Your sales team is a high-powered offensive team. They’re armed with incredible product knowledge, industry connections and sales processes. But complex configurations and outdated quoting processes can lead to fumbles – slow quote turnaround times and missed opportunities. CPQ software could be your secret weapon to gain some yards. But, much like taking your team to the Super Bowl, successful implementation doesn’t happen overnight.

Let this article serve as your playbook for a winning CPQ implementation strategy. We’ll break down steps to follow, pricing considerations, common challenges and best practices. Let the games begin!

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Article Roadmap

• What Is CPQ Implementation?
• Implementation Process
• Challenges
• Cost Considerations
• FAQs
• Next Steps

What Is CPQ Implementation?

CPQ implementation is a process that optimizes the time from quote to cash using integrated and configured CPQ software. It enables users to align the software with specific sales workflows, product structures and pricing strategies. The outcomes are streamlined quoting, improved accuracy and enhanced sales team efficiency.

CPQ Implementation Process

Adding new software to your roster isn’t always straightforward. According to Zipdo, 50% of the average company’s software budget is spent correcting errors after implementation. A clear plan of action is essential to cut down those post-implementation costs.

1. Set Project Expectations

Tim Johnson-Reynolds, CPQ Expert and Head of Consulting at Silver Softworks, says setting proper business goals and rules is essential to success.

The most important step is before implementation begins. Take a step back from the technology and review your current processes, product structure and pricing strategy. This approach can avoid many complications in implementing CPQ.

The introduction of CPQ is an opportunity to create consistency and drive automation. Most businesses that have been using tools like Excel to price their products have likely been allowing their sales teams to have unrestricted flexibility. The start of the project is the time to bring in the business rules that will be adopted in CPQ.”

Once you have clearly defined goals with realistic timelines, it’s essential to get your stakeholders on board so everyone understands the play.

2. Begin Requirements Gathering

Poor requirements are the leading cause of project failure. Avoid sinking into the pit of low digital adoption rates by making it easy (or easier) for your team members to trade pain points for new processes. Conduct workshops and interviews to get feedback on problem processes, inefficiencies and desired functionalities. Use these insights to priortize your requirements. If you still need a helping hand, try our free requirements template to streamline your needs even further.

3. Work on Solution Design

The more the merrier doesn’t quite apply to software features. In fact, they can cost you time and energy if team members find feature creep has made things overcomplicated.

Focus on the product features that align clearly with your business goals. For example, if your goal is to increase deal sizes, an AI-powered upselling and cross-selling feature is just the ticket. Work with your team to understand where you can improve efficiency.

Unless you have an in-house CPQ expert, you may need to rely on the vendor or third party to configure product rules, set up pricing structures, establish approval workflows for quotes and set up integrations. Since CPQ often acts as a bridge between manufacturing and CRM software, it’s critical to ensure data flow is in sync.

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4. Plan Workflow Configuration

Streamlining your cash-to-quote process is the name of the game. The more time you can save with automation the better. Set up workflows suited to your business requirements. Depending on your product or service, you may want to automate approval processes, discount strategies, quote-to-order creation and contract renewals.

It’s a good idea to test your system by generating test quotes, simulating various scenarios and verifying system functionality across different integrations. You want to pinpoint inaccuracies, data duplication or missed steps before you train your staff.

5. Focus on Training and User Adoption

Tim finds user adoption is a common barrier with companies implementing CPQ software.

Adoption is probably the most common issue. This is possibly due to the level of flexibility sales teams historically have been allowed to enjoy.

Whilst CPQ brings the sales team and the business numerous benefits, it’s easy for the sales team to view the new tools as a set of handcuffs restricting them from doing whatever they want. Start communicating to the sales team, and any other users, early in the project so you bring them on the journey, helping them to understand the benefits they will receive but also the sacrifices they will need to expect in their ways of working. Help them to see what is in it for them and then they are more likely to jump on board.”

A “See It, Try It, Do It” learning structure can go a long way toward improving user adoption. Ask vendors about the training programs and materials they offer and try to tailor training to specific user roles.

Pro Tip: Save time waiting for responses from higher-ups by creating user guides and documentation for team members to reference whenever they run into a hiccup.

