Best CPQ Software

Guide to CPQ Software

CPQ software, or Configure Price Quote software, is a tool used by sales teams and manufacturers to streamline their quoting processes. It helps them create custom quotes tailored to each customer's unique needs and preferences quickly and accurately.

CPQ software automates the quote-to-order process from start to finish, from creating accurate quotes quickly to integrating with backend ERP systems for more efficient order processing. Its features vary widely between vendors but may include document creation tools, automated price calculations, product configurators, guided selling capabilities, contract management systems and more. With CPQ software in place sales reps can spend less time on manual tasks like manually calculating prices and filling out paperwork, allowing them to focus on building relationships with their customers instead.

When choosing CPQ software it’s important to consider your business’s specific needs first. Different vendors offer different feature sets so it’s critical that you select a solution that will meet your company’s goals while remaining intuitively simple enough that your team can get up and running quickly without having to go through extensive training sessions. Look for solutions that integrate with other back-end systems like ERPs as well as CRM systems so that the data collected by CPQ remains consistent across the board.

Finally remember that since CPQ is such an integral part of the quote-to-order process any problems or errors in its setup could lead to potential lost revenue down the line. Make sure you have robust support measures in place before implementing a new system so you won't be left in the lurch if something goes wrong—especially if this is your first time working with CPQ software!

In short, CPQ software is a powerful tool that can help sales teams and manufacturers create accurate custom quotes quickly and easily, streamlining the quote-to-order process from start to finish. When choosing CPQ software it’s important to make sure you select a solution that meets your company’s unique needs while remaining intuitively simple, and be sure to have robust support measures in place once the system is up and running.

CPQ Software Features

• Automated Order Configuration: CPQ software can automatically configure complex orders based on customer requirements, such as product selection, pricing models and discounts, shipping arrangements and payment terms. This feature helps streamline the sales process and ensure accuracy in the quote or order.
• Guided Selling: CPQ software can guide customers through a customized sales funnel by suggesting options, promoting add-ons, displaying configuration rules, setting up discounts and applying business rules to create an appropriate quote or order for the customer. This helps reduce errors in the sales process and increase customer satisfaction.
• Proposal Generation: CPQ software can generate high-quality proposals quickly by automatically combining product information with graphics, text descriptions and other custom content that reflect a customer’s specific requirements. This makes it easy to create compelling documents while ensuring accuracy of all data points.
• Contract Management: CPQ software can store contracts securely and make them available for review at any time if needed. It also ensures compliance with legal regulations by tracking changes to contracts over time and providing notifications when contracts need to be updated or renewed.
• Opportunity Tracking: CPQ software can track opportunities from initial contact through closure by providing visibility into each stage of the sales process including prospecting activities, progress tracking of quotes/orders, status updates and conversion rate monitoring. This helps identify areas where improvements can be made in order to close more deals faster.
• Reporting and Analytics: CPQ software includes a variety of reporting and analytics capabilities that provide visibility into key performance metrics such as sales cycle time, product/service profitability, discounts granted, orders lost and number of quotes generated. This helps businesses make better decisions based on real-time data.

What Types of CPQ Software Are There?

