CPQ Software

CPQ software is a sales optimization tool used to automate product configuration, pricing, and quotes based on a pre-programmed set of rules. A CPQ (configure, price, quote) tool streamlines the sales process and quickly generates quotations for orders with accuracy and efficiency, allowing salespeople to focus on managing customer inquiries and requests.

As the gateway to the company’s revenue inflow, sales can be a tedious and slow process, and negotiation, for example, can bring it to a halt. Manually generating quotes is time-consuming and risks sending clients inaccurate information in the sales quotes. The details of pricing adjustments are confusing, especially if a customer requests specific product configurations and different options.

CPQ software streamlines the sales cycle, automates configuration processes, generates sales quotes according to customization requests, and ensures accurate pricing. In generating quotations, the tool ensures smooth coordination between the product, pricing structure, and customer information. It ensures the accuracy of quotes as it considers other variables such as customization options and pricing adjustments.

Benefits of using CPQ software

CPQ typically integrates with CRM and ERP platforms for easy access to customer data and client engagement. And more than that, it has these advantages:

  • Simplifies and speeds up the sales process  
  • Keeps pricing information consistent and accurate
  • Boosts the efficiency of the sales cycle, creating more upselling and cross-selling opportunities
  • Increases customer satisfaction as it addresses specific needs and preferences 
  • Integrates sales, finance, renewal, and legal in the product configuration and disallowing sales reps from selling financially disadvantageous and illegal product configurations

CPQ software features

CPQ software offers a number of features and functionalities:

  • Order capture centralizes customer orders from multiple channels
  • Product configuration lets users configure products and services with a range of customization options
  • Pricing rules and adjustments calculate prices based on pre-programmed rules, which include customer information, configuration requests, and price adjustments
  • Quick quotations generate shareable quotes quickly
  • Buying history keeps a record of customer purchases
  • Credit info input allows the customers to provide credit information, but subject for approval
  • Digital signature offers a signature feature for quick proposal approvals
  • Self-service empowers customers with customization options, allowing them to generate quotes
  • Tips and assistance guide sales reps via tips, suggestions, and question sequences for configuring products and services
  • Reporting and analytics provide reporting tools and metrics to analyze customer data and enhance processes
  • Proposal automation lets users generate quick sales proposals
  • CRM/ERP integration allows for easy reporting, access to analytics, and customer engagement
Webopedia Staff
Since 1995, more than 100 tech experts and researchers have kept Webopedia’s definitions, articles, and study guides up to date. For more information on current editorial staff, please visit our About page.

Top Articles

The Complete List of 1500+ Common Text Abbreviations & Acronyms

From A3 to ZZZ we list 1,559 SMS, online chat, and text abbreviations to help you translate and understand today's texting lingo. Includes Top...

Windows Operating System History & Versions

The Windows operating system (Windows OS) refers to a family of operating systems developed by Microsoft Corporation. We look at the history of Windows...

How to Create a Website Shortcut on Your Desktop

Website Shortcut on Your Desktop reviewed by Web Webster   This Webopedia guide will show you how to create a website shortcut on your desktop using...

Generations of Computers (1st to 5th)

Reviewed by Web Webster Learn about each of the 5 generations of computers and major technology developments that have led to the computing devices that...

SAP Software

SAP is an end-to-end enterprise solution provider specializing in enterprise resource...

Chief Operating Officer (COO)

The chief operating officer (COO) is a member of a company's senior executive...

Kanban

Kanban is a workflow management method intended to define, manage, and improve services...