qtc cert module 2 cpq

8/12/2019 QTC Cert Module 2 CPQ

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Introduction to Configure, Price, Quote


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APTTUSQuote-to-Cash Certification

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Sr. Director of ProductMarketing, APTTUS

20+ years launchingnew products

Born in Lima, Peru

Anagrammed name:Im gruesome talent!

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Miguel Tam, APTTUS


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Configure, Price, Quote Overview

Connecting Goods To Customers With SalesConfiguration

Capturing Maximum Value With Intelligent Pricing

Bringing It All Together With Quoting

The ROI of Configure, Price, Quote

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Todays Agenda


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Configure, Price, Quote

(CPQ) Overview

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Configure, Price, Quote (CPQ)Begins Where Traditional SFA Ends

LEAD ACCOUNTMANAGEMENT OPPORTUNITY

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A Smoother Path FromOpportunity To Contract

CONTRACT

ACCOUNTMANAGEMENT OPPORTUNITY CONFIGURE PRICE QUOTE

LEAD


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CPQ Boosts Efficiency+Effectiveness

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LOW HIGHEffectiveness

Efficiency

LOW

HIGH

Effectiveness

Sales Pipeline Management

Sales Forecasting

Objective Management

Sales TrainingManagement

Appraisal/EvaluationSystems

Coaching SystemsTerritory ManagementSystems

Prospect Qualification

Hiring/OnboardingSystems

Sales Content Management

Sales Incentive Compensation System

Quota Management

Configuration/Pricing/Quote

Guided SellingProposal Generation

Sales Order Management

Lead Distribution

Sales Contract Management

How to Analyze Your Sales Processes on Efficiency versus Effectiveness. Gartner. 2012.


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How CPQ Supports a Multi-channelStrategy

Improved channel effectiveness

Increased channel visibility

Control over channel-specific business rules

Consistency across all your channels


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Connecting Goods ToCustomers With Sales

Configuration

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How Do Your Reps Spend Their Day?

What Your Sales Reps Do When They Arent Selling . . . . .

Outdated productcatalogs

Complex Excelspreadsheets

Scheduling customer callsand appointments

Fixing mistakesLearningsales scripts

Waiting forapprovals


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Sales Configuration in Action


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Sales Configuration in Action

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But Its Always More Complicated inthe Real World

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Multiple delivery options

Service packages

Third party components

Warranties and manuals

Compliance issues

Geography-based or status-

specific pricing

Product dependenciesDiscounting offers


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And There Are Big Costs For GettingIt Wrong

Sales quotes products that cant be built

Errors in contracts, invoices, and orders

Added costs from refunds/returns

Slower sales cycle

Sales doesnt know what products they can sell

Bundles are quoted/shipped with missing elements

Takes too long to monetize new products

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Configuration Eliminates Mistakes

Products to sellRequirements for each product

Which products conflict?

What services are included?

Regional offerings

Current special offers


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Capturing MaximumValue With

Intelligent Pricing

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Pricing is the #1 lever you canpull to IMMEDIATELY impact

revenue and margin!


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But Pricing is Complex!

SubscriptionPricing

Contract-based

Usage-based

Hourly

Flat Fee Price

Ramp Pricing

VolumeDiscounts

Price Bundles

ChannelPricing

Real Cost

Customer Demand

Competitive Prices

Business Strategy

Business Cycle

Market Demographics

You must consider:


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Pricing Can Cause Big Problems


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Or Be a Strategic Advantage

Increase revenue Increase volume

Influence behavior (reps

& consumers)Increase margins


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So lets talk about pricingstrategy!


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Promotions

35% off this week only!


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Volume Discounts

Quantity

Unitprice

Total Price

0 1 2 5 10 20

100

80

70

50

40

100.00

160.00

350.00

500.00

800.00


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Geography-based Pricing

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Location

AverageMortgage(USD)

Modesto San Francisco Los Angeles Sacramento

1M

500k

100k

$887,000

$180,000

$492,000

$235,000


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Bundles

$1500 $300 $200


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Deal Guidance Empowers Reps

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Increase margins Increase revenue

Increase deal size


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Not All Channels Are Created Equal

Scenario 1

Scenario 3

Scenario 2


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Bringing It AllTogether With

Quoting

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The Value of Quotes

Make a positive first impression!

Get the first mover advantage

Set the negotiation starting point

Get the customer to commit


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When Speed and Accuracy Compete


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Speed: What Gets In The Way?

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Poor product knowledge + accessibilitychallenges + unorganized approvals =

SLOW QUOTES


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Accuracy: Systematic Process

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Quoting errors are like resume errorsifyouve got them, dont be surprised when

your competitor gets the job!


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Dont Let Contracts Be theBottleneck!

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The ROI ofConfigure, Price,

Quote


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The Real ROI of CPQ

Source: Aberdeen Groups Breaking the Laws of Physics (April 2013)

105%larger deal size

49% higher proposal volume

28% shorter sales cycles

26% more reps achieving quota

17% higher lead-to-conversion rates


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What Weve Seen at Apttus

30% deal size increase for new deals

20% increase in renewal contract value

25% reduction in rogue discounting

80% faster time to quote


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What To Look For In a CPQ Tool

Options, bundles and sub-bundlesConstraints and rules

Asset-based ordering for upsell,cross-sell and renewals

Renewals management

Dynamic recommendations

Guided selling

Guided search

Quick quotes

Visual product comparisons

Pricing tiers and rampsAttribute-based pricing

Subscription pricing

Usage-based pricing

Price adjustments, includingpercent, amount and markup

Discount rules and alerts

Deal ratings

Incentive guidance

Deal recommendations

Price waterfalls

Quotes from standard templatesE-Signature

Mobile and offline quotes

Excel-based quotes

Partner portal

E-Commerce and multi-channelsales

Contracts integration

Multi-lingual and multi-currencysupport

Reports and analytics

Configure Price Quote

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Get Ready For The Quote-to-CashQuiz

View course videos at certification.apttus.com.

Login under already registered

Get certified on April 23rdand win a free pass to

Apttus Accelerate

Got questions? Send them to [email protected]

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http://www.certification.apttus.com/mailto:[email protected]:[email protected]://www.certification.apttus.com/


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