In essence, a product configurator is only a bunch of selection menus that you need to keep track...
What is CPQ?
CPQ is an acronym for Configure, Price, Quote. CPQ is used to describe the process of selecting components (configure), handling pricing (price) and generating documentation (quote). CPQ software is primarily used for complex products, services or a combination of the two.
- supports a simple way to select valid product combinations with respect to product rules and limitations
- price the product correctly according to bundling and discounts
- creates an accurate and persuasive quote based on this information
CPQ software connects front and back end systems and automates the lead-to-cash process.
What is a CPQ process?
What’s included in a CPQ process? Is it all automated and in what way is it adoptable and flexible?
Configure: All complex products have limitations to how modules or sub-components can be combined. The user normally specifies key features and main products, a configurator handles all limitations and itty-bitty details.
Price: Manufacturing costs, geographies, competitive situation, and local protocols - the pricing can be just as complex as the product itself. The price adjustments should both be automatic but also offer flexibility and advice for sales tactics.
Quote: Documents describing a complex product includes texts, illustrations, data sheets, drawings. All specific for each offer generated. The level of details should be flexible and document generation should be fully automated.