What is CPQ Software and Why is it Important?

21st October 2020

Before we begin a new series of blog posts about Salesforce CPQ, we first need to answer the question: what is CPQ? CPQ stands for configure, price and quote, and CPQ is a B2B software tool used by the sales teams to put together pricing quotes for customers.

CPQ Breakdown

C: Configure

What is the likelihood that out of five customers you talk to in one day, all five want to order the exact same thing? Slim chances, right? With CPQ, sales managers can configure product offerings for every customer depending on guidelines such as their wants, needs, goals, size of their business, and more.

P: Price

It is rare to sell every product to a customer at list price. CPQ helps sales managers manage their pricing structure in an automated way instead of having to tailor pricing for each customer. Instances such as bundling products to offer a better rate to customers and volume pricing structures where the more a customer buys, the less they pay per unit, are all easier to control with CPQ tools.

Q: Quote

Once a sales manager figures out what their customer wants to purchase and the pricing specific to that purchase, the CPQ tool will generate the quote for them. The last thing sales managers need to worry about and waste time on is designing a neat and organized quote, but it’s still important that the quote is neat and organized. Additionally, if a sales manager leaves the company and their customer base is transferred over to another sales manager, their customers will still receive quotes in the same format which keeps things consistent and professional.

How Can Neocol Help?

Here at Neocol, we are experts in helping organizations implement Salesforce CPQ as part of the Salesforce suite of products. Interested to hear about how we could help you? Get in touch today!

Contributor: Robert O'Donnell, Principal Solutions Architect, Neocol

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