The following are 7 Key metrics that can be used to benchmark a CPQ system for industrial products to measure its effectiveness and efficiency. These products can be Valves, Pumps, Actuators, Silencers, Expansion Joints, Fans, Blowers, Gauges, Instrumentations, Vents etc..
1) Quote accuracy: This metric measures the percentage of quotes generated by the CPQ system that are accurate and free of errors. A high quote accuracy rate indicates that the CPQ system is functioning properly and providing sales teams with accurate and reliable quotes.
2) Quote turnaround time: This metric measures the amount of time it takes for a sales team to generate a quote once a customer request has been received. A shorter turnaround time indicates that the CPQ system is efficient and able to quickly provide quotes to customers.
3) Sales conversion rate: This metric measures the percentage of quotes that are converted into sales. A high conversion rate indicates that the CPQ system is helping sales teams to effectively close deals.
4) Productivity: This metric measures the number of quotes generated per salesperson per day. A higher productivity rate indicates that the CPQ system is helping sales teams to be more efficient and generate more quotes in less time.
5) User adoption: This metric measures the percentage of salespeople who are using the CPQ system. A high user adoption rate indicates that the CPQ system is easy to use and that sales teams are comfortable using it.
6) Quote error rate: This metric measures the percentage of quotes that are rejected by customers due to errors or inaccuracies. A low quote error rate indicates that the CPQ system is providing accurate and reliable quotes to customers.
7) Revenue generated: This metric measures the increase in revenue generated after the implementation of CPQ system. A higher revenue generated indicates that the CPQ system is helping the company to increase its sales and revenue.
By monitoring these metrics and benchmarking them against industry standards, industrial companies can evaluate the effectiveness and efficiency of their CPQ system and identify areas for improvement.