Smarter, Faster, Better: Sell More With a Proven Configure Price Quote System

What does every sales team want? More sales in less time.

Configure price quote software makes this dream a reality by helping sales reps increase sales efficiency, improve customer satisfaction, and ultimately, drive more revenue.

But what does CPQ software actually do? And how is it used in specific industries? Those are the kinds of questions we’ll tackle in this article. By the time you get to the end, you’ll know exactly how a CPQ solution will benefit your business and how to choose the right one.

Let’s go!

Core Functionalities of a Configure Price Quote System

CPQ stands for configure price quote. This kind of software helps sales reps design complex products, make pricing calculations, and generate accurate quotes—all with minimal effort. The result? Sales teams work faster, while producing a better customer experience. Win!

Let’s dive deeper into the core functionalities of a reliable CPQ platform:

Product Configuration

CPQ software simplifies the product configuration process.

Let’s pretend that your company sells custom road bikes. Customers choose the frames, tires, and handlebars they want. Then your team assembles the bikes based on these specifications.

There’s just one problem: not every frame, tire, etc. is compatible. So, your sales reps have a few options: they can try to remember which parts go together, use spreadsheets to compare connectivity, or invest in CPQ software to help guide them as they configure products for customers. This last option is ideal because it ensures valid combinations in WAY less time.

Now, imagine that you sell very complex products, such as medical devices, that each have hundreds of moving parts? CPQ software becomes mandatory in these kinds of situations.

Pricing Rules and Models

Product configuration is just the tip of the iceberg. Once you build a custom product for your customers, you have to price it out. This is difficult to do—unless you have a CPQ solution.

The best CPQs allow users to guarantee accurate pricing via predetermined pricing models. How much does each individual component cost? Which customers qualify for discounts? You need to know the answers. If you don’t, your company’s profitability will plummet.

Good news—by implementing specific pricing strategies, your CPQ software will automate pricing for your sales reps. That way they always charge the right amount.

Streamlined Quoting Process

At this point, you’ve configured a custom product for your customer and settled on the right price. Now you just need to send this information for approval. Simple, right? Actually, no…

Manual quoting is time-consuming and error-prone. Sales reps have to type in product details and applicable discounts. If they mistype one number, the quote becomes invalid. Customers do NOT like to receive invalid quotes. It extends the buying process and sews seeds of distrust.

Thankfully, CPQ systems automate quoting procedures. Sales reps simply click a button to generate quotes based on the products they’ve configured and their company’s pricing rules. This enables said reps to create quotes in minutes, not hours. When this happens, reps are able to close deals faster and craft a better customer experience that drives revenue. 

Also worth mentioning, many CPQs include an approval workflow feature. Basically, the CPQ automatically routes quotes to the right decision makers, which speeds up sales cycles.

Want to experience the power of CPQ software yourself? Sign up for a free demo of Experlogix CPQ right now. Our industry-leading solution is exactly what you need to boost sales!

Key Benefits of CPQ Software

Your configure price quote system will transform the way your sales team works. Once you’re set up with one of these tools, your reps will become more productive, close deals in less time, improve customer satisfaction, and more. Let’s take a closer look at each of these key benefits:

Better Sales Productivity

Your sales team will never hit peak productivity if they’re always bogged down by admin tasks.

CPQ systems minimize this kind of work so reps can focus on what they do best—building relationships and closing deals. But that’s not all…

CPQs also guide reps through the configuration, pricing, and quoting processes, which cuts down on guesswork and supercharges efficiency. This almost always leads to fewer bottlenecks, happier employees, and more deals in the pipeline.

Faster Sales Cycles

Speed matters in sales. The longer it takes to deliver a proposal, the less likely you are to close a deal. Plus, long sales cycles extend the amount of time it takes to get paid.

CPQ software shortens the sales cycle by enabling sales teams to send quotes quicker. All of the things we mentioned above—pricing rules, one-click quote creation, automatic approval workflows, etc.—turn previously days-long processes into minutes-long tasks.

Imagine sending polished, error-free quotes the same day your prospects ask for them. That’s the kind of efficiency that CPQs provide, which helps reps make more sales.

Enhanced Quote Accuracy

Error-filled quotes can extend sales cycles, damage trust, and even sink deals.

CPQ tools minimize mistakes via predefined business rules for configurations, pricing, and discounts. This keeps quotes accurate, consistent, and compliant with company policies.

For example, your CPQ will make sure only valid product combinations are used to build custom solutions. It will also apply correct pricing tiers and/or discounts on autopilot. With fewer errors, your team will spend less time fixing mistakes and more time on high-value activities.

Real-Time Insights

CPQ software can provide valuable data to sales leaders.

Want to know which products sell best? Where customers typically stall out your pipeline? Or how much revenue your team has generated? A CPQ will answer these questions. Once it has, you’ll be able to spot trends, identify bottlenecks, and adjust strategies on the fly.

Just as important, these insights can be synced with your company’s ERP system, so that all of your sales data is stored in one place. This can have a dramatic effect on team efficiency.

Higher Customer Satisfaction

Finally, CPQ systems boost customer happiness.

How so? By making sure they receive accurate quotes in less time. This streamlines the buying process, while conveying a sense of professionalism and reliability. When customers feel like they can trust your company, they’ll continue to buy from your reps, which is good for business.

According to recent research, a 5% bump in customer loyalty can boost company profits by as much as 95%. That’s a lot of extra cash in your organization’s bank account!

