October 23 by Eric Dreshfield
Companies have long been talking about the need to have a “single version of truth.” That is, having one view of data that everyone in the organization agrees is the trusted source, and that provides a comprehensive view of the business and its customers. However, in some cases, having access to such a vast myriad of data can produce analysis paralysis – a condition where rather than being able to make informed decisions, companies get stuck simply trying to figure out how to keep everything in sync, as well as understanding the story that the data is telling. Understanding the narrative from the data is probably the most important outcome from a single source of truth.
One way to break free from analysis paralysis and grow your knowledge about your customers is to have quotes and contracts integrated on a single platform, utilizing a single data model. This gives you a view into your customers from the time they start interacting with your company all the way through to the completion of the transaction. Configure Price Quote and Contract Lifecycle Management are both valuable tools on their own – combined, that value grows even more when the two solutions are fully connected with integrated workflows that manage the end-to-end Quote-to-Cash process.
Here are the top 4 reasons for integrating CPQ and CLM solutions onto a single data model:
Reduce Workflows & Work Faster
On a single data model, approvals follow the sale all the way through from configure, price, quote to contract negotiation and execution. There’s no need for separate workflows and separate approval processes. You also avoid painful load times and delays by working with a single vendor who provides a faster user experience. This not only saves you time, but also speeds your sales cycle.
Save IT Resources & Enjoy Seamless Upgrades
With Configure Price Quote and Contract Lifecycle Management both living on a centralized data and permissions model, there’s no need to build custom code to join data from disparate systems. Additionally, by using a single data model, it’s easy to provide upgrades to critical business functions while keeping everything in sync and not risk losing functionality. This not only saves your IT resources time but also saves your company money.
Achieve Compliance Across Systems & Eliminate Risk
Integrated quoting and contract systems ensure automatic cross-system policy enforcement by applying the same business rules throughout the entire sales cycle. This not only helps reduce the risk of revenue leakage from rogue discounting but also helps compliance with internal company policies as well as external regulations.
The End Goal: Increased Customer Satisfaction
What’s the outcome of a single version of truth? It’s precisely the outcome your company should be driving towards: more satisfied customers. And that provides a two-fold benefit. First: satisfied customers are loyal. They are more likely to return and purchase more from you than dissatisfied customers. That’s true in the consumer world, and it’s equally true in the B2B world. Satisfying your customers builds trust, and trust helps build satisfied customers. Second: It’s much less costly to retain a satisfied customer than it is to find a new customer and get them to the loyalty point. Even as far back as 2014, Harvard Business Review has been reporting that acquiring a new customer is anywhere between 5 and 25 times more expensive than retaining an existing customer.