What is CPQ software?

Configure, price, quote (CPQ) software is a sales acceleration software that is primarily used to generate quotes and manage product configuration requests. This simplifies sales activities and provides customers with quick and accurate pricing information according to their needs.

The software automates the quoting process based on a defined set of rules that take into account variables such as discounts and customization requests. Many CPQ solutions integrate with CRM software, allowing sales reps to leverage existing customer data when closing deals. Synchronizing CPQ and CRM software enables sales activities to be carried out in the same system, avoiding the creation of duplicate customer records.

CPQ software is primarily used by sales teams to streamline the sales cycle. It automates part of the configuration process and quickly generates quotes based on custom requests and customer records contained in the user's CRM. Sales reps can then send these quotes as proposals to prospects or customers. Other departments (e.g. IT, product development) can also access CPQ solutions to ensure optimal configurations are delivered to customers.

Sales Quote Generator

At the heart of the CPQ solution is a rules engine that coordinates resource supply, customer information and pricing structures. Quotes generated by CPQ tools are based on company pricing and configuration policies, which are considered behind the scenes.

The CPQ rules engine can also take into account customer demographic information. For example, certain discounts may only be available to customers in certain regions.

product configurator

CPQ software automates the process of evaluating the feasibility of customer requests (options/combinations/features) and their cost. Some CPQ apps help navigate a complex pricing structure that includes many discounts and exceptions. This is especially important for companies that offer a variety of highly customizable products, such as telecommunications and insurance companies.

CPQ Software Features and Functions

Features may include:

Order Capture: Allows capture of orders across multiple customer interaction channels such as direct sales, contact center, point of sale, reseller, customer self-service.
Product Configuration: Allows users to configure products and services by selecting bundles, constraints, options, preferences, etc.
Configuration Options: Supports a comprehensive level of detail around available and compatible configuration options such as product features, services, quantities.
Pricing Rules: Determine prices based on rules and hierarchies. Rules may consider customer demographics, availability, and/or product configuration.
Price adjustments: Sales users can adjust or override prices based on coupons, discounts, markups, and more.
Quote sharing/sending: Salespeople can share quotes and information with customers via email, customer portal, personalized URL, or other channels.
Credit Approval: Allows customers to enter credit information. Can be reviewed, approved or rejected. Credit scores can be incorporated into offers.
Electronic Signature: Includes electronic signature functionality to digitally approve and sign proposals. Alternatively, integration with electronic signature software is possible.
Purchase History and Open Contracts: Provides information on current and previous purchases by customers, can notify new customer sales.
Guided Sales/Sales Portal: Provides tips, suggestions, or question sequences to salespeople to aid in product configuration and quoting, and/or to assist in cross-selling and up-selling.
Self-Service CPQ: Includes an interface for customers to select product options and generate their own quotes; this is especially relevant for e-commerce.
Reporting and Analysis: Users can report and analyze CPQ processes. Metrics may include quote cycle, proposal acceptance rate, revenue, etc.
Proposals: Allows users to generate/automate sales proposals. Alternatively, integration with proposal automation software is possible.
CRM Integration: Allow sales reps to access customer data and automatically record CPQ customer interactions in CRM.
Excel Integration: Excel integration allows quotes to be generated on spreadsheets using underlying CPQ rules.

Key Benefits of Using CPQ Software

Knowledge retention and productivity. Helps institutionalize sales knowledge, especially around complex pricing and configuration, for onboarding and training purposes.

Sales Consistency. Sales teams are aligned on the same configuration and pricing rules, so quotes are consistent and accurate, and revenue is predictable.

Efficient Sales.Cycle - Sales opportunities are automated and pricing rules are semi-automated, making sales reps more efficient.

Better customer experience. Availability and pricing information is based on customer specific circumstances and needs.

