The following are key factors that help Quantify ROI from a CPQ deployment
Velocity (Speed). Velocity is rather broad term and can mean a lot of things in the context of serving your customers:
How quickly can a rep respond to an initial inquiry from a customer?
What is the speed to market to incorporate changes in real-time throughout the deal cycle?
How many touch-points do your sales teams need to work through for any transaction?
How much automation do you have in your approval process? Does every quote need to be approved? What is your % of no-touch/low-touch quotes?
What is your Quote to Order booked cycle time?
Self-Sufficiency for Sales Teams and Partners
What is your adoption across Sales Teams and Partners?
Are your sales teams and partners empowered to browse products, purchase, negotiate price, negotiate terms and conditions, and manage assets and renewals?
Are you Error-Free?
Pricing Errors have many negative effects. Undetected, overpricing a product can
mean a lost sale, while under-pricing a product can mean selling the product at a loss. What is your error rate?
Product Configuration Errors: Cost of a configuration error has an impact by way or building, shipping and installing it again. However, this has a greater impact in terms of rebuilding trust with your customer and redeeming your image as a provider of quality products.
Organizational Efficiency
What is your Release-to-Market timelines? How long does it take to release a new
product or a new service offering and enable your sales teams to sell this new offering?
What is the cost of introducing a new product or a new offering?
How much time/effort is needed to release new pricing? Are your pricing methods efficient? Can you respond quickly to changes in the competitive landscape?
How agile are you in responding to changes in Sales Management and hierarchy?
User Experience and On-boarding
How user-friendly is the experience? Example: Time/Number of clicks to create a quote?
Training: How long does it take for your company to onboard a new sales rep and make them self-sufficient?
When you roll out a new product, how long does it take to get your sales force comfortable with selling the product?
How much time and resources are being spent
on training your sales teams?
Pricing Discipline and Margin Management
Is there pricing discipline across your sales teams?
Are you seeing improvements in Margin?
What is your cost to place and fulfill an order?
Last but certainly not the least, what is the incremental revenue generated after the implementation of a CPQ tool?
To establish a successful CPQ implementation, it is key to define appropriate metrics and benchmark progress against these key metrics.