Dog eat dog? Try shark eat shark, or T. Rex eat T. Rex. Sales has become so competitive that only the fierce survive. A salesman needs every tool, every tactic, every advantage. And right now, that tool is a configure, price, quote (CPQ) application fueled by AI. Simply put, it’s indispensable for sales teams, streamlining the quoting process and ensuring accuracy. And while CPQ has been critical foreclosing sales for decades, the advances made in the age of AI are taking it to a new level.
How AI enhances CPQ
First off, AI isn’t “added” to CPQ, nor does it operate outside the app. It’s embedded with AI-powered CPQ applications leveraging machine learning algorithms to automate various aspects of the quoting process. This includes:
Product Configuration: AI can automatically configure products based on customer requirements, ensuring that quotes are accurate and tailored to specific needs. By analyzing vast datasets of pricing and product configurations, AI can identify patterns and make intelligent recommendations.
Pricing Optimization: AI can help determine optimal pricing strategies by analyzing market trends, competitor pricing, and customer preferences. This ensures that quotes are competitive while maximizing profitability.
Quote Generation: AI can automate the generation of quotes, reducing the time and effort required by salespeople. By pulling data from various sources, including product catalogs, pricing information, and customer data, and leveraging professionally designed sales proposal templates, AI can create customized quotes in a matter of seconds.
Sales Forecasting: AI can analyze historical sales data to predict future sales trends and identify potential opportunities. This information can help salespeople prioritize their efforts and focus on the most promising leads.
Customer Segmentation: AI can segment customers based on various criteria, such as demographics, purchasing behavior, and preferences. This allows salespeople to tailor their approach to each customer segment, increasing the likelihood of closing deals.
But that’s just features. It’s the benefits where things get truly interesting and a salesman enjoys ROI from this crucial tool.
Key benefits of AI-powered CPQ
A disclaimer: the benefits are what you expect them to be — efficiency, customer engagement, better data. But it’s how AI helps realize the benefits that counts.
Increased sales efficiency: By automating many of the time-consuming tasks (such as pricing optimization and proposal creation) involved in the quoting process, AI-powered CPQ applications can help salespeople become more efficient and close deals faster.
Improved accuracy: AI can help ensure that quotes are accurate and error-free, reducing the risk of costly mistakes. Mistakes means time spent fixing mistakes, and time = money.
Enhanced customer experience: AI-powered CPQ applications can provide a more personalized and satisfying experience for customers. By offering customized quotes and recommendations, salespeople can build stronger relationships with their clients.
Data-driven decision making: AI can provide salespeople with valuable insights into their performance and customer behavior. This data can be used to make informed decisions and optimize sales strategies.
Choosing the Right AI-Powered CPQ Solution
Not all CPQ applications are created equally. While some operate essentially outside your business systems, claiming, for example, that creating “sales proposals as web pages” is somehow a win, you should really look for one that not only works with what you have, but makes what you have work better. Here are some factors to consider:
Integration with existing systems: The CPQ application should seamlessly integrate with your CRM, ERP, and other business systems.
Scalability: The CPQ application should be able to scale with your business as it grows.
Ease of use: The solution should be intuitive and easy for salespeople to use.
Accessibility: Look for one that’s cloud-based, allowing salespeople to access from anywhere.
Cost: Consider the cost of the CPQ application, as well as any ongoing maintenance or support fees. We know of one that starts at $39 a user!
AI-powered CPQ applications are transforming the way salespeople work. By automating tasks, improving accuracy, and providing valuable insights, these tools can help salespeople close more deals and drive revenue growth. If you're looking for a way to give your sales team a competitive advantage, consider investing in an AI-powered CPQ solution. Consider IQX.
