What is CPQ?
Comprehensive Guide to Configure – Price – Quote Solutions
Complex manufacturers often face significant challenges throughout the sales process. These include:
- Managing thousands of product configurations
- Navigating intricate pricing structures
- Ensuring that every quote meets customer specifications and compliance standards.
Traditional tools only add one more layer of complexity. Sales teams face delays from manual approvals, errors from disconnected systems, and slowdowns from limited engineering input. Therefore, it becomes tough to deliver accurate, customized quotes on time, leading to lost deals, revenue leaks, and frustrated customers.
In such situations, CPQ software plays a pivotal role in streamlining the entire process and generating accurate quotes faster.
Let’s explore what CPQ is and how it helps businesses like yours overcome quoting chaos.
What is CPQ?
CPQ stands for Configure, Price, Quote. It’s a sales tool that automates the configuration, pricing, and quoting process. It enables businesses to quickly configure complex products, calculate accurate pricing based on rules and discounts, and generate personalized, error-free quotes.
A CPQ software solution typically consists of:
Together, CPQ software streamlines the sales process, reduces errors, and speeds up deal closures.
Struggling with manual quotes, pricing errors, or complex configurations?
Learn how Cincom CPQ helps streamline your sales process.
The Key Features of CPQ
01
Product Configuration
CPQ software enables sales teams and customers to configure complex products using predefined rules. This ensures that all configurations are valid, feasible, and aligned with business standards.
02
Pricing Management
CPQ software applies dynamic pricing based on market conditions, customer-specific rules, geography, and discounts—ensuring accurate, consistent, and competitive pricing.
03
Quoting Automation
The software auto-generates professional quotes based on configured products and pricing. Sales teams can quickly customize these quotes to match customer needs, speeding up the sales cycle.
04
Guided Selling
Guided selling tools lead users through the configuration process by asking the right questions and suggesting optimal products based on needs.
05.
CRM and ERP Integration
CPQ integration with systems like Salesforce, Microsoft Dynamics 365, and ERPs syncs customer data, inventory, and order history—removing manual entry and improving data accuracy.
06.
Multi-Channel Selling
CPQ software supports multiple sales channels—direct, partner, or online—ensuring a seamless, consistent buying experience across touchpoints.
The Benefits of CPQ in Business Success
CPQ software addresses the inefficiencies of manual quoting by streamlining complex sales, improving accuracy, and accelerating the sales cycle. Here’s how it contributes to business success:
Industry-Specific Applications of CPQ
CPQ is flexible and can be adapted to meet the needs of various industries. Here’s a look at how different sectors benefit from this powerful solution:
Manufacturing
Medical
Specialty Vehicles
IT Managed Services
HVAC
Power & Utilities
Tech & Electronics
Microsoft Dynamics 365
Schedule a Tailored Consultation to Find Out if CPQ is Right for You.
CPQ Integration - Connecting Sales with the Rest of Your Business
CPQ software works best when it’s connected to your other core systems—like CRM, ERP, and eCommerce platforms. These CPQ integrations break down data silos and keep your teams aligned.
CRM Integration
Pulls in real-time customer data so sales teams can generate personalized, accurate quotes without switching tools.
ERP Integration
Gives CPQ software access to product availability, inventory levels, and pricing rules, ensuring every quote is up to date and error-free.
eCommerce Integration
Enables self-service product configuration and quoting for customers, improving the digital buying experience.
By syncing CPQ software with your business systems, you reduce manual data entry, avoid costly errors, and keep everyone, from sales to finance, on the same page.
Cincom CPQ vs. Other CPQ Solutions
| Feature | Cincom CPQ | Other CPQ Solutions |
|---|---|---|
| Target Industries | Complex manufacturing, medical devices, specialty vehicles, IT managed services, and more. | General industries with limited customization options. |
| Deployment Options | Offers both on-premise and SaaS (cloud-based) deployment. | Mainly cloud-based with limited or no on-premise deployment options. |
| Customization Capabilities | Highly configurable for complex, made-to-order (MTO) and engineer-to-order (ETO) products. | Limited customization features for complex products. |
| Integration | Seamlessly integrates with Microsoft Dynamics 365, Salesforce, and other major ERP and CRM systems. | May offer basic integrations with limited ERP/CRM systems. |
| Visualization Tools | Integrated 2D/3D visualization tools for real-time product configuration. | Visualization capabilities are either basic or require third-party tools. |
| Ease of Use | Intuitive interface tailored for both sales and engineering teams. | May require extensive training for non-technical users due to complex interfaces. |
| Regulatory Compliance | Built-in tools for ensuring industry compliance | Limited regulatory compliance support |
| Global Support | Strong global support with multi-language and multi-currency capabilities for global manufacturers. | Support for global operations can be limited or require additional customization. |
| Advanced Analytics | Includes robust CPQ ROI calculators and detailed performance metrics to track sales efficiency. | Basic reporting features with limited in-depth analytics. |
| Pricing Models | Flexible pricing models tailored to industry needs | Offers basic pricing structures |
Why CPQ is Essential for Modern Businesses?
With rising customer expectations, businesses need to improve speed, accuracy, and responsiveness in their sales processes. CPQ software addresses these challenges directly.
Here’s why CPQ benefits your business:
Automates key processes to reduce time from configuration to quote.
Offers personalized solutions tailored to customer needs.
Ensures error-free product configurations and quotes.
Works seamlessly with CRM and ERP through CPQ integration.
Helps close deals faster, reduces mistakes, and improves customer satisfaction.
Investing in CPQ software doesn’t just improve quote speed—it directly impacts your bottom line
Are you curious to know about your own ROI? Use our CPQ ROI Calculator to estimate your potential savings and revenue boost.
Wrap Up
Frequently Asked Questions about Cincom CPQ
1. How long does it take to implement CPQ software?
Implementation timelines can vary from a few weeks to several months depending on the complexity of your product catalog, number of integrations required, and customization needs.
2. Is CPQ software only for large enterprises?
No. While CPQ is highly beneficial for complex, enterprise-level sales, many modern CPQ solutions offer scalable options for mid-sized businesses as well.
3. Can CPQ software be used by non-technical sales reps?
Yes. Most CPQ solutions include guided selling and user-friendly interfaces, making it easy for non-technical users to configure products and generate quotes accurately.
4. Does CPQ work for service-based businesses?
Absolutely. CPQ software can handle complex service offerings, subscription models, and bundled solutions—making it ideal for IT services, consulting, and SaaS.
5. What kind of training is needed to use CPQ effectively?
Basic training is typically required for sales teams to understand product configuration and quoting workflows. Admins and power users may need advanced training for rule creation and system maintenance.
