SAP Callidus CPQ
Intro – SAP CallidusCloud CPQ is a full enterprise-grade solution. Customers with as few as 50 or as many as tens of thousands of salespeople can utilize and grow with CPQ. It supports quotes and proposals with over a thousand items, unlimited nesting, customer-specific pricing, and a wide range of languages and currencies and is truly omni-channel
CallidusCloud was awarded SAP ISV Partner of the Year for 2017. Navigate from C4C CRM seamlessly into CPQ. Leverage account, contact, asset, and contract information from C4C in CPQ and update C4C with quotes and other key variables. Sales orders and confirmations are integrated with Hybris for processing. Integrations with SAP ERP enables CPQ to import master product and pricing information and check inventory and process orders. Users can now use CallidusCloud CPQ to select the right product, configuration and price for each customer; generate compelling sales proposals quickly; and automatically update customer relationship management (CRM) software with the latest pricing and product information. The solution helps simplify overall sales processes so representatives can focus on selling instead of time-consuming administrative task
Intuitive guided selling
CPQ simplifies complexity. Companies with the most intricate and diverse product configurations depend on configure price quote solutions to enable salespeople, channel partners and customers to quickly generate accurate quotes. The intuitively designed interface gives business users more quoting power, anywhere.
Business Case CPQ
There’s no reason that deals need to be held up by a lengthy quote process – CPQ technology automates it, and it also provides a host of other benefit that help sales reps close bigger deals in ways that lead to greater customer satisfaction. Business is facing problem with their daily business and losing their ROI, hence they are looking for suitable product to increase their sell and ROI.
The art of sales is a much-discussed topic, especially among salespeople. Every step of the process – from initial contact with the customer to the close of the deal – is discussed, analyzed and rehashed. Techniques are proposed, pitfalls are identified, and deals are dissected, whether they result in a win or a loss.
Because of the increasingly complex mix of products that vendors are offering, the manual approach to quote creation is becoming rapidly obsolete. What will replace it? CPQ solutions, which automate the process, make it much easier to propagate changes in catalog items and product descriptions, and automate the approval process to speed deals to conclusion and at the same time protect margin
CPQ is a tool that automates many of the administrative tasks that sales reps and sales managers must do to close sales. In reality, CPQ provides a tool that helps the sales process at multiple points, and makes the buying experience better for the buyer, optimizes margin for the seller, and enables the sales rep to appear more knowledgeable and responsive. CPQ comes with multiple feature like Guided selling which help to reduce the decision taking time for customer and at the same time it gives rich feature of Promotional discount/message /notification features to give added advantage on opportunity
Adding technology to the selling process is not an exercise that should be taken lightly. Here company is facing problem with daily sales and margin is also loosing sales, below are the some of the main problems
1.Product Complexity Outstrips Sales Reps’ Capacity to Keep UP :
Due to Variety and Complexity, Products are exploding and the reps are not having a grasp on the entire product line and possible customizations. In that event, the reps are selling based on their memory – which mostly not the best choice for the customer, or the most profitable for the business.
Using SAP CPQ we can define catalogs that’s friendly and easy to use and Favorite feature of CPQ
2.Upselling is not meeting Expectations:
Due to complex mix of unorganized Products offerings; sales rep is avoiding to interrupt the ongoing process resulting into loss of opportunity to Upsell, this is also resulting into fail to offer the ongoing promotion as this is not integrated when creating a quotes for customer/Prospect
CPQ guides reps toward those up-selling opportunities – it prevents the up-sale from getting away
3. Sales Reps Spending More Time Building Quotes than Selling
Reps are working fewer deals and generating less revenue even after adding more products to the catalog, because reps are being forced to budget more and more time for quote and proposal generation.
If that’s the case, it may be time to automate that part of their jobs and get them back to selling.
4.Mistakes are Costing Big Bucks to company
Mistakes are rife in manual quote creation – which makes sense because it’s a lot of tedious, repetitive activity. Those errors can be very expensive. Mistakes in configuration that were only discovered once the very expensive, very large product arrived at the customer’s destination annoyed the customer, but they also resulted in massive costs to the manufacturer.
CPQ systems have been found to reduce mistakes by 40 percent, and automate the process save the organization thousands of dollars a year, enriching/increasing customer buying Experience and helping Sales Rep to cater their need efficiently and accurately
5.Margin takes a Beating from Discounting
Due to complex product mix sales reps are not able to offer discounts
Sales reps want to close deals, and the ability to offer discounts is helpful in achieving that. But product mix is complex, & reps can’t know every product, let alone the margin on every product. That can lead them to apply discounts that cutting overall margin, especially in complex, bundled sales.
CPQ allows build in rules that prevent discounts that dip below a certain level of margin, contingent on the products included in the deal. Doing this takes a load off managers, who won’t be forced to compute margin before giving deals their approvals
6.Deals Die While Proposals Await Approval
Sales reps complete the arduous task of completing complicated quotes, battling with huge catalogs and books full of pricing rules, only to have their quotes end up on the desk of an overworked sales manager who can’t give his approval until he duplicates all their work and makes sure the deal uses current information, respects margin, and is as error-free as possible. Meanwhile, the customer has become impatient and, in the intervening four days between the proposal’s creation and its approval, the customer has gone out and found another vendor – one who could deliver a proposal in less than 30 minutes. Automation of approvals allows a proposal to get the OK quickly and accelerate the sales process. It makes your sales people happier (they close the deal and get their commissions quicker) and it makes your customer happier (he’s getting the products he needs faster) – and it takes work off the back of the sales manager.
Choosing Right solution :-
CPQ takes one of the most arduous tasks sales reps face and makes it a point-and-click operation. It delivers the right content to them (and, through them to the buyer), helps them recognize up-sell opportunities, and gives them the ability to sell all of your products, not just the products they are most familiar with. This doesn’t just help the sales rep – it enhances the buyer’s experience, and ensures that your business delivers the solution that’s the most precise fi t for his or her needs.
It offers automated pricing with mobile capabilities and analytics that show you which products are selling fastest. Guided selling helps locate appropriate products quicker, and the product list narrows as the salesperson enters more information. Competitive cross-reference features will pull matching products in catalog when we enter a competitor’s part number. Products move in and out of your catalog automatically, based on the dates we specify. Multi-tier and complex pricing rules provide granular control over each quote.
ROI- How CPQ is going to give high ROI
- Cost savings of a more efficient CPQ process.
- Reducing the cost of fixing problems when products are incorrectly configured
- Incremental revenue from giving sales team more time to sell instead of preparing quotes.
- Incremental revenue from providing channel partners with a CPQ tool with their specific products, configurations, and prices.
- Incremental revenue generated by being the first vendor to submit professional, personalized, and error-free quotes to your prospects and customers.
- Higher average selling price by reducing unauthorized discounts.
Summary : SAP CPQ is designed to help users to cut through the complexity of selling solutions that feature multifaceted combinations. It streamlines and automates the solution selling process to enable users to deliver solutions that meet unique customers’ requirements. This CPQ program facilitates advanced integration capability and efficient configuration performance.