What Is CPQ, or Configure, Price, Quote?
Although configure, price, quote (CPQ) software has been available for decades, innovation in CPQ software is seen as the newest wave in sales optimization tools. But what is CPQ software? 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.