6. Greenlight Deployment and Launch

With all systems a go, it’s finally D-Day. Deploy your brand-new CPQ system with either a full launch or a staggered approach with a pilot group. Communicate clearly with your vendor and team about possible setbacks.

Actively monitor the system’s performance after launch. Remember, software implementation is a continuous improvement process. Track key metrics like quote turnaround time, quote accuracy and user adoption rates. If issues arise, you can circle back and modify processes.

7. Conduct Ongoing Maintenance and Support:

Training material and reference guides aren’t the end-all for user adoption. Make it clear you’re open to supporting your team by reviewing processes, conducting training sessions and keeping open lines of communication.

All things change, and so do CPQ systems. Communicate with your vendor or IT team to schedule software updates at hours that won’t disrupt your sales reps and be sure to get the 411 on changes before you update your system.

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Common Challenges and Mistakes

Implementing a new software system is like managing a football team’s player roster in the new season. Even if you manage to retain your squad, you need to prepare for injuries and unexpected transfer requests. Here are some common issues to look out for.

Lack of Interest From Leadership

It’s tough to make the case for process changes when upper management isn’t fully convinced. Not prioritizing adoption or training can tack on additional costs down the road.

In Tim’s six years of experience, he’s noticed the importance of leadership commitment to the project.

Ensure your leadership team is on board and are advocates of the project. Team members look to their leaders to provide direction and an example to follow. So it is vital that the leadership team carefully consider the message they give to the team not only by what they say or write but also in action. Demonstrate that you are committed to the new tools the team has acquired and set the expectation that the team must do the same.”

Dirty Data and Inaccuracies

Your data is only as good as your data cleansing process. Inaccurate, outdated and duplicated data can lead to quoting errors, inaccurate pricing and wonky configurations. Ensure your data is cleansed and formatted before migration. Set up data governance processes to standardize data entry, ownership and validation.

Underestimating CPQ as a Revenue Generator

CPQ isn’t a three-trick pony (although its name implies otherwise). Although it’s more about improving internal processes, CPQ can also help your margins. Integration with CRM and machine learning and AI-powered recommendations can boost revenue generation with upselling and cross-selling. Set up reminders to encourage sales reps to add complementary products or offer discounts if quotes reach a certain threshold.

Cost Considerations

There’s no such thing as a free lunch — especially where software is involved. Here are a few factors that influence the cost of CPQ implementation.

• Company Size: If you have multiple locations, complex product lines and more users, expect to shell out more cash. Larger organizations typically have higher implementation costs as systems require more customization and integration.
• Product Catalog Complexity: Pricing a private jet versus a home office desk will involve more products, intricate configurations, multiple pricing models and a higher price tag.
• Customization Requirements: The degree of customization required is directly proportionate to your product volume and configuration complexity. Springing for custom pricing rules, workflows and automated configurations will add to your fees. No-code solutions or those requiring minimal coding might be more budget-friendly.
• Pricing Model: CPQ software vendors have different pricing models, such as subscription fees based on user tiers, or license fees. Cloud-based solutions typically offer lower upfront costs but incur recurring monthly or annual fees. Licensing requires a larger one-time fee that may be difficult for smaller organizations to cough up.
• Implementation Services: CPQ vendors usually offer implementation services, but you may require third-party implementation for some services. Factor in potential hidden costs like data migration, ongoing maintenance, and user training. Ensure these costs are accounted for in your budget.

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FAQs

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Next Steps

Successfully implementing a CPQ system can take your sales team from the red zone to the winner’s circle. It offers seamless integration with your existing systems, providing real-time data and ensuring every quote line is accurate. With ongoing tweaks and input, your CPQ system will continue to evolve, adapting to your growing business needs.

Looking for the right solution? Check out our free comparison report to explore the top products that meet your needs. It’s time to rewrite the playbook and win your sales Super Bowl. Good luck!

What benefits do you hope CPQ implementation will bring your business? Let us know in the comments below!

SME Contributors

Tim Johnson-Reynolds is the CPQ-certified Head of Consulting at Silver Softworks. Tim has over 6 years of direct experience working with CPQ across all industries. He has fast become an integral member of the senior leadership team at Silver Softworks and the go-to consultant for all things CPQ.