Virginie Taborowski
Content Specialist
Last updated on
1.10.24
Best Practice
Configure, Price and Quote: The perfect deal with CPQ
4
min
Table of contents
In an increasingly complex and competitive business world, companies are faced with the challenge of making their sales process efficient and error-free. Pricing, quoting, and product configuration requirements are higher than ever, which can result in errors, delays, and ultimately missed business opportunities.
That's where CPQ comes in — Configure, Price, Quote. But what exactly is CPQ and how can it help companies overcome these challenges? In this article, we'll look at the basics of CPQ and how this technology can help optimize sales processes, increase accuracy, and increase customer satisfaction.
What is CPQ?
CPQ stands for “Configure, Price, Quote.” It is a sales-supporting software solution that helps companies configure complex products or services, calculate prices and create offers for customers.
CPQ systems are primarily needed to offer individually adaptable products or services. CPQ is therefore used particularly frequently by manufacturers of technical devices, software solutions or telecommunications companies. With a CPQ system, sales representatives and customers can select various options and configurations of a product, while the system automatically calculates the price and generates a suitable offer.
The essence of personalized customer relationships
The most important building block for customers to remain satisfied and feel valued by companies is a personalized customer relationship. Individual offers are essential for this. However, many companies neither take the time nor do they have the right tools to meet the needs of their customers.
With the help of CPQ solutions, however, it is possible to implement this personalized approach and provide customers with a tailor-made range of services. Companies can thus ensure that they respond to the specific needs and requirements of their customers and provide exactly the offer that is expected of the customer. By providing tailor-made solutions, companies can build deeper customer loyalty and invest in a long-term and sustainable customer relationship.
Practically, the whole thing looks like this:
A company that produces custom-made industrial machinery uses a CPQ system to optimize the sales process. When a potential customer is interested in a machine, the sales representative works directly with them to define the appropriate configuration. They discuss specific requirements such as performance, size, equipment and any adjustments.
The CPQ module automatically calculates the price in the background based on the selected options. It takes into account factors such as material costs, workload, and any discounts available. In addition, additional options such as maintenance contracts or additional services can be integrated into the offer.
After completing the configuration, the CPQ system generates a detailed offer with all relevant information such as technical specifications, prices, delivery times and contract terms. The offer is sent to the customer either electronically or in printed form.
How does sales support work?
Especially in the B2B and manufacturing industries, complex products and services present companies with major challenges when it comes to creating individual offers. Business criteria flow together with product-specific requirements and require a personalized offer for each individual customer. CPQ systems accelerate this process standard by supporting sales through automated functions. This includes:
- configuration: The CPQ system allows salespeople to configure products or services according to individual requirements and preferences. Product specifications and product features such as size, color, functions or material are taken into account. The solution ensures that the configured options are technically feasible and also compatible.
- Pricing: Based on the selected configurations, the CPQ automatically calculates the price of the product or service. Various factors are taken into account, such as material costs, labor costs, customer discounts, taxes, and other pricing rules. At the same time, complex pricing models can be defined, such as volume discounts, tiered prices or customer-specific price agreements.
- Preparation of offers: As soon as the configuration is complete and the price is set, a detailed offer is automatically generated. The offer includes all relevant information, such as product descriptions and specifications, prices, configuration options, delivery terms and contract details. For an even more individual customer experience, customer-specific templates can also be used, which create the offer in corporate design.
- Workflow support: Some CPQ systems also support automated workflows such as approval and approval of offers by supervisors. Tasks such as sending offers to customers or tracking sales opportunities in the sales process can also be automated through workflows.
- integration: The connection between IT systems is also essential so that there are no isolated solutions: it makes sense to connect CPQ, CRM and ERP. As a result, all data flows seamlessly between the various systems, which further optimizes the sales process and ensures particularly high data accuracy.
With the flexible CRM system from Ninox you have bundled all functions in one place. CRM, ERP and CPQ can be controlled from a central database and thus offer maximum sales support.
Perfect offer preparation with CPQ
Sales support through CPQ systems automates the process of product configuration, pricing, and quotation preparation. As a result, sales staff work more efficiently, human errors are minimized and companies can ensure consistent customer communication.
At the same time, CPQ enables a personalized and rapid response to the individual needs of customers. This inevitably leads to higher customer satisfaction and, at the same time, also raises sales performance to a new level.
Help your sales team to be more efficient: offer your customers individual offers within seconds. With CPQ features in Ninox CRM the preparation of offers is child's play.
