What is CPQ Software and How It Works

General / Thu 9th May 2024 at 11:38am

CPQ (Configure, Price, Quote) is a concept aimed at optimizing and automating the sales process from product configuration, price calculation to the creation of a proposal for a customer. The term is becoming increasingly popular in business, especially in the B2B (business-to-business) context, where time and efficiency play a key role.

CPQ solutions are software specifically designed to optimize the sales process and reduce the time it takes to close a deal. For example, companies using cpq software have seen a significant reduction in the time from quote to payment, allowing them to manage sales more efficiently and ensure faster turnaround times.

Effective use of CPQ systems also improves service quality through more accurate and transparent quotations, and increases the level of trust from potential and current customers. CPQ technology is thus becoming an integral part of modern sales strategy, providing companies with a competitive advantage and improving their business processes.

How the Cpq Tool Works

Today’s consumers seek a shopping process that is prompt, accurate and convenient. They actively seek and receive high quality information, often making a purchase decision before contacting a salesperson. This underscores the importance of buyers’ self-education and rising expectations in today’s sales trends.

At the same time, sales professionals are faced with an increasingly complex and multi-step process, from writing a quote to receiving payment. Different customer segments, such as large companies, public institutions, small and medium-sized enterprises, require individual approaches to sales tools: 

  • product customisation;
  • pricing;
  • creating sales proposals; 
  • order management;
  • transparency;
  • invoicing.

The development of diverse sales channels such as e-commerce, distributors, partners and resellers with a variety of partner programs creates the need for adaptability and flexibility in dealing with different types of customers.

It is essential to provide prompt and quality customer service across all communication channels, as this can have a significant impact on successful deal closing and customer retention. Responsiveness, transparency and a personalized approach to each customer are key factors that determine success in today’s market conditions.

There are several important cpq tool that will help to achieve increased productivity in any sales team:

  • In the context of complex transactions where data must be collected from multiple sources and channels, correcting bid errors becomes critical. CPQ (Configure, Price, Quote) automates this process, reduces mistakes and increases efficiency. CPQ helps to systematize workflows, which helps generate accurate orders, increases sales percentages and helps achieve goals.
  • One of the key capabilities of CPQ is the use of previous order data to suggest additional and related products. This helps in not missing opportunities for additional sales, increasing revenue and customer satisfaction. In this way, CPQ helps salespeople maximize every customer contact to increase profits.
  • Controlling inappropriate discounts is also an important task for businesses, especially when dealing with different business rules and regional peculiarities. CPQ allows you to implement pricing controls that help you avoid pricing errors and maintain revenue and customer loyalty. This is especially important in today’s competitive business environment, where proper pricing plays a key role in a company’s success.

Implementing such software in the company, the business owner can count on the growth of sales from the first days of use. Of course, it is necessary to provide qualified personnel training beforehand.

How PandaDoc Helps Use CPQ Software

PandaDoc is an indispensable tool for the effective use of CPQ software in modern business processes. Compatibility with different CPQ systems allows data and workflows to be integrated across platforms, automating the transfer of information on product configurations, prices and quotations. This reduces the likelihood of errors and improves operational efficiency.

This service can assist in the following:

  • PandaDoc is highly compatible with different CPQ systems, allowing the integration of data and processes between these platforms. Thanks to this association of cpq solutions to the PandaDoc service, information on product configurations, prices and quotes is transmitted automatically, eliminating the need for manual data entry and reducing the risk of errors.
  • PandaDoc provides a wide range of tools for creating professional documents such as agreements, contracts and proposals. This makes it quick and easy to draft documentation based on data obtained from the CPQ system. With flexible templates and the ability to customize documents to meet specific requirements, businesses can create high-quality and attractive proposals for clients.
  • One of the key benefits of PandaDoc is the ability to electronically sign documents. This is particularly important in the CPQ context, where the conclusion of transactions and agreements requires speed and convenience for customers. Thanks to integration with the CPQ system, PandaDoc automatically includes the necessary documents for signing, speeding up the process of closing deals and improving the customer experience.
  • PandaDoc gives document status tracking and usage analytics capabilities. This allows businesses to keep track of which documents have been sent to customers, when they were viewed and signed, providing valuable data to optimize processes and improve customer interaction.
  • Data security is an equally important aspect, especially when dealing with sensitive pricing, product and customer information. PandaDoc provides a high level of data protection using advanced encryption methods and secure storage practices, making the use of CPQ software with PandaDoc safe and secure.

PandaDoc also provides a number of other advantages for users:

  • The PandaDoc platform is designed with simplicity and ease of use in mind. Its intuitive interface makes the process of creating, editing and sending documents quick and easy.
  • It offers a wide range of ready-made document templates that can be conveniently customized to meet the specific needs of a company.
  • PandaDoc provides the ability to track the status and activity of documents after they have been sent. 
  • It gives detailed data and analytics about the usage of documents.
  • It ensures a high level of data security using modern encryption and information protection methods.

Thanks to all these features, the number of users of the service is constantly growing.

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