Industry Applications and Use Case Examples

As we’ve just seen, CPQ systems are versatile tools. As such, they can serve businesses in a variety of industries, and help them accomplish multiple things. For example…

Industry Applications

• Manufacturing: Many manufacturers offer customizable products, which makes pricing and quoting tasks difficult. CPQ systems simplify this by providing guided workflows for product configuration. For instance, an electronics manufacturer can easily check compatibility between parts, while applying tiered pricing for bulk orders. A machinery company, on the other hand, can quickly build quotes for custom equipment—even if said equipment has dozens of modular components to contend with.
• Healthcare: In healthcare, CPQ solutions are used to price medical devices, pharmaceuticals, and large service contracts with pinpoint accuracy. For example, hospitals can streamline quotes for cleaning services, factoring in equipment maintenance and training costs if necessary. Just as important, CPQ tools can help ensure compliance with strict pricing regulations. This is critical in the healthcare sector, where violations can lead to severe (and costly!) consequences.
• Automotive: CPQ software also plays a key role in the automotive industry. For instance, can dealerships can use CPQ to order vehicles with specific paint colors, trims, and packages. And auto parts suppliers can quickly send quotes for bulk orders, while applying volume discounts. These things reduce errors and enhance the buying process.

Use Cases

• Direct Sales: Direct sales teams must provide accurate quotes while interacting with customers in real time. A CPQ solution makes this possible by streamlining the entire process. Sellers can easily suggest add-ons and upgrades to increase the value of deals, then generate custom quotes with a click. This speed and accuracy builds trust.
• B2B Sales Processes: Quoting inaccuracies and other delays can create friction in the B2B buyer’s journey. CPQ tools remove these issues via automation. That way products are always configured, priced, and quoted the right way, from the very beginning. By reducing bottlenecks, your reps will complete complex sales processes with less effort.
• Revenue Operations: RevOps teams rely on streamlined workflows and accurate data to drive growth. CPQ software makes their job easier because it centralizes sales data and eliminates manual processes that lead to errors and revenue leakage.

The Challenges of Implementing a CPQ Solution

A configure price quote system will revolutionize your company’s approach to sales. But implementing said software can be a challenge. Fortunately, there are proven ways to overcome these hurdles. To start, you have to understand what the hurdles are. Let’s talk about that…

Data Migration

The data migration process is like moving into a new house. While you could pile up everything in the living room, doing so would be problematic. How would you find your toothbrush?

Your company’s data needs to be organized, viable product configurations need to be determined, and pricing rules need to be set before you can use the tool. Just as important, you need to integrate your CPQ platform with your customer relationship management (CRM) and enterprise resource planning (ERP) software. That way you get the most out of your new CPQ.

To tackle this challenge, conduct a thorough audit of your current data. Then identify gaps, clean up inaccuracies, and standardize formats. If possible, get your IT team involved in the processes ASAP. This will help ensure a smooth migration with minimized downtime.

User Training

Your CPQ system will only benefit your company if your team knows how to use it.

With that in mind, invest in quality training to help your reps become familiar with your CPQ’s unique feature set and use it in their daily workflows. Doing so will build their confidence with the tool and help ensure their adoption. (More about adoption in a minute.)

Good news: there are plenty of ways to train your team. For example, you can buy online courses. Or hire a professional to conduct a hands-on seminar. Or simply provide user-friendly documentation that reps can reference whenever they get stumped.

Resistance to Change

Very few people like change. So don’t be surprised if your employees are hesitant to use a new tool. They probably fear that learning its ins and outs will hinder their productivity. Because of this, you might have trouble convincing your sales reps to use your new CPQ software.

To manage resistance, involve employees in the CPQ selection and implementation processes. At the same time, communicate the benefits of CPQ so your reps understand how it will help them. Finally, assign “champions” within your team to advocate for the software.

How to Choose the Right CPQ System

There are a bunch of CPQ tools on the market. How do you choose the right one for your sales team? Simple: you follow the five-step process below. Let’s take a look!

• Identify Your Business Goals: First, take a step back and ask yourself, “Why do I want to invest in CPQ software?” You might want to increase sales productivity. Or improve quote accuracy. Whatever the case may be, you’ll be more successful if you identify your business goals before you start comparing product features and integration options.
• Set a Realistic Budget: Second, decide how much you can spend on a CPQ solution. Some tools cost less than $50 a month. Others cost $200 or more a month. What can you afford? Set a realistic budget before you fall in love with a particular tool.
• Compare Product Features: Third, dig into product features. What can each app on your list do? Pay special attention to ones that support complex configurations, allow users to set pricing rules, offer automatic approval workflows, and prioritize the user experience. Make a list of must-have features, then cross off apps that don’t have them.
• Assess Integration Capabilities: Fourth, check to see if your preferred CPQ system will connect to your other business systems. CPQ won’t benefit your business as much if it doesn’t integrate with your CRM, ERP, and/or other sales tools.
• Evaluate Each Tool’s Scalability: Fifth, choose a tool that will grow with your company. That way your reps don’t have to learn a new piece of software in the future. Does the tool you’re considering support additional team members? Can it handle more complex product configurations? Will it allow you to serve customers in multiple countries? These are important questions to answer. Find a CPQ that allows for expansion.

Improve Your Sales Process With CPQ Software

CPQ software simplifies complex sales tasks, enhances accuracy, and shortens sales cycles. The result? Reps are able to close more deals, drive more revenue, and enjoy more success!

Of course, you have to choose the right CPQ tool to experience these benefits. There are plenty of options out there, but few stack up to Experlogix in terms of price and performance. Our solution has all of the features your sales team needs to succeed, including:

• A powerful rules engine to help reps configure products quicker
• A robust pricing calculator to eliminate pricing-related mistakes
• Automated proposal creation to streamline the quoting process
• Seamless integration to popular CRM and ERP systems
• A ton of other industry-leading features!

Want to learn more? Sign up for a free demo of Experlogix CPQ today! Companies in the manufacturing, wholesale, and distribution industries will find our tool especially helpful!