What does CPQ stand for?
CPQ stands for: Configure, Price and Quote.
What is CPQ?
CPQ (Configure, Price, Quote) is software that helps with the sales, focus on determining prices, generating quotes, and managing high level configurations as requested by the customers. CPQ helps determine the prices of variables by monitoring and analyzing a wide range of variables such as the economic situations, the price of similar goods in the market, the rates of these products or services set by competitor brands, and to help companies determine accurate prices for configured goods.
CPQ can be used by sales people to help customers, or with the help of ecommerce applications, it can be used by the customers themselves. CPQ software can be very useful if the price of your products or service depends on the configuration, or if the pricing method is too complicated.
Depending on how advanced the software, CPQ can have the following features that help sales executives a great deal.
- Product Configuration
- Configuration Options
- Pricing Rules
- Price Adjustment
- Purchase History
- Price Adjustment
- Quote Sending
- Guided Selling
- CRM Integration
- Proposal Automation
- Credit Approvals
- Renewal Management
- Excel Integration
- Customer Self Service (eCommerce)
- Reporting and Analytics
Now, your company may or may not need all the features, which is why when choosing a CPQ for your company, you should first get in touch with your sales department to be sure of your company’s needs.
Do you need CPQ for your business?
All companies have different requirements and you really should know if you need the software before making the investment. Most companies don’t need CPQ because they do not sell highly configured products or have fixed prices for their services.
However, if you have a large organization with a wide range of products, then the many features of a CPQ system are definitely going to benefit you.
When considering whether or not to buy a CPQ, you must weigh down the pros and the cons to see whether or not you will benefit from the investment. You are obviously going to benefit from a CPQ software, but you also need to consider if those benefits are worth more than the cost of the software itself?
If you do decide that you need a Configure, Price, and Quote, you should check out the complete sales solutions offered by Callidus Software. The CPQ software by CallidusCloud helps you understand the pricing and determine the pricing trends. It also makes generating and sending quotes, maintaining records of configuration, and setting prices easier for your sales team. Moreover, the company offers CPQ systems for organizations and industries of all sizes. With a sophisticated CPQ system you will be able to reach bigger sales targets faster. It can be used by both B2B and B2C businesses since it also supports ecommerce.
With easy CRM integration and mobile access, creating quotes and making compelling proposals has never been easier. For more information about CPQ and it’s benefits, download this CPQ buyers guide.