It’s one thing when your quotes are a one-off for a single product or service.
It is another when you need to combine items from several suppliers and different kinds of jobs.
And sometimes adjust the document a few times.
This is a typical headache for managed services companies, players in a competitive global market worth more than $257 billion in 2022, and projected to reach over $372 billion by 2028.
Businesses all over the globe want to shift their IT infrastructure to the cloud and are looking for specialized skills and knowledge of this complex domain.
This is the main growth driver, increasing the demand for managed services providers.
If the quotes aspect of your operation is something that drives you up the wall, you might need a CPQ solution to save you time, squash paperwork, and increase your sales to boot.
Key takeaways:
- CPQ systems let you quickly create complex quotes with different products or services included.
- Such software allows users to quickly reply to customer requests, boosting sales. It also reduces paperwork and streamlines interdepartmental cooperation.
- CPQ features important for a managed services business include quote builder, sales pipeline management, and integration with CRMs/ERPs.
What is CPQ?
CPQ stands for configure, price, quote.
Configure allows you to easily select whatever the customer needs, check whether it is available at a certain date, and modify it if necessary.
Price lets you adjust the costs of every item, taking into account all possible factors, such as: seasonal fluctuations, changes in the prices of your suppliers, individual discounts, etc. This helps avoid misunderstandings and potential losses.
Quote gives you the ability to create detailed, customized quotes that the customers can easily understand.
CPQ features for managed services
When looking for a CPQ solution for a managed services business, having these features should be at the top of your priorities to optimize your business and sales process.
CPQ for professional services can be a game-changer.
Quote builder
The ability to combine products and services into synergizing bundles and present them to a customer is extremely useful. The functionality itself can have different names, e.g. “advanced quotes.”
Pipeline management
Monitoring quote status in real time helps you find problem areas and deal with them.
Moreover, if your CPQ system has an inbuilt e-signature and payment capabilities, almost everything related to a deal can be done in a single app.
Integration with CRM and ERP systems
CPQ software that integrates with these systems can help ensure that sales teams have access to real-time data on customer needs, preferences, and history, which can help them generate more accurate quotes and improve customer satisfaction.
Benefits of CPQ for managed services companies
CPQ software improves multiple aspects of the business by streamlining the quoting process and enhancing customer experience.
As a result, it brings the following benefits.
Higher sales
Speed is crucial when processing customer requests.
Businesses that react within an hour are seven times more likely to have a meaningful conversation (and potentially convert the lead) than their slower counterparts.
CPQs let you quickly create a great-looking quote with accurate pricing, send it to a customer, and receive payment from them. Train CPQ consultants and managed service consultants to learn the ins and outs of the software.
The speed and convenience leads to a higher conversion rate.
Less time spent on paperwork
With CPQ software, a managed services provider can automate the process of generating quotes and proposals, reducing the need for making them by hand.
By eliminating paper-based processes, CPQ can help reduce errors, improve efficiency, and ultimately deliver better customer experiences.
Increased cooperation
CPQ systems can streamline the approval process by providing a centralized platform for stakeholders to review the documents electronically.
Sales, marketing, and product teams can work together to ensure nothing important is missed.
Top 5 CPQs for managed services
There are certain products that are better suited for the companies in this niche.
1. PandaDoc CPQ
PandaDoc offers a flexible and convenient CPQ that has all the core features for a managed services business.
It’s also cloud-based, which means you can work with it from any place that has an internet connection, and won’t have to do any maintenance.
The most notable features of this system are:
Integrations
PandaDoc CPQ connects with CRMs (e.g. HubSpot and Pipedrive), ERPs, and other business software to exchange information.
The software connects with PandaDoc’s e-signature and document management suites, so that everything related to a specific deal, from getting a request to signing a contract, can be done in one place.
Streamlined UI
PandaDoc quoting is is easy to learn, which means your employees will quickly master it and start bringing the company value, scalability, and operational efficiency.
Advanced quotes
Even complicated proposals with many components and nuances will come together easily with this tool.
It walks you through a simple step-by-step process that takes everything into account.
Templates
Ready-made quote templates that already have all the boilerplate text in place. You just need to fill in the blanks.
Integrated payment
PandaDoc includes a payment system so that the customers can transfer money to you with no hassle.
Other solutions to consider
2. Salesforce CPQ
Salesforce CPQ is a well-known, established system that includes everything a sales team might need, including billing and revenue recognition.
That said, it is also a complex, multi-faceted tool that is part of the Salesforce ecosystem, and may be more product than is necessary for those seeking straightforward, drag-and-drop capabilities to get the job of building quotes done quickly.
For users that prioritize simplicity and ease of use, PandaDoc CPQ offers streamlined integration with Salesforce CRM, exchanging information between the systems so that all the work can be done without switching between different apps.
While PandaDoc may not offer all the customizable features of more complex tools like Salesforce CPQ, it excels in ease of use and flexibility.
3. Oracle CPQ
Managed services companies often choose Oracle CPQ for its comprehensive feature set. Its extensive rules engine helps make even complex quotes quickly, and its quote-to-cash process is easy to understand.
Oracle CPQ can exchange information with other Oracle software so everything can be done within one application.
However, users often prefer PandaDoc for its ease of use, customizability, convenient document creation functionality, and much more favorable pricing.
4. Conga CPQ
Conga CPQ is a reliable cloud-based system that simplifies quoting and related processes.
It is easy to customize and has solid integrations with other popular business applications (including Oracle and Salesforce).
Overall, it is one of the best options for companies with complex business processes.
Conga CPQ lags behind PandaDoc in price-to-quality ratio, as well as user-friendliness. It is generally considered more difficult to learn.
5. PROS CPQ
PROS CPQ is famous for its advanced pricing management.
Its inbuilt AI adjusts item costs based on many parameters (e.g. market conditions and customer preferences).
Besides making understandable quotes fast, it is a good option for implementing revenue-maximizing strategies.
PandaDoc beats PROS in terms of feature set, as it can offer more third-party integrations, better document management, inbuilt billing/invoicing, and more.
PandaDoc CPQ for improving your bottom line
CPQs are designed to save sales reps time and help them strike more deals by shortening the sales cycle.
This is made possible with the ability to automate routine paperwork, approval workflows, quickly process requests, generate proposals for complex products, and even receive payments.
PandaDoc CPQ, with its smooth workflow, extensive integrations, and payment gateway, is a top solution for a managed services company.
Disclaimer
PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDoc services are governed by our Terms of Use and Privacy Policy.
Originally published March 4, 2024, updated October 23, 2024
