The CPQ process, also known as the configure-price-quote process, is a decisive procedure that helps companies improve their selling efficiency.
In essence it lets sales teams produce customer-specific quotes for products and services quickly and precisely. Here is a general description of the process in three steps:
- Configure: this step covers adapting a product or service to the individual needs and requirements of the customer. Sales teams select various features, components, and specifications to build a tailored solution. Modern CPQ software helps simplify that work by checking the available options and how they fit together.
- Price: once the product or service is configured, the sales team calculates the price. Factors such as the cost of the selected components, volume discounts, exchange rates, and others are taken into account. CPQ systems help here too, automating and updating pricing information to avoid errors and speed the process up.
- Quote: in the final step, the sales team generates a formal quote for the customer containing the configured products or services and the calculated price. CPQ solutions can automate the creation, adjustment, and sending of those quotes, which guarantees fast and accurate communication with customers.
Taken together, the CPQ process lets companies optimize and accelerate their sales operations, reduce errors, improve customer satisfaction, and ultimately close more business.