Alexis Kestler
If you‘re like most B2B companies, the process of creating quotes, proposals, and deals is slowing down your sales team. Manual quoting using spreadsheets and documents is inefficient, prone to errors, and makes it hard to scale.
Configure, price, quote (CPQ) software is the solution that leading companies are adopting to optimize this process. As a sales operations analyst at a manufacturing company, I implemented CPQ and saw massive gains in efficiency andaccuracy.
In this comprehensive guide, I‘ll share my insights from managing nearly 100 CPQ deployments. You‘ll learn:
- What CPQ is and the top benefits companies see
- How CPQ transforms the quoting process
- An in-depth features comparison of the top 11 platforms
- Best practices to ensure your CPQ implementation succeeds
I know researching CPQ options can be overwhelming. My goal is to arm you with the details needed to pick the perfect CPQ platform for your unique business!
What is Configure, Price, Quote Software?
Configure, price, quote (CPQ) software streamlines the complex process of creating quotes and proposals for customizable products or services.
The CPQ system guides sales reps through product configuration, pricing calculations, proposal generation, and approvals workflows. This automates a process that typically requires pulling data from multiple systems like CRM, ERP, catalogs, and spreadsheets.
According to Gartner, CPQ tools deliver quotes on average 90% faster compared to manual processes. They also enable far greater quoting accuracy by eliminating manual errors.
For example, a CPQ system will:
- Pull in all pricing rules and constraints for a given product/account
- Guide the rep through compatible options and bundles
- Automatically calculate pricing on options selected
- Generate a proposal document with pricing
- Route for approvals before a final quote is generated
This automation and guidance is invaluable when selling customizable solutions. No more guessing on pricing or fumbling through spreadsheets!
The Top Benefits of CPQ Software
Based on my experience, here are the top benefits companies realize when implementing CPQ:
- Shorter sales cycles – CPQ tools deliver quotes 6x faster on average, leading to faster deals.
- Controlled pricing – Central rules ensure reps follow margins, discounts, and policies.
- Higher win rates – Guided selling results in optimal configurations that drive higher approval rates.
- Greater rep productivity – CPQ eliminates manual work so reps can sell more.
- Improved renewals – Historical pricing data aids renewal negotiations.
- Scalability – CPQ tools scale across geographies and sales channels seamlessly.
- Higher average order values – Bundling and upsells options drive larger deal sizes.
According to Accenture, CPQ deployments deliver over 20% increase in Average Order Value (AOV) in most organizations.
For customized products and services, CPQ is an absolute game-changer. Next let‘s look at how CPQ transforms the quoting process.
How CPQ Software Transforms Quoting
Here is an overview of how CPQ platforms automate what is normally a cumbersome manual quoting process:
1. Guided Product Configuration
CPQ tools guide reps through compatible options, parts, and bundles tailored to that specific customer based on predefined rules. Options only valid for the given product/account are presented.
This eliminates incorrect configurations being quoted, saving massive time.
2. Automatic Pricing Calculations
As options are selected, CPQ dynamically pulls in pricing rules, discounts, and fees to calculate pricing in real-time.
Volume discounts and account-specific pricing is applied automatically without reps needing to lookup or manually calculate anything.
Pricing accuracy is hugely improved and margins protected.
3. Proposal Generation and Document Output
CPQ systems take the configured products and dynamically generate a proposal document containing details, pricing breakdowns, terms, approvals, and signature sections.
Proposals can be generated with company branding applied in just a few clicks. The days of copying data between spreadsheets and Word docs is eliminated.
Professionally branded proposals help drive higher conversion and approval rates.
4. Approvals Workflow
CPQ tools streamline compliance by routing configured quotes through predefined approval chains before final proposals reach customers.
Approvers are automatically notified to review pricing exceptions, discounts given, or changes to policies for approval. This prevents unauthorized discounts that hurt margins.
Automated approvals ensure compliance and speed up legal reviews.
5. Integration and Analytics
Leading CPQ platforms integrate seamlessly with surrounding systems like CRM, ERP, eCommerce, and accounting software.
This connects CPQ to existing customer data and makes pricing configuration available across channels like partner portals and online stores.
Granular analytics provide insights into quoting performance – from cycle times by geo to win rates by product line. CPQ analytics empower continuous improvement.
Now that you understand how CPQ transforms quoting, let‘s explore the top platforms on the market today.
Top 11 CPQ Software Solutions Compared
After evaluating nearly 100 vendors in the CPQ space, here is my take on the top platforms available based on market leadership, capabilities, and value delivered:
I‘ll provide an overview, top features, and use cases for each to help you find the right solution.
