Member Article

Ditch Negotiation with CPQ Software

Negotiation is one of the most important skills for any salesperson to have to help grow a company. However, in an era of digitalized everything, when customers are comparison shopping even as they’re hearing a pitch, negotiation requires more than savviness and great customer service. Quality CPQ software gives salespeople immediate tools to come up with the best quotes to keep the leverage on their side. Unfortunately, many companies wait until it’s too late to incorporate CPQ software into their sales tactics.

Of course, you’ll never get rid of negotiation entirely, especially if you’re in an industry where there’s no readily available fixed price. Commission-based sales teams will always use negotiation to increase profits, but software can help make the process smoother and more transparent. Just because customers are used to comparison shopping these days doesn’t mean they like it. If you can offer a fair, honest, and fast quote that’s user-friendly and the customer can see that they’re getting the best deal, you’ll save them time—and that’s a lot more valuable than money.

How Negotiation Works in the Digital Era

There was a time when customers were largely in the dark. They had to bank on a lot of legwork, calling or physically going into competing shops to haggle and make sure they were getting the best price. It took a lot of time and brought on a lot of headaches, but there were no other options. Today, the digital era has ushered in a lot more transparency. Now, customers often have nearly the same information (or access to it) as sales teams.

That’s great news for the tech savvy customer, and it can be for sales crews as well. Depending on technology can level the playing field, while also having a mutually trusted “third party” mediator in any negotiation. It’s tough to argue with a CPQ solution that isn’t playing favorites. This software integrates into current systems and aggregates all data available (including, if applicable, a customer’s history) to provide the clearest information in real-time.

Within minutes, you can have a current quote for customers that spells out all the details. It’s clear what fees and prices are included, and the customer can get an e- or hard-copy to help with the decision-making process. By lifting the veil, you’re helping to build trust with that customer. Does that mean they might find a better deal elsewhere? Maybe, but for potential long-term and loyal customers, you’re still winning the war (if not this particular battle).

Negotiation Tools

The best sales teams have always had stellar negotiation tools at the ready. Now, those tools are tangible and tech-heavy. There’s no more “going in the back to talk to the manager,” which puts up a barrier between salesperson and the customer. Instead, the two parties are united over black and white data. Algorithms don’t make human errors, and can analyze impressive amounts of data at a speed even the best salesperson can’t muster.

Plus, technology is inherently trusted by many consumers. You’re operating on a platform and with a device that’s familiar and comfortable to many consumers, particularly younger generations. Baby boomers are swiftly moving into the elderly consumer demographic, and industries targeting such communities should be well-equipped with best practices for introducing technology like CPQ software in a reasonable manner. However, Millennials have become the go-to demographic for most industries, and of course the younger 18 – 24 demographic is always a hot target. Both of these groups are heavy tech users and respond well to the seamlessness of CPQ software and related technology.

Some consumers say they don’t like to negotiate. That’s not necessarily true—they just don’t like the idea of old-school “snake oil salesman” type tactics that are often thought of with the word “negotiation.” It’ll take awhile for the stigma to slough off the word, and utilizing tools like Quote-to-Cash software will speed up the process. Negotiations can and should be a useful tool for sales teams and consumers alike.

This was posted in Bdaily's Members' News section by Hicks Crawford .