CPQ Software FAQs
What does CPQ mean?
CPQ stands for “Configure, Price, Quote,” which refers to the three major functionalities of CPQ software.
The goal of CPQ software is to automate the pricing and quotation aspects of product sales, as they tend to be the longest and most complicated. This is especially true in industries where products have multiple configurations and variants, which could lead to pricing, inventory, and supply chain issues.
When used right, CPQ can streamline the product lifecycle, reduce errors in pricing and configuration, and improve the overall customer experience.
CPQ systems are widely utilized across various sectors, including manufacturing, technology, and healthcare. Essentially, they are integral for any business that demands customized products or services.
How does CPQ help with quote generation?
The problem with manual quote generation is that it’s tedious and error-prone.
Consider a scenario where a client requests a unique product configuration. To provide an accurate quote, you would first need to consult with the engineering team to determine the costs involved, including raw materials and components. This process can be time-consuming, potentially taking hours or even days, which may result in losing a sale due to delays.
CPQ systems revolutionize this process through automation. They allow end users to create product configurations in 2D or 3D, after which the system automatically calculates the price and generates a quote in a matter of minutes, with just a few clicks.
This efficiency is particularly advantageous when clients request changes in the product configuration. The CPQ system immediately updates the price to reflect these changes, generating an updated quote. This rapid response capability of CPQ systems enhances efficiency and significantly improves customer satisfaction and sales success.
What kind of training is required to run CPQ software?
The level of training necessary for CPQ software varies, but platforms like Tacton CPQ are designed for ease of use, requiring minimal to no training. This user-friendly approach ensures that anyone within the organization can efficiently utilize the software, regardless of their technical expertise.
Tacton CPQ features an intuitive visualization tool, enabling sales agents and customers to easily create and modify product configurations with just a few clicks.
Additionally, the system can automatically generate CAD drawings based on these configurations, which can then be seamlessly forwarded to the engineering team for further processing. This streamlined approach simplifies the configuration process, making it accessible and efficient for all users.
What are some key features of CPQ software?
When selecting CPQ software, things to look out for include dynamic pricing, powerful visualization, automated quote generation, integration with other platforms (especially CRM and ERP), and analytics. Ideally, the CPQ system should be cloud-based to ensure easy accessibility for all members of your organization.