Minimizing the Risk of a CPQ Solution
You’re implementing a CPQ solution, and everything is going great. The coordination between your sales reps and marketing team is seamless – and customers have never been happier with your product/service.
But pump the brakes. What may seem like calm and peaceful waters right now can quickly turn into stormy seas when unexpected curveballs come your way. Although a top CPQ solution makes operations more efficient and increases productivity, there are certain risks you need to be aware of.
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The Story of CPQ & Regulatory Compliance
Many industries in the U.S. are heavily regulated and drowning in rules – and there are no signs of this trend slowing down. In fact, “regulatory burdens on Americans increased by nearly $70 billion during President Obama’s first term in office, during which federal agencies imposed 131 major regulations.”
What does this mean for a CPQ solution? It means that complying with regulatory laws is vital – and failing to do so can result in costly lawsuits and penalties, not to mention the headaches that come along with them.
Ensuring that products meet regulations and are properly built to fulfill customers’ contractual obligations is critical for avoiding claims and staying in the clear. An effective CPQ solution will also maintain thorough product and commercial documentation in the event of a claim or litigation.
Tracing Each Step of Sales Configuration
In all likelihood, something will inevitably go wrong over the course of product creation. Not to be pessimistic, but it’s a messy world fraught with human error – and the potential for disaster is always present.
To adequately deal with an issue, you must be able to trace your way back to what went wrong. Whether it’s a problem with initial product design, materials, manufacturing or packaging, having traceability is essential in the sales configuration process.
An agile CPQ solution is capable of tracing a final product all the way back from manufacturing to its initial configuration stage - helping to identify precisely what went wrong. In turn, you can effectively deal with customer complaints and quickly find a solution without a lot of drama.
The CPQ Solution: Increase Client-Facing Transparency
When making your customer an offer, complete transparency is of the utmost importance. If subtle details aren’t clearly defined or the total comes out to be more than anticipated, it can lead to disputes and quickly escalate from there. In this type of situation, a customer may simply reject the product/service and no payment will be received.
This is obviously problematic from a financial standpoint and is going to cut into your profit margins. A top CPQ solution will minimize this financial risk because it provides total transparency throughout the sales configuration process.
For example, it would automatically adjust pricing and payment terms to accommodate the specific customer a sales rep is serving. This ensures that your sales rep and customer are on the same page right from the start, and no hidden surprises surface along the way. As a result, it’s a win-win situation for everyone, and you reduce your financial risks significantly.
There’s no denying the positive impact that a CPQ solution can have on business operations. However, understanding potential risks and taking measures to minimize them is crucial for your company’s bottom line. Fortunately, implementing a top CPQ solution does much of the work for you, so you can keep things flowing and run your business with greater peace of mind.
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