Prompt response to customers while maintaining accuracy and efficiency has become an absolute mandate for businesses to thrive the fierce competition. This is where CPQ (Configure, Price, Quote) software plays a crucial role. CPQ solutions help companies automate and streamline the process of configuring complex products, determining accurate pricing based on several factors, and generating professional quotes with minimal manual intervention. By integrating sales automation, CPQ software enhances both sales efficiency and customer satisfaction by reducing errors and improving response times.
For businesses, having a CPQ solution is no longer a luxury but a necessity. Traditional sales methods relying on spreadsheets and manual approvals often lead to pricing inconsistencies, delays, and lost opportunities. CPQ software eliminates these challenges by ensuring pricing accuracy, enforcing discounting rules, and speeding up the approval process. As a result, companies can close deals faster, improve revenue predictability, and provide a seamless buying experience for customers.
This blog aims to provide a detailed comparison of the top CPQ solutions available in the market today. By analyzing their features, strengths, and limitations, we will help businesses make informed decisions about CPQ software and choose the best fit for their business.
Introduction to CPQ Software
Configure, Price, Quote (CPQ) software is a powerful tool that enables businesses to streamline their sales processes by providing a seamless and efficient way to configure, price, and quote complex products. CPQ software is often integrated with product configurator software, which allows customers to customize products according to their preferences. This integration enables businesses to provide a hyper-personalized shopping experience, increasing customer satisfaction and loyalty. By implementing CPQ software, businesses can automate their sales processes, reduce errors, and increase average order value. The ability to quickly and accurately generate quotes for customized products not only enhances the customer experience but also boosts sales efficiency and revenue.
7 Key Features to Look for in a CPQ Solution
Selecting the right Configure, Price, Quote (CPQ) solution for your business is a critical decision that impacts your sales efficiency, operational workflows, and revenue growth. With multiple CPQ software companies offering a wide range of solutions in the market, it is essential to evaluate them based on key factors that align with your business needs. Here are the essential features to consider when evaluating a CPQ solution:
1- Product and Service Configuration Capabilities
A robust CPQ system should offer powerful configuration capabilities to handle complex product structures, bundles, and service offerings. It must accommodate different manufacturing models, such as Engineer-to-Order (ETO) and Configure-to-Order (CTO), ensuring sales teams can easily customize products based on customer needs. Visual configuration tools, including 3D product configurators, and rules-based logic further enhance accuracy and reduce quoting errors. Accurately visualizing the customized product is crucial for aiding customer decision-making and ensuring satisfaction.
2- Pricing and Discounting Flexibility
Dynamic pricing is key to staying competitive. A CPQ solution should support real-time pricing adjustments based on several factors, including cost fluctuations, regional pricing, volume-based discounts, and customer-specific agreements. Additionally, it should allow for discount approvals with built-in workflows to ensure margin protection while maintaining sales agility.
3- Integration with CRM, ERP, and Other Enterprise Tools
Seamless integration with existing e-commerce platforms like Shopify, Magento, and WooCommerce, as well as other business systems such as CRM (Salesforce, Microsoft Dynamics) and ERP (SAP, Oracle), enables end-to-end sales process automation. A well-integrated CPQ system ensures that pricing, inventory, and customer data are synchronized across departments, improving efficiency and data consistency.
4- Guided Selling and Automation Features
Sales representatives, especially those dealing with complex products, benefit from guided selling tools that recommend optimal configurations and pricing based on customer requirements, allowing customers to visualize and customize their products. Automation features, such as predefined approval workflows, auto-generated proposals, and contract management, enhance speed and accuracy, reducing manual intervention and human errors, thereby enabling customers to make informed decisions through real-time customization.
5- Advanced Analytics and Reporting
Data-driven decision-making is essential in modern sales. A CPQ solution should provide advanced analytics, dashboards, and reporting tools to track sales performance, pricing trends, and customer preferences. Real-time insights empower sales leaders to optimize pricing strategies, identify new revenue opportunities, and understand the behavior of potential customers.
