Summary: CPQ stands for Configure, Price and Quote, and CPQ software can help business to configure product offerings, set pricing, and generate error-free quotes. Let’s understand what CPQ is, its features and top CPQ platforms available in the market to streamline your cost-price-quotation process.
Do you know that approximately 73% of individuals emphasize the significance of customer experience when making purchasing choices. Moreover, people are willing to pay a 20% premium for personalized products or services.
So, in the world of business, where every second counts, an efficient sales process is paramount. This is where CPQ software comes into play and handles all the complex quoting and proposal tasks. Let’s talk about CPQ and explore its features and the top players in the CPQ software arena.
Let’s get to it!
Table of Contents
What is CPQ Software?
CPQ Meaning: CPQ stands for configure, price, quote and it is a technique that supports sales representatives to easily generate quotations for customized products or services.
Companies that use CPQ software can experience 105% larger average deal size. The software generally works in collaboration with CRM tools, ERP systems, and more.
This innovative technology helps organizations in configuring product offerings, set pricing and discounts, and even generate error-free quotes according to buyers’ needs.
How Does CPQ Software Work?
CPQ software works like a digital assistant for your sales team which handles the complex tasks of configuring products, calculating prices, and generating accurate quotes. Here’s a breakdown of its key features:
- Configuration: Suppose a customer wants a specific software package with some selected features and integrations. The sales team can enter these choices into the CPQ software, and it will check all the dependencies and constraints to prevent customers from making incompatible choices.
- Pricing: Based on the above configuration, CPQ software calculates the total price by considering factors like base price, features, discounts, and promotional offers. This eliminates manual calculations and reduces the risk of pricing errors, saving both time and money.
- Quote Generation: Once the price is calculated, CPQ automatically generates professional quotes in minutes with complete product descriptions, pricing details, terms and conditions, etc. The quote can be customized with branding and logos for a professional touch.
What are the Key Features of CPQ Software?
CPQ software offers multiple features like pricing engine, quotation generation, product configurator, CRM integration, etc. Here are some of the major features that CPQ tools offer:
- Visual Product Configurator: Most CPQ software offers a visual (2d or 3d) configuration that can help buyers design their own products. They can effortlessly select features, options, and accessories to ensure compatibility and accurate pricing.
- Pricing Engine: CPQ platforms have the ability to calculate real-time pricing based on product configurations, discounts, and other factors.
- Automated Quoting: Filling out forms, collecting buyers’ data, and scheduling meetings can take a lot of time if done manually. CPQ solutions automates the quoting process and integrates product, pricing, and customer data to generate accurate quotes quickly. This streamlines operations and increases efficiency.
- CRM and ERP Integration: These tools let you integrate seamlessly with CRM and ERP systems to access customer data and track sales opportunities. It allows manufacturers to control their quoting process in a single place and identify new sales opportunities.
- Guided Selling: Guided selling is a feature that helps companies to guide customers through the sales process. It uses custom questionnaires and forms to help customers build products that meet their needs.
Best 5 CPQ Software in 2024 for Small Business Example
We have researched multiple CPQ software options and compiled a list of the best options for you. Here are some of the best CPQ solutions available in the market currently.
Conga CPQ, formerly known as Apttus CPQ eliminates all the manual needs for generating prices for quotes, proposals, invoices, and renewals.
With this cloud-based software, users can easily create quotation templates, invoices, proposals, renewals accurately and easily. It allows sales teams to offer the right product to their customers and close deals faster.
Features of Conga CPQ Software
- Helps you to search, compare and sell products
- Supports asset-based ordering
- Helps with product recommendations
- Supports pricing optimization
- Promotes automated QTC (Quote-to-cash) process
- Supports subscription and renewal management
- Helps build B2C promotional offerings to increase sales
- Offers visual indicator for pricing guidance
- Conga is available for both sales and IT teams
Pricing: Conga CPQ pricing is available on request at its official website.
