Tacton CPQ is a configure, price, quote (CPQ) software to automate and manage the configuration,...
What is a CPQ process?
CPQ stands for Configure, Price, Quote. The CPQ process includes selecting components (configure), handling prices and discounts (price) and generating various documentation (quote, technical specifications, 2D- and 3D-drawings).
The CPQ process has a long history with manufactures of complex products, but with the introduction of SaaS (software as a service) the market is currently expanding into service offerings and less complex products.
The CPQ process
- supports a simple way to select valid product combinations with respect to product rules and limitations
- prices the product according to bundling and discounts (manual or automatic)
- creates an accurate and persuasive quote documents based on configuration and pricing information information
CPQ software connects front and back end systems and automates the lead-to-cash process.
What is a CPQ process?What’s normally included in the CPQ process? Is it all automated and in what way is it adoptable and flexible?
Configure (the C in the CPQ process)
A modern CPQ process simplifies the interaction by asking high-level questions about requirements. This is often referred to as guided selling.
The magic bullet when it comes to the CPQ process is the ease of maintenance. The time it takes to do updates as the product portfolio evolves is the real differentiator between a “good” and a “not so good” CPQ process.
Price (the P in CPQ process)
More and more companies are currently moving to a more value-based pricing. What value does your superior product offer deliver to a specific customer? This requires some heavy lifting when it comes to analysis but once that’s in place the CPQ process can really leverage the bottom-line profit and still keep customers loyal to your brand.
Price adjustments is also an important part of the pricing step in the CPQ process. This can be set up to be automatic but should also offer flexibility and advice for sales tactics.
Quote (the Q in the CPQ process)
The documents generated in the CPQ process describe the product an includes texts, illustrations, data sheets and sometimes drawings, all customized for each offer generated.