6- AI-Powered Recommendations and Personalization
Artificial intelligence (AI) enhances CPQ solutions by offering intelligent pricing recommendations, cross-sell and upsell opportunities, and personalized products through technological advancements. Machine learning algorithms analyze historical data and customer behavior to suggest the most profitable configurations and pricing models.
7- Multi-Channel and Mobile Accessibility
A modern CPQ solution should utilize a single platform to be accessible across multiple channels, including direct sales, partner portals, and eCommerce platforms. Mobile accessibility ensures that sales teams can generate quotes, configure products, and close deals on the go, enhancing productivity and customer responsiveness.
What CPQ Can Really Do for Your Business
Learn how a CPQ solution simplifies selling complex products and speeds up your sales cycle.
Business Applications
Product configurator software has a wide range of business applications, from ecommerce product configurators to complex product configuration software. Businesses can use product configurators to tailor products to customer preferences, providing a unique and engaging shopping experience. For example, a furniture company can use a product configurator to allow customers to design and customize their own furniture pieces, selecting from various features and materials. This not only increases customer satisfaction but also provides valuable data on customer behavior and preferences. By analyzing this data, businesses can refine their marketing strategies and improve their overall ecommerce strategy. The ability to offer customized products through a product configurator can differentiate a business from its competitors, driving more sales and fostering customer loyalty.
Top CPQ Software Solutions in the Market
Configure, Price, Quote (CPQ) software is essential for businesses looking to streamline their sales processes and improve pricing accuracy. Various CPQ software providers offer solutions that cater to different industries and business needs, delivering a wide range of functionalities. Below are some of the leading CPQ software solutions in the market, highlighting their strengths and limitations.
1- Salesforce CPQ
Salesforce CPQ is a powerful solution built natively within the Salesforce ecosystem, making it an attractive option for businesses already using Salesforce CRM.
Strengths:
- Native Salesforce Integration: Seamlessly integrates with Salesforce CRM, ensuring a smooth transition between lead management, quoting, and closing deals.
- AI-Powered Recommendations: Leverages artificial intelligence to provide guided selling and intelligent pricing recommendations.
- Robust Analytics: Offers comprehensive reporting and analytics, helping sales teams track performance and optimize pricing strategies.
- Augmented Reality: Enhances user experiences by allowing customers to visualize and interact with products in their own environments, creating immersive and realistic shopping experiences.
Limitations:
- Higher Cost: Premium pricing makes it less accessible for small and mid-sized businesses.
- Complexity in Customization: Requires extensive configuration to align with unique business needs, which can be time-consuming and costly.
2- Oracle CPQ
Oracle CPQ is a highly scalable solution suited for enterprise-level organizations that require advanced approval workflows and deep ERP integration.
Strengths:
- Enterprise-Grade Scalability: Designed to handle large and complex configurations, making it ideal for large organizations.
- Strong Approval Workflows: Features robust approval processes to streamline quote approvals and ensure compliance.
- Seamless ERP Integration: Easily integrates with Oracle ERP and other back-office systems for an end-to-end sales process.
- Custom Code Capabilities: Allows the use of custom code to manage complex product rules, enhancing the flexibility and customization of the buying experience.
Limitations:
- Steeper Learning Curve: Requires extensive training for users to maximize its capabilities.
- IT Expertise Required: Implementation and maintenance demand strong IT support, adding to the overall cost.
3- SAP CPQ
SAP CPQ is a powerful solution that works best for businesses using SAP ERP, providing advanced pricing models and automation.
Strengths:
- Deep Integration with SAP ERP: Ensures smooth data flow between SAP CRM, ERP, and CPQ.
- Advanced Pricing Models: Supports complex pricing structures, including volume-based and tiered pricing.
- Automation-Driven Workflows: Automates pricing, approvals, and proposal generation to enhance efficiency.
- Importance of Design Process: A seamless and interactive design process in SAP CPQ enhances customer engagement and satisfaction, facilitating personalized products and improving the overall customer experience.