CPQ Software Comparison

Before choosing to invest in one CPQ platform over another, consider the following key factors:

Integration: Does the product you're considering buying integrate with a CRM or ERP system? Some vendors like Salesforce offer CRM and CPQ solutions. If your business already uses Salesforce CRM, it may make more sense to stay within the Salesforce product ecosystem rather than integrating a third-party CPQ product with other Salesforce products.
Deployment Type: Are you looking for a cloud-based solution, or on-premise? A cloud-based or software-as-a-service (SaaS) offering can be useful if you have an outside sales force that needs to access software from various geographic locations. In-house software, on the other hand, may allow for more custom configuration of the software.
Ease of use: How easy is the software to use? Do your sales reps need a lot of time to familiarize themselves with the product and learn how to use it effectively? Ease of use is closely related to the speed and depth of product adoption across the sales organization. A free trial of one or a few different solutions is a great way to get a better feel for the user interface and overall usability of the software.

pricing information

Open source CPQ software is available and free to use. However, it may not have as many features and integrations as paid CPQ solutions offer. Certain open source products may also require knowledge of programming languages such as JavaScript.

CPQ solutions are typically priced on a monthly subscription model, per user. Prices start at $75/month per user and can increase to $250/month per user depending on the number of features. Most vendors don't post prices for enterprise-grade solutions on their websites, but offer quotes upon request.

This article: https://architect.pub/cpq-software-overview
Discussion: Knowledge Planet [Chief Architect Circle] or add WeChat trumpet [ca_cto] or add QQ group [792862318]
No public	【jiagoushipro】【Super Architect】 Brilliant graphic and detailed explanation of architecture methodology, architecture practice, technical principles, and technical trends. We are waiting for you, please scan and pay attention.
WeChat trumpet	[ca_cea] Community of 50,000 people, discussing: enterprise architecture, cloud computing, big data, data science, Internet of Things, artificial intelligence, security, full-stack development, DevOps, digitalization.
QQ group	[285069459] In-depth exchange of enterprise architecture, business architecture, application architecture, data architecture, technical architecture, integration architecture, security architecture. And various emerging technologies such as big data, cloud computing, Internet of Things, artificial intelligence, etc. Join the QQ group to share valuable reports and dry goods.
video number	[Super Architect] Quickly understand the basic concepts, models, methods, and experiences related to architecture in 1 minute. 1 minute a day, the structure is familiar.
knowledge planet	[Chief Architect Circle] Ask big names, get in touch with them, or get private information sharing.
Himalayas	[Super Architect] Learn about the latest black technology information and architecture experience on the road or in the car.	[Intelligent moments, Mr. Architecture will talk to you about black technology]
knowledge planet	Meet more friends, workplace and technical chat.	Knowledge Planet【Workplace and Technology】
LinkedIn	Harry	https://www.linkedin.com/in/architect-harry/
LinkedIn group	LinkedIn Architecture Group	https://www.linkedin.com/groups/14209750/
Weibo‍‍	【Super Architect】	smart moment‍
Bilibili	【Super Architect】
Tik Tok	【cea_cio】Super Architect
quick worker	【cea_cio_cto】Super Architect
little red book	[cea_csa_cto] Super Architect
website	CIO (Chief Information Officer)	https://cio.ceo
website	CIOs, CTOs and CDOs	https://cioctocdo.com
website	Architect practical sharing	https://architect.pub
website	Programmer cloud development sharing	https://pgmr.cloud
website	Chief Architect Community	https://jiagoushi.pro
website	Application development and development platform	https://apaas.dev
website	Development Information Network	https://xinxi.dev
website	super architect	https://jiagou.dev
website	Enterprise technical training	https://peixun.dev
website	Programmer's Book	https://pgmr.pub
website	developer chat	https://blog.developer.chat
website	CPO Collection	https://cpo.work
website	chief security officer	https://cso.pub ‍
website	CIO cool	https://cio.cool
website	CDO information	https://cdo.fyi
website	CXO information	https://cxo.pub