Configure. Price. Quote.
A three-step path to improve your business.
You’ve likely heard the acronym before, but do you truly know the meaning of CPQ? Or, even better, have you seen the magic behind those three letters? Well, you’ve arrived at the right place. Find out how your company can see a boost in productivity, efficiency and even value with a CPQ solution.
What is CPQ Software?
A CPQ solution enables the design of quotes based on customer-specific sales inquiries. Firstly, you can configure a specific product portfolio within the scope of a quote (based on your overall product catalog). Next, you'll define related pricing and send outputs for internal approval. Finally, you can negotiate with a customer and possibly re-iterate on specific quote conditions.
The best CPQ solutions are enhanced by capabilities like pricing guidance that provides optimal price recommendations based on historical sales and suggest relevant up-sell and cross-sell opportunities.
CPQ Software vs. Pricing Software. What’s the difference?
It’s a question we receive a lot. And though there are some similarities between the two, each has its unique differentiators. So, here's a short rundown of how they stand out from each other.
If you'd like further differentiation between the two, get the full picture here.
CPQ
Pricing Software
Who can benefit from CPQ software.
Our general rule of thumb is that any company, regardless of size or industry, that’s looking to streamline their sales process, speed up quote times and grow revenue will benefit from CPQ tools and capabilities.
In particular, CPQ tools are beneficial to organizations that need to pivot away from manual, outdated processes that are often impacted by inaccurate information. With the hyper speed in which the market and other factors change, a CPQ solution will help you be more adaptable and efficient in ensuring you’re providing customers with the optimal price.
7 CPQ benefits for all businesses.
The companies that we speak to are looking for tangible benefits if they switch to a CPQ solution. We’re happy to share the following seven with you, and encourage you to do the same with your fellow colleagues or team members.
Many companies have success stories to tell from their experience with Pricefx’s CPQ Solution. Check out this particular case study.
1. Shorten your sales cycle.
A CPQ solution will help you respond to customer requests by simplifying and automating your quote and approval process while integrating them with your CRM. Recent data says your cycle can be shortened by up to 28%.
2. Quote with greater accuracy.
Human mistakes account for 30% of all errors in the workplace. With a CPQ, you can quote with higher accuracy which, in turn, will give you the confidence to win more opportunities.
3. Achieve pricing transparency.
When your clients have questions, you’ll have all the answers. With a CPQ, you’ll ensure that all stakeholders understand the prices quoted, how they relate to business objectives and how they can be defended.
4. Keep discounts under control.
A good CPQ will help you fully understand the impact of a discount in advance, and support you in tightening the reins on customer-specific discounts.
5. Reduce profit losses.
With a CPQ, you can access your complete deal waterfall when quoting to see all profit reducers at a glance, and to use historical price and cost data for rapid insight into sources of margin compression.
6. Empower sales.
Enable your team to bring their real skills to the table, rather than being bogged down by time-consuming administrative tasks. A top CPQ can transform your team into informed decision makers.
7. Boost conversions and revenue.
Companies that leverage CPQ software achieve a 17% higher lead conversion rate, 7.5 times higher year-over-year increases in customer renewal rates and a 105% larger average deal size.
CPQ Software in Action
Discover the key functionalities of our Quoting capability and how you can start configuring, pricing, and quoting with Pricefx.
Frequently Asked Questions
We’ve covered these above, but here are some quick, concise answers to the questions you may have about CPQ.
What does CPQ mean?
Why is a CPQ used?
What is the CPQ process?
What are the benefits of using a CPQ?
Pricefx as your CPQ software provider
No matter the size of your company or industry, our CPQ solution is built to help people like you who want an easy-to-use plug-and-play solution that gives you the freedom to work with your current systems seamlessly. It’s why we’re dedicated to continually evolving and updating our product line to ensure it’s optimizing the work you’re doing.
Our CPQ capabilities are part of the Profit package at Pricefx. This package enables your sales team to manage all quoting and negotiation processes autonomously.
Read on for more details on if a CPQ solution is right for your company.