By Neil Pridham-Oracle on Dec 07, 2015
Tim Lavers is a CPQ Strategic Account Director with the Oracle CPQ Cloud team. He has over ten years experience of selling into Tier 1 companies and discusses CPQ below:
Throughout my sales career I have been involved in solution selling. This has ultimately involved creating sales bill of materials (BoM) for the customer based on their requirements. This BoM would vary size and complexity depending on the solution required by the customer. Nearly always the BoM would include a number of different elements, or parts, that combine to form an end product to match the customer’s needs. This becomes part of the “quote” for the customer.
In many organisations the system, or systems, used to produce these quotes are often disconnected with either the sales systems or back office delivery systems. Many companies put their trust in spreadsheets and home grown solutions for this critical activity in the sales process. This can result in a number of issues including incorrect quotes, misunderstanding, in-correct orders, re-work and ultimately, dissatisfaction on the part of the customer.
I was dealing with a large customer recently and they had this exact issue on a global scale. At the last count they had fourteen, yes fourteen, separate systems from lead-to-quote. The customer had various tools, products and processes (involving complex financial deal calculations and validation) that were very time consuming. Their siloed systems resulted in decreased sales productivity and lacked strategic sales opportunities, which ultimately lost them business.
Oracle worked with the customer and a partner to implement Oracle CPQ Cloud (CPQ), a solution that allowed this customer to automate and accelerate the lead-to-quote process. The need to configure, price and quote is obviously not new but having it fully automated and integrated with other key systems is the key to enabling many businesses to generate more revenue, and to drive productivity and profitability.
The key to success at this organization was to give the sales agent a seamless integrated CPQ solution that meant they felt they were simply using their CRM solution rather than two solutions. By having a seamless integration of Oracle CPQ cloud with their CRM solution the started to see improvements in adoption, consistency and accuracy of their sales organisation. Ultimately this increased the credibility of the sales organisation as a whole and, obviously, helped them hit their targets.
With 50% of deals going to the first vendor to respond (insideSales.com) speed to quote is paramount. Early CPQ adopters have seen 27% shorter sales cycles (Aberdeen Research) which lead to more quotes being delivered faster and more ultimately more revenue.
This customer saw the following benefits:
- 2.5 week average quote time reduced to a just a few hours
- 100% pipeline accuracy across the business
- Cross and upsell capabilities to maximise revenue
- Better deal accuracy with built in optimisation calculations leading to larger and more deals
Do you have similar problems
Feel free to look here: Oracle CPQ Cloud for solutions to optimise your sales cycle, Oracle CPQ is native to most major CRM solutions.