Product Configurator Tool vs System: What’s Right for Your Business?

Introduction

Sales configurator software, and more specifically, product configuration software, comes in a wide range of varieties, formats and sophistication. For the sake of simplicity, I’m going to toss them all into one of three bags: tools, solutions and systems. 

Depending on your application and your level of complexity in terms of product, market, price or organization, you may be best served by a simple, free-standing product configurator tool, or you may require a more elaborate, full-function integrated product configurator system. Here are some examples.  

John sells cleaning supplies to large companies and janitorial services. His product line is made up of roughly 50 cleaning compounds that are designed to address specific cleaning needs based on the composition of the surface to be cleaned and the type of soiling to be addressed. 

The biggest variables in quoting his customers are price, volume and delivery requirements. Because of the content in some of the products and demand, the pricing may be prone to seasonal adjustment. 

John’s biggest challenge is to make sure he is quoting a current price for a given product in stated quantities. 

He doesn’t need to design complicated variations of the products or negotiate elaborate contracts with his customers. He needs to confirm that this product costs this much per pound or ton and that it is in stock. 

For this level of sophistication, a simple tool—tablet resident or cloud-based, will deliver real-time quotes based on the few variables necessary to scale a proper and accurate price. Pricing can be updated automatically in real time to assure that the tools are always using current prices. 

 

What is a Product Configurator Tool?  

A product configurator is a powerful software tool designed to enable customers to customize and personalize products according to their specific needs and preferences. Acting as a visual commerce tool, it allows customers to see the final version of a configured product before placing an order. This not only enhances the customer experience but also simplifies the sales process by providing a user-friendly interface to configure complex products. By using configuration rules, product configurators guide customers through the customization process, ensuring that the final product meets their exact requirements. This makes it easier for businesses to handle complex products while delivering a tailored experience to their customers. 

 

 

Benefits of Product Configurator Software 

Product configurator software offers a multitude of benefits for both businesses and customers. By enabling customers to configure products according to their needs, businesses can see a significant increase in sales, a reduction in returns, and an overall improvement in customer satisfaction. The Product Configurator software automates the sales process, saving valuable time and speeding up the quoting process. Additionally, it provides businesses with valuable insights into customer preferences, helping them identify popular features and refine their marketing strategies. This dual advantage of enhancing the sales process and providing actionable data makes product configurator software an indispensable tool for modern businesses.  

 

 

Customer Benefits

Product configurators solution offer several key benefits to customers, including:  

• Personalization: Customers can personalize products to meet their specific needs and preferences, ensuring they get exactly what they want. 

• Increased Control: Customers have complete control over the configuration process, allowing them to make changes and adjustments in real-time. 

• Improved Experience: The user-friendly interface of product configurators makes the sales process more enjoyable and engaging, especially when dealing with complex products. 

• Increased Transparency: Customers receive upfront pricing and detailed product information, enabling them to make informed decisions. 

• Faster Decision-Making: By simplifying the configuration process, product configurators reduce decision fatigue and increase the likelihood of a sale. 

 

 

Key Features of a Product Configurator 

A robust product configurator system typically includes the following key features:  

 

 

• Real-Time Product Configuration and Pricing: Allows customers to see changes and updates instantly as they configure their products. 

• Automated Generation of Product Descriptions and Bills of Material: Streamlines the creation of detailed product information and necessary documentation. 

• Integration with Existing E-Commerce Platforms and Other Business Systems: Ensures seamless operation within the broader business ecosystem. 

• Customizable Product Configuration Rules and Workflows: Provides flexibility to tailor the configuration process to specific business needs. 

• Dynamic Pricing and Pricing Rules: Adjusts prices based on various factors, ensuring accurate and competitive pricing. 

• User-Friendly Interface: Facilitates easy navigation and configuration, enhancing the user experience. 

• Advanced Analytics and Reporting Capabilities: Offers insights into customer behavior and product performance. 

• Support for Complex Product Rules and Configurations: Handles intricate product requirements and variations. 

• Sales Automation and Sales Team Enablement: Streamlines the sales process and empowers the sales team with the tools they need. 

