Welcome to the world of CPQ solutions, where boosting custom window sales and enhancing customer satisfaction go hand in hand.
In today’s competitive market, window manufacturers need cutting-edge tools to streamline their sales processes. CPQ solutions empower sales teams to efficiently configure custom products, apply pricing, and generate precise quotes in no time.
This blog explores how CPQ can enhance your sales strategy, driving higher efficiency, customer satisfaction, and your bottom line. Dive in to discover the transformative power of CPQ for your window sales!
What is CPQ?
CPQ stands for Configure-Price-Quote. CPQ solutions play a crucial role in custom manufacturing by automating the process of personalized product configurations and pricing. It allows customers to select specific features, components, or design elements for their products. CPQ software empowers customers, dealers, and sales representatives to seamlessly craft custom products like windows to meet individual requirements.
The adoption of CPQ solutions brings about notable operational benefits, leading to increased efficiency, improved customer experiences, and larger profits.
How Does CPQ Work?
The CPQ process unifies various elements of custom window manufacturing, streamlining quotes and order processing. The process includes three elements:
Configure
In the product design stage, users access a product configurator to design custom windows or glass products. The configurator offers a range of product options, such as design styles, materials, colors, hardware, glass choices, and accessories.
The product configurator allows the manufacturer to set parameters that ensure only valid and feasible option combinations can be selected. These rules prevent unrealistic and unbuildable configurations from being ordered.
Price
Once the configuration is complete, the software instantly calculates pricing for the custom window order. When CPQ solutions are integrated with an ERP system, the pricing engine automatically calculates the final price. Pricing is determined according to the final configuration, assigned pricing rules, and direct and indirect product costs.
If the CPQ software is not connected to an ERP system, these costs are typically estimated and inputted manually. This can lead to manual errors and inaccuracies if not regularly updated.
Quote
After design and pricing are complete, the CPQ tool generates a detailed quote that can be instantly shared with the customer. This quote includes an itemized breakdown of the selected options, pricing, production lead times, and estimated delivery dates. Automated quote generation minimizes manual errors and accelerates the entire sales process.
Having real-time access to ERP production information and inventory levels ensures the most accurate quotes. Without visibility, CPQ-generated lead times and delivery dates are estimates only as they may not reflect real-time production capabilities.
CPQ Solutions for Boosting Sales
Drive window sales and enhance your window manufacturing efficiency with Frontier’s CPQ solutions.
CPQ solutions help window manufacturing dealers and reps increase their sales in a multitude of ways. According to a Hitachi Solutions article, CPQ software results in 105% larger than average deals and a 17% higher lead conversion rate. The key is to know how to use the tools properly.
The following are some great ways to use CPQ to your advantage.
Complex Configurations Made Simple
CPQ solutions allow your sales team to easily configure complex window products with various styles, materials, sizes, and features (e.g., smart operation, UV protection, insulation). This ensures that the selected products meet customer specifications, reducing returns and increasing customer satisfaction.
Error-free orders and enhanced buying experiences lead to higher customer satisfaction. Happy customers are loyal customers, therefore chances are good that they will purchase from you again.
Dynamic Pricing for Discounts and Promotions
CPQ software ensures accurate pricing by automatically calculating prices based on the selected configuration. However, it also applies discounts, promotions, and special pricing agreements you have pre-set in the system. The application of discounts and promotional pricing ensures consistency and compliance with your pricing policies.
For example, you can easily set discounts for first-time buyers, bulk purchases, regional sales, and slow-moving inventory. In each case, dealers and reps can increase their sales and add more money to your bottom line.
Faster Quotes for Quicker Sales
Your sales team can provide customers with detailed and professional quotes within minutes instead of hours or days with CPQ. This is because CPQ’s automated quote generation speeds up the quoting process. Automation reduces the time dealers and sales reps spend on administrative tasks and eliminates common ordering issues.
Quick quote adjustments can also be made using CPQ solutions. This greatly improves lead conversion rates for quicker and more frequent sales which leads to higher profits.
Enhanced Customer Experience
CPQ solutions allow buyers to customize their window options based on their individual preferences. However, your team can take service to the next level by engaging customers with an interactive and guided selling process.
Your team can enhance the experience with CPQ-generated virtual product visualization. This is accomplished through CPQ software that includes integrated 3D product configuration with tools like CAD and Autodesk Inventor. Guiding the sale with a virtual window model enhances the customer’s buying experience. It also helps them make more informed decisions about their purchase which reduces order errors and returns.
Don’t forget about post-sale customer service. When CPQ is integrated with your ERP system, reps can easily provide customers with order and service updates. These may include production timelines, delivery details, and warrantied service appointments.
Improved Sales Efficiency
Since CPQ software automates tedious, administrative tasks, your team can focus more on building relationships and closing deals. When CPQ is integrated with your ERP, it provides your team members with comprehensive customer data and history. This valuable information can be used to tailor future sales pitches, discounted pricing, and follow-up strategies.
