What is CPQ and can you use it for quoting?
CPQ – Configure, Price, Quote – is a software solution that helps businesses build accurate, tailored quotes faster by automating the configuration, pricing, and document generation steps of the sales process. Below, we walk through what a CPQ system actually does, the key benefits, and which systems are worth considering.
What is CPQ?
CPQ stands for Configure, Price, and Quote. It is a software solution that helps businesses assemble complex quotes, calculate prices, and deliver them quickly and accurately.
A CPQ system automates processes that have traditionally been manual and time-consuming. The system consists of three parts, each handling its own area of the sales process:
- Configure: Every sales process starts with assembling a product that fits the customer's needs. In software sales, for example, this means selecting the right licence type and customised services.
- Price: Once the product is configured, the CPQ system calculates the price. Many factors can make pricing complex – promotions, special offers, and customer-specific discounts. A CPQ system handles these pricing rules with ease, so the correct price is always applied.
- Quote: Once the price is calculated, the system generates a detailed quote. In addition to the configured product and its price, the quote includes product visualisations and other relevant documents.
Through automation, a CPQ system streamlines the sales process – enabling sales teams to deliver tailored quotes with high accuracy and short turnaround times, to the benefit of both the customer and the business.
Benefits of a Configure, Price, Quote system
There are several clear benefits to implementing a CPQ system:
- Improved accuracy: Errors occur frequently in manual processes. A CPQ system reduces mistakes through automation, ensuring all configurations and price calculations are correct and aligned with company guidelines.
- Faster quote generation: CPQ systems enable sales teams to generate complex quotes quickly, reducing turnaround times and increasing the likelihood of winning orders. This is especially important in competitive markets where a fast response can be decisive.
- Increased sales efficiency: By automating the configuration, pricing, and quoting process, CPQ systems free up sales teams to focus on building relationships and closing deals. This increases overall sales efficiency and productivity, and can therefore be considered a form of sales optimisation.
These benefits are direct and relatively measurable outcomes that an investment in a CPQ system should contribute to.
CPQ Systems
Several CPQ systems are available on the market, each with their own unique features and advantages. Here are some of the most popular options:
| System | Key features | Key advantages |
|---|---|---|
| Salesforce CPQ | Powerful configuration, pricing, and quote generation integrated with Salesforce CRM. Supports complex pricing, discounts, and approval workflows. | Tight CRM integration, user-friendly interface, extensive customisation options. |
| SAP CPQ | Part of SAP's Customer Experience suite. Advanced configuration and pricing capabilities, scalable for large enterprises. | Robust integration with other SAP solutions, powerful configuration options, well-suited to large and complex organisations. |
| Oracle CPQ | Comprehensive solution covering the entire quoting process from configuration to pricing and document generation. Supports complex product structures and advanced pricing rules. | Scalability, strong integration with Oracle ERP and CRM systems, advanced analytics tools. |
The CPQ systems above can help your business streamline sales processes, increase efficiency, and improve customer satisfaction. Choosing the right CPQ system ensures your sales processes are optimised and capable of delivering accurate, fast, and tailored quotes to your customers.
Key takeaways
CPQ stands for Configure, Price, Quote – a software category that automates the three most error-prone steps in complex B2B quoting. The primary benefits are improved accuracy, faster turnaround, and higher sales productivity. The leading systems on the market – Salesforce CPQ, SAP CPQ, and Oracle CPQ – each integrate closely with their respective CRM and ERP ecosystems, so the right choice depends on your existing tech stack and organisational scale.
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