New subscription model bundles complex industrial equipment and matching service contracts for a better customer experience and more predictable, recurring revenue
CHICAGO and STOCKHOLM, Sweden, Sept. 14, 2021 (GLOBE NEWSWIRE) — Tacton, a global leader in Smart Commerce solutions for manufacturers, today announced enhancements to its Configure-Price-Quote (CPQ) technology, the most comprehensive smart selling offering on the market for manufacturers. The improvements in Tacton’s powerful pricing capabilities empower manufacturers to sell high-variance industrial equipment and subscription-based services in the same transaction. The combined power of Tacton CPQ plus subscription pricing enables manufacturers of heavy equipment and other complex goods to guide customers to the perfect combination of industrial equipment and matching service contracts based on their unique needs. This allows manufacturers to optimize the sales cycle, get closer to their customers and, ultimately, increase predictable revenue and customer lifetime value.
Similar to the shift that occurred in the consumer realm several years ago, the complex manufacturing industry is following suit and moving in the direction of subscription-based, recurring revenue models. In fact, according to the Business Innovation Observatory of the European Commission, manufacturers who have shifted towards service-based models have seen 5% to 10% annual business growth with services generating 50% of that revenue. Traditional quoting processes for manufacturing deals are inefficient, lacking the ability to configure price and quote high-variance hardware and subscription services in the same quote.
In manufacturing, success is no longer measured per unit sold but rather in the value created over the whole lifetime relationship with customers. That means products need to be accompanied with services. Those services are typically sold as subscriptions. Most manufacturing sales teams struggle to offer configured products and services within the same quote, leaving teams to scramble for pricing information from multiple sources and multiple tools, making the sales process slow and costly. The pricing engine in Tacton CPQ is the most robust in the market, empowering BtoB manufacturers to sell accurately configured and priced quotes for years. With the new latest enhancements to pricing, manufacturers can now configure — within minutes — error-free quotes that include highly customized equipment and services. Unlike other solutions, Tacton is capable of optimizing the offered services for the uniquely configured product, thereby maximizing the value for manufacturers and their customers.
“Tacton’s smart CPQ was specifically created from the ground up to cater to the complex needs of manufacturers,” said Tacton CEO Bo Gyldenvang. “Delivering advanced CPQ capabilities and full integration with sales and engineering technologies, only Tacton enables manufacturers to configure, price and quote high-variance, configurable capital equipment and optimal service subscriptions in the same solution.”
Smart CPQ Features and Benefits
Built on over 20 years of experience in the manufacturing industry, Tacton’s Smart CPQ is uniquely suited for configuring, pricing, and quoting complex industrial equipment — from vacuum pumps to full production lines, from delivery time to sustainability criteria. Now, with subscription pricing available, it’s never been easier to configure the optimal deal for a customer’s needs.
Key features and benefits include:
- Optimized service contracts: Always offer the correct and optimal service contract for the specific configured equipment.
- Revenue forecasting: Accurately forecast monthly and annual recurring revenue based on subscription- and usage-based pricing.
- Complete solution configuration: Include complex industrial equipment, accessories, and subscription-based services—all in one product model.
- Pricing optimization: Combine one-time, recurring, and usage-based charges to optimize pricing.
- Proposal negotiation: Negotiate proposals with periodization, committed and uncommitted ramps and discounts.
- Visualized payment plans: Visualize payment plans including Total Contract Value (Total Net Price), Total Price of Equipment (CAPEX) and Total Subscription Price (OPEX).
For more information about how Tacton’s Smart CPQ offering can help improve customer experience and increase recurring revenue, please visit:
- The Subscription Business for Manufacturing is Here to Stay
- Servitization: A Step-by-Step Guide for Manufacturers
- Tacton CPQ Subscription Pricing video
Tacton enables Smart Commerce for manufacturers by empowering organizations to extend beyond traditional commerce. Tacton Smart Commerce ensures manufacturers always offer optimal solutions to their customers throughout the entire B2B buyer journey. Our industry expertise and leading technology enable a seamless customer experience. Tacton provides solutions to our global customers such as ABB, Bosch, Caterpillar, nVent, Pelco, MAN, Mitsubishi, Siemens, Toshiba and Yaskawa. Tacton is headquartered in Chicago, Illinois and Stockholm, Sweden, with regional offices in Karlsruhe, Germany; Warsaw, Poland; and Tokyo, Japan. Visit www.tacton.com to learn more.
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