• Configure, Price, Quote (CPQ) software: This type of software helps businesses and sales teams automate the process of creating quotes for customers. It enables them to quickly configure complex products and services with accurate pricing based on customer preferences while handling all the necessary calculations automatically.
• Guided Selling CPQ Software: Guided Selling CPQ solutions provide customers with an interactive way to select the best product or service for their needs. These tools often include visual product configuration builders that enable customers to customize their products by adding or removing features and options. The tool also provides expert advice along the way as customers make their selections, guiding them through a tailored experience unique to their needs and budget.
• Product Selection & Configuration CPQ Software: This type of CPQ solution enables vendors to create flexible product selection and configuration rules which can be set up in advance so that sales teams have an easier time creating customized quotes for customers quickly and accurately.
• Proposal Generation CPQ Software: Proposal generation software is designed to ensure accuracy when creating tailored proposals for potential customers in order to close sales deals more quickly. It also simplifies the entire process by providing templates and other resources that enable teams to easily create high-quality proposals without spending too much time on it.
• Order Management & eCommerce CPQ Software: Order management & eCommerce solutions streamline order processing and fulfillment by automating certain tasks like generating invoices, tracking orders, capturing payments etc., so that team members do not have to manually intervene during each step of the process.
• Analytics & Reporting CPQ Software: Analytics & reporting tools allow users to gain insights into customer buying patterns and preferences as well as sales performance trends over time in order to identify areas for improvement within their business practices. They can also help predict future demand more accurately by analysing historical data from previous transactions or campaigns.
• Mobile CPQ Software: Mobile CPQ solutions enable sales teams to quickly create quotes and engage with customers on the go. This type of software is designed to provide a seamless experience across all devices, meaning that customers can access the same information regardless of which device they're using.

CPQ Software Trends

1. Automation: As businesses strive to create as efficient a sales process as possible, CPQ software is becoming increasingly popular. It provides an automated platform to quickly calculate and configure exact product requirements, ensuring accuracy and reducing manual errors.
2. Cost Savings: By streamlining the sales process, businesses can save time and resources. This can lead to improved margins and cost savings.
3. Increased Productivity: CPQ software helps to increase sales rep efficiency by automating repetitive tasks such as product configuration, creating quotes, and generating reports. This allows for more time to focus on customer relationships and closing deals.
4. Improved Customer Experience: With CPQ software, customers can see accurate pricing information in near real-time, enabling them to make better buying decisions faster. It also allows businesses to customize products and services according to a customer's individual needs.
5. Scalability: CPQ software is designed to be flexible and scalable so businesses can easily expand the system as their needs change. This ensures that businesses have the right solutions in place to meet changing market demands.
6. Improved Insights: CPQ software provides detailed analytics and insights into customer purchasing behaviors, enabling businesses to gain a better understanding of customer preferences and buying habits. This helps to optimize the sales process and better target potential customers.

CPQ Software Benefits

CPQ software provides numerous advantages that help businesses streamline complex sales processes, increase efficiency and reduce costs. Below are some of the main advantages of CPQ software:

1. Automation: CPQ enables automation of mundane tasks such as pricing calculation and product selection, allowing sales teams to focus on more important activities such as nurturing relationships with customers. Automation also helps to ensure accuracy and consistency in quotes, reducing the risk of errors.
2. Configuration Options: CPQ software allows users to create custom configurations for products or services according to customer needs and preferences quickly and easily. This helps eliminate manual steps in the configuration process, resulting in time savings.
3. Price Optimization: Through using CPQ pricing rules, businesses are able to apply discounts or surcharges based on conditions such as quantity or region. This helps ensure maximum profitability from each sale while still ensuring customer satisfaction.
4. Quote Management: CPQ eliminates manual data entry during the quote approval process, allowing for faster turnaround times for quotes by automatically routing and approving them electronically. This not only saves time but also reduces mistakes that could occur due to human error when manually entering data.
5. Guided Selling & Upselling: Guided selling capabilities provided by CPQ allow sales reps to easily navigate through a list of compatible products or services tailored towards a customer’s specific needs. Additionally, upselling features provide customers with additional products that are related to what they already purchased at a discounted price, helping increase overall revenue generated from each sale they make.
6. Reporting & Analytics: CPQ software includes reporting and analytics features that allow businesses to analyze customer data, sales team performance, product usage and other key metrics to gain greater insights into customer buying behaviors. This helps businesses optimize their strategies for a more successful outcome.

