3 impressive figures that make SAP CPQ worth it
Updated: Sep 17, 2021
When SAP acquired CallidusCloud, the company had recently finished an inquiry with 200+ of its customers around the world. Here are 3 of the most impressive numbers to retain:
This number represents the increase of the number of sales people that hit their target. Why is this important? The majority of sales-roles have a variable income (often in the range of 30-50% of their On-Target-Earnings) and achieving your quota will be heavily reflected in the payslip. Not all people – even not all salespeople – are driven just by salary, but nevertheless it stays a huge influencing factor on people’s decision to leave a company. Knowing that people leaving has an incredible cost (training of a replacement, cost of hiring a new candidate, brain drain, …), this is one way to cover the risk of sales people leaving the ship. You’d rather have them supported in hitting or overachieving the target instead of lowering the bar…
Speeding up the sales cycle is a cost reduction indicator. In quite some industries, the longevity of a sales opportunity is, in itself, a threat to success. The longer the sales cycle gets, the higher the risk of:
Getting no decision
Loss in interest from either side: - Your sales guy giving up because a ‘new’, ‘better’, ‘more promising’ opportunity grasps his attention - The customer loosing focus on one of the competitors, and sometimes it’s you!
Cost of sales rising without evidence that the final order will compensate that cost.
The faster the deal gets closed, the better for you (from a seller’s perspective). Cost of sales does not explode, and the rhythm of sales successes, the heartbeat of your sales team, stays high!
This is a funny one. Due to the extreme automation, sales people are able to produce 49% more offers/quotes than before they used SAP CPQ. Simply because it’s easier. Now look at it this way: what is the most difficult offer to win? Undoubtedly: the offer you DID NOT send out. Because your time to produce offers ran out, and you disqualified this one. Still, there is a percentage of disqualified offers that has the potential to come in. All you need to do is find the time to write/produce them.
Which brings us to the bonus number: the 200+ companies inquired, reported on average a 5% increase in revenue to be attributed to the introduction of a SAP CPQ-solution. Looks like a promising ROI-starter to us!
Do you want to learn more about the setup and implementation of SAP CPQ? Sign up for our free 'Ultimate CPQ Implementation guide here'.
To find out even more about how CPQ fits in your sales process and the CANGURU way of working, don’t hesitate to contact us at firstname.lastname@example.org!