Limitations:
- High Implementation Cost: Deployment requires significant investment in both software and training.
- Complex User Interface: Can be challenging for inexperienced users to navigate effectively.
4- Cincom CPQ
Cincom CPQ is tailored for complex manufacturing processes, offering flexible deployment options and strong rule-based configurations.
Strengths:
- Designed for Complex Manufacturing: Ideal for Engineer-to-Order (ETO) and Configure-to-Order (CTO) businesses.
- Flexible Deployment: Supports both on-premise and SaaS models, providing adaptability based on business needs.
- Strong Rule-Based Configurations: Ensures accurate quoting and configuration of complex products.
- Incorporates Design Elements: Enhances user experience by simplifying interfaces and providing clarity, leading to more effective and user-friendly product configurators.
5- PROS Smart CPQ
PROS Smart CPQ is an AI-powered solution designed to optimize pricing and streamline quoting for various industries.
Strengths:
- AI-Driven Pricing Optimization: Uses artificial intelligence to provide dynamic and competitive pricing.
- Dynamic Quote Generation: Speeds up quote creation by automating approvals and configurations.
- Strong Analytics: Provides data-driven insights to improve sales performance.
- Sales Automation: Enhances product configuration processes with dynamic pricing, auto-generated proposals, and workflows, relying on foundational elements for effective implementation.
Limitations:
- Primarily Suited for AI-Powered Pricing Industries: Best for industries where real-time, AI-driven pricing is a key factor.
6- Tacton CPQ
Tacton CPQ specializes in the manufacturing and engineering sectors, offering advanced visual configuration capabilities.
Strengths:
- Specializes in Manufacturing and Engineering: Ideal for industries that require highly configurable products.
- Powerful Visual Configuration: Provides real-time 3D visualization of product configurations.
- Utilizes Visual Product Configurators: Empowers sales representatives, distributors, and customers to customize products in real-time with dynamic updates across various product features and pricing.
Limitations:
- Limited Use Outside of Manufacturing: Best suited for engineering and manufacturing industries, with less adaptability for other sectors.
7- Conga CPQ
Conga CPQ is well known for its contract lifecycle management (CLM) capabilities, making it an excellent choice for subscription-based businesses.
Strengths:
- Strong CLM Capabilities: Integrates contract management into the CPQ process, ensuring compliance and reducing risks.
- Good for Subscription-Based Businesses: Ideal for companies with recurring revenue models and complex billing requirements.
- Additional Features: Offers extensive customization options, particularly beneficial in the electronics sector where customers can select specifications and enhancements tailored to their personal needs.
Limitations:
- Can Be Expensive for Small and Mid-Sized Businesses: Pricing may not be feasible for companies with limited budgets.
Detailed Feature Comparison Table
When evaluating CPQ solutions, a side-by-side comparison of key features, integrations, pricing, and ideal use cases can help businesses make informed decisions. Below is a detailed breakdown of how Cincom CPQ Manufacturing stacks up against standard CPQ solutions.
