Posts Tagged ‘CPQ’

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CPQ: exploded

October 23, 2018

channelcentral offers CPQ (Configure, Price, Quote) solutions, most of which integrate into eCommerce Sites (Web Stores). CPQ software can be viewed as a tool to Configure, Price and Quote complex products, helping companies rapidly and cheaply produce accurate quotes on configurable products and services. There are many definitions online of what CPQ means, here’s one:

http://salesconfiguration.org/key-functionality/what-is-cpq/

When CPQ is deployed into eCommerce environments it allows additional functionality and that extends the ‘acronym’. When engaging with people who are not familiar with CPQ they often query the acronym. We’ve had customers say: “your solution has Buy Now, why does the acronym stop short of that?”. It’s a good point as most CPQ systems assist search by filtering portfolios, shape demand, incentivize users, link to CRM systems, show stock and Buy Now (Add to Host Cart).

Our version of CPQ…

  • Single Sign On
  • Product Location
  • BOM Import/Paste
  • Demand Shaping
  • Configuration
  • Solution Journeys
  • Competitive (selling against)
  • Pricing
  • Bundles
  • Incentive (rewards)
  • Quotation
  • Send to CRM
  • Buy Now

Not exactly snappy but don’t discount CPQ because you think it’s just slots, bays and quotes.

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Canalys Channels Forum Review

October 17, 2018

The largest independent Channel Event in EMEA

channelcentral was an emerging vendor sponsor for the Canalys EMEA Channels Forum this year, and we had a terrific response at this year’s fantastic event in Barcelona. Greg Starks (CSO) and Dan Mason (CTO) represented channelcentral on the 9-11th of October, with Tim Moyle (CEO) also managing to attend part of the event! It was a very busy few days and a perfect opportunity to meet multiple customers and prospects in a very well organised, structured and desirable setting: the stunning Hotel Arts near the beach (see image).

If you are unfamiliar with Canalys events:

The Canalys Channels Forums are major independent events for IT channel partners across EMEA, APAC and LATAM. The events bring together major technology vendors, distributors and resellers to discuss industry trends, forge new business relationships and create sales opportunities. Our emphasis on high-quality content, top-level speakers and innovative ideas and platforms has enabled us to grow and become the world’s largest independent IT channel events.

At Canalys we can meet new, old and existing customers. This is a wonderful opportunity to expose our brand and services to Manufacturers & Channel Partners in attendance. For new customers we meet at Canalys, we can explain how our services work and how we can possibly benefit their company. It builds a strong foundation for a relationship between two businesses.

I really enjoyed meeting customers, new and old. It’s a great opportunity to get feedback on what we’re getting right and what we need to improve on. Also probing for opportunities to deliver new complementary services.
Tim Moyle, CEO, channelcentral.net Limited

In addition to some great meetings with vendors, we were able to demonstrate our boost! data service to several resellers. This allows resellers who have customer-facing web stores to dramatically improve the user experience for customers purchasing servers, storage and networking. Resellers consume the boost! service data, then use our “Attach Patterns” to create a very easy-to-use interface for attaching common/popular options to the base system, integrated seamlessly into their web store. boost! supports HPE Servers, Storage and Networking, and Dell “Stock and Sell” servers, with more brands coming soon.
Greg Starks, Chief Strategy Officer, channelcentral.net Limited

Thanks again to everyone involved in Canalys, and we hope to see you next year.

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Building a Case for CPQ

October 11, 2018


If you are a stakeholder for a CPQ System, at some point you will have to justify the investment. Don’t wait until you are asked, build your case in advance. You’re looking for a CPQ System to solve a problem that exists. Try to be specific and avoid business cases that can be easily challenged: “we need to improve our ease of business” or “all of the people that have the knowledge are retiring”. Almost certainly true but hard to hang a number on.

A good CPQ Vendor will guide customers into areas where there are financial benefits to be had. At channelcentral the main value we see is attach selling, which we improve by use of “guided selling” motions. A secondary value is reducing the workload of skilled knowledge workers. If were looking to build a case, on behalf of a customer, we might look at:

Attach Rate Improvements

Choose what could be described as run-rate business. Assume a quote win rate. Look at how a CPQ System could improve the Pitch Rate (#times something is quoted with a parent product) and make a range of assumptions. Apply margins. If the gain is more than the outlay: there’s ROI. Your company may insist on a minimum level of ROI to invest in a project: find out what that is.

