How CPQ for Manufacturing Unifies and Enhances all Aspects of the Sales Cycle

Manufacturing technology has progressed faster than business processes, and it’s time to redress the balance. CPQ for manufacturing provides the ability to configure, price, and quote faster and more effectively than ever before, shortening sales cycles, delivering greater efficiency, and strengthening relationships by merging operational and information technology.

With CPQ for manufacturing, customers receive a highly immersive and compelling buying experience. Sales reps can configure products with lightning-speed and accuracy. Engineers are freed from the burden of tedious and time-consuming tasks. And manufacturing processes on the shopfloor are better organized than ever before. By implementing CPQ for manufacturing, you can make technology your company’s unfair advantage - it’s digital transformation at its best.

How CPQ for Manufacturing Enhances Your Customers’ Buying Experience

B2B buying preferences in manufacturing have changed. Relationship selling (focused on an enduring relationship between a knowledgeable sales rep and a loyal customer) is on the way out, and lighter-touch sales methods are on the rise. It’s partly the result of shifting demographics - millennials make up the largest generation in the US labor force, and they’re beginning to dominate decision-making buying roles within larger organizations.

Millennials have grown up around the internet. They value IQ over EQ (i.e., advanced technology over relationship selling.) They self-educate, defining their requirements independently, through online research, before engaging with a sales rep. And they want buying processes and products to be personalized (think Netflix, Spotify, and Google.)

Then there’s the “Amazon Effect.” Amazon is dominating B2C, setting the standard for seller service. Lines between B2C and B2B are becoming blurred. And buyers in the manufacturing industry now expect the same ease of purchase when buying for work. It’s little wonder, therefore, that B2B eCommerce is in the ascendency.

B2B eCommerce is forecast to reach $1.8 trillion by 2023 (accounting for 17% of all B2B sales in the US) with a compound annual growth rate (CAGR) of 10%. That’s a considerable increase. But these are pre-COVID-19 figures, and in light of the changes we’ve all witnessed in our working lives, with many jobs forced entirely online, they’re likely to be a gross underestimate. Manufacturers that fail to provide eCommerce channels risk becoming separated from the pack.

So what has this all got to do with CPQ for manufacturing?

CPQ, with its configuration optimization capabilities, complex product and pricing rules, and automated sales document generation, has the potential to transform the way buyers interact with manufacturers, enhancing the quality of the buying experience, supercharging responsiveness to quote requests, shortening sales cycles, and increasing satisfaction and retention across the board

It all starts with the Product Configurator - the CPQ tool that lets sales reps and end customers configure the most complicated engineer-to-order products quickly and easily. Users intuitively point and click and drag and drop within a user-friendly interface to assemble products from potentially vast and highly complex product catalogs. Product rules ensure that every configuration is optimized from an engineering standpoint, eliminating mistakes, miscommunication, and engineering bottlenecks.

The best product configurators are visual and 3D. They provide a fully immersive experience for buyers that’s more compelling than most showrooms. Users can experiment with different options within a realistic 3D scene, zooming, spinning, and even “using” their customized products with the addition of VR and AR. Buyers become invested in their choices, and deal sizes increase as a result.

Manufacturers can embed their product configurators into their B2B eCommerce websites letting customers play around with configurations independently, at their own pace, through any device. As they change dimensions, upgrade parts, and add features, prices change in real-time. It’s ideally suited to the modern buyer who prefers to self-serve. Best of all, manufacturers can broaden their market, reaching a global network of buyers through search, at a remarkably low CPA.

The Benefits in Brief:

• Buyers receive a fully immersive shopping experience that increases conversion rates, deal size, and retention.

• Buyers can self-serve, wherever they’re located, through any device, getting to know your products without a sales rep breathing over their shoulder.

• Requests for proposals and quotes can be turned around in minutes rather than days, and sales cycles are made shorter than ever before.

• Buyers gain a deep visual understanding of the products they’ve configured, which means fewer mistakes and miscommunications.

• VR and AR resolve a buyer’s desire to interact with a product before purchase.

• Buyers receive personalized service and products tailored to their needs.

How CPQ for Manufacturing Improves Sales Reps’ Performance

As manufacturing becomes increasingly advanced, and custom options become the norm, product complexity frequently outstrips sales reps’ capacity to keep up. It’s no longer realistic for reps (particularly new hires) to carry around every possible part number, assembly rule, and price in their heads. How could they? Instead, they stick to what they know best - specifying a narrow range of products that may not generate the most profit or best satisfy a customers’ needs.

Not only are reps struggling with massive parts lists and complex pricing and assembly rules, but they’re also working under immense time pressure. They’re bogged down in tedious, repetitive sales tasks when they should be out doing what they’re good at: selling. CPQ for manufacturing automates all the formatting and number-crunching, saving vast amounts of precious selling time while eliminating the errors inherent in manual processes.

With CPQ for manufacturing, it’s impossible for reps to configure technically or financially nonviable products. They’re “guided” through a series of calibrated questions and prompts (via upsells and cross-sells) that ensure every configuration is perfectly optimized. Prices are calculated instantly (with discretionary discounts and automatic approval requests), and all necessary sales documents, from quotes to proposals and product renderings, are generated automatically. For manufacturers operating on paper-thin margins, CPQ for manufacturing can be the difference between surviving and thriving.

The Benefits in Brief:

• Manual, labor-intensive sales tasks, such as pricing calculations and document generation, are automated, shortening sales cycles, increasing productivity and performance, and freeing up more time to actually sell.

• Configuration and pricing mistakes are eliminated. Greater accuracy means reps feel confident they’re providing value when buyers push back on prices.

• Reps gain an in-depth visual understanding of products, becoming trusted advisers to customers. New hires can be onboarded rapidly.

• Guided selling increases deal size. All reps can become top performers.

• Up-to-date price lists are easily managed and maintained with any changes filtering down instantly to sales reps in the field.

• Collaboration, efficiency, and transparency are enhanced by having a centralized platform to which all parties have access.

• Approval requests are sent to managers automatically, who can then approve or reject at the touch of a button—no more confusing email threads.

How CPQ for Manufacturing Improves Engineering Efficiency and Morale

To satisfy the market’s demand for rapid responses to quote requests, engineers need to turn around technical drawings faster than ever before. It’s a monumental challenge. And one that’s exacerbated by sales reps and their mistakes.

Reps are submitting technically nonviable configurations (often little more than “wish lists” scribbled on the back of a napkin), which engineers are forced to reject. Customers have to be consulted again, triggering an endless back and forth. The result: constant delays leading to canceled orders, refunds, rework, penalties, and dissatisfied customers. With CPQ for manufacturing, product rules ensure configurations are always right the first time.

CAD and design automation is yet another big engineering win. KBMax’s CPQ enables sales reps to automatically generate technical drawings and CAD files (through SolidWorks, AutoCAD, Autodesk Inventor, or PTC Creo) without ever having to call on the expertise of the engineering department. A significant bottleneck in the sales cycle is removed, leaving engineers to focus on what they actually enjoy - R&D - increasing your company’s future profit-generating potential through innovation.

The Benefits in Brief:

• Sales reps submit fewer technically-nonviable configurations, enhancing engineering productivity and reducing wastage on the shop floor.

• CAD and design automation eliminates the most tedious, time-sapping engineering tasks. Engineers can spend more time on R&D - the work they actually want to do - improving retention of your best engineering talent.