🗒️[Glossary] CPQ - Configure Price Quote
CPQ stands for Configure, Price, Quote and refers to software solutions designed to streamline the sales process by enabling businesses to quickly configure complex products or services, calculate accurate pricing, and generate professional quotes.
How CPQ Works
CPQ software typically integrates with CRM (Customer Relationship Management), ERP (Enterprise Resource Planning) and PLM (Product Lifecycle Management) systems to provide a seamless experience for sales teams. It automates the following key steps:
Configure:
Allows users to select and customize products or services based on customer needs. Configuration rules ensure that only valid combinations of features, options, and packages are chosen.
Price:
Dynamically calculates pricing based on selected configurations, discounts, and other factors like regional pricing, volume-based pricing, or special promotions.
Quote:
Automatically generates a professional, customer-facing quote document, often including detailed product descriptions, pricing breakdowns, and terms and conditions.
Benefits of CPQ
Efficiency: Reduces the time spent on manual product configuration and quote generation.
Accuracy: Ensures error-free pricing and configurations by following predefined rules.
Scalability: Handles complex product catalogs and pricing models, making it suitable for businesses of all sizes.
Customer Experience: Improves the buying experience by delivering fast and accurate quotes.
