Terms

CPQ software

What is CPQ Software?

CPQ (Configure, Price, Quote) software is a sales tool that helps companies quickly and accurately generate quotes for orders, particularly for configurable products and services. It works in conjunction with CRM platforms, ERP programs, and other business technologies, using preprogrammed rules to ensure error-free pricing and streamline the sales process.

Benefits of Implementing CPQ Software

CPQ software offers numerous benefits that can significantly improve a company's sales process. Some of these advantages include faster quote generation, reduced approval time, quicker movement from quote to cash, and consistent pricing and discounting control.

Additionally, CPQ software supports multicurrency transactions, contract pricing, subscription pricing, and advanced discounting and approval workflows, which can lead to increased efficiency and revenues while decreasing costs.

Key Features of Effective CPQ Solutions

Effective CPQ software should possess robust features to support complex sales processes:

  • Integration Capabilities: Seamless integration with existing CRM, ERP, and other business systems to maintain continuity and data accuracy.
  • Rule-Based Configuration: Automated quote generation based on predefined rules, considering all relevant variables such as customizations, discounts, and legal compliance.
  • Subscription Management: Capabilities to handle repeat orders, renewals, and subscription-based services, automatically updating terms and generating appropriate documentation.
  • Dynamic Pricing: Flexible pricing tools that adapt to varying customer demands, market conditions, and special promotions.

CPQ Software vs. Traditional Quoting

CPQ software automates the quoting process, generating quotes 10 times faster than traditional methods and reducing approval time by 95%. This ensures error-free pricing, taking into account various factors such as quantities, discounts, customizations, and optional features.

On the other hand, traditional quoting methods are slower, more prone to errors, and often involve manual review of all sales quotes, which can slow down the sales process and lead to incorrect prices or unapproved discounts being offered to customers.

Steps to Choose the Right CPQ Software

When choosing the right CPQ software, consider the following steps:

  1. Integration with existing systems: Ensure the CPQ software can seamlessly integrate with your CRM platforms, ERP programs, and other business technologies to streamline processes and enable data-driven decisions.
  2. Customization options: Look for a solution that allows you to establish preprogrammed rules for every conceivable configuration, price, discount, and scenario, making product configurations and options straightforward based on your company's capabilities.
  3. Key features: Identify CPQ software that offers essential features such as creating a bill of materials or service level agreement based on customer choices, quickly adjusting quotes in response to change requests, and using templates to generate proposal documents and contracts.
  4. Ease of use: Opt for a CPQ solution that simplifies the process of delivering quotes and closing sales, making it effortless for sales representatives and self-service customers to generate accurate quotes.

Other terms

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