Markets globally have evolved from being dominated by sellers into a customer-centric model where sellers try their hardest to cater to the unique needs of their buyers. Such an approach has led to the rapid emergence of configurable products. Thus, making retail price optimization an indispensable tool of business operations.
Before we dive into the plethora of benefits offered by robust pricing software, let’s clear the air about configurable products.
What are configurable products?
Usually, a configurable product comprises a skeleton model as the first component in the assembly. This skeletal model is a standard component that forms the base of every model. However, what makes each model unique is the addition of unique components specific to each model. And, the price of the model differs depending upon the customizations. Simply put, if the customer has to choose one or more options before purchase, it is deemed as a configurable product.
A subway sandwich is the epitome of configuration and customization according to the preference and taste of the buyer.
Pricing challenges of Configurable products
The fast-paced delivery of products coupled with the complex product configurations swells into massive challenges for retailers of configurable products. Some of the most common of them are –
Traditional sales and order fulfillment processes that were heavily dependent on human intervention are highly prone to error. Miscalculations and misconfigurations are rampant that result in lost revenue, revenue leaks, and dissatisfied customers.
2. Inhibits Sales Cycle
The sales team and channel partners of retailers selling products with complex potential configurations must stay informed about sales and have access to essential data at all times. Performing the backend tasks like quotation and invoice generation can consume up to 40% of the working hours of the sales team, thereby leaving them with very little time to pitch sales. Thus, resulting in a slow sales cycle that generates lesser revenue than its expected potential.
Automating the entire process with cpq software for retailers can lead to not just an accurate cycle but one that’s super quick. The sales team can leverage technology to sell better, sell faster, and stay organized at work.
3. Boost the efficiency of business operations
Siloed CRM, SFA, and ERP systems and practices, or just outdated technologies create countless inefficiencies and can block the progress of businesses, especially in the present time of fast-paced digitally evolved business operations. The right pricing software can not only make operations super-efficient but also helps set optimum pricing that helps you stay ahead in the competition.
4. Win higher customer satisfaction
With optimum pricing even for the most complex product configurations, accurate quotations, and quick delivery, customer satisfaction is bound to shoot up the ladder. This in turn leads to higher sales and profits.
What makes Vistaar the best CPQ software?
Powered with state-of-the-art artificial intelligence technology, Vistaara’s CPQ software manages the entire end-to-end pricing lifecycle, gives accurate calculations without human error, and can manage even the most complex rebate programs with its agility.