In addition to the foundational technologies, CPQ software has helped businesses sell goods and services by generating professional price quotes and proposals in minutes.
However, there are still new trends emerging from the market daily, which are responsible for increased sales, profit, and productivity.
9 Emerging Trends In CPQ Software
The CPQ market is growing. It’s expected to reach $1.65 billion by 2022-2025, according to a report by ResearchandMarkets.
However, the market is still in its early stages, so there are many emerging trends that you should be aware of if you’re hoping to get involved in the world of CPQ. Here are ten of those trends:
Purpose-Built Product Content And Market Intelligence
Many CPQ systems have been built from the ground up to capture and manage content specific to their users’ needs.
According to an Accenture study, 83 percent of sales professionals use a Configure-Price-Quote (CPQ) system. These systems are typically designed for use by sales teams and product managers rather than the IT team that often keeps track of product information in separate tools.
A Renewed Focus On Risk & Resiliency
While most companies have historically focused on improving product quality, some are now looking at risk management as a critical area for improvement.
It includes everything from failure rates to warranty costs and customer satisfaction levels. By improving risk management within the CPQ system, companies can better understand how well their products perform over time and how they might be improved in the future.
The Application Of Machine Learning
The application of machine learning in CPQ software enables automated decision-making based on historical data, which helps companies increase their sales conversion rates and reduce operational costs by improving product assortment and pricing strategies.
The application of machine learning techniques helps companies reduce manual errors while providing real-time suggestions for complex pricing configurations that might otherwise require hours or days for manual review and approval by sales executives.
The new trend in CPQ is the rise of self-service. According to Gartner, “when considering a purchase, buyers spend only 17% of their time meeting with potential suppliers.”
The customer experience has evolved from being transactional to one that enables consumers to make choices that are relevant to them, whether at the point of sale or after purchase.
This shift has led to an increase in demand for more personalization and control over their choices. As a result, companies have begun offering their customers more opportunities to explore what they want before buying it.
With self-service becoming a core component of the customer experience, organizations are looking for ways to enable this functionality within their CPQ solutions.
The CPQ software market is multiplying with the increasing demand from customers for practical solutions that can enhance their business operations.
However, many other vendors compete for the same customer base and offer competitive prices. It may result in an increase in competition in this industry over the forecast period.
It has also led many vendors to adopt innovative approaches such as AI-powered personalization or machine learning techniques that allow them to deliver superior customer experiences at scale across multiple channels.
Mobile And Cloud-Friendly Operation
The world is going mobile, and the CPQ software market is no different. The rise of smartphones has changed the way we work, communicate, and shop.
With this shift in consumer behavior comes a need for new ways of interacting with customers. CPQ software must adapt to these changes to remain relevant and practical.
A mobile-friendly CPQ solution is also essential as it will help you cater to more customers, increase your sales and boost your productivity.
Think Faster With Automation
Automation is a game-changer for CPQ software and can help you save time and money. It’s also a trend on the rise in recent years, with more and more companies adopting automation tools to speed up their sales processes.
With the help of automation software, you can automate your business processes and save time. Also, it will reduce the risk of human error, which occurs when someone enters data manually into the system.
Automation helps to save time and reduce costs. It also reduces the complexity and errors that may occur in manual processes. It is one of the most critical trends in the CPQ software market.
CPQ Software Comes With AI And Data Analytics Capabilities
81% of businesses use analytics to understand their customers and purchasing processes. The new CPQ software platforms also offer advanced capabilities to help you create more personalized products, target specific customers, and make them feel special. It includes things such as artificial intelligence (AI) and data analytics.
AI allows CPQ software to analyze large amounts of data from your company and its customers, making better decisions about what products should be sold in each situation.
For example, if you have multiple product SKUs that all include different components, AI can help you determine which one is best suited for each customer based on their needs or budget requirements. It can help improve conversion rates by providing relevant products at the right time.
More organizations are looking for a CPM solution that can be implemented quickly and efficiently to stay competitive. It requires a low-investment, low-effort approach to implementation and training.
The key to success in the CPQ market is to offer a faster go-to-market cycle. It means that the CPQ software should accelerate the speed at which products are brought to market by enabling organizations to rapidly change and create new products while ensuring compliance with all aspects of the supply chain process.
As the category evolves, so do new trends.
This article is based on the research made by software companies currently active in the CPQ industry.
These aspects will change the way businesses analyze their customers and realize what they want to purchase.