1. Salesforce CPQ
As the 800-pound gorilla in the CRM space, it‘s no surprise that Salesforce offers a leading native CPQ solution called Salesforce CPQ.
It is seamlessly embedded into Salesforce CRM and provides guided selling, configuration, approvals, and predictive quoting analytics all within a familiar UI.
Top Features:
- Guided selling with AI-driven insights
- Highly customizable product modeling
- Automated approvals and discounting
- Real-time order management and subscriptions management
- Advanced CPQ analytics and reporting
Use Cases: Salesforce CPQ is ideal for organizations standardized on Salesforce CRM. Deep CRM integration and a unified UI makes adoption smooth. Manufacturers and companies with complex products benefit most.
2. Oracle CPQ
Oracle offers an end-to-end CPQ cloud solution focused on automating the order-to-cash process.
Oracle CPQ provides guided selling for complex configurations, predictive analytics, and an intuitive UI for business users. It can be deployed stand-alone or integrated into Oracle‘s CX Suite.
Top Features:
- Highly configurable workflows and products
- Predictive modeling and guided selling
- Embedded CPQ analytics and recommendations
- Mobile app for easy access
- Open APIs enable extensive customization
Use Cases: Oracle CPQ excels in enterprise B2B sales environments thanks to its robust capabilities and scalability. Companies with extensive configured products benefit most.
3. Apttus CPQ
Apttus CPQ provides an intelligent guided selling solution deeply integrated into Salesforce.
It adds capabilities like AI-based guidance, big deal management, and subscription/recurring revenue support to Salesforce.
Top Features:
- Intelligence-driven guided selling in Salesforce
- Subscription and usage-based billing management
- Promotions, discounts, and deal optimization
- CPQ analytics within Salesforce
- Tight collaboration across sales teams
Use Cases: Apttus CPQ is ideal for Salesforce-native organizations needing robust CPQ with subscription and recurring revenue capabilities. It‘s also great for sales teams collaborating on complex deals.
4. SAP CPQ
SAP CPQ provides robust enterprise-grade capabilities optimized for complex manufacturing environments.
It offers guided selling, proposal generation, visual configuration UIs, and rules-driven pricing tailored to industrial enterprises. Native SAP integration provides a unified experience.
Top Features:
- 3D visualization for complex equipment
- Rules-based pricing unique for each industry
- Proposal and contract document generation
- Tight integration across SAP portfolio
- Rapid quoting across sales channels
Use Cases: SAP CPQ is primarily designed for existing SAP ERP customers, particularly manufacturing enterprises with configured products. Integration across SAP systems ensures rapid time to value.
5. FPX CPQ
For companies producing custom-engineered products, FPX CPQ provides deep capabilities to model complex solutions and deliver accurate pricing.
FPX CPQ combines CAD-driven visualization, manufacturing-focused pricing, and guided selling for optimal results. Tight ERP integration ensures efficient order processing.
Top Features:
- CAD-based 3D visualization for products
- Rules-driven pricing aligned to manufacturing
- Guided selling and configuration
- Integration with FPX Smart CPQ suite
- ERP connectivity for rapid fulfillment
Use Cases: FPX shines when configured products have a complex engineering element. Companies producing industrial equipment, machines, and high-tech assemblies see the most benefit.
6. Accenture VPC
Part of Accenture‘s broader CPQ offerings, VPC provides purpose-built guided selling and deal optimization tailored for industries like high tech and telecoms.
It combines guided selling, deal insights, and special promotions/incentives management to optimize profitability on large deals. Seamless Salesforce integration is a key strength.
Top Features:
- Guided selling optimized for deals
- Pricing management and deal insights
- Modeling of volume discounts and promotion effects
- Tight Salesforce integration
- Analytics for pricing optimization
Use Cases: Accenture VPC is ideal for Salesforce users in communications, high tech, and similar industries managing high-value deals with volumes discounts or special incentives.
7. Experlogix CPQ
Experlogix CPQ provides a rapid cloud-based solution that simplifies complex product configurations and pricing.
It offers guided selling workflows, visualization, and support for multiple deployment options including Microsoft Dynamics and Salesforce. It can be quickly implemented without lengthy setup or training.
Top Features:
- Fast implementation – days not weeks
- Intuitive guided selling
- Multi-language support
- Tight Dynamics 365 integration
- Available on Microsoft AppSource
Use Cases: Experlogix is great for companies looking for quick time to value. Those using Microsoft Dynamics get deep integrated capabilities out of the box. It works well across manufacturing and equipment industries.
8. KBMax CPQ
KBMax offers robust CPQ optimized for manufacturers of complex engineered products.
