Product configuration is a critical aspect of the sales process, allowing customers to select products that meet their specific needs. Done well, it can offer businesses a competitive advantage in customer retention, efficiency and simplicity. A well-optimized product configuration process can streamline the sales process, boost revenue and much more.
In this blog we’ll explore in detail why businesses need to optimize their product configuration for optimal results.
The importance of product configuration
As mentioned, product configuration plays an important role in the sales process especially for businesses that offer complex or customizable products and services. The process goes beyond merely selecting a bunch of products or services in an order; it is about creating a solution that aligns with customer needs. Optimizing the product configuration process allows businesses to:
1. Increase sales efficiency
A common issue for sales reps is that they spend too much time on product configuration. A 2021 study1 showed that 84% of sales professionals use spreadsheets to manage their pricing. This type of manual work introduces a risk of error and slows down the sales process. Optimized product configuration significantly boosts sales efficiency through streamlining the quoting process and reducing manual errors.
2. Increase operational efficiency
Optimizing product configuration spares sales reps from having to keep track of that data by themselves. Rather than manually generating quotes and specifications, businesses are able to automate this process, speed up the time needed to issue a quote, reduce errors and drastically shorten time to market.
3. Optimize pricing
Dynamically generating prices based on product configuration allows businesses to monitor and adjust prices in real-time. Businesses can offer discounts on a bundle or charge a premium for certain features. In doing so, they can maximize revenue and profitability.
4. Provide personalized offerings
Businesses are able to offer bespoke solutions to their customers. Tailoring products to meet the needs of each buyer reflects a business’ dedication to understanding their customers, leading to increased NPS score and loyalty.
Keep an eye out for the next part of this series where we delve into the best practices for optimizing your product configuration process.
1; Global Newswire, 2021
