What is CPQ?
CPQ stands for Configure, Price, Quote — software that helps businesses automate and streamline their sales quoting process.
What Does CPQ Stand For?
CPQ is an acronym for the three core capabilities of the software:
Configure
Select and customize products, features, and options based on customer needs and business rules.
Price
Apply pricing rules, discounts, bundles, and approval workflows to ensure accurate and profitable quotes.
Quote
Generate professional, branded proposals and quotes with all terms, conditions, and pricing details.
What is CPQ Software?
CPQ software is a sales tool that helps companies quickly and accurately generate quotes for orders. It automates three key processes:
- Product Configuration: Guides sales reps through selecting the right products, options, and add-ons based on customer requirements and compatibility rules.
- Pricing Calculation: Automatically applies the correct pricing, discounts, promotions, and approval workflows based on predefined business rules.
- Quote Generation: Creates professional, branded proposals with accurate pricing, terms, and conditions.
CPQ software integrates with CRM systems (like Salesforce), ERP systems (like SAP), and other business tools to provide a seamless quote-to-cash process.
Benefits of CPQ Software
Faster Quotes
Reduce quote creation time from days to minutes
Error-Free
Eliminate pricing errors and invalid configurations
Higher Revenue
Increase deal sizes with guided selling and upsells
Better CX
Deliver consistent, professional customer experiences
Frequently Asked Questions
What does CPQ stand for?
CPQ stands for Configure, Price, Quote. It refers to software that helps businesses configure products, calculate pricing, and generate professional quotes.
What is the full form of CPQ?
The full form of CPQ is "Configure, Price, Quote." It describes the three main functions of CPQ software: configuring products to customer needs, applying accurate pricing, and generating quotes.
Who uses CPQ software?
CPQ software is used by sales teams in B2B companies, especially those selling complex or configurable products. Industries include manufacturing, technology, telecommunications, and professional services.
How does CPQ integrate with CRM?
CPQ software integrates with CRM systems like Salesforce to provide a seamless workflow. Sales reps can configure products and generate quotes directly within their CRM, with all data synced automatically.
What's the difference between CPQ and CRM?
CRM (Customer Relationship Management) manages customer data and sales pipelines. CPQ focuses specifically on the quoting process — configuring products, pricing, and generating proposals. They work together as complementary tools.
Ready to Implement CPQ?
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