What Is Visual CPQ?: Overview + Benefits
Visual CPQ is the new buzzword in B2B and B2C sales cycles. But what is it, how does it work and is it any good ROI-wise?
As the world moves towards a more digital-oriented reality, something vital is cruising under the radar for the unprepared: visual CPQ implementation. The sales cycle as we know it — and the terms of engagement associated with it — are changing.
Given the importance of sales in most for-profit organizations, it's safe to say that those who catch on to this trend will be better placed to deal with competitors and serve their target market better.
Find out what visual CPQ is and how you can use it to leverage your position in the market.
What is visual CPQ?
To better understand what visual CPQ is, it's best to first look at its origins.
Visual CPQ is an enhancement of conventional CPQ software. CPQ software generally harmonizes three crucial components of the sales cycle: product/service configuration, pricing and quoting.
CPQ software is so effective at streamlining the three sales cycle components that it has led to a 17 percent increase in lead conversion rates for companies that have adopted the technology.
Based on industry estimates, the CPQ software market is projected to grow to $3.9 billion in value by 2026. This shows the pressing need for innovative solutions to changes in the sales process and makes an excellent case for why you should leverage this development to your advantage.
However, despite its many merits, CPQ software has failed to address one understated yet powerful metric that influences buyer actions: trust.
A visual CPQ solution provides an easy-to-use interface for creating and managing product catalogs. It allows businesses to create, manage and deliver products digitally.
Visual CPQ allows you to easily configure your products using templates created by the software's development team or those your team has customized. Your business will always have access to the latest product designs, which can be updated quickly and easily through the system's API (Application Programming Interface).
In addition to its versatility when it comes to design options, visual CPQ also offers more than 50 different features in all phases of the product lifecycle management process — from creating new items right through sales — so that you can stay organized no matter what step of the process you are working on at any given moment.
How visual CPQ works
The solution uses a visual interface to help customers configure products, so they can add, remove and adjust product features in the way that best suits them in real time.
Visual CPQ helps customers to understand the product features by displaying them clearly and intuitively. This enables you to reduce support costs because you can deliver the right solution at each stage of the buying process, from initial search through purchase to aftercare.
Benefits of visual CPQ to consumers and businesses
- Increased sales: Visual CPQ can boost your sales by giving customers a more complete picture of their options and choices.
- Improved customer experience: With visual tools, customers can easily figure out what they think they might want. They can see the exact product configuration in front of them and use that information to make their best decision.
- Shorter sales cycle: By enabling consumers to customize the product or service to their liking, a visual CPQ can take out any hesitancy they might have, leading to reduced cart abandonment and an easier way for the sales team to close deals.
- Future business plans: Businesses can glean valuable insights into what shoppers look for in their products or services by using customer-generated data. Then you can improve what you offer in the future.
What to look out for in a visual CPQ solutions provider
As you search for a visual CPQ solution, these are some of the things you should consider:
1. An easy-to-use interface
A visual CPQ solution should be easy to use. A good user interface is important because it will allow customers to configure and change product or service specifications in a few simple steps.
You don't want them to spend hours figuring out how the system works or struggling with an unintuitive user interface. A less-than-optimal customer experience may jeopardize the entire sale and earn you a bad reputation.
It's also important that the visual CPQ offers an intuitive search function so customers can easily find what they're looking for without much effort!
A one-size-fits-all solution is rarely a perfect fit. Instead, the right visual CPQ should be flexible enough to support a wide range of products, customers and departments.
In other words, it shouldn't just give you a set of pre-built widgets. Instead, you need the tools to build your own widgets or features and create new ones as needed.
3. It offers a 360-degree view
The right visual CPQ solution should provide a clear view of all the components that make up your product. It also allows users to see it from every angle, which gives them more opportunities to understand how each part is interconnected and how changes affect other parts of the product.
The more informed your client is about your product and the more they can view it for themselves, the less hesitant they'll be about closing the sale.
4. Supports automation and configurable rules
Automation can reduce errors, improve efficiency and make your team happier. Configurable rules are important because they allow your system to adapt to changes in your business (like new products or features).
Pivot your business to success with Threekit
A visual CPQ solution can be the competitive edge you're looking for in your business. However, you can only maximize the benefits when you work with a solutions provider committed to your business's success.
We are committed to making tools that make you make it easier for you to sell, like our CPQ integration for Salesforce.
At Threekit, we're in it for the long haul. Our success is directly linked to yours, and you can bet we'll power you to the next level.
You don't have to take our word for it. Get in touch today for more information and experience how visual selling was meant to be.