CPQ: What does CPQ stand for - and why is it transforming the sale of technical products?

What does CPQ stand for? CPQ is considered a game changer in the sale of technically complex products with many variants. Reason enough to take a closer look at the Configure-Price-Quote principle. Combeenation offers compact information: From the definition of terms to functionality, areas of application and benefits in sales.
 

What does CPQ stand for?

CPQ stands for “Configure - Price - Quote” and refers to software solutions with which companies can configure, calculate and offer even highly complex products quickly, error-free and customized.

The three pillars of CPQ
Configure: The configuration of complex products is greatly simplified with the help of stored product logic. Technical dependencies are recognized by the software and only variants that can be sold and produced are configured. Incorrect configurations are reliably avoided and time-consuming queries to technology or product management are also eliminated.

Price: The price for the configured product is calculated correctly in real time, taking into account individual price and discount structures. To do this, the CPQ software accesses data in real time and can, for example, take customer or country-specific price lists into account. Incorrect calculations are reliably excluded.

Quote: After product configuration, CPQ automatically creates a quotation including product description, parts lists and assembly instructions. The quotation is presented in a CI-compliant layout and personalized. Interested parties receive a complete quotation in a much shorter time, sales cycles are shortened and closing rates increase.

Get to know the functions of Combeenation's CPQ solution in detail.
CPQ from Combeenation
 

Where are CPQ solutions used?

CPQ solutions unfold their full potential when technically complex products need to be individually configured, calculated without errors and offered quickly. When selling modular products that require explanation, the use of CPQ significantly increases efficiency, competitiveness and closing rates.

Typical areas of application for CPQ

• Electronics and automation technology
  Control systems, sensors, control technology and specific housing variants - in a product environment with millions of possible combinations, a CPQ solution prevents configuration errors, ensures error-free pricing and fast quotations.
  
  This makes the sales process for highly complex electronics and control technology scalable, even across partner networks.
  
  Combeenation has supported many customers from the automation and electronics industry in the successful implementation of our CPQ software. We would be happy to give you practical insights with a case study on CPQ for the sale of drive controllers. 
  
  Directly to the case study

• Furniture industry
  CPQ is a real game changer for the industrial production of configurable furniture, complex custom-made products or modular series solutions: incorrect configurations are prevented, retail partners are optimally supported in sales, quotations can be submitted in real time during sales talks and configuration data can be imported directly into production systems. Thanks to 3D configuration, the individual product can be experienced in real time and the buying experience for consumers is significantly improved.
  
  Combeenation's CPQ solution is highly regarded in the furniture industry and is used by leading manufacturers. We would be happy to provide you with in-depth insights into a specific project in our case study for a manufacturer of outdoor kitchens.
  
  Directly to the case study  

• Construction
  Whether modular garages, carports, prefabricated houses or garage and industrial doors - individually configurable structures involve countless variants with clear dependencies. With Combeenation's CPQ solution, products can be configured, visualized and quickly offered securely and completely freely.
  
  Combeenation's CPQ software is a leading solution in this sector because the configuration allows dimensions, for example, to be defined completely freely using sliders. Other CPQ configurations restrict the selection by predefined dimensions. With Combeenation's solution, suppliers can exploit the full potential of individualized solutions. If users change the entries on the slider, the 3D visualization, prices etc. are updated in real time. Garages, carports and gates - all of these products are already sold using Combeenation CPQ. Find out more about our project for Easycarports in the case study.
  
  Directly to the case study

Other classic CPQ application areas:

• Mechanical and plant engineering
• Medical technology and laboratory equipment
• Automotive industry
• Agricultural engineering
• Component manufacturers
• Construction industry

In all industries in which complex products are configured according to customer-specific requirements, the use of CPQ applications increases efficiency, security and the buying experience.

 

Who benefits from CPQ? Classic user roles at a glance

A modern CPQ system, such as Combeenation's solution, is not just a tool for sales - it is a central interface between product, market and customer. Implemented correctly, it brings measurable benefits for different roles within and outside the company.

• Office and field sales teams
  
  In traditional and technical sales, CPQ significantly reduces the workload by creating quotations in real time during the customer meeting. Frequent, time-consuming queries to the technical department or product management are no longer necessary as the CPQ configuration is valid. This shortens sales cycles, enables a quick response to inquiries and increases the closing rate.
  
  A positive side effect: the sales team works largely independently, which minimizes the need for technical sales support. The know-how of technical experts can be used for complex special solutions and innovation projects.
   
