Configure, price, quote (CPQ) is software that helps companies accurately define the price of goods by accounting for several variables that influence things such as cost, including competition, market demand and cost of production.
As companies grow, it becomes increasingly difficult to manage product pricing and to gauge the potential impact of these variables. Configuring a quote can be a time-consuming task, especially when balancing various factors is difficult or the data isn’t readily available. CPQ software eliminates these problems, enabling companies to adjust their pricing to changes in market demand in real time.
CPQ software can also help companies brace for peaks or lulls in demand before they happen. At the same time, a company can prepare orders faster without increasing the potential for error. And because pricing data is more streamlined, operations can be streamlined as well. These efficiencies save time and increase sales prospects.
CPQ software is often an add-on to CRM platforms and operates alongside traditional CRM tabs such as sales forecasts and inventory. CPQ buyers often sell fairly complex, high-priced products. CPQ extends sales automation beyond opportunity management into adjacent sales activities. CPQ optimizes converting leads into sales by automating more of the activities that convert a lead through the sales funnel.
See also: dyamic pricing