Proposify is a document generation software that helps create professional proposals, quotes, and contracts for prospects.
Features of Proposify CPQ Software
- Integrates with your favorite CRM tool
- Helps with contract management
- Supports E-signatures
- Facilitates payment processing
- Offers advanced insights into prospect behavior
- Helps with content and brand management
Pricing: Proposify offers two types of plans, and these are:
- Team: Starts at $49/month/user
- Business: Available on request
Oracle CPQ software is a cloud-based solution that uses Oracle’s adaptive intelligence and machine learning capabilities to automate configurations. It can be used as a self-service CPQ tool and by the sales teams to streamline the entire configuration-to-pricing-to-quote process.
The software is designed to serve businesses in sales, development, finance, marketing, IT, and other service sectors by helping them create accurate, professional quotes to quickly meet the pricing needs.
Features of Oracle CPQ
- Automated and functional product configurations
- Supports subscription ordering
- Helps with real-time pricing decisions
- Offers an intelligent deal management module
- Offers dynamic workflows
- Supports contract management and document designing
- Facilitates ERP and CRM integration
Pricing: Oracle CPQ pricing is available on request through its official website
Cincom’s CPQ software is known for its flexibility and advanced configurator which makes it ideal for SMBs. This software helps centralize everything you need to sell, i.e. Quoting, Proposal Generation, and Sales Management.
Cincom CPQ can be integrated with various platforms like Microsoft Dynamics 365 for enhanced functionality.
Features of Cincom CPQ
- CPQ ROI calculator
- Up to date and real-time pricing
- E commerce, CRM, ERP integrations
- Omni-channel selling supports
- Guided selling features
- Centralized data insights
Pricing: Available on request
DealHub CPQ is a zero-code tool that enables you to start quoting quickly. With DealHub, you can streamline your entire quote-to-revenue process by issuing proposals, closing deals, and managing contracts.
You can also automate subscriptions and billing thorugh a single platform. This makes it the top-rated CPQ and revenue platform on the market.
Features of DealHub CPQ Software
- Fast and easy to implement
- Generates quotes in multiple formats (Word, PDF, Excel, etc.)
- Easy CRM synchronization
- Automatically triggers cross-sell and upsell actions
- Ensures automated workflows management
- Seamlessly updates pricing and configurations in the backend
- Integrates with Microsoft Dynamic 365, Salesforce, HubSpot, Sugar and Freshworks CRM
Pricing: Available on request
Price Comparison Chart of Best 5 CPQ Software
|Complex Quote Generation
|Available on request
|Generating proposals, NDAs, SOWs, and quotes
|Starts at $49/month
|Generating quotes with technical accuracy
|Available on request
|Selling Complex product and services
|Available on request
|Accurate quotation delivery
|Available on request
FAQs Related to CPQ Software
What is CPQ full form?
CPQ means Configure, Price, Quote.
What is the CPQ process?
CPQ stands for Configure, Price, Quote. It's the process of tailoring products or services to a specific customer's needs, determining the corresponding price, and generating a quote. This is especially useful for complex, customizable offerings.
What is the difference between CPQ and CRM?
CRM (Customer Relationship Management) focuses on managing customer interactions throughout the sales cycle. CPQ on the other hand, focuses on configuring, pricing, and quoting for orders.
Does CPQ require coding?
CPQ generally doesn't require coding. However, some software may require coding expertise to extend CPQ's functionality or configure plug-ins.
What does CPQ software do?
CPQ software helps businesses to quickly generate error-free and accurate quotes for configurable products and services.
What are the benefits of using CPQ software?
CPQ software benefits businesses in different ways like guided selling, increased productivity, better revenue, automated configurations, etc.
Which is the best CPQ software?
The choice depends on your specific needs and budget. However, some popular CPQ options include Oracle CPQ, Proposify, Conga CPQ, and more. Before choosing any software, you must consider factors like industry, product complexity, integration needs, user interface, and budget.