CPQ (configure, price, quote) is programming that helps sales representatives and self-service customers quickly generate accurate quotes for configurable products and services.
CPQ software is typically used to generate quotes for products and services that have a lot of feature options. The software is rules-based and can be customized to address multiple variables that will affect profit margins.
Key features of CPQ software include:
- The ability to create a bill of materials or service level agreement (SLA) based on a particular customer's configuration choices.
- The ability to quickly adjust a quote in response to a change request.
- The inclusion of templates that can be used to digitally generate proposal documents and contracts.
As companies grow, it can become increasingly difficult to manage product pricing. Configuring a quote can be a time-consuming task, especially when there are a lot of variables for a product or service. CPQ software is often an add-on to CRM platforms and operates alongside traditional CRM tabs such as sales forecasts and inventory.
See also: dyamic pricing