Create an Effective Approval Process
- Define Criteria:
- Determine what triggers the need for approval within the CPQ system.
- Establish clear guidelines on what types of quotes require approval. This includes high-value deals, unusual discount levels, or complex custom configurations.
Example: Approval required for discounts over 15% or strategic products.
- Establish Clear Rules:
- Create documented rules for approval thresholds and hierarchies.
- Define authority levels to ensure quotes are approved by the right personnel based on deal size or complexity.
Example: Regional Sales managers approve discounts up to 20%. Anything higher needs Business Unit manager approval.
- Map Scalable and Flexible Workflow:
- Design a streamlined approval workflow that minimizes bottlenecks.
- Design approval workflows that can scale and adapt to changes in business size and needs.
Example: Workflow includes automated routing from sales rep to manager to director as needed.
Create scalable workflows that can handle increased quote volumes
- Integrate:
- Ensure CPQ system integrates with CRM and ERP to facilitate data accuracy, reduce manual data entry, and speed up the approval process.
Example: CPQ pulls in customer data from CRM to automatically populate quotes.
- Automate:
- Automate routine approvals based on specific criteria such as discount levels, customer segment, or deal size to speed up the sales cycle.
- Automate notifications and reminders to approvers to reduce delays in the approval process.
- Enable email approvals by providing all the pertinent details in the approval email.
Example: System auto-approves 10% discounts for bulk orders of standard products.
- Provide Empowerment:
- Give sales reps the ability to make certain decisions to expedite the process so they feel more involved and capable of negotiating deals directly.
Examples:- Sales reps can configure standard quotes within a set pricing band based on discounted pricing agreements (DPAs) without further approvals.
- Sales reps are given the authority to offer discounts up to 10% without needing additional approval. This limit is based on the typical range of discounts that historically do not significantly impact profit margins.