CPQ (Configure, Price, Quote)
In recent years, businesses have adopted to CPQ (Configure, Price, Quote) systems to provide configurable products as a personalization option for their customers. CPQ systems provide the flexibility for a customer to mix and match options available for a product they are interested in while simultaneously delivering a personalized end-to-end buying experience. Its also important to be mindful of launching the right strategy for CPQ functionality for your end customer, with a well thought out roadmap based on an array of factors including, customer behavior, business needs, and market trends.
With that said, the adoption of CPQ isn’t necessarily for everyone, but it’s critical to start by answering the broad question, ‘Will this offering really accommodate and help the customer to make their buying decision?’ As we keep the customer at the center of everything we do, it’s critical to make the path to purchase completely seamless while simultaneously empowering the user.
In most cases, the adoption of a CPQ strategy will have a direct impact on conversion rates and revenue. If the right CPQ strategy is not rolled out for the market segment that you are targeting it could spell disaster on conversion rates. Also, the longer it takes for the customer to complete the buying journey could directly impact the revenue.
The broader considerations can be split further into more granular aspects as listed:
- Age of the customers interacting actively with the brand.
- The cultural background of the end customers.
- Existing brand engagement metrics.
- Market sentiments towards the brand.
- Challenges in maintaining Product data.
- Challenges in materials procurement.
- Challenges in stock allocation.
- Challenges in production for pre-configured items with demand.
- Challenges in the maintenance of pricing for pre-configured products.
- Trends are driven by social media and networking.
- Innovation or market disruptions related to the product lines.
- Transparency on pricing options.
It has become essential for businesses to strike a balance on having the right mix of options, messaging, and possibly gamification of the customer buying journey for a configurable product and also make it responsive enough to be delivered to any digital touchpoint where the customer interacts with the brand. Also, in addition to rolling out a product personalization feature to the customer, it is also important to monitor the interactions of the end customer with the CPQ feature. This provides valuable insights to allow you to improve upon your offering to ultimately enhance customer experience and conversion rates.
Apart from the major business considerations, it is equally important to choose the right CPQ product and eCommerce stack that can work well with your backend systems (ERP, CRM, etc.).
All the above-mentioned considerations, analysis and decision making can seem intimidating. Here at BORN Group we specialize in CPQ and can help you to navigate a rollout strategy along with ongoing maintenance. Please feel free to reach out to Mackenzie Johnson, [email protected] for more information on our service offerings.