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