It combines 3D visualization, CAD integrations, and manufacturing-focused workflows to streamline the selling of configured assemblies.
Top Features:
- 3D visualization and CAD integrations
- Rules-driven pricing for manufactured products
- Automated manufacturing drawings and BOMs
- Tight ERP integrations
- Guided selling and proposal generation
Use Cases: KBMax shines when selling engineered products. Companies producing custom equipment, machines, high-tech devices, and assemblies maximize value with the 3D configurator tying into CAD and manufacturing systems.
9. Cincom CPQ
Cincom CPQ provides full-featured CPQ optimized to simplify selling across sales channels like direct, ecommerce, partners, and field reps.
Workflow automation, approvals, and analytics provide control across sales channels while enabling a fast, intuitive experience.
Top Features:
- Guided selling workflows
- Rules-based pricing engine
- Approvals automation and discount control
- Real-time CPQ analytics and insights
- Omnichannel sales support
Use Cases: Cincom hits the sweet spot for manufacturers selling through direct and channel sales. Workflows align pricing and approvals across channels for consistent quoting.
10. CloudSense CPQ
CloudSense CPQ delivers SaaS-based CPQ that is both robust and flexible for enterprise needs.
It focuses on omnichannel selling, guided workflows, and a modern architecture enabling extensive customization when needed. Tight Salesforce integration is a key strength.
Top Features:
- Omnichannel sales enablement
- Highly flexible architecture
- Guided selling and next best actions
- Product and pricing configuration
- Salesforce native integration
Use Cases: CloudSense is ideal for enterprise organizations needing an omnichannel solution that can be tailored to unique sales processes. F500 companies with complex sales needs benefit most.
11. Configure One CPQ
Configure One provides full-featured CPQ optimized for medium to large manufacturing organizations.
It combines guided selling, proposal generation, and robust configuration capabilities in one intuitive experience. Tight ERP integrations ensure efficient fulfillment.
Top Features:
- Intuitive guided selling
- 3D visualization and CAD integrations
- Automated proposal documents
- Rules-driven pricing engine
- Tight integration across ERP and CRM systems
Use Cases: Configure One hits the sweet spot for manufacturing companies that want robust CPQ without over-investing. It provides core capabilities that tighter to surrounding systems at a compelling price point.
This comparison just scratches the surface of all the excellent CPQ platforms available today. I encourage you to dig deeper into capabilities, integrations, and pricing models to find the best fit. Reach out to vendors for demos tailored to your unique needs.
Next I‘ll provide some tips to ensure your CPQ implementation succeeds.
How to Ensure Your CPQ Implementation Succeeds
Given the costs and complexity of deploying CPQ, it‘s crucial to follow best practices to achieve success and maximum ROI:
Get Executive Buy-In
Executive sponsorship is vital to drive adoption and align processes. Make the ROI case for improved sales productivity and accuracy. Set clear KPIs to track.
Take It Slow
Start with a limited product set and basic capabilities like pricing and proposals. Phase in advanced features like guided selling after initial adoption.
Clean Your Data First
CPQ is only as good as the product data it relies on. Eliminate duplicates, align catalogs, and validate pricing first.
Automate Everything Possible
The more you can automate, the greater the efficiency gains. Automate pricing approvals, notifications, post-quote workflows, etc.
Integrate Surrounding Systems
Connect to CRM, ERP, accounting, and other enterprise systems for seamless data flows between systems.
Provide Extensive Training
Comprehensive training on both effectively using the technology and optimized sales processes is essential to driving adoption.
Gather Continuous Feedback
Encourage user feedback through surveys and review sessions. Iterate and enhance the solution based on sales team needs.
Track Performance Closely
Define CPQ metrics upfront like cycle times, win rates, discounting and monitor progress towards KPIs frequently.
Following best practices will maximize your CPQ success and time to value. You‘ll achieve the sales productivity and accuracy gains that leading enterprises are realizing from CPQ.
Conclusion
I hope this guide provided you with a clear overview of CPQ solutions and how they can transform your sales quoting process.
Automating quoting delivers significant reductions in sales cycles, huge gains in rep productivity, and increased pricing control and accuracy. For companies selling customized solutions, CPQ is a must-have sales tool.
The hardest part is selecting the right platform for your unique needs and existing sales technology landscape. I encourage you to leverage this analysis as an initial shortlist, then dive in deeper across top vendors.
Be sure to follow best practices around planning, training, expectation setting, and change management. With a successful implementation, you will achieve rapid ROI and a scalable quoting process ready for business growth!
If you have any other questions as you evaluate options, please reach out! I‘m always happy to share additional insights from my CPQ consulting experience. Here‘s to shortening your sales cycle and boosting productivity.