| Feature | Cincom CPQ Manufacturing | Standard CPQ Solutions |
|---|---|---|
| Customization | Built for complex manufacturing; supports ETO, CTO, and engineer-driven configurations | Basic product configuration with limited complexity |
| Pricing Engine | Advanced rule-based pricing, multi-tiered discounts, and real-time cost adjustments | Standard pricing models with fewer dynamic rules |
| Visualization | Integrated 2D/3D visualization tools for custom product previews | Limited or third-party visualization support |
| Integrations | Deep integration with ERP (SAP, Microsoft Dynamics, Infor, etc.) and CRM (Salesforce, Microsoft, etc.) | Basic CRM and ERP connectors, often requiring middleware |
| Deployment | On-premise, cloud, and hybrid options for flexibility | Primarily cloud-based, fewer on-premise choices |
| Regulatory Compliance | Supports compliance-heavy industries like medical devices and industrial equipment | General compliance features, not tailored for regulated industries |
| Guided Selling | AI-driven guided selling tailored for complex B2B sales | Rule-based recommendations with limited intelligence |
| ROI & Analytics | Built-in ROI calculator, detailed performance metrics, and analytics dashboards | Standard reporting with fewer predictive insights |
| Best for | Manufacturers of specialty vehicles, industrial equipment, medical devices, and high-complexity products | Businesses with straightforward product catalogs and simpler sales processes |
| Pricing | Customized pricing based on complexity and deployment needs | Fixed-tier subscription pricing |
Technical Requirements
To implement a product configurator, businesses need to consider several technical requirements. First, they need to ensure that their ecommerce platform can support a product configurator. Many existing ecommerce platforms, such as Shopify and Magento, offer integration with product configurator software. Businesses also need to consider the rules engine that will power their product configurator, as well as the user-friendly interface that will guide customers through the configuration process. Additionally, businesses need to think about how they will manage their product data, including assembly instructions and print-ready files. By carefully considering these technical requirements, businesses can create a powerful and effective product configurator that meets their needs and exceeds their customers’ expectations. Ensuring seamless integration and efficient data management will result in a smoother configuration process and a better overall customer experience.
How to Choose the Right CPQ Solution for Your Business
Selecting the right Configure, Price, Quote (CPQ) solution for your business is a critical decision that impacts your sales efficiency, operational workflows, and revenue growth. With multiple CPQ solutions available in the market, it is essential to evaluate them based on key factors that align with your business needs. Below are some critical considerations to guide your decision.
1- Consider Your Industry-Specific Needs
Different industries have unique requirements when it comes to product configuration, pricing structures, and quoting processes. A CPQ solution should cater to the complexity of your products and the specific challenges of your sector. For example, manufacturers dealing with Engineer-to-Order (ETO) or Configure-to-Order (CTO) products need a CPQ system that supports complex product configurations, rules-based customization, and engineering integrations like CAD and PLM. Product customization is crucial in these scenarios, as it allows customers to personalize products based on parameters such as color, size, and finish, often enhanced by 3D product configurators. On the other hand, SaaS and service-based industries may require subscription-based pricing models, automated renewals, and contract lifecycle management (CLM) features. Evaluating industry alignment ensures that the CPQ solution enhances—not disrupts—your existing sales processes.
2- Evaluate Integration Requirements
Your CPQ system must integrate seamlessly with your existing technology stack, including CRM, ERP, and eCommerce platforms. A CPQ solution that integrates with Microsoft Dynamics, Salesforce, or SAP ensures smooth data flow between sales, finance, and supply chain teams. Additionally, integration with accounting software and tax compliance systems ensures accurate pricing and billing. Poor integration can lead to data silos, manual workarounds, and inefficiencies, so it is crucial to verify compatibility and ease of integration with your current systems. Moreover, seamless integration with popular e-commerce platforms like Shopify and Magento is essential for enhancing the shopping experience and ensuring accurate information flow and streamlined purchase processes, which are vital for success in e-commerce.
3- Assess Scalability and Deployment Options
As your business grows, your CPQ solution should scale accordingly. Whether you are expanding product lines, entering new markets, or adding sales channels, the CPQ system must support your future needs. Cloud-based CPQ solutions offer greater scalability, remote access, and automatic updates, making them ideal for growing businesses. Additionally, CPQ solutions play a crucial role in reducing complexity as businesses scale, streamlining operations and improving efficiency. On-premise solutions, while providing greater control over data security, may require higher IT involvement and maintenance. Choosing between cloud, on-premise, or hybrid deployment depends on your business’s long-term objectives and IT capabilities.
4- Compare Pricing and Total Cost of Ownership (TCO)
CPQ pricing varies based on licensing models, features, user count, and customization needs. While some CPQ solutions have subscription-based pricing, others require significant upfront investments for on-premise deployment. Beyond initial costs, consider ongoing expenses such as implementation, training, support, and potential customization. The total cost of ownership (TCO) should be evaluated to determine the long-term value the CPQ solution brings to your business. Accurate pricing is crucial in delivering the final product to customers, ensuring that the products match customer specifications and expectations. A lower-cost solution with limited features may result in inefficiencies, while a premium CPQ system with robust capabilities can deliver higher ROI over time.
