By Joe Parlett, VP of Sales, Veloce
In a prior blog, we discussed some critical KPIs that sales leadership tracks in order to know if their operational efficiency is meeting the standards they’ve set for the company. We also identified how a successful deployment of CPQ can help you to achieve your efficiency goals.
Understanding the comprehensive structure of a deal is crucial in decision making. Not only should a well-configured CPQ system make it easy for your sales team to efficiently get through your quoting process, it should also give your leadership easy access and clear visibility into the deal metrics that will drive their decisions on deal structure. How deals are structured (including the pricing offered) plays a major role in whether or not we will achieve sales goals. CPQ should be providing your leadership team with all the deal metrics needed to understand if a deal will help the company meet its objectives.
Make sure that you’re structuring deals in a way that’s consistent with your goals. As with your examination of a multitude of KPIs, there are numerous deal metrics that need to be evaluated so you know if you should approve, reject or re-structure a deal.
Which indicators are being looked at to determine if the structure is good for the customer and your company? In CPQ, while your rep or channel partner may not have visibility into all of the metrics, all of this data should be conveniently visible for leadership to review. You can give role-based access to more sensitive data (as some of the data may be confidential and only available to leadership), but it needs to be there. Otherwise, how do you know if the deal should be approved?
You can’t go off of a hunch or memory, you need data.
It will vary by company and the products and services sold, but some key metrics will include the items listed below.
By deal, what’s the:
How does this deal align with our goals?
How does this compare to a typical deal or similar deals we’ve done?
Is this a renewal or upsell?
Intangible: How strategic is this customer?
Should I approve this deal? If not, can I intelligently restructure this deal? (By ‘intelligently’, I’m talking about using data to guide your suggestions).
The data is in the CPQ system; make sure it’s accessible. Decision makers shouldn’t have to search for it.
While the goals you set on items— such as margin, discount percentage, and comparisons to “average”— provide solid guidance on the decisions you make, price optimization solutions can work in tandem with your CPQ to help make sure you are truly maximizing revenue.
Your business rules will tell you that you need to be above or below “X”, but price optimization technologies will use additional market data and intelligence to give guidance on what you can expect the customer will actually pay for your products or services.
CPQ should provide you with all of the Deal Metrics needed to ensure you’re making business decisions that meet your corporate objectives. Make sure your technology vendor and/or implementation partner understands what visibility you require in order to drive the decisions which will help you stay ahead of your goals.
I read a blog post recently complaining that Configure, Price, Quote (CPQ) space is stagnant and lacks innovation. I completely disagree with that.
Beware a common sales tactic of advising you to deprioritize more complex use cases for phase two deployment. We hear stories from customers that have been told by a CPQ vendor that you should solve simple problems first and leave complex use cases for later.
When evaluating CPQ solutions, you may hear about constraint-based vs. rule-based configuration engines. This post will help make sense of the pros and cons of both. Veloce CPQ is exceptional in that it makes use of both constraint-based versus rule-based technologies. Read on to see why this is a benefit.
Nucleus Research report highlighting results of increased revenue and reduced operating costs achieved by companies in Telecommunications, Financial Services, and Health Care sectors after deploying Veloce CPQ
Supercharge your Salesforce CPQ with Veloce to easily manage your most complex use cases with incredible performance.