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Introduction to Configure, Price, Quote

APTTUS Quote-to-Cash Certification
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Sr. Director of Product
Marketing, APTTUS

20+ years launching
new products

Born in Lima, Peru

Anagrammed name:
Im gruesome talent!
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Miguel Tam, APTTUS
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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Todays Agenda
Configure, Price, Quote
(CPQ) Overview
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Configure, Price, Quote (CPQ)
Begins Where Traditional SFA Ends
LEAD
ACCOUNT
MANAGEMENT
OPPORTUNITY
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A Smoother Path From
Opportunity To Contract
CONTRACT
ACCOUNT
MANAGEMENT
OPPORTUNITY
CONFIGURE PRICE QUOTE LEAD
CPQ Boosts Efficiency+Effectiveness
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LOW HIGH Effectiveness
E
f
f
i
c
i
e
n
c
y

L
O
W

H
I
G
H

Effectiveness
Sales Pipeline Management
Sales Forecasting
Objective Management
Sales Training
Management
Appraisal/Evaluation
Systems
Coaching Systems Territory Management
Systems
Prospect Qualification
Hiring/Onboarding
Systems
Sales Content Management
Sales Incentive Compensation System
Quota Management
Configuration/Pricing/Quote
Guided Selling
Proposal 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-channel
Strategy
Improved channel effectiveness

Increased channel visibility

Control over channel-specific business rules

Consistency across all your channels
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 Arent Selling . . . . .
Outdated product
catalogs
Complex Excel
spreadsheets
Scheduling customer calls
and appointments
Fixing mistakes Learning
sales scripts
Waiting for
approvals
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Sales Configuration in Action
Sales Configuration in Action
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But Its Always More Complicated in
the 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 dependencies

Discounting offers

And There Are Big Costs For Getting
It 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 sell
Requirements for each product
Which products conflict?

What services are included?

Regional offerings
Current special offers
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
Pricing

Contract-
based

Usage-based

Hourly

Flat Fee Price




Ramp Pricing

Volume
Discounts

Price Bundles

Channel
Pricing
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

So lets talk about pricing
strategy!
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Promotions
35% off this week only!
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Volume Discounts
Quantity
U
n
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t

p
r
i
c
e

Total Price
0 1 2 5 10 20
100
80
70
50
40
100.00
160.00
350.00
500.00
800.00
Geography-based Pricing

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Location
A
v
e
r
a
g
e

M
o
r
t
g
a
g
e

(
U
S
D
)


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
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
Speed: What Gets In The Way?
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Poor product knowledge + accessibility
challenges + unorganized approvals =

SLOW QUOTES
Accuracy: Systematic Process
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Quoting errors are like resume errorsif
youve got them, dont be surprised when
your competitor gets the job!
Dont Let Contracts Be the
Bottleneck!
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The ROI of
Configure, 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


What To Look For In a CPQ Tool
Options, bundles and sub-bundles
Constraints 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 ramps
Attribute-based pricing
Subscription pricing
Usage-based pricing
Price adjustments, including
percent, amount and markup
Discount rules and alerts
Deal ratings
Incentive guidance
Deal recommendations
Price waterfalls
Quotes from standard templates
E-Signature
Mobile and offline quotes
Excel-based quotes
Partner portal
E-Commerce and multi-channel
sales
Contracts integration
Multi-lingual and multi-currency
support
Reports and analytics
Configure Price Quote
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Get Ready For The Quote-to-Cash
Quiz

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