Written by: Deeba Kamran
Deeba Kamran is a tech reviewer and writer obsessed with finding the best tools for the modern world. From hardware to SaaS, she delivers clear, actionable insights into the products and services shaping our digital future.
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This article is part of our Business and Enterprise Software resource section.

CPQ software is used to customize price offers. The tool is perfect for automating work in the sales department. It enables you to quickly provide customized price calculations for a product or service in accordance with customer requests. There is no need to manually enter all the transaction components, and check the availability of promotions and discounts for a certain order volume. Your company’s sales representatives will have much more time to concentrate on other tasks.

CPQ Solution and Its Purpose

CPQ automates pricing from start to finish. Businesses planning to connect CPQ with their existing applications should also consider the steps for integrating CPQ software to make sure data and workflows move smoothly between systems.

It can be combined with corporate software, which eliminates familiarization problems and reduces employee training time. CPQ can also connect with Enterprise Resource Planning (ERP) systems to keep pricing, product, inventory, and other business data aligned across departments. Each software vendor implements a specific set of options, which speeds up work processes. When CPQ is connected to a centralized CRM system, sales teams can work with customer information alongside quotes, pricing, and order details.

Employees won’t need to spend a lot of time entering data and generating quotes. Instead, they can focus on interacting with customers and building mutually beneficial collaboration. This customer-focused approach becomes even more effective when businesses understand the benefits of using a good CRM design and organize customer information around the sales process.

When choosing a CPQ solution, consider the needs of your business. The variety of features in the program is a benefit. However, if you don’t need them for your business, there’s no need to learn additional details. At the same time, the software should be intuitive, easy to configure, and relevant to the current time. Careful CRM implementation is equally important when CPQ and customer-management tools need to work together as part of the same sales workflow.

What Does CPQ Mean and What Are the Functions of the Software?

  • CPQ stands for configure, price, quote. Everything is very simple. You can configure the parameters, quickly set prices, and negotiate a proposal with the customer. Processes take a minimum of time, which is important for the competent distribution of work tasks. As for CPQ functionality, the developers offer combinations of the following options:
  • The software generates work-intensive orders based on entered customer requirements. It considers factors like the desired product, pricing model, current discount, payment, and delivery terms. This approach simplifies the sales process and ensures accurate proposal creation.
  • The software automatically directs customer requests through the appropriate offer funnel. Businesses can further use CRM for lead management to organize those prospects and follow their progress from initial interest through the sales process. It applies specific business rules to each order. This reduces errors and increases customer loyalty.
  • The software generates orders quickly. It combines product data, graphics, text, and other content for users. For businesses that regularly handle customized pricing requests from buyers, RFQ software can complement CPQ by streamlining the request-for-quote process. This rapid generation creates accurate, clear, and convincing documents.
  • The software stores contracts. Users can view them at any time. It respects legal regulations. The system tracks contract changes and provides notifications. Users receive alerts when documents require updates or signatures.
  • The software places you at the center of business events. It tracks processes from quote creation to closing contractual obligations. This approach ensures transparency at every stage of cooperation.
  • Reports and analytics. Using the software, it is possible to view key data which characterize the profitability of sales, the amount of the given discount, the number of orders, and many other details. These insights can also support more targeted selling when combined with well-defined CRM segments based on customer behavior, preferences, and purchasing patterns. This enables you to assess the quality of business processes and make informed decisions in the future.

The CPQ tool will help you build a well-coordinated team, please your customers, and fulfill your contractual obligations on time. Process automation has many advantages, and you can appreciate them within the first days of using the software.

CPQ: Who is the Software Suitable For?

The software can be used by sales agents but not only. In addition to the sales department, it can also be used in other business segments. You can purchase software to simplify the work of the following employees:

  • He will be able to quickly set up the software to generate offers and track the status of orders;
  • the buyer. Using the software, the customer will be able to find the necessary products, view specifications, compare prices, or place an order;
  • The program is used to configure the product during its manufacture. 3D visualization of the final product is also possible;
  • The employee will be able to produce a finished solution faster by using technical specifications in his work;
  • the consultant of the support service. Thanks to a single interface with information about order statuses, payment, and delivery details, operators will be able to quickly solve customers’ problems; For teams working with Salesforce, a standard service console for Salesforce users can provide a structured workspace for managing similar customer service activities.
  • an account manager. The employee will be able to develop relations with customers by viewing the history of orders, current discounts, and other information; Access to this information becomes even more useful when account managers work with customer relationship management software that centralizes customer interactions and sales history.
  • business analyst. The specialist gets access to the main data, due to which he will be able to assess the demand for products, sales volume for a certain period, pricing trends, and customer behavior.

With CPQ, you’ll reach a wide range of employees, making it easy for them to do their jobs. For eCommerce businesses using Magento, Magento CRM integration can further connect customer information with sales and order-management workflows. No less important is the speed of the processes to form a pleasant opinion of the company among customers. Faster and more consistent customer interactions can also contribute to customer retention by making it easier to meet expectations throughout the buying journey.

Pandadoc: Modern Solution for Your Business

When looking for process automation software, check out Pandadoc. The software serves various business areas, including CPQ. It adapts for smartphones and tablets. It works with a corporate database. Businesses already using Salesforce can also explore Salesforce-based solutions when looking to connect customer management with broader sales automation processes. The software is distributed free. This reduces the time needed to complete tasks.