Configure, Price, Quote (CPS) software standardizes the presales and sales process for companies selling complex products. Now, services CPQ software can help managed services providers and value-add resellers scope, price, and sell services. The technology offers proposal automation to make it easier to write statements of work for service projects, and that’s only one of the benefits.
But is it right for your company?
While services CPQ is an effective way for some companies to increase efficiency, reduce risk, and increase margins, it’s not a fit for every business. This article will cover the benefits of CPQ software and the questions you should ask to determine whether it’s right for your organization.
The Benefits of Proposal Automation with Services CPQ
Proposal automation and the efficiencies it creates is only one of the benefits offered by services CPQ software. For MSPs and VARs with multiple solution architects and complex service offerings, this software can also increase SOW accuracy, streamline the approval process, give your management team more visibility into the presales process, and, ultimately, increase your services margins.
Increased Services Margins
Using services CPQ increases services margins in a few ways. First, it allows your presales engineers to automate proposals and statements of work. All of your services are cataloged in your services library, so SAs can easily add them to projects without copying and pasting them in Word and Excel.
This reduces turnaround time so you can scope and win more projects. It also increases accuracy because pricing is set in the system instead of being estimated by the engineer. So you don’t have to worry about losing a project due to overpricing or eating into your project margin by overpricing.
When each SA uses their own documents in Word and Excel to scope services, effective collaboration is almost impossible. It’s easier for your presales team to collaborate internally and with other teams when your statement of work is created in a platform that everyone can access.
Streamlined Approval Process
In addition to proposal automation, services CPQ reduces risk by streamlining the approval process. When changes need to be approved, they appear on the appropriate person’s Approvals dashboard so that errors can be caught before they affect your bottom line.
Increased Efficiency Through Proposal Automation
This is where the proposal automation piece comes in. Services CPQ enables your presales engineers to select the necessary professional, managed, and third-party services necessary and generate a statement of work with the click of a button.
That means they’ll be able to spend more time in front of customers selling services.
Do You Need Services CPQ Software?
While there are many benefits to services CPQ, it’s not right for every MSP or VAR. Here are a few questions to ask before you make the investment:
- On average, how long does it take your presales engineers to scope projects? If it takes less than thirty minutes, the time savings will be negligible.
- How many of your employees are involved in scoping services? If you only have one person writing statements of work, then it’s not as important to have a platform to generate consistent SOWs.
- Do you offer multiple service lines? The ability to maintain a library of services is a key benefit of services CPQ. If services don’t make up a significant percentage of your revenue or you don’t offer a number of services, services CPQ software might not be a good fit.
Is Now the Time for Services CPQ and Proposal Automation?
Depending on the size of your business, now might not be the right time to invest in services CPQ software. But as your presales team grows, it’s the best way to automating proposals while also taking advantage of the many other benefits this software provides.