In past blog posts, we’ve discussed the fact that legacy CPQ processes are preventing B2B revenue growth without going into precisely how this happens. In this blog post, we’ll begin to present the main negative impacts of poor CPQ on B2B revenue.
Source: Telesperience 2016
- The Customer Experience
Most CSPs have KPIs to measure specific areas of their customer experience. But the CX begins earlier than the moment they actually sign on as a customer and ends later. CSPs need to measure the end-to-end experience, including things like the enquiry-to-order process.
The easiest way to optimize financial performance is to target the operations that are most expensive and least efficient. More broad-stroke factors, like lost opportunities due to sub-optimal CPQ, are clearly harder to measure. But measure them they must if service providers wish to have the full financial picture of their organizational processes. In fact, focusing on saving costs instead of taking a holistic view of customer operations can lead to short-term, ineffective solutions that actually increase inefficiency in the long term.
Sub-optimal CPQ processes also impact negatively on both corporate governance and commercial management, as accurate and up-to-date information is not available for CFOs and business managers to base their decisions upon. Instead, this information is in siloed systems, pricing databases, a printed piece of paper, a convoluted email thread, or even someone’s head. It certainly doesn’t help that making business-optimized decisions requires complex and lengthy approval processes, a wide variety of information, and high visibility and collaboration among finance and business leaders. Optimizing automation and visibility in CPQ thus optimizes management decisions.
Stay tuned for our next blog to hear about more ways poor CPQ compromises B2B revenue.
To learn more about the damage that poor CPQ causes, tune into our webinar on September 21.