B2B buying journeys are long and complex. A report from Ruler Analytics reveals the conversion rate for B2B e-commerce is 3.2%. If you’re converting at the same rate, you’re doing well already. If not, there may be room for improvement.
In either case, you need to start with identifying factors that are resulting in lower-than-average conversions, such as:
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Confusing pricing
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Poor customer experience
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Multiple stakeholders in the decision-making process
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Weak brand
Mimi Turner offers an excellent insight into how B2B brands focus too much on the product—a phenomenon she calls Product Delusion. She explains how B2Bs can benefit greatly from focusing on their brand, but this is frequently overlooked.
A CPQ (configure, price, quote) software solution can move your brand–and conversion rate– in the right direction. Read on to find out how.
What is Configure, Price, Quote Software?
CPQ (configure, price, quote) software helps B2B brands empower their customers. How? By letting them configure products independently and obtain prices and quotes in real-time. It redefines your customer’s experience and builds a loyal clientele that appreciates your customer-centric selling approach.
CPQ has three components:
Configure
Simply put, CPQ empowers B2B buyers to configure complex products themselves by interacting with a visual configurator embedded into the seller’s website.
As we all know, longer sales processes are a recipe for lower conversion rates. Your buyers want to satisfy their needs fast. But If you’re a B2B manufacturer selling products with complex configurations, fast-tracking your sales process can be tricky without a CPQ.
With CPQ, buyers can visit your website, interact with products, select a configuration, and visually inspect it from every angle.
All this without interacting with a sales rep or stepping inside a showroom.
Price
Once buyers select a configuration from your website, they want a price as fast as possible—ideally, right away.
The problem? Sales reps need time to look at the configuration and may even have to consult the engineering team before quoting a price. Because, let’s face it, pricing errors are expensive.
With CPQ, you don’t need to worry about delayed or inaccurate pricing. Advanced CPQ solutions offer a built-in rules engine that provides error-free pricing in real-time.
Quote
Let’s say the buyer is happy with the price. They want to move forward and get to know the terms of the sale. Annoyingly, in most cases, they’ll need to wait for a sales rep to complete their backend drill.
However, if you use a CPQ system, the buyer can generate a quote instantly, reducing the sales cycle (from weeks in some cases) to seconds.
How Does CPQ Software Help Boost Conversion?
CPQ has come a long way from a basic tool that computes prices to a holistic solution with features that can transform customer experiences.
KBMax CPQ users report an average 40% increase in their conversion rates. The reason? A strong lineup of features to refine customer experience (and, therefore, the seller’s brand) at a granular level.
Below are key CPQ features that have a marked impact on conversion rates.
A 3D Visual Configurator Provides an Immersive Experience
CPQ software solutions offer a visual configurator that buyers can use to design the most complex products. They can drag and drop to change dimensions, colors, parts, and more, spinning designs around to view them in fine detail from every angle.
This visual capability has three major benefits for your brand and conversion rates:
Lower purchase anxiety: Your buyers need to know what they’ll get for the price. A 3D visual configurator offers an immersive viewing experience to the buyer so they can study the design, making them more confident about moving forward with the purchase.
B2B buyers don’t want to interact with a sales rep: 44% of millennials want to complete a purchase without speaking to a rep, and CPQ can give buyers what they want. Rather than listen to a sales pitch, they can interact with products online, on their own terms.
Marks you out as a digital leader: 3D product configuration is highly impressive. Throw AR and VR into the mix with a solution like Epicor CPQ, and you can wow prospects.
No-Code Rules Engine Gives Buyers Greater Autonomy
The best CPQ software solutions have a no-code rules engine that sellers can use to stipulate how products can be configured, priced, and sold. All without writing a single line of code.
This is critical to providing a self-serve experience on your website. Buyers might make mistakes, especially when selecting complex configurations, but the rules engine lets you define parameters and constraints that ensure every design is viable and optimized.
For example, the rules engine determines if two product components are compatible and, if not, guides the buyer to a valid alternative. It hugely simplifies the buying process, which has a direct knock-on effect on your conversion rate.
Automated Processes Streamline the Buyer’s Journey
Two-thirds of B2B buyers want a self-serve option before speaking with the vendor. More B2B buyers want to research and study the product, get a price, and place an order without talking to your sales rep.
Many traditional companies, even if they have an ecommerce website, lack the infrastructure to provide a complete self-serve option. If you’re one of these traditional companies, you’ll likely lose business to competitors offering B2B buyers what they really want.
Providing a self-serve option with a CPQ can drive your conversions upward. The buyer has the opportunity to choose a viable configuration without errors and get an immediate price and quote without interacting with your team. They can carry out this process at any time and place, and on any device, increasing your reach.
Once they finalize the configuration, they can place an order. The order details are transmitted to your engineering and production teams and internal systems like CRM and ERP. The CRM might be automated to notify customers at each step of the process, ensuring they’re always aware of their order progress.
Essentially, you’ll be able to deliver an experience your buyers appreciate–one that’s convenient and flexible. You’ll convert first-time buyers faster and retain buyers with your top-notch, automated customer experience.
Final Thoughts: How CPQ Systems Boost Conversion Rates
Thanks to the advancement of the CPQ industry, B2B manufacturers now have the power to drive conversion rates with better control. Modern CPQ systems offer tools like a visual configurator that enables self-serve without the purchase anxiety and makes your company a digital leader in your space.
CPQ systems also eliminate pricing errors, deliver products faster, and offer integrations that supply self-serving buyers with critical, timely information. These characteristics help improve customer experience and build a loyal clientele, consequently boosting conversion rates in the long term.