• Customer Satisfaction and Feedback Mechanisms: Ensures continuous improvement by capturing and analyzing customer feedback. 

 

By incorporating these features, product configurators solution not only enhance the sales process but also contribute to higher customer satisfaction and more efficient business operations.  

 

Product Configurator Software Systems Simplify Complexity 

When you have complex product requirements, you also have a complex organization. An organization with multiple business units, multiple product lines selling into multiple countries, pulling supplies out of a complex supply chain with highly variable demand and margin sensitivity, you are talking about a need for an integrated system. 

When you rely on real-time data to supply your performance measuring facilities that feed an appetite for reporting sliced and diced by geography, product, business unit, year over year and all other permutations, you want your system to be integrated into a single overarching structure. 

CPQ feeds data into the order management system, which alerts the supply chain management system and opens a production slot within your plant operations and scheduling systems. Your ERP system picks up and routes all data to those functions that require it. 

Consider a company like GE. They make appliances, jet engines, automotive systems, aerospace systems and just about anything else you can think of and manage the parts, assemblies, subassemblies, pricing, availability, internal and external sources, the back-up supplier networks, the product queue and the financial reporting requirements for all of it. 

Driving the future product directions, the marketing, engineering and testing along with the selling and supporting of the thousands of direct and indirect customers requires a committed and highly evolved IT infrastructure. 

This is the difference between a system and a solution. A system is integrated and interfaced throughout the enterprise. 

Selecting what you need for your particular operation should be based on current requirements with a bit of room for growth. But avoid overbuying and overcomplicating your business processes with capability you simply do not need. 

 

Choosing the Right Approach for Your Business 

Selecting the appropriate product configuration solution should be based on current requirements with room for growth, while avoiding overcomplication: 

 

Assessment Criteria 

• Product Complexity: Simple vs. highly configurable products 

• Organizational Structure: Single unit vs. multi-division operations 

• Market Reach: Local vs. international sales 

• Integration Needs: Standalone vs. enterprise-wide systems 

• Growth Projections: Current vs. anticipated future requirements 

 

Decision Framework 

• Simple Tool: For straightforward products with basic pricing variables 

• CPQ Solution: For complex products requiring sophisticated configuration rules 

• Integrated System: For enterprise-level operations with multiple business units and complex reporting needs 

 

Conclusion 

Choosing the right product configurator tool ultimately depends on your business complexity, organizational structure, and growth objectives. Whether you need a simple standalone tool for basic pricing or a comprehensive complex product configurator for enterprise operations, the key is matching your solution to your actual requirements without overcomplicating your processes. Start with your current needs, plan for reasonable growth, and select a product configuration solution that enhances both customer experience and operational efficiency. 

 

FAQs 

1- What is a Product Configurator System?

A Product Configurator System is a software tool that helps businesses create customized products by allowing customers or sales teams to select different features, options, and specifications. It ensures that only valid configurations are created based on business rules, improving efficiency and reducing errors. 

 

2- How does a Product Pricing Configurator work?

A Product Pricing Configurator automates the pricing of configurable products based on selected features, quantity, discounts, and real-time cost calculations. It ensures accurate, competitive, and dynamic pricing, reducing manual errors and improving sales efficiency. 

 

3- How does Sales Configurator Software improve the sales process?

Sales Configurator Software empowers sales teams to quickly configure, price, and quote complex products. It enhances customer interactions by providing real-time visualization, accurate pricing, and seamless order processing, leading to faster deal closures. 

 

4- What is a CPQ Product Configurator?

A CPQ Product Configurator is a specialized software solution that enables businesses to configure complex products, price them accurately, and generate professional quotes. It integrates with CRM and ERP systems to ensure seamless sales operations. 

 

5- Who can benefit from a Product Configuration Solution?

A Product Configuration Solution benefits manufacturers, distributors, and sales teams in industries such as manufacturing, industrial equipment, specialty vehicles, and medical devices. It simplifies complex configurations, reduces errors, and enhances the overall customer experience.