The 11 Questions You Must Ask When Buying a CPQ Solution

Chances are, you’re budgeting for 2013. And like a lot of sales organizations, you’re probably looking into Configure Price Quote tools to shorten your sales cycles and close more deals. So we thought we’d help out by giving you some questions to ask as you consider vendors.

1. Is it scalable? Your CPQ tools should be able to grow along with you. Later, you might eventually be forced to choose between limited performance or switching to an entirely new CPQ. Either way, you’ll have a major headache that could have been avoided.

2. How much notice do you need to give to increase usage? In many cases, it makes sense to start small with a CPQ and then increase your number of users and features when the growth of your business dictates the need for greater capacity. This helps keeps costs in line with actual needs. But when the time does come to expand, you’ll likely need it quickly. You don’t want to face licensing limitations or costly delays. So make sure increasing your usage will be as simple as sending an email request. If the provider you are evaluating can’t do it that easily, go in a different direction.

3. How easy is it to use? If your team has become accustomed to a particular CRM system, take that into account. If you can find a CPQ that the same interface as your CRM, it’s a nice win—for adoption and ROI. Your team will embrace the change more readily and you’ll reap the benefits quicker.

4. Is the solution multi-tenant? No questions asked, you definitely need to find a CPQ partner that offers truly multi-tenant software architecture. If they aren’t multi-tenant, they are using different servers for different customers. This is a red flag. Customer service can be a nightmare, and upgrades don’t necessarily happen automatically — as they should.

5. How does the CPQ integrate with your CRM? Repeat after us: seamless integration is good, but no integration is better. In other words, a solution that is native to your CRM means integration doesn’t even enter into the equation because it is organic to the overall system. Always ask if the CPQ is native to the CRM you already use.

6. Are you maximizing ROI? Here is a simple principle that holds true across the board: the more complex a solution is, the more money it will cost you. The most sensible application of this principle is to only pay for as much complexity as you need. Look closely at your CPQ options and ask who is offering a solution that matches your actual needs. Every dollar you spend for complexity you don’t need reduces your ROI.

7. How long will implementation take? Implementation can take around 9 to 12 months.

8. Will they give you a trial or test drive? The first reason is obvious – you should be able to see exactly what you are getting before making an investment of this size. The second reason is that if they can’t give you a trial, it might just be because it hasn’t been built yet. That’s what we’d call taking a completely unnecessarily expensive risk. A true SaaS solution will be readily available for a test drive before you implement the tool. If it’ll cost you six figures or more, you need to start asking questions. First, are they building software specifically for you? If they are, that means it is not a true Software as a Service (SaaS) solution. A great SaaS solution can be implemented in as little as two weeks for under $50,000.

9. Who uses this CPQ already? If you ask for references from your potential CPQ partner, you need to sift and analyze the information you get carefully. Is the company using the same version you’ll be using? Be sure to ask for references in your industry, and look particularly for companies who are similar in terms of complexity and processes. CPQ providers have ‘sweet spots’ — companies that are particularly well matched to their solution. Are you in your potential partner’s ‘sweet spot?’

10. How easy is it to get upgrades, and how much will they cost? The answers here should be very simple and straightforward. Upgrades should be automatic and should not cost anything. If the answers you hear are different, run.

11. What are the ongoing maintenance costs? Again, this should be a very direct answer: no additional costs for maintenance. Maintenance should be an expectation, not an extra.

Interested in learning more about Steel Brick’s CPQ solution, QuoteQuickly? Give it test drive.