Example:
System Quote Value per Month: $1M
Attach Value %age per Month: 50% so Total Quote Value $1.5M
Success Rate: 33% = $500k Sales
Increase the %age by 10%: Total Quote Value now $1.6M ($33k incremental business)
Net Margin on $33k say 40% = $13.2k
Cost of CPQ: $2k per Month.
ROI: $11.2k.

The Net Margin figure should be higher than normal as the variable costs associated with attaching to an existing order are low.

Skilled Knowledge Worker Improvements

Through audit it’s possible to calculate an average ‘cost per quote’ for a business. Sales time plus technical resources, re-quote count etc. Estimate the minimum quotation value that makes sense to your business and anything that doesn’t meet that level needs to be either a Customer or Sales quotation. Then re-calculate the cost per quote versus $margin.

An interesting side-effect is that our experience has showed the deal pipeline that the Skilled Knowledge Worker manages often goes UP not DOWN. This is because their availability is better to manage large deals. Instead of spinning in the Hamster Wheel of low value, low margin deals.

If you are wondering why we do this ‘with a customer’ rather than ‘for a customer’ the answer is simple: you need access to figures that most Companies wouldn’t share: raw margin and employee costs. We could make assumptions but they wouldn’t be accurate.

Lastly, don’t be afraid to ask customers to self-quote. Many of them will gladly do this (if it’s easy, available and comprehensive) and if your system uses Single Sign On you can identify them and follow up. Some won’t do it which is OK: use Sales.

Building an ROI case doesn’t need to feel like hard work.

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Avoiding ‘Tax on Use’ in CPQ Billing

October 9, 2018


Lots of channelcentral’s competitors use a Software Licensing billing methodology: cost per seat usually. Some bill based on utilization: the more you use the tool, the more you pay. It’s proportionate. It’s fair. It’s also madness; here’s why:

• Customers don’t like variable costs, at all.
• If you, or your customer, is trying to promote the use of CPQ tools versus manual ways to provide quotations to customers then why tax on use?
• Does adding a customer, or processing a quote, cost a CPQ Company anything?
• Win/Win billing systems (e.g. taking a commission from orders) quickly turn into Lose/Win or Win/Lose.

From the outset channelcentral set out to avoid ‘Tax on Use’. An annual subscription covers the cost of the service and includes the license, hosting, support and IT integration services. It includes unlimited utilization by Employees and Customers. Those subscribers know exactly what they were going to pay for the contracted term. Customers like predictable costs.

The more the customer uses the CPQ Application the lower the cost per quote or transaction. If channelcentral improves the functionality of the CPQ Application, resulting in better results or greater utilization – the subscriber is getting ‘More for the Same’.

On a similar thread some of our competitors have different costs for different feature sets. This is a stealth tax – demanding higher costs for features that already exist and don’t really cost more to add. Having a fully inclusive service for a customer adds to the subscription feel and generates greater goodwill and loyalty.

channelcentral’s experience is that its subscription model promotes higher utilization and delivers better results, with less complexity than models that tax on use.

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SEVEN Dysfunctional User Experiences Buying Services Online

September 25, 2018

If you’re selling services as an attach to IT products, you need to make it as easy as possible. Users will have searched, researched and selected a product, but without a service the user may be reliant on basic warranty that rarely matches the need or product lifecycle.

So when you’re purchasing that product it’s absolutely essential that attaching a service, potentially from a large list of services, is obvious, easy, intuitive, appropriate. It’s a shame that’s rarely the case and here are the main eCommerce blunders that users often experience:

1. Duo: a site is so poorly structured or has terrible data management that you have to buy the product, then circle back to find a service (often from a different web site), buy it as a separate journey, often to the same basket. And if you get it wrong…

2. Mashup: when looking for a service you have to trawl through all of the hardware accessories and software add-ons to find services.

3. Bookworm: there are so many services offered that you are reading dozens of part descriptions trying to decode them and select the best one for your budget.

4. TLA: product descriptions that use so many proprietary acronyms that part of your buying experience is Googling acronyms.

5. Shapeless: random parts in random order with no element of what the Manufacturer or Retailer would recommend.

6. Tumbleweed: literally nothing compatible is shown at all.

7. Cat Food: sites that use “Big Data” often offer items as complementary that are totally irrelevant. Cat food with your Laptop?

CPQ Applications or CPQ Data Services can fix this. Compatibility, recommendations, plain English filters, acronym ‘expanders’, consistent descriptions even through to Device as a Service plans. No more Cat Food.

Attaching services to products is a huge market opportunity for Manufacturers and Channel Partners. Very simple actions can drive major advances in user experience and ultimately Sales.

