Introduction to Configure, Price, Quote

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APTTUS Quote-to-Cash Certification

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Miguel Tam, APTTUS

Sr. Director of Product

Marketing, APTTUS

20+ years launching

new products

Born in Lima, Peru

Anagrammed name:
“I’m gruesome talent!”

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Today’s Agenda

Configure, Price, Quote Overview

Connecting Goods To Customers With Sales

Configuration

Capturing Maximum Value With Intelligent Pricing

Bringing It All Together With Quoting

The ROI of Configure, Price, Quote

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Configure, Price, Quote
(CPQ) Overview

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

ACCOUNT
LEAD OPPORTUNITY
MANAGEMENT

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A Smoother Path From
Opportunity To Contract

ACCOUNT
LEAD OPPORTUNITY CONFIGURE PRICE QUOTE
MANAGEMENT

CONTRACT

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CPQ Boosts Efficiency+Effectiveness
Proposal Generation Guided Selling

Configuration/Pricing/Quote
Sales Order Management
HIGH

Sales Incentive Compensation System

Lead Distribution
Sales Content Management

Sales Contract Management Hiring/Onboarding

Systems

Prospect Qualification

Territory Management Coaching Systems

Systems
Efficiency

Effectiveness

Sales Training
Sales Pipeline Management Management

Sales Forecasting
Appraisal/Evaluation
Systems
LOW

Objective Management

Quota Management

LOW Effectiveness HIGH

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

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How CPQ Supports a Multi-channel
Strategy

Improved channel effectiveness

Increased channel visibility

Control over channel-specific business rules

Consistency across all your channels

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Connecting Goods To
Customers With Sales
Configuration

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How Do Your Reps Spend Their Day?

What Your Sales Reps Do When They Aren’t Selling . . . . .

Outdated product Waiting for Scheduling customer calls

catalogs approvals and appointments

Learning Complex Excel Fixing mistakes

sales scripts spreadsheets

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Sales Configuration in Action

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Sales Configuration in Action

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But It’s Always More Complicated in
the Real World

Multiple delivery options Warranties and manuals

Service packages Compliance issues

Third party components Geography-based or status-

specific pricing

Discounting offers Product dependencies

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And There Are Big Costs For Getting
It Wrong

Sales quotes products that can’t be built

Errors in contracts, invoices, and orders

Added costs from refunds/returns

Slower sales cycle

Sales doesn’t 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 sell
Requirements for each product

Which products conflict?

What services are included?

Regional offerings

Current special offers

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Capturing Maximum
Value With
Intelligent Pricing

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Pricing is the #1 lever you can
pull to IMMEDIATELY impact
revenue and margin!

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But Pricing is Complex!

Subscription Ramp Pricing You must consider:

Pricing
Volume Real Cost
Contract- Discounts
based Customer Demand

Price Bundles Competitive Prices

Usage-based
Business Strategy
Channel ∫
Hourly Pricing Business Cycle

Market Demographics
Flat Fee Price

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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 let’s talk about pricing
strategy!
Promotions

35% off this week only!

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Volume Discounts

Total Price

100.00
100

160.00
80
Unit price

350.00
70

500.00
50

800.00
40

0 1 2 5 10 20

Quantity

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Geography-based Pricing

1M

$887,000
Average Mortgage (USD)

500k

$492,000

$235,000
$180,000

100k

Modesto San Francisco Los Angeles Sacramento

Location

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Bundles

$1500 $300 $200

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Deal Guidance Empowers Reps

Increase deal size

Increase margins Increase revenue

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Not All Channels Are Created Equal

Scenario 1 Scenario 2

Scenario 3

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Bringing It All
Together 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?

Poor product knowledge + accessibility

challenges + unorganized approvals =

SLOW QUOTES

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Accuracy: Systematic Process

Quoting errors are like resume errors—if

you’ve got them, don’t be surprised when
your competitor gets the job!

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Don’t Let Contracts Be the
Bottleneck!

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 The ROI of
Configure, Price,
Quote

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The Real ROI of CPQ

105% larger deal size

49% higher proposal volume

28% shorter sales cycles

26% more reps achieving quota

17% higher lead-to-conversion rates

Source: Aberdeen Group’s “Breaking the Laws of Physics” (April 2013)

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What We’ve 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

Configure Price Quote

Options, bundles and sub-bundles Pricing tiers and ramps Quotes from standard templates
Constraints and rules Attribute-based pricing E-Signature
Asset-based ordering for upsell, Subscription pricing Mobile and offline quotes
cross-sell and renewals
Usage-based pricing Excel-based quotes
Renewals management
Price adjustments, including Partner portal
Dynamic recommendations percent, amount and markup
E-Commerce and multi-channel
Guided selling Discount rules and alerts sales
Guided search Deal ratings Contracts integration
Quick quotes Incentive guidance Multi-lingual and multi-currency
support
Visual product comparisons Deal recommendations
Reports and analytics
Price waterfalls

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Get Ready For The Quote-to-Cash
Quiz

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Thank you

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