CPQ Software for Telecom
Telecommunications companies are well-known for their continuous product and service innovation and focus on the customer experience. While this focus on innovation helps telcos remain competitive, it challenges sales operations to stay agile in their processes and sales reps to stay attuned to the best way to sell the constant stream of new products.
Customer churn is another significant issue for telecom companies, as customers leave their services in favor of competitors. Without proper customer retention strategies, the company can suffer substantial losses.
One way to stay agile and reduce customer churn is by using Configure Price Quote (CPQ) software. CPQ solutions are built to meet the unique needs of telecom organizations, which have complex pricing models, multiple product lines, custom bundles/packages, and other special requirements.
How CPQ Helps Telecommunications Companies Compete
Telecommunications is a highly-competitive industry that faces many business challenges, including:
- difficulty optimizing price
- high churn rates
- complex pricing
- incorrect product configurations
- need for flexibility in contracts
- revenue leaks due to incorrect quotes and billing
Given these challenges, telecom companies are exploring strategies to maximize revenue and minimize losses. CPQ software offers a unified solution to automate the revenue lifecycle by seamlessly integrating front-end and back-end systems. Data synchronization between CRM, CPQ, and Finance ensures subscription services are configured and managed efficiently and billing is accurate.
To attract and retain customers, telcos must stay updated with customers’ changing preferences and expectations. This may include providing more services, faster speeds, or offering special discounts and packages to attract and retain customers. Failing to do so may result in losing customers to other competitors in the market.
CPQ delivers valuable and timely information to revenue teams, enabling them to understand what they need to do to retain their customers and prevent them from leaving. CPQ enables sales teams to access real-time insights on customer behavior and preferences, making it easier to identify the most effective approach for customer renewal and determine the best combination of bundles and packages.
Additionally, CPQ facilitates omnichannel selling by empowering internal sales teams, partners, resellers, and self-serve customers with a simplified, connected system to create quotes, update contracts, and complete renewals.
CPQ Software Advantages for the Telecommunications Industry
Telecommunication companies can reap many benefits from adding CPQ to their sales stack, including higher customer retention, improved sales efficiency, consistent pricing and discounting, and increased revenue. CPQ software also helps sales teams expand accounts and grow revenue.
Now, let’s dive into the primary advantages telcos experience by implementing CPQ software.
Reduced Costs: By automating the main steps involved in selling products or services—configuration, pricing validation, and generation of contracts—telecoms can reduce errors and costs associated with manual quoting processes while allowing them to quickly adjust prices as market conditions change.
Improve Operational Efficiency: CPQ reduces sales cycle time by streamlining the quoting process. CPQ software enables telecoms teams to quickly generate product bundles tailored to each customer’s specific needs to close sales faster.
One Source of Truth: One crucial benefit of CPQ software for telcos is the integration with the company’s CRM. Customer records, product catalogs, pricing information, and sales activities are stored in a central repository, creating one source of truth for generating accurate price quotes and contracts.
Reduced Customer Churn: In addition to providing accurate product configurations and pricing options, CPQ solutions allow telecom companies to personalize offers for repeat customers. For example, by using previous purchase data, telecom companies can offer tailored packages with discounts or other incentives for their existing customers that provide an incentive to stay with the company.
Account Expansion: CPQ makes it easier for telecom companies to upsell existing customers by offering them packages tailored specifically to their needs, providing enhanced value over standard packages offered by competitors. Since these packages are created based on customer data gathered from previous purchases via CPQ, they offer higher levels of personalization than generic plans offered across different channels. By leveraging this data to provide highly customized packages with greater value than competing services, telecom companies can improve customer loyalty and reduce churn risk.
Improves Sales Performance: CPQ uses guided selling to help sales reps configure products for customers based on their needs. CPQ software helps reduce the time required to close sales by streamlining the process of creating custom quotes and orders. This can be especially helpful when quoting complex configurations or product and service bundles.
Better Data: CPQ technology also provides insights into how telecom companies could better optimize their product offerings and engage current or potential customers to grow their income streams. By identifying how certain groups of customers responded to multiple products/services, sales teams can make informed decisions about targeting various market segments to drive new business.
Accelerates Revenue: CPQ software is an essential tool for accelerating revenue and reducing revenue leaks. It helps telecom businesses to configure and price products and services quickly and accurately. This translates into faster contract generation and order processing, fewer billing errors, and higher profits.
CPQ Solutions for Telecommunications
What to Look for in a CPQ Solution for Telecommunications
CPQ offers a comprehensive suite of features, such as an advanced rules engine, catalog pricing integration, and automated workflows that allow telecom companies to efficiently configure complex product offerings while maintaining accuracy.
Look for these features when selecting a CPQ solution:
Discounting Rules: CPQ offers automated pricing rules which enable reps to keep up-to-date on current discounts and promotional offers that they can leverage to entice customers looking for better deals or considering switching providers. This saves time for the rep and the customer since all the necessary information about promotions is readily available.
Dynamic Contracts: CPQ solutions also enable telecom companies to create dynamic contracts tailored specifically toward individual customers rather than simply offering them one size fits all packages. This allows telecom companies to offer customer contracts that maximize long-term value while reducing churn rates due to unsatisfactory experiences or misalignment with customer needs.
Pricing: Pricing and discounting can be complex and time-consuming tasks without the help of CPQ software, especially for telecommunications companies. Telcos typically use cost-based pricing, subscription pricing with discounts and bundles, or value-based pricing with continual fluctuations in pricing based on competition and market factors. CPQ enables telcos to manage these pricing complexities efficiently.
Subscription Management: CPQ software is essential for telecom companies to manage their subscriptions with greater oversight. It helps with creating and managing orders and handling renewals and cancellations. The software also provides comprehensive real-time visibility into how customers use their subscriptions, how much they spend, and how they scale up or down over time. Additionally, CPQ features various reporting tools that allow users to make data-driven decisions about optimizing their subscription plans.
Product Configuration: CPQ solutions allow telecom companies to set up rules-based pricing structures that ensure compliant pricing across all customer accounts. By leveraging sophisticated algorithms and advanced analytics, sales teams can sell combinations of products and services while creating precise product configurations based on a customer’s unique requirements.
Integration: CPQ software extends the value of many other solutions in the sales stack. By seamlessly integrating with CPQ and ERP software, billing platforms, and revenue operations systems, sales teams achieve a fluid sales motion that connects all sales stages.
Reports and Analytics: CPQ software can help with sales analytics, reports, and forecasting. It provides valuable insights that help telecom companies understand how their customers use their products, allowing them to tailor their offerings for optimal performance and cost savings.
Rhonda Bavaro excels in boosting SaaS companies’ growth through innovative content marketing, thriving in the dynamic sales tech industry amidst evolving technologies that drive revenue acceleration.