Click here for channelcentral CPQ Services

Click here for channelcentral boost! Data Services

 

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Engage & Grow update in iQuote

July 17, 2018

Engage and Grow is an increasingly popular Sales Program for Hewlett Packard Enterprise’s Channel. For years, the points rewarded as part of the Program have been recognised from iQuote sales.

With the Worldwide popularity of iQuote and the Engage and Grow Sales Program, it was felt that better visibility of the points available to the Sales Rep was needed when producing a quotation.

As such, a modification has been made in iQuote to allow users to see their Engage & Grow points when navigating through the Configure, Price, Quote Software. A breakdown of points will also be shown in a summary modal dialogue within the basket.

Engage and Grow Points in iQuoteThis visibility should serve to make the Sales Program more successful and increase the opportunity for reward to HPE Partners.

Login to iQuote today and start realising the benefits!

iQuote is developed for Hewlett Packard Enterprise by http://www.channelcentral.net

 

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iQuote SMB Offers Update

July 13, 2018

SMB Offers has changed.

Next time you login to iQuote you will notice that the tile (Top Value in EMEA and Intelligent Buy in Australia) is now in the top left-hand corner of your screen. Upon clicking on the tile, a familiar user interface will appear instead of a pop-up, showing just the Top Value/Intelligent Buy bundles:

Top Value ImageUsers can select their bundle and add it to their basket where the price will be shown and the offer highlighted. Not only can users save with SMB Offers but they can also apply HPE Financial Services for flexible payments!

Note: This is a Europe wide (Top Value) and Australia (Intelligent Buy) promotion in iQuote Universal only at this stage.

 

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HP Market Pro goes Worldwide

July 2, 2018

channelcentral.net is pleased to introduce HP Market Pro! HP Market Pro is the new Channel quotation tool for HP. Worldwide Distributors and Resellers of HP products are able to benefit from using HP Market Pro to create quotes and in turn work more efficiently, quote more accurately, increase deal sizes and operate a Device as a Service (DaaS) business model.

HP Market Pro has been developed from the ground-up to be closely aligned with the HP product set and give Channel users the ultimate opportunity to grow their HP business with ease.

Some of the key benefits are:

  • Intuitive, simple user interface for Channel Partners and End Users
  • Multi-Language user interface
  • Reduce quote turnaround time – get quotes instantly
  • View recent quote activity with price change alerts on the homepage
  • Automatic validation checks to ensure quote accuracy
  • Step-by-step guided user journey maximizes ease of use
  • Real-time price availability
  • Built for use with DaaS to assist with buying and selling technology.

This fantastic new tool has replaced the iQuote Configure, Price, Quote service for HP Inc. users. Current users of the iQuote tool moved over to HP Market Pro throughout June and feedback so far is really positive. Users are able to use the tool without any prior training and start maximizing their HP business opportunities.

HP Market Pro is available to all authorised resellers of HP products. If you want to benefit from this fantastic new tool, then contact channelcentral.net and we’ll talk you through the requirements and get you set-up and growing your HP Business in no time.

Watch the product video to see HP Market Pro in action and for more information visit www.channelcentral.net/hpmarketpro

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HPE Delegates given a boost in Vegas!

June 26, 2018

Representatives from the Global IT Channel gathered in Las Vegas last week for the HPE Discover and Global Partner Summit events. As always it was an incredibly busy week as the industry’s elite networked and strategized!

channelcentral, a regular sponsor of the event and developers of the iQuote Configure, Price, Quote Software used by Distribution Worldwide, had something new to show this year. As delegates made their way through the transformation zone they were presented with an absolute game-changing service for their industry. The service is called boost! and attendees of this year’s event were fortunate to be amongst the very first to have a preview.

boost! is a Data Service that drives attach sales and shapes customer demand to improve your customers’ eCommerce experience. Imagine a typical webstore where you’re offered an additional product that has nothing to do with what you’re ordering, or even if it does, how do you know it is compatible? Then imagine a webstore with boost! offered as a Web Service and a pre-selected set of compatible options that are known to work together with the pre-installed features of the base product, across multiple categories. Enabling faster, high-confidence decision-making for technical products.

It’s more exciting than it perhaps sounds. boost! is fixing a known weakness in eCommerce that organizations have been unable to resolve. Using artificial intelligence, boost! will transform the way your customers’ can buy technical products from you, freeing up your pre-sales team to hunt down those big deals!

