Using specialized technologies has been increasingly essential for the management of any company or business activities. They are used to help optimize the sales process and boost profits. For this purpose, two types of software products are applied. We are referring to CPQ and CRM. Let’s take a closer look at them and find out what makes them different and what is the best choice for running your business.
CPQ: What It Is About and What Makes It Useful
CPQ is a tool that focuses specifically on the quotation generation process. It involves customizing complex products or services, determining accurate pricing based on various factors (product features, discounts, quantity), and generating accurate and professional quotations for customers. CPQ tools (Salesforce CPQ) automate the process of quotation generation, ensuring accuracy, consistency, and efficiency. This technology handles the customization, pricing, and quoting of products or services. CPQ tools optimize the sales quoting process, making it faster and more accurate.
CPQ stands for configure, price, quote. This tool is required in cases where:
- Outdated quote configurators are being used by the company.
- Revenue growth outpaces the capacity and capabilities to perform.
- A recurring revenue stream is being created.
- Practical ways to implement more advanced business solutions, such as software with built-in artificial intelligence, are needed.
- The owner sends inaccurate sales quotes to potential customers.
- Someone manually reviews all sales quotes.
CPQ software enables users to generate quotes for orders quickly and accurately, which is why it is considered an important tool. Quotes are generated automatically according to a pre-programmed set of rules. The following factors are taken into account:
- additional information settings;
- income types;
- incompatibilities and other factors.
In this way, the software described can ensure hassle-free and error-free pricing.
CRM: Features and Purpose
CRM is a software application that enables users to manage the company’s relationships with its customers. It offers a more centralized solution for data and facilitates effective data management, contributing to business growth and development. Moreover, it helps in gaining insights into the behavior of other parties and facilitates communication, marketing, sales, and customer service. Reasons why CRM is beneficial include the following:
- It improves customer service.
- It increases customer satisfaction.
- It helps to improve customer retention.
- It helps to boost sales.
- It creates new opportunities.
- Users can share and distribute data.
- Contract renewals are managed.
- Using this software reduces costs.
Advanced CRM includes features such as prospect management, managing multiple sales pipelines, activity tracking, deal automation, reporting, forecasting, and much more. CRM is an effective tool for manufacturing businesses as it helps to manage sales and improve sales efficiency.
CRM is all about strategies, practices, and technologies used to manage and analyze interactions and relationships with other parties. It includes collecting and storing customer data, tracking sales, managing accounts, and providing analytical information for sales and marketing. CRM systems such as Salesforce help businesses optimize sales processes, improve customer service, and increase overall user satisfaction.
So, What’s the Difference?
In essence, a CPQ tool Pandadocis software that helps business owners to figure out кwhat products to offer and at what price, while CRM will become an assistant in managing customer relationships and increasing customer satisfaction.
Thus, CRM is a broader concept that includes relationship management and business management. A CPQ solution can be described as a special subset of CRM that deals with configuration, pricing, and quote generation for products or services. CRM systems help organizations build and nurture customer relationships, while CPQ tools streamline the sales calculation process, making it faster and more accurate. Both CRM and CPQ are essential components for companies looking to improve their sales operations and provide a seamless customer experience.
CRM is a standalone software product where users can carry out all their sales, marketing, and customer service activities. Some CPQ tools can be used on a stand-alone basis as well. However, unlike CRM, it only helps to manage pricing and negotiation tasks. CRM serves the entire sales funnel.
These software products have their own unique valuable propositions. They operate in tandem to amplify sales efforts and ensure successful results. Furthermore, with the help of CPQ, a personalized offer can be tailored to meet the needs and preferences of a particular business in no time.
What Software is Right for Business
Should your business offer complex or customizable products, CPQ software is the appropriate solution to help you streamline the sales process and generate accurate quotes. If your goal is to improve customer satisfaction, as well as enhance and manage relationships with your customers, CRM software is the answer you need.
PandaDoc offers an easy way to work with both of the tools described above. Having visited the portal, every user can find features that can significantly simplify complex tasks and facilitate efficient performance. The platform is protected by end-to-end encryption and all users have the assurance that their data will be securely protected. It provides a lot of ready-made templates that can be used for document management. All employees of the company who are granted relevant access can work with them. The information is kept in cloud-based storage, which simplifies the task of transferring important documents. They can be managed remotely. Furthermore, all documents can be signed with e-signature.