what is cpq

CPQ stands for Configure, Price, Quote, and it is a software system used by sellers to produce accurate quotes for complex and configurable products. CPQ software helps sellers to configure products, determine the price of the products, and generate quotes based on customer specifications. It allows organizations to provide personalized prices and quotes for each customer using codified product and pricing information, which gives sales teams a chance to boost their win rates and create a better buying experience for their customers. With CPQ, salespeople can offer the best possible options for customers, and the software helps make the seamless transition from sales journey to decision. CPQ technology can help companies improve accuracy and efficiency while also reducing costs. The CPQ industry has many vendors, and some vendors focus more on one component, such as a price optimization provider may integrate their pricing software with another providers configuration engine. The market for CPQ technology and services is currently highly fragmented with a few large suppliers penetrating a few key market segments while the rest of the market is divided among numerous small and mid-size firms.