What Is CPQ?

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CPQ or Configure Price Quote software is a sales tool that can help companies create and disseminate accurate and timely quotes. CPQ software can provide a solution for companies that need product pricing and centralized business rules in real-time. This will allow sales teams to have everything they need to make bigger sales quicker. Basically, CPQ software can speed up the quoting process by giving sales teams the ability to configure, price, and quote quickly for any customer or any order. With CPQ software, your business may redefine how you sell products.

Too often, however, when companies start a project and determine the need for a CPQ solution, they can become confused or even frustrated by the process. This can stall the entire project. To avoid this, let’s unpack the CPQ process to better understand your business needs, and if CPQ software is the right solution for you.

Configuration

Configuration in this context means the configuration of products. This will allow companies to create optional combinations for customization of products. For example, restaurants offer apps that allow customers to add or subtract ingredients to their sandwiches. This is because customers want to customize their products and experiences. CPQ software will allow a sales rep the ability to customize orders. In the B2B setting, sales teams selling products that need configuration require a way to configure the right product offerings to meet the needs of a business customer. While this process sounds easy enough, configurations can be so complex that it could take years of training before sales reps can deliver them error-free and on time. This is where CPQ software might be able to aid your business and your sales team. A product configurator can ensure that even the most complex product is delivered without error.

Price

The price that your sales team quotes can refer to either the price of individual items or the price of packages. These can also be the prices for services and products that can be sold individually or together. While seemingly a simple process, pricing can be a very complex process. If you have tiered or multiple pricing plans, your business may be losing money by selling at less than the optimal amounts because of human error. The nuances of pricing products and services can get complicated based on market data, buying patterns, and changing trends. These factors might need to be considered from moment to moment. For example, how do oil prices and availability impact a plane ticket price? Or, what can bad weather or fertilizer supply mean to produce prices? Salespeople need to be able to price and discount accurately. CPQ software can help a sales team price a product or complex configuration for any situation at any time.

Quote

Once CPQ software has produced all of the configuring and pricing data for a product or service, you will then need to supply the customer with an accurate quote. Quoting is one of the most important parts of the sales team’s process. This is the culmination of all of the work and communications between your sales reps and your customers. It’s important that your team be able to deliver a quote that is both competitive and financially beneficial for your company.

As most customers do research and request quotes from multiple vendors, it is important that your quote be your best shot. Customers will expect fast responses to their requests and it’s likely that the vendor who responds first wins. The quoting process, however, can be time-consuming, especially if you’re creating a large quote with several options. CPQ software can streamline the process and allow for customizations and changes as needed, preparing custom quotes on custom products per the customer’s requirements. Once the quote is complete, the CPQ software can automate its delivery in a professional way.

Does your company need CPQ Software?

recent study found that 83 percent of businesses today are using CPQ software. Using such software may be needed if your business wants to stay relevant in the market. Aside from this, however, if your business suffers from slow quoting and approval time, excessive manual errors, or complicated pricing situations, CPQ software may be the right resolution for you. Your sales team will be able to rely on the data generated by the software to provide competitive custom quotes. CPQ software could help solve some of these common problems and can be effective with shortening deal cycles, improving functionality and eliminating delays through automation. If you are considering CPQ software for your company, it can have an immediate impact on revenue growth and customer experience.

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Hi I'm Waleed Tariq, the founder of Mind My Business NYC and author of this blog. I am an entrepreneur and internet marketer. My wish is that, this website helps you to grow your business and achieve your goals.

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