What Is CPQ, or Configure, Price, Quote?
CPQ is a sales tool for companies to quickly and accurately generate quotes for orders. CPQ applications often work in tandem with CRM platforms, ERP programs, and other business technology, which helps ensure integrated data as well as accuracy. Quotes produced with CPQ software are automated according to a preprogrammed set of rules, ensuring error-free pricing that takes into account quantities, discounts, customizations, optional features of products, multiple revenue types, and incompatibilities.
Sales reps spend just 34% of their time actually selling, and research shows that part of a sales team’s non-selling time is spent generating quotes, proposals, and gaining approvals. When CPQ is deployed and used correctly, users have reported:
- 10 times faster quote generation
- 95% reduction in approval time
- Two times faster moving from quote to cash
- 30% quicker ramp for new reps
With its functionality and potential for excellent return on investment (ROI), CPQ software is on the horizon for many companies. CPQ adoption will continue to grow as companies see the real benefits of using it in conjunction with their CRM and ERP systems.
CPQ software eliminates a number of sales hurdles
Even when you see the benefits of a CPQ program, you may think your current process still fits the bill. But even if your current sales quote generation seems to be enough, be on the lookout for these
- You’re using legacy quote configurators.
- Revenue growth is outpacing your ability to operate.
- You’re building a recurring revenue stream.
- You need practical ways to implement more advanced business solutions, such as software with artificial intelligence built in.
- You’re sending inaccurate sales quotes to prospects.
- Someone manually reviews all your sales quotes.