Configure Price Quote (CPQ) software provides a way for companies with complex product sets to provide customers with accurate quotes and proposals. Originally, CPQ was used for manufacturing companies to generate complicated quotes on bills of materials. Sales reps needed to create and quote complex and detailed machines as quickly as possible in order to close a sale and deliver on time. While there were independent CPQ solutions available, many companies decided to develop their own in-house software to accommodate their need for quoting directly from the product data they had.
Fast-forward to today and you will see that CPQ has transformed into business critical software in many industries such as medical, telecom, services companies and more. Today CPQ has an expanded feature set that takes the quoting process one step further by offering robust analytics, increased mobility, and end-to-end sales management. Sales reps have tools available like guided selling, mobile availability, and user guardrails to protect pricing and margins.
CPQ is referred to by many names, there is not one standard term for it. You’ll see a lot of companies refer to “quote-to-cash” or “quote-to-order” software solutions. Previously there may have been a difference in the features one particular vendor offered (not offering the ordering component for example), but today CPQ has elevated its minimum viable features to accommodate a spectrum of business needs.
CPQ can connect directly to your CRM or ERP of choice, or you can use CPQ as a standalone solution. In general, CPQ will be a hosted cloud solution, which enables sales reps to be able to quote from anywhere with less restrictions on IT infrastructure. Some CPQ solutions are offered directly from the CRM or ERP platform as a native product, others are platform agnostic.
When choosing a CPQ solution, it is important to consider the amount of product data you have and get an accurate quote on how much data optimization will need to be done to make your data compatible with the CPQ system you are considering. Most of the set-up work for CPQ includes cleaning up product data, writing rule sets, configuring workflows, and setting up user permissions. Depending on the amount of data you have and how complex your offerings are, this can be a big undertaking. We encourage you to consider your product data, sales requirements, and business needs when you are searching for a CPQ solution. If you would like to find out how impactful CPQ could be for your business, try out our CPQ ROI calculator here.
If you have any questions about CPQ and what it can do your business, please Contact us. We would love to talk to you.