9 reasons why CPQ projects fail
Author: Elisabeth Sonnleitner
CPQ (Configure, Price, Quote) systems are introduced to make quotation processes more efficient, consistent, and scalable. CPQ can make a significant contribution to structuring and standardization, especially for complex products, individual prices, or multiple sales channels.
In practice, however, it has been shown time and again that CPQ projects rarely fail because of the idea itself, but rather because of recurring strategic, organizational, and conceptual errors.
This article highlights the nine most common reasons why CPQ projects fail to deliver the desired benefits—and what companies should look out for to avoid these mistakes.
1. Unclear objectives and requirements
One of the most common mistakes occurs right at the beginning: it is not clearly defined what the CPQ system should actually do.
Without clear objectives, projects emerge that are technically complex but do not deliver any real added value. Often missing:
- A clear definition of use cases
- Prioritization of requirements
- A common vision among departments
Instead, functions or systems are discussed at an early stage before it has been clarified which problem actually needs to be solved. CPQ requires a clear definition of technical objectives—otherwise, the result will be a system that works technically but does not deliver any measurable added value.
2. Rigid rules and lack of flexibility
Even a well-designed product logic loses its value if it cannot be further developed. Products, prices, and sales processes are constantly changing- but in many CPQ systems, rules are so rigidly defined that every adjustment becomes a project.
New variants, special conditions, country-specific rules, or temporary promotions can then only be implemented by intervening in existing logic or even adjusting the code. Future-proof CPQ software consistently separates stable rule structures from variable data such as prices, features, or options. This is the only way to ensure that rules remain expandable and combinable and that the system remains adaptable in the long term.
3. Too complex for users to use
A CPQ system may be technically correct, but if it is not popular for everyday use, it misses its purpose.
Typical causes are:
- Confusing interfaces
- Too many steps for simple quotes
- Lack of clarity about who the configurator is intended for
User-friendliness does not happen by chance. It requires UI/UX expertise, clearly defined user roles, and a consistent focus on the everyday work of users.
Without acceptance, parallel processes, shadow Excel worlds, and silent productivity losses arise.
4. CPQ is viewed as an IT project rather than a sales tool
A common mistake is to treat CPQ as purely an IT issue. This leads to decisions about product logic, rules, or quotation processes being made primarily from a technical perspective.
The result is a system that works technically, but is of limited use in everyday sales. Processes don't fit, special cases are cumbersome, and the system is more likely to be circumvented than used.
CPQ is not an IT tool, but rather software for sales and product management. It directly influences product structures, prices, processes, and responsibilities. Accordingly, these areas must be shaped and managed by the relevant departments - right from the start.
5. Providers not supported by product logic
When it comes to product logic, a collaborative partnership with the CPQ software provider is crucial.
A provider must first ask themselves: How is your existing structure set up - and how can we adopt it with as few changes as possible?
The goal should not be to build a second silo or completely redefine data. Rather, it is important for the provider to analyze the entire existing system and product landscape, