CPQ is an abbreviation for Configure, Price, Quote. This is a sales optimization tool for composing complex products and preparing customer offers. Salesforce CPQ (configure, price, quote) enables sales teams to automate and accelerate the foremost crucial elements of the sales cycle.
With Salesforce CPQ, you can:
- Reduce order errors
- Reduce the time it takes to create complex contracts
- Create quality time for sales reps
- Steadily increasing sales
- Improve data visibility and accuracy
- Improve customer experience
- Increase transaction amount
However, a versatile system like CPQ can fulfill the needs of any sort of business, across a wide range of use cases. Account executives and managers in the health insurance industry can utilize the application to put together the ideal mix of plan options, engage with underwriters on pricing, automate the onboarding process, and manage renewals.
Characteristics of Salesforce CPQ:
1. Customized Product Selection:
Sales teams may need to create product bundles to facilitate sales of bundled products and optimize them as needed. There are configuration options for determining the price. Sales reps can also configure bundles to sell the right combination of products and customize the configuration to their liking. Some bundles are configured often, others less often.
2. Contract and Renewals:
Salesforce automates the process of creating a contract and then updating the quote, making the sales team process seamless. The sales team offers subscription-based services and products that may expire after a period. Salesforce CPQ automatically creates closed/successful quotes and subscription contracts for opportunities that last for the duration of your subscription. When your contract ends, you’ll have a renewal sales opportunity, and Salesforce CPQ will automatically create a renewal quote and opportunity within a specified amount of time-based on your requirements.
3. Guided Selling:
Guided selling is a method of assisting potential purchasers of products or services in selecting the product that best meets their needs and, hopefully, guiding the buyer to make a purchase. It also assists product suppliers (e.g., brands, retailers) in actively guiding their clients toward a purchasing decision, increasing their conversion rate.
4. Automate the entire Customer and Product life cycle:
Salesforce CPQ enables automatic order management and automatic payments. CPQ can divide a course into multiple orders based on two parameters, location, and time. CPQ also helps save time by streamlining electronic payments and reducing the burden of manual processing time.
Time is crucial in the healthcare industry. Salesforce CPQ, meanwhile, provides a quick and dependable approach to bring new products and services to market, optimize pricing, and keep customers thrilled. As an outcome, end customers will receive accurate and fast quotes based on the plans (for example, healthcare plans) specified by their customers.
Trends worth Watch:
1. Create an optimal plan package by combining diverse plan options:
An account executive can use Salesforce CPQ to select several plan alternatives to include in a quote, ranging from essential policies to those with large deductibles to those with more benefits. They can then choose add-ons such as vision, dental, and other services. This manner, all the data is kept in one place, making it simple to start the renewal process and forecast the pipeline for the next year (more on that in a bit).
2. Healthcare Shift:
The trend these days is to merge hospitals to gain more control and profit. The healthcare industry benefits from centralized purchasing since it lowers expenses. Suppliers, on the other side, are underpricing pressure because of the merger.
3. With a simple click, users may create renewals:
In the healthcare market, CPQ may prove to be a system that automates much of the quoting, rating, and onboarding process for payers. It will benefit both customers and members since each team member will have access to the information, they need to assist members, and they will all have more time to focus on customer service.
4. Value-based care:
A system that prioritizes quality and places patients at the center of the healthcare experience. The change to a value-based paradigm will push businesses to explain device prices in terms of the better outcomes they provide. Companies will need to stand out in the market by providing a superior client experience and value-added services. To provide the most value to their clients, businesses are being compelled to rethink their overall strategy.
5. Extra Care at a Low Cost:
When comparing the past to the present, it has been discovered that healthcare companies have a 3 times greater cost of sales than other industries. Healthcare companies have been forced to develop cheap solutions because of the Affordable Care Act, diminishing insurance reimbursements, and the commoditization of healthcare, which has necessitated a re-evaluation of expenditures.
All the above elements are critical for the healthcare industry to make judgments on what, why, and how to do things. To successfully adapt to changes in the purchasing dynamics of healthcare providers. This is where a powerful CRM like Salesforce, and specifically Salesforce CPQ, can help streamline, speed up, and organize complex sales processes –– which is crucial when you have large solution portfolios and various stakeholders participating in the purchasing process.