CPQ is a sales tool that allows businesses to rapidly and precisely produce quotations for purchases. CPQ software frequently collaborate with CRM platforms, ERP programmes, and other company technologies, ensuring integrated data as well as accuracy. Quotes generated by CPQ software are automated in accordance with a predefined set of criteria, providing error-free pricing that takes into account quantities, discounts, modifications, optional product features, different revenue kinds, and incompatibilities.
Technological and technical developments have resulted in products becoming more complex and diverse. Thus, the CPQ technology was introduced in the latter part of the twentieth century in the form of a ‘configurator,’ a logic-based system that fulfills the required customer expectations and specifications by streamlining the required sales processes in sequential order.
The CPQ products themselves have evolved from a configurator tool to a technology assisting in improving sales productivity by automating quoting tasks which can be used directly by the sales team, channel partners, and customers and can also integrate into any eCommerce portal. As indicated by the acronym CPQ, this is a three-step process as described below:
- Configure: This is the first step in which various products are collated together to create a final product.
- Price: Pricing is the next step. The CPQ solution leverages AI-based pricing solutions to figure out the right price for individual customers for a particular product based on various promotional schemes, discount offers, and real-time prices.
- Quote: Quoting is the final step in the CPQ process, wherein the sales team, channel partners, and customers can generate quotes and proposals with a single click. Additionally, the CPQ software’s AI capabilities help the sales team and channel partner to personalize the document.
According to Kumar Anand, an Analyst at Quadrant Knowledge Solutions, Configure, Price, and Quote (CPQ) application is “a sales tool that helps the sales teams and self-service customers configure products, provide pricing accuracy, and generate accurate quotes to streamline the end-to-end sales process.” Thus, CPQ is an integrated process helping sales representatives, channel partners, and self-service customers generate precise quotes for configured products and services, helping to enhance the overall customer experience.
Table of Contents
- Key Research Findings
Market Overview and Technology Trends
Factors Influencing Technology Development and Market Growth
Market Adoption Trends
Competition Landscape and Analysis
- Competitive Overview and Analysis
- Key Competitive Factors and Technology Differentiators
SPARK Matrix™: Configure, Price, and Quote (CPQ) Application
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