The growing market for customizable products has introduced additional complexity to sales and manufacturing processes.
This is where CPQ (Configure, Price, Quote) solutions come into play, revolutionizing the sales process by streamlining customization, pricing, and quoting processes.
CPQ solutions enable you to configure products to meet specific customer requirements, accurately price these customizations, and generate detailed quotes.
With a quality CPQ solution, you can offer a wider range of customized products without the fear of quoting errors or production delays–key for seizing a competitive edge in a world where people want custom products and are willing to pay a premium for them.
This article delves into everything you need to know about CPQ software, how it works, and how to choose the best solution for your needs.
CPQ software targets common sales challenges around configuration, calculating pricing, and creating error-free quotes.
One of the most important things to understand about CPQ is that it’s uniquely positioned to support both customer experiences and production environments.
On the front end, CPQ takes the form of an interactive product configurator for customization and visualization. Cloud CPQ tools, like Epicor CPQ, can be embedded into any sales channel, from in-store on a sales rep’s tablet or phone to online on the company website. On the back end, CPQ powers production by generating manufacturing files tailored to each order, including:So, CPQ bridges the customer experience with manufacturing, ensuring configurations are produced accurately and efficiently.
Let’s move on to take a close look at the C, P, and Q in CPQ:
Configuration: Precision in Customization
The configuration phase is foundational in CPQ, allowing customers and sales reps to design products for individual customer requirements. This stage involves:
Price: Accuracy and Transparency
Once the product is configured, the CPQ system calculates the price, considering the various customizations selected. This process includes:
Quote: Finalizing the Offer
The quotation process consolidates the configuration and pricing details into a comprehensive proposal. Key aspects of this phase include:
After completing the above three steps, the CPQ system generates CAD files, BOMs, and other manufacturing assets. This simplifies the manufacturing process, resulting in a tightly orchestrated order-to-cash (O2C) process.
Several CPQ systems on the market perform these core functions, but how do you choose the right one for your needs? And what other features do you need to look out for?
CPQ software has evolved, offering features for building smart, interconnected sales and production pipelines.
Let’s take a look at how CPQ solutions like Epicor CPQ are pushing the limits of what can be achieved with product configuration.
Visual Configuration: Enhance Product Engagement and Increase Sales
Visual configuration is the mainstay of CPQ’s front-end experience. This is what users come into contact with when they configure their products.
The best CPQ systems enable users to customize products precisely to their needs with interactive 2D and 3D visualization, empowering customers and sales representatives. This delivers:
No-Code Rules Engine: Support Advanced Logic for Configurations
Offering lots of custom products is one thing, but you need a way to build these out in your CPQ. That can be extremely laborious when you have thousands–even millions–of product options and permutations.
It’s vital to seek out a CPQ solution that makes your products easy to set up and manage. Otherwise, you won’t be able to use it to its fullest.
Epicor CPQ offers the no-code Snap rules engine, which vastly simplifies the process of quickly and accurately configuring products, selecting features, and determining accurate pricing.
AR/VR Experience: Revolutionize Buyer Engagement
Immerse your customers in a fully interactive buying experience with AR and VR.
Only 16% of businesses use AR and VR in their purchasing experiences despite AR experiences being 200% more engaging. Revenue from AR and VR is expected to rocket in the years ahead.
Leading CPQ solutions like Epicor CPQ use AR and VR to allow buyers to explore products in virtual environments before manufacturing, providing a new level of engagement.
Aligning expectations with reality through AR and VR also helps decision-making and minimizes returns and rework. This results in:
Manufacturing Automation: Close the Loop Between Sales and Production
CPQ systems are perfectly positioned to align sales and manufacturing– departments that too often exist in isolation.
Top CPQ solutions automate the creation of CAD drawings, BOMs, and cut sheets, providing the shop floor with the information they need to meet customer demands.
This closes the loop between sales, engineering, and production teams, ensuring that configured products are efficiently manufactured with minimal friction or delay.
Integrations: Seamlessly Connect Critical Business Systems
CPQ solutions should integrate with the enterprise software ecosystem.
Cloud-native CPQ, like Epicor CPQ, seamlessly integrates with ERP systems, CRM platforms, CAD systems, eCommerce systems, and more, offering organization-wide benefits, leading to:
CPQ software enables businesses to transform their customized and personalized product offerings.
By offering a comprehensive suite of features, including immersive 2D and 3D visual configuration, augmented reality experiences, dynamic pricing strategies, and seamless integration with existing systems, Epicor CPQ goes beyond traditional CPQ solutions.
Bridging the gap between sales and production through the automated generation of CAD drawings, BOMs, etc., ensures that products are sold efficiently and produced accurately and on time.
Embrace the future of sales with Epicor CPQ and transform your business's approach to customized product offerings.
How do you choose the best CPQ tool?
When considering Configure, Price, Quote (CPQ) solutions, the market offers a variety of options, including Salesforce CPQ, Tacton CPQ, Oracle CPQ, Prosmart CPQ, IBM CPQ, Connectwise CPQ, Prosmart CPQ, Infor CPQ, Experlogix CPQ, Powertrak CPQ, pros Smart CPQ, SAP CPQ, Conga CPQ, DealHub CPQ, Configure One CPQ, and Cincom CPQ, among others. Each of these CPQ applications brings basic features and capabilities to the table.
However, Epicor CPQ sets itself apart in the CPQ market with its distinctive combination of features, offering a superior solution for businesses:
How can I configure Oracle CPQ Cloud with Salesforce CRM?
Follow Oracle's integration guidelines to seamlessly connect CPQ with Salesforce CRM, enabling sales teams to access customer data and generate quotes within Salesforce.
Can Oracle CPQ Cloud help expedite commerce processes within Salesforce CRM?
Yes, CPQ automates tasks like configuration and pricing, empowering sales reps to respond quickly to customer requests and close deals faster. An enhanced CPQ process boosts sales and customer retention. This enhances business processes within a sales organization.