Increased Sales Insights
CPQ provides valuable insights and reports on sales performance, window style popularity, and customer preferences, enabling sales teams to adjust their strategies accordingly. Better visibility into the sales pipeline allows for more accurate forecasting and inventory management.
ERP+CPQ Solutions: Integration Advantages
The full operational benefits of CPQ software are realized when integrated with your ERP system. However, some manufacturers still use standalone configure, price, quote tools without integration. This can lead to inaccuracies and missed opportunities.
When combined, CPQ software becomes a powerful tool that incorporates its core functionality with the efficiency of an ERP. Plus, all data is accessible from one central database often referred to as a single source of truth.
ERP integration offers several advantages in addition to boosting sales, especially for window manufacturers. They include:
Seamless Data Flow
Integration ensures data flows seamlessly between different business functions. Sales, inventory, production, and finance departments can access consistent information in real time. This reduces the risk of errors and miscommunications, enhances operational efficiency, and supports better decision-making.
Increase the efficiency of your sales team with the powerful features of Frontier ERP with built-in CPQ.
Enhanced Accuracy and Consistency
With ERP integration, the accuracy of quotes and orders is significantly improved. The CPQ system automatically pulls data from various modules such as inventory, pricing, and customer databases. This ensures that the information used in quotes is always current and accurate, reducing the likelihood of errors in pricing, configurations, and order details.
Streamlined Sales Process
Integration streamlines the entire sales process from configuration to order fulfillment. Dealers and reps can configure complex windows, generate accurate quotes, and convert them into orders without switching between multiple systems. This saves time and reduces the complexity of the sales process, leading to faster sales cycles.
Improved Customer Experience
Customers benefit from a smoother and more efficient window buying experience when the two systems are integrated. It ensures that team members have all the necessary information at their fingertips to address customer inquiries promptly and accurately, enhancing overall customer satisfaction.
Optimized Inventory Management
As sales orders are generated, the ERP system updates inventory levels in real-time. This ensures that stock levels are accurately maintained, reducing the risk of stockouts on a crucial sale. It also allows for better planning of production schedules and procurement, optimizing the supply chain.
Efficient Production Planning
When integrated, production planning becomes more efficient. As soon as an order is confirmed, the ERP system generates production orders so that manufacturing can begin immediately. This coordination between sales and production ensures the timely delivery of custom window products.
Advanced Analytics and Reporting
The best ERP systems provide advanced analytics and reporting capabilities. You can generate detailed reports on sales performance, customer preferences, product configurations, and market trends. These insights help in strategic planning, identifying opportunities for upselling, and improving overall business performance.
Better Financial Management
Integration aids in better financial management. The ERP ensures that all sales transactions are accurately recorded, providing real-time insights into revenue, margins, and profitability. This financial visibility helps in budgeting, forecasting, and financial planning, and in ensuring that the business remains financially healthy.
How a Built-in CPQ Solution is Better
1. Better Sales Order Management
Sales order management is strengthened with built-in configure, price, quote tools. From faster quote generation and order processing to better customer service and field service management, it’s a win-win for your company and your customers.
2. Lower Total Cost
Managing multiple vendors for ERP and CPQ can increase costs related to software licenses, support, and maintenance. It can also complicate vendor management and support coordination. Working with a single vendor like Frontier can reduce these costs and simplify your vendor management and support.
3. One System to Learn
Access real-time analytics and reporting with Frontier’s ERP-integrated CPQ.
With built-in CPQ window manufacturers eliminate the risk of having a fragmented user experience. With separate applications, users must switch between different systems for various tasks. This reduces efficiency and requires additional training. Plus, Frontier ERP provides a user-friendly interface which means shorter training hours and more efficient system use. To make the most of your CPQ solution, you should ensure all team members are thoroughly trained in using the system effectively.
4. One Change for All
Changes in one part of the system are instantly reflected in the CPQ. The centralized ERP database enables up-to-date information across the company for inventory levels, invoicing, and more.
5. Reduced Manual Entry
An ERP with a built-in configurator simplifies processes such as dealer quotes, order fulfillment, and production planning. This reduces the need for manual data entry and minimizes errors.
6. Advanced Reporting & Analytics
Window manufacturers can generate holistic reports that cover the entire order-to-cash process. These reports provide deeper insights into sales performance, production efficiency, and financial health. Frontier ERP includes robust analytics and reporting features with drill-down capabilities sought after by most manufacturers.
Conclusion
CPQ solutions are indispensable for window manufacturers wanting to optimize their sales processes and enhance customer experiences. By simplifying complex configurations, ensuring accurate pricing, and expediting quote generation, CPQ streamlines operations while driving higher sales and profitability.
Integrating CPQ with ERP systems further amplifies these benefits, providing seamless data flow, improved accuracy, and comprehensive insights. Embracing CPQ enables your sales team to focus on what they do best—building relationships and closing deals—while you lead a more efficient, responsive, and successful business.
Frontier ERP includes a built-in CPQ with a powerful product configurator to help your team drive sales and grow your window manufacturing business.
Would you like to learn more? Contact us today!
