Configure, Price and Quote – what is CPQ?

A configurator, or CPQ

Do you dream of a sales process that runs smoothly? Where sales reps spend more time on customer relationships and less on quotes, where errors in orders are a thing of the past, and where customers can easily configure the products they want.

It may sound too good to be true, but with a CPQ solution it can actually become reality for your business.

That is what we will try to cover here:

• What is CPQ?
• How do CPQ systems work?
• The many benefits of implementing a CPQ solution
• How to assess whether CPQ is relevant for your business

So if you are ready to give your sales process a boost, read on.

What is CPQ?

CPQ – three letters that can make a huge difference for your business. But what do they actually mean?

CPQ stands for:

• Configure
• Price
• Quote

In short, it is a software solution that helps companies sell complex products by automating configuration, pricing and quoting.

Imagine you sell a product with countless variations and customisation options. Keeping track of all the different combinations and their prices can quickly become a headache.

That is where CPQ comes in. With a CPQ system you can easily configure the product to the customer’s specific needs, get the right price and generate a professional quote – all in a few clicks.

CPQ systems are not only useful for sales reps.

They also support:

• Internal sales departments
• R&D teams
• Distributors
• Customers placing orders

So whether you are on the road and need to produce a quote for a customer, or you are at the office handling a complex order, the CPQ system can help you do it easily and efficiently.

How do CPQ systems work?

Let us take a look at how CPQ systems actually work. It can seem a little complicated, but don’t worry – we will guide you through it.

Configuration

This is where it starts. The customer configures their ideal product by combining different product and service options in a product configurator. And the best part? They can see a rendering of the product while they build it. That way they can really visualise what they end up with.

When they are done, the system automatically generates a bill of materials. So all the parts and components are accounted for.

Pricing

Now we get to the money. The CPQ software is smart enough to calculate exactly the right price instantly. How? It pulls information from your ERP systems, including any discounts and shipping costs.

So the customer always gets the correct price, and you avoid manual calculations.

Quoting

And now to the best part. With a single click, the user can generate a quote for the products they want. Think how much time that saves for both the customer and your sales team. No more back and forth with quotes and changes.

In short

CPQ systems guide the customer through the configuration, calculate the price automatically and generate quotes in a split second.

That is pretty smart, isn’t it?

Benefits of implementing CPQ

It is no secret that we are big fans of CPQ systems. So it was hard for us to keep our list of benefits short. Here are some of the most important ones:

Increased sales

A more streamlined sales process often leads to increased sales. When your sales reps spend less time producing quotes and more time nurturing customer relationships, it can really boost your sales.

Time savings

Imagine your sales reps generating quotes in minutes instead of hours or days. That is exactly what a CPQ system can do. And the time that frees up? It can be spent giving customers even better service.

Fewer errors

When everyone works from real-time information on a central platform, you minimise the risk of errors. No more headaches about incorrect prices or errors in orders. CPQ makes sure everything is spot on.

User-friendly ordering

The product configurator in a CPQ system visualises complex products, so customers can easily see what they are buying. That makes it much easier for them to choose the right product. And easier for you to sell it.

Greater willingness to buy

The faster customers get their quote, the more likely they are to go ahead right away. So with a CPQ you can strike while the iron is hot and increase your conversion rate.

Valuable sales insights

By sharing a platform with distributors and customers, you get access to data that can help you make better sales forecasts. That is worth a lot when you are planning ahead.

More upselling

The product configurator clearly shows all the extra options customers can choose. That makes it easy for your sales reps to upsell and increase order value.

Is CPQ relevant for your business?

First and foremost, we would recommend having a conversation about whether CPQ could be relevant for your specific business. But so we don’t waste each other’s time, here are a few questions you should be able to answer first:

Do you sell configurable and complex products?

If yes, CPQ could be a really good solution for you. CPQ systems are very good at simplifying your product range and guiding customers to make the right decisions.

Do you see errors in your orders?

If that sounds familiar, CPQ might be exactly what you need. CPQ configurators take all product rules into account and only show valid configurations. That significantly reduces the risk of errors in orders. And that is a win-win for both you and your customers.

Does your back office spend too much time preparing quotes?

If the answer is yes, CPQ could be a very good investment for you. With CPQ you can significantly reduce the time spent on quoting. Think of all the time you could save and instead spend on developing your business. That is worth considering, isn’t it?

So if one or more of the points above sound familiar, CPQ is definitely something you should consider. It could be the solution you need to streamline your sales process and increase customer satisfaction.

Give us a call and we can work out the needs and the options together.