We all know that sinking feeling when you receive a product that doesn’t match the photos or description. It is a common problem in e-commerce, with many customers returning their products. Luckily, this is easily avoidable with configurators. A good CPQ solution will generate a bill of materials for manufacturing based on predetermined engineering rules.
Increased Sales
For many B2B and B2C manufacturers, product configuration is a key tool to offer customers an online, interactive shopping experience. It allows them to tailor the product to a customer’s needs and reduce manufacturing costs. In a world where consumers have many choices, premium brands now offer shoppers custom options that make the products stand out. It is especially true for high-end electronics such as smartphones and tablets, exceptional sporting goods like golf clubs and batting gloves, and clothing and accessories, including shoes and bags.
Salespeople or engineers can do This e-commerce customization manually using a configurator or automatically via CPQ (configure, price, quote) software solutions. The best CPQ software streamlines the sales portion of the engineer-to-order or make-to-order process, turning it from an inefficient series of tasks into a fast, accurate, automated, error-free workflow.
A visual CPQ solution offers even more benefits by providing customers with a self-serve configurator on your website or for sales reps to use in the field. It allows them to quickly and easily provide a quote for a specific product that meets all the customer’s requirements. Moreover, it empowers customers to see what their finished product will look like in 2D and 3D models with AR and VR capabilities, increasing selection assurance and boosting conversion rates.
Customer Experience
Modern consumers enjoy creativity and show interest in configuring products that meet their specific requirements. The product setup process must be easy for them to comprehend and traverse to deliver this experience, especially when incorporating more complicated solutions. The steps involved in the configuration process should be displayed clearly. A good example is German mug manufacturer Konitz, which allows users to track their current position in the configuration process anytime. In addition, they can return to previous stages, which creates transparency and allows them to feel confident in their final purchasing decision.
Product configuration software also helps to streamline the sales process by reducing engineering work. It is important in project-based markets, where the business is focused on delivery projects and many person-hours are spent on each solution. Using a digital product configurator, a single modular BOM structure can connect the sales, R&D, and engineering teams. Product configuration helps eliminate buyer’s remorse and reduce return rates by giving customers an accurate sense of their final product. By offering this feature, companies can improve customer satisfaction and strengthen brand loyalty.
Reduced Engineering Time
Product configuration goes beyond basic customization options like color and size, allowing customers to arrange parts differently to design a unique product. It can result in significant time savings for manufacturers. For example, suppose a customer selects a custom length of product. In that case, the configurator will automatically generate a bill of materials (BOM) that contains all the components required to produce the finished piece. It eliminates the need for salespeople to calculate a BOM manually and ensures that manufacturing can build products to customer specifications. It can significantly reduce selling, general and administrative (SG&A) costs and lead times.
In addition, configurators can display all steps of the configuration process to consumers for an omnichannel experience similar to visiting a store and seeing the actual product in person. It makes it easier for consumers to keep track of their current position in the configuration process and make a positive purchasing decision. Product configuration also saves time during the quoting process by reducing the number of questions and back and forth with customers over email or phone. It allows teams to serve more customers with fewer resources, increasing win rates and boosting productivity. This benefit is especially important for companies facing skill shortages and needing to train new employees quickly.
Cost-Effectiveness
Customers desire the option to personalize their purchases. They are willing to pay more for products that meet their needs. It has resulted in a major shift in product flexibility in sales, design and manufacturing. Businesses must provide an online experience that allows customers to choose their features and options. It is where the power of a configurator comes in. Using an educational guided product configurator, you can give customers a fun shopping experience that is easy to navigate. It offers consumers a better understanding of the product and makes them confident that they purchase the correct product for their needs.
In addition, configurators enable transparent pricing by showing the base price of each configuration and then dynamically adding on any additional components or customizations. It eliminates doubts about affordability and shortens the overall sales cycle. Configurator software enables manufacturers to serve customers through eCommerce channels, improving sales efficiency and increasing win rates. It eliminates the need for salespeople to crunch numbers or request information from engineering so they can provide accurate quotes more quickly. Furthermore, predetermined engineering rules constrain the configuration process, ensuring that every configuration is optimized and manufacturable, which speeds up the configure, price, and quote (CPQ) process. Additionally, configurators can generate an instant and accurate bill of materials for manufacturers based on each customer’s specifications.
