More efficient sales processes through the interaction of CRM and CPQ

Today we would like to talk about a topic that is of great importance to many companies in sales: the interaction of Customer Relationship Management (CRM) and Configure Price Quote (CPQ).

First of all, what is CPQ anyway? The abbreviation stands for Configure, Price, Quote – a software that specializes in the creation of individual quotations within the sales process. CPQ plays an important role, especially in industries with technically complex products, such as mechanical and plant engineering. CPQ software is therefore the digital link between the customer and production. The core functions are product configuration, price determination and the creation of quotation documents.

A central aspect within the sales process is the topic of quotation preparation. For a positive customer experience, it is crucial that the customer already has an “excellent” experience in the quotation phase. If this first touchpoint is already positive for the customer, this increases customer satisfaction and, of course, sales in the long term.

The CRM system forms the basis within the quotation process by managing interests and requests. However, when it comes to complex and multi-variant products, CRM often reaches its limits. This is where a CPQ system comes in, enabling seamless and efficient quotation.

One of the key reasons for adopting CPQ software is to replace Word, Excel and other manual calculation tools to improve the quality of quotes. It may sound trivial, but many companies still rely on time-consuming manual data transfers and complex spreadsheets. This not only wastes a lot of time, but also money, as mistakes go unnoticed if the overview is missing. CPQ offers an effective solution by eliminating manual data transfers and preventing errors in product configuration. A set of rules ensures that only correct and feasible product variants can be created.

A recent survey by the VDMA shows that machine and plant manufacturers see the greatest opportunities for their companies in the digitalization and automation of their business processes. This also includes the optimization of sales activities through digital technologies. CPQ acts as thelink between the opportunity in the CRM system and the order in the ERP system. With the right integration, the entire process – from CRM to configuration and quotation in CPQ to the creation of the order in the SAP or ERP system – is fully automated. This increases the efficiency of the companies and makes customers happier as they receive their offers faster.

In the world of B2B sales, especially for complex and multi-variant products, effective systems are indispensable. CRM and CPQ play a central role here. But the core on which these systems are ideally built is the ERP – for example, SAP ERP.

SAP is considered the leading system for a wide range of business processes. It manages important master data, price lists and supports the seamless processing of commercial and logistical orders. SAP is used to create bills of materials and routings, which in turn supports scheduling in materials management and production.

CRM systems specialize in mapping and controlling sales processes. They enable segmentation of customers, provide a 360-degree view of them, and facilitate forecasting. They also enable the management of opportunities and pipelines and keep an eye on the buying center. CRM systems document all activities in the sales process, from inquiry management to the release of offers.
CPQ systems, on the other hand, focus on quoting. They enable easy product configuration and support sales through guided selling. Furthermore, the price calculation is automated and the creation of the quotation documents is carried out efficiently.

In order to unleash the full efficiency potential in the sales process, it is crucial to use the best of the worlds of ERP, CRM and CPQ and connect them seamlessly. This is because none of these systems stands alone, but they are integrated into the overall process of the company. The integration of these systems enables a holistic view of the sales process and optimizes the processes in the long term.

In practice, this means that data can be exchanged between the systems, so that, for example, quotation information can be seamlessly transferred to the ERP landscape. This reduces sources of error and improves the efficiency of the entire sales process.

But CRM and CPQ solutions do not only offer advantages in direct sales. Increasingly, they are also being integrated into self-service portals to give customers the ability to configure and purchase products themselves. These portals provide a simple and user-friendly way to configure complex products without technical expertise.

Let’s take a look at a real-world example where a company was able to save approximately $200,000 annually by implementing just one self-service feature. In this case, customers can now download their invoices or documents themselves and no longer have to contact customer service for this. The example shows how even providing a simple function can lead to huge efficiencies.

Overall, the integration of CRM, CPQ and self-service portals offers enormous potential for increasing efficiency and improving customer interaction. By seamlessly connecting these systems, companies can not only optimize their internal processes, but also improve the customer experience in the long term.

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