• Dealers & sales partners
  
  Using CPQ, your sales partners can prepare offers independently. The stored product logic, real-time prices and individual discounts and conditions form the basis for an error-free offer that your retailers and distributors can use to offer individually configured products directly.
  
  The independent quotation process is particularly advantageous in international structures: dealers can sell 24/7 - regardless of the manufacturer's contact persons. The ability to respond quickly to customer inquiries and short sales cycles also motivate sales partners. Role-based user distinctions also offer practical advantages: Different discounts, prices, etc. can be defined for dealers.
  
  Combeenation's CPQ software also impresses with interactive 3D visualization, which gives consumers a realistic preview of their individual product during the consultation.
   
• Self-service for B2B customers
  
  CPQ can also be part of a digital B2B customer portal. Here, your business customers configure technically complex products independently. They receive prices, delivery times, product descriptions and 3D visualization in the form of a personalized offer. Find out more in the practical example for aqua pool and spa solutions.
  
  B2B customers appreciate the convenience and transparency of a CPQ solution in the customer portal and at the same time your sales team is relieved.
   
• CPQ for end consumers in webshops.
  
  CPQ solutions for end consumers are particularly relevant for webshops, as more and more private customers want to configure individualized products online and expect a direct quote with price. CPQ configurators are an effective lever in online marketing and eCommerce in the furnishing industry, for leisure products and vehicles and in the construction sector. 

For the successful use of CPQ configurators for end customers without specialist knowledge, particular attention should be paid to user-friendliness, speed and excellent visualization.
 

Concrete advantages of CPQ: more speed, fewer errors

1. Faster sales processes
   A digital CPQ process significantly speeds up the preparation of quotations for complex products. What used to take days or weeks can now be done in minutes. The shortened time-to-quote has a direct impact on the conversion rate. They achieve higher completion rates in less time.
    
2. Higher offer quality
   If quotations are created manually using spreadsheets and Excel-based solutions, this often results in incorrect configurations, deviating prices or forgotten components. CPQ systems check product configurations and associated offers in real time for consistency and completeness. Transparent prices, perfect configuration and complete offers are created within minutes.
    
3. Scalability in sales
   With a consistent, rule-based configuration and quotation process, companies can also integrate international sales partners and online channels into their sales processes efficiently and error-free. This means that even medium-sized companies can scale and internationalize their sales.
    
4. Relief for technical experts
   A sophisticated CPQ process relieves the burden on technical experts such as engineers and product managers. They no longer have to deal with standard requests and can invest their expertise in innovation projects and highly specific special solutions, which strengthens your company's know-how.

Concrete advantages of Combeenation-CPQ

Why should you choose Combeenation's CPQ software? We do not force companies into rigid systems and are independent. We integrate CPQ seamlessly into any IT landscape and are not tied to specific store systems or ERP, CRM and PIM systems. 

That is why Combeenation is the leading CPQ provider for medium-sized companies. We customize the software solution to your needs and focus on:

• Customer experience through high usability
• Maintainability & scalability
• Separation of data & logic  – simple maintenance/data maintenance without influencing product logic
• Full service – the experts take over the implementation of the product logic, rules and initial data maintenance

Find out more here
 

Possible challenges with the introduction of CPQ

As with any software implementation, a CPQ implementation depends to a large extent on good planning and careful design. This is where Combeenation's great strength lies – we accompany companies through the entire process and turn challenges into opportunities:

1. Structured planning phase
   Objectives and the current sales process are analyzed together. User roles and functions are defined in the planning workshop. A product tree is created that visualizes the characteristics, rules and dependencies in the product portfolio. The next step is to develop a design concept that gives all stakeholders an insight into usability.
    
2. High user-friendliness
   UI and UX design is a key success factor in your project. Only if the CPQ interface is adapted to the user's needs and is intuitive and quick to use will the application be accepted and enjoyed. That's why we at Combeenation shape the UI and UX design according to user needs.
    
3. Seamless integration into the IT landscape
   Combeenation's CPQ software enables seamless integration into your IT landscape. CRM, ERP and PIM systems are integrated to keep data and rules up to date in real time. Automated data provision is at the heart of successful CPQ projects. Combeenation also makes it easy to connect store systems.
    
4. Relief and quality assurance through full service
   Combeenation's experts know from countless projects which factors are relevant for a successful CPQ implementation. You guide customers confidently through the entire process and handle the complete implementation of the product logic, the rules and the initial data maintenance.
   
   Would you like to better estimate the scope of your CPQ project? Determine the scope of your configurator or CPQ project with just a few clicks. Our free calculator will give you an initial estimate in just a few steps. CALCULATE NOW