How to Select the Right CPQ Software

When selecting the right CPQ (configure, price, quote) software, it’s important to thoroughly analyze your company’s current and future needs. To begin, consider the following:

1. Determine Your Goals: Establish clear objectives for the software so that you can make sure the solution you select is able to meet those needs. Ask yourself what process efficiencies you hope to gain by using a CPQ system and how it will impact your bottom line.
2. Research Vendors: Once you have defined your goals, look into vendors who specialize in CPQ solutions. Compare what each platform has to offer in terms of features and functionality and how they might fit with your business model. Consider pricing options as well as any special requirements or customizations you may need before making a final selection. Utilize the tools given on this page to examine CPQ software in terms of price, features, integrations, user reviews, and more.
3. Test and Evaluate: One of the best ways to narrow down your choices is to try out different platforms with a test run before committing to one particular product or vendor. This will allow you to get a feel for each system’s user-friendliness and see how well it fits into your existing processes and workflow.
4. Get Feedback from Users: Finally, talk to current users of the software solutions that interest you most in order to get an idea of their experiences with them firsthand. Ask about ease of use, implementation time frames, customer service quality, scalability options and more so that you can make an informed decision when it comes time to choose which CPQ system is best for you company’s unique needs!

Types of Users that Use CPQ Software

• Salesperson - A salesperson will benefit from CPQ software by being able to quickly configure products, generate accurate quotes and orders, and track order statuses.
• Purchaser - With CPQ software, purchasers can easily locate the products they need and get detailed specifications for each item. They can evaluate quotes from multiple suppliers at once, compare prices and delivery timelines, and quickly enter purchase orders.
• Engineer - Engineers are able to use CPQ software to customize product configurations and find the best fit for their company’s needs. They can also view 3D visualizations of the product prior to ordering.
• Product Designer - Product designers can create customized design solutions faster using CPQ software. They can select components based on technical specifications, visualize their design in real-time, review pricing in detail before committing to a purchase order, and more.
• Customer Service Representative (CSR) - CSRs use CPQ software to ensure accurate order entry as well as provide quality customer service. They are able to access important information such as upsells or cross-sells for customers on an individual basis, track process status updates with customers quickly and accurately, plus find answers or resolve issues related to orders quickly.
• Account Manager/Executive - Account managers or executives use CPQ systems to stay up-to-date on customer accounts within the company’s CRM system so they can make informed decisions about cross-selling opportunities or account renewals. They are able to easily find the products and services a customer has purchased in the past, view sales performance trends over time, and develop valuable relationships with customers.
• Business Analyst - CPQ software provides business analysts with real-time data about product demand, pricing history and trends, customer behavior, and more. This allows them to make strategic decisions about inventory management and business expansion.

CPQ Software Cost

The cost of a CPQ software solution can vary greatly depending on the features and capabilities required by your business. Generally speaking, most CPQ software solutions will cost between $5,000 and $20,000 for implementation and training expenses. Depending on the specific capabilities you need, you may incur additional costs for customization or professional services. Furthermore, there may be ongoing subscription fees depending on the vendor and any additional features that you are deploying.

When researching CPQ software solutions it is important to ask questions regarding total cost of ownership (TCO) including setup fees, customization costs, maintenance costs, integration costs and any other potential recurring charges. You should also keep in mind scalability when comparing prices as different providers offer varying levels of flexibility when it comes to expanding their offerings to meet your growing needs. Keeping these things in mind will help ensure that you select a CPQ solution that provides both value and meets your current budget requirements.

What Software Can Integrate with CPQ Software?

CPQ software can integrate with a variety of different types of software, such as enterprise resource planning (ERP) systems, customer relationship management (CRM) platforms, and product lifecycle management (PLM) tools. ERP integration allows CPQ to access data from other business processes such as accounting, production control, payroll and inventory management. This provides a more comprehensive view of the organization's operations. CRM integration allows CPQ to share customer information across departments for better collaboration and service delivery. Additionally, PLM integration allows CPQ to leverage data from the product design process for faster ordering and more accurate pricing. By integrating with these other types of software, businesses are able to save time and money while improving accuracy and efficiency in order processing.