The feedback from delegates at HPE Discover and Global Partner Summit was unbelievable. Every delegate that was fortunate enough to have a demonstration wanted it in their webstore. Rack Simply, are a Partner based in the US, and are the first in the World to have boost! live in their webstore. Here’s what they had to say:

“boost! drastically improved the customer experience for Rack Simply. Before boost!, users were lost in endless accessory options that converted poorly. boost! and the team at channelcentral only recommend the most popular and likely attach options that transitioned Rack Simply from a website, to a seamless configure-price-quote experience.” Dan Mitchell, President, Rack Simply

channelcentral has spotted a gap in the online buying process of technical products: “It is essential that online stores do everything possible to keep customers captive on their own site during the complete buying process. Sites that use boost! can eliminate a common problem associated with selling more complex IT products; the temptation to click away to check compatibility and capacity. Instead, customers can select from options with confidence and visualize slot and bay usage.”
Greg Starks, CSO, channelcentral.net

After feedback at the events last week, channelcentral is excited to get to work on transforming the eCommerce sites of everyone it spoke to. For those that missed out and are wanting to learn more about what boost! can do for your eCommerce sales, please get in touch.

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Future trends in Distribution services – Looking forward in 2018 & beyond

February 28, 2018

Having served the IT Channel for a decade and working with Manufacturers, Distributors and Resellers in over 60 Countries, channelcentral is well placed to observe Channel movements and trends. We recently contributed to the IT Europa Channel Predictions report, so we thought we’d share what we had to say:

Traditional IT buying and selling motions are under pressure to evolve.  Our Chief Strategy Officer, Greg Starks, believes that, “The lines between traditional upfront selling and Device-As-A-Service/Software-As-A-Service will continue to blur. The channel [distribution] will offer hybrid financing that address selling upfront + As-A-Service together. This will allow partners and customers to visualize packaged As-A-Service offerings alongside financed custom solutions as a comprehensive OpEx payment timeline.” We hear manufacturers talking about Device-As-A-Service every week. We recognize the role that distribution now plays in the ‘As a Service’ IT procurement model and partners who engage closely with distribution will be more successful.

As-A-Service offerings will increasingly be seen as a way of ‘locking customers in’ and earning their loyalty.  Everything that is offered ‘As-A-Service’ needs to be validated, yet you still want to give your customers choice and not be too prescriptive. Packaging/bundling up an ever-wider number of products, whilst managing your customers’ journey and still offering them choice, will create a need for more sophisticated eCommerce sites that have integrated Configure, Price, Quote (CPQ) software. Without this, the management of these offerings is extremely resource intensive. Traditionally, distributors have had to assist customers with their hardware configurations or ask them to click out to hosted CPQ software.

There is still a time and a place for this level of complexity but we will be seeing a shift in the market. Already, hosted CPQ Software has an ever-growing number of attach options to fulfil the ‘As-A-Service’ model but what if Partners can leverage their offerings even more easily than that? Greg Starks, thinks that “Manufacturers and Distributors will invest in point solutions to bring just enough CPQ Software into self-service IT buying. Beyond just configuration, tools that help to shape demand toward the high-confidence products that can be delivered immediately.” These are likely to be served as ‘plug-ins’ to eCommerce systems with full basket integration.

As distribution advances its capability to aggregate their breadth of suppliers into packaged “As-A-Service” offerings, smart Partners can take new, more appealing sales propositions to their customers. In the Noughties End Users would reach out to their resellers when they had CapEx available to spend on a specific project. If a Reseller won a €2m deal one year they’d be expected to win one next year and the year after. How do you resource that? Fast forward to now and that’s now OpEx spread over several years.
As-a-Service is not just about predictability of revenue and removing barriers to driving new IT projects there are other advantages including:

1. Partners become strategic to their End User as they sign long-term contracts to provide IT Cloud or Infrastructure projects based on a Managed Service.

2. Distributors now represent hardware, software, services, finance and cloud vendors making the choice of solutions near infinite. Partners can guide end users to truly optimized solutions.

3. Partners (usually) bill the customer monthly and that’s a good thing – consistent interaction with a customer gives Sales opportunities to engage, seek feedback on the effectiveness of the solution and identify new opportunities.

4. Software-As-A-Service is incredibly easy to audit versus traditional licenses ensuring the End User is compliant but also the sales opportunity is maximized. Businesses without full “license” compliance equals a lost revenue opportunity as well as a risk to their business.

5. Working indexing into contracts means that margin is protected over the term (example would be linking the price to the Retail Price Index or similar).

6. There’s such a great opportunity for partners to differentiate here and that means less price comparison.

7. End-users need help. Yes, commodity resellers sell servers and over time similar companies will use technology to improve that experience, but partners are best placed to recommend solutions.

Do you need help implementing your As-A-Service business model? We can certainly assist. Just contact us for an informal discussion. We’d be glad to offer you advice.