Comprehensive Guide to CPQ Integration

In this blog:

• Why integrate CPQ with existing systems?
• Benefits of CPQ integration.
• How to start your integration journey.

In the world of technology sales, speed, efficiency and accuracy are paramount. Which is why Configure, Price, Quote (CPQ) systems have become so essential for streamlining the sales process. CPQs play a critical role within the sales value chain as illustrated in the below image. 

More than simply a tool to generate a quote, your CPQ influences the entire quote to cash process, as well as critical post-sales activities which impact profitability and customer satisfaction. 

Source: McKinsey

In order to truly maximize the potential of a CPQ system and ensure a seamless, efficient sales process, integration with other core systems is necessary. This guide explores the importance of CPQ integration for tech businesses, with a special focus on those selling via a channel.

Why integrate CPQ with existing systems?

If we consider the enterprise tech stack, existing systems such as CPQs, ERPs, CRMs, ITSMs, Marketing Automation tools, license management and cloud billing/consumption systems - each of these serve a different purpose.

Having limited or no integration between these systems can result in a fragmented sales process fraught with disparate data silos, errors, duplications, and huge administrative overhead.

The data conundrum is also further magnified for businesses operating in a channel ecosystem, where critical sales information is often dispersed among vendors, distributors, resellers, system integrators and MSPs spanning the globe, yet very little information is proactively shared. This limits revenue optimization, operational efficiency and customer satisfaction. 

Benefits of CPQ integration

Implement a renewals platform that enables bulk updates on pricing and margins and automatically generates order-ready quotes. In addition, any update made to a quote, contract, or asset detail should automatically be published to all other integrated systems, saving hours or days that your specialists or channel partners spend on sending email requests, re-quoting, and reconciling data.

For example, with the right platform, you can also remove the entire manual sales order entry department, because your accepted orders will be automatically sent to your ERP. This can help save companies, in some cases, hundreds of thousands in cost.

1- Data driven decisions. 

Real-time data visibility is essential for making informed business decisions. Without a comprehensive view of your installed base data, it’s almost impossible to truly understand your customer needs and construct a cohesive post-sales strategy. 

Can your sales team proactively identify opportunities to extend customer lifetime value (CLV)? Are you able to effectively manage renewals and customer retention? Your team should not be manually analyzing and manipulating data to gain these insights. Integrating your existing systems with the right CPQ solution will automatically provide this visibility.

2- Seamless sales process and customer experience.

Integrating CPQ with existing business systems ensures a seamless flow of information and leads to a more streamlined and efficient sales process. An intelligent CPQ will remove the need for manual intervention, by automatically triggering subsequent actions, such as ordering, billing and post-sales activities, further enhancing efficiency. This integration eliminates the need for repetitive data entry, emails, calls, and manual data manipulation within spreadsheets, resulting in significant time savings and error reduction. This holistic approach not only optimizes internal processes but also enhances the overall customer journey.

Sales representatives gain instant access to comprehensive information, including customer history, product details, pricing, and previous quotes. This allows them to focus on proactively delivering customer value, rather than data entry and administrative tasks.

3-    Greater channel collaboration.

Tech companies often deal with complex products and services that require intricate configurations. When selling via a channel, the complexity increases as multiple factors come into play, such as different pricing tiers, partner discounts, end use overrides, discount approvals and regional variations. An integrated CPQ system simplifies the process by ensuring all these factors are automatically considered, generating accurate and consistent quotes across the channel. Sharing this valuable information with partners or vendors is essential for delivering value to the end customer and optimizing revenue.

How to start your CPQ integration journey

So far in this blog, we have established the importance of integrating your CPQ. Now, let’s consider where to start and how you can take things to the next level.

1. Start with current systems and processes: Analyze your current quote-to-cash processes and sales workflows. Map out your existing tech stack and data sources. Identify key integration points that will be enable a frictionless process, greater efficiencies and scalability for your business.
   
   
2. Prioritize data integrity and consistency: Accurate data is vital for CPQ success. It's imperative that your business eliminates data silos and systems that require duplicate data entry. Whilst it is important to clean and validate your data before integration to avoid any discrepancies, a robust CPQ should automatically do this for you once live.
   
   
3. Align your CPQ objectives: Before embarking on any integration, consider whether your legacy CPQ is the right fit for your business. Is it meeting all of your needs effectively? Integrating your existing systems with your CPQ is counterproductive if it isn't completely meeting your requirements in the first place. 
   
   
4. Think beyond internal integrations: If you are an I.T vendor, distributor, reseller or MSP, you would be operating within a channel ecosystem - a network of businesses that need to collaborate to deliver comprehensive IT solutions to end customers. Access to timely and critical information is essential for these businesses to sell and service and customers effectively. By enabling ongoing, automated data feeds from your partners or vendors directly into your CPQ system, you can efficiently exchange crucial transactional data, streamlining the sales process. 
   
   
5. Leverage APIs: Leverage APIs (Application Programming Interface) to connect your business-critical systems with your CPQ for a seamless exchange of data. By leveraging APIs, you can ensure that customer, product, and pricing information flows in real-time between systems, reducing the risk of errors and manual data entry. This integration allows your CPQ to pull accurate data from other platforms and ensures that quotes and configurations are always based on the most up-to-date information, enhancing operational efficiency and sales accuracy.
   
   
6. Consider channel CPQ implementation: For those in the IT sector, where quoting involves intricate configurations and complex pricing, standard CPQ tools often fall short of managing these demands. A specialized channel CPQ platform offers a much more effective solution, designed specifically to handle the unique challenges of selling through an IT channel ecosystem. You can read more on this topic in our article: What's a Channel Friendly CPQ? Why is it Important? 
   
   

Conclusion

Integrating CPQ with existing systems is not just a business necessity but a strategic advantage for tech businesses. It ensures data accuracy, real-time visibility, and a seamless sales process, which are all crucial for success, especially when selling via a channel. By focusing on these integration points, tech companies can enhance their operational efficiency, improve partner collaboration, and ultimately deliver a superior customer experience.

Transform your sales processes by integrating the iasset platform within your business. Speak to one of our experts today.