offer flexibility and advice for sales tactics.

Quote: Documents describing a complex product includes texts, illustrations, data sheets, drawings. All specific for each offer generated. The level of details should be flexible and document generation should be fully automated.

Top 4 reasons why manufacturers choose a CPQ solution

Posted On Wednesday, July 23, 2014

What criteria can you use to determine if your company needs a CPQ solution? How can you tell when it’s time to invest in CPQ software?

I wouldn’t set out specific criteria as much as offer four reasons that I think will help you sort out an answer.

This is what we hear over and over again from clients and potential customers.

Spend more time selling

Is there a feeling that not enough selling is being done by your team? If so, this deserves your immediate attention.

Sales people are expensive and their primary role is to engage with customers and prospects. This is how your organization generates revenue.

Preparing quotations and proposal documentation is still a major tasks in many sales organizations. If this can be reduced there will be more time for actual selling. This is the first reason to invest in a CPQ solution.

Better proposals

A good quote delivers a vibrant, crisp and compelling proposals that distinguish you from the competition. A superior quote will persuade your customer and win more business.

Developing best practice for quotes, RFP documents and other sales documentation enables your team to increase the overall quality of the delivered proposals.

A better proposal will tell the customer that you will fulfill their needs and deliver what the customer wants. A better proposal that will provide important benefits and clearly describe the delivered value. A better proposal that validate that you have the right qualifications to fulfill the customer needs.

The proposal should send the message why your company better than anyone else can deliver the optimal solution with the highest value. This is the second reason to invest in a CPQ solution.

Get the price right

Working with complex products is somewhat problematic. To get the price right is a challenge and it makes a big difference when it comes to bottom line earnings.

The first problem: One option often requires another option. Forgetting that other option in a quote can be will severely reduce the profit. But to keep track of all options and exception is a difficult task that requires up-to-date knowledge.

The second problem: When multiple products are combined there is normally a reduction in price that only applies under certain conditions. To work with packages is an efficient way to expand the offering, but it also requires that up-to-date knowledge.

The third problem: In a changing world pricelists need to adopt fast. What was previously done on a yearly basis is nowadays more likely to be day-to-day updates. To be able to adopt to changing circumstances also requires that up-to-date knowledge.

The third reason to invest in a CPQ solution is the fact that up-to-date knowledge should be part of the CPQ package.

First to respond

When a customer asks for a quotation or proposal it’s unlikely the request is sent only to your company. The most likely scenario is that the same questions and requirements will be sent to up to a dozen competitors.

Companies with an implemented CPQ solutions reports that speed makes a difference when it comes to closing more deals. A rapid respond really makes a difference.

Being the first to respond will in itself not guarantee better business. But in combination with more time selling, better proposals and correct pricing it definitely makes a difference. That’s why it’s the forth reason to invest in a CPQ solution.

Why CPQ - business drivers at a glance

Posted On Monday, July 14, 2014

Configure price quote (CPQ) software cuts through sales difficulty to help leading corporations sell more effectively. CPQ empowers sales reps and associates to recommend combination of goods and services, generate accurate quotes, and gets deals signed faster.

With effective step-by-step guided selling and streamlined workflows for quotes, proposals and contract management CPQ software takes advanced sales to the next level. CPQ increases average deal size, accelerates sales cycles and makes your business more professional.
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