How Cincom CPQ for Manufacturing Stands Out?
Cincom CPQ for Manufacturing is designed to address the complexities of industrial sales, engineering, and production processes, making it the go-to solution for manufacturers dealing with highly configurable products. Unlike generic CPQ solutions, Cincom CPQ Manufacturing offers deep industry expertise, enabling seamless customization of complex products with rule-driven automation.
One of its key differentiators is its ability to handle Engineer-to-Order (ETO), Configure-to-Order (CTO), and Make-to-Order (MTO) manufacturing models, ensuring accurate quotes and seamless integration with engineering and production workflows. The software bridges the gap between sales and engineering by automatically generating CAD drawings and BOMs, reducing manual effort and errors.
Additionally, Cincom CPQ Manufacturing provides robust integration with leading ERP, CRM, and PLM systems, ensuring a unified data flow across the enterprise. Its AI-powered pricing optimization and guided selling features help sales teams configure the best solutions for customers while maximizing profitability.
With multi-channel capabilities, global pricing support, and real-time visualization tools, Cincom CPQ Manufacturing enhances customer engagement and accelerates the sales cycle. Backed by decades of experience in complex manufacturing, Cincom CPQ delivers unmatched efficiency, accuracy, and agility, empowering manufacturers to win more deals and streamline operations.
Conclusion
Our comparison highlights key differences in features, pricing, integration capabilities, and user experience across the solutions. While all options offer robust CPQ functionalities, the ideal choice depends on specific business needs. For enterprises seeking deep customization and complex pricing configurations, Cincom CPQ stands out with its flexibility and industry expertise. If seamless CRM integration and AI-driven automation are top priorities, Salesforce CPQ may be the best fit. Companies prioritizing dynamic pricing optimization may benefit from PROS Smart CPQ.
The right CPQ solution should align with your company’s sales strategy, scalability, and IT infrastructure. We recommend businesses evaluate their unique requirements, explore vendor demos, and take advantage of free trials to experience the platform firsthand. Schedule a demo today to see how a CPQ solution can streamline your sales process, enhance customer experience, and drive revenue growth.
FAQs
1- What is the difference between CPQ software and ERP software?
CPQ (Configure, Price, Quote) software focuses on streamlining the sales process by enabling sales teams to configure complex products, apply pricing rules, and generate accurate quotes quickly. It enhances the efficiency of quoting and selling.
ERP (Enterprise Resource Planning) software, on the other hand, is a broader system that manages various business functions like supply chain, finance, inventory, and production. While ERP handles operational aspects, CPQ ensures accurate and fast sales quoting, often integrating with ERP to maintain pricing and product data consistency.
2- Can CPQ software integrate with my existing CRM or ERP system?
Yes, most modern CPQ solutions, including Cincom CPQ, are designed to integrate seamlessly with popular CRM (like Salesforce, Microsoft Dynamics) and ERP (like SAP, Oracle) systems. These integrations allow real-time data exchange, ensuring pricing accuracy, streamlined workflows, and improved sales efficiency.
3- How long does it take to implement CPQ software?
The implementation timeline varies based on factors such as company size, complexity of product configurations, and integration requirements. A basic CPQ implementation can take a few weeks, while more complex deployments with customizations and integrations can take several months.
4- Why do I need CPQ software for my business?
If your business deals with complex products, custom pricing, or a lengthy sales cycle, CPQ software can help by:
- Reducing quote errors and approval delays
- Integrating seamlessly with existing business systems
- Accelerating the sales process
- Ensuring pricing accuracy and compliance
- Improving customer experience with fast, accurate proposal
5- Is CPQ software easy to implement?
Yes, but the ease of implementation depends on the complexity of your products and business processes. Cloud-based CPQ solutions offer faster deployment, while on-premise solutions may require more customization. Partnering with an experienced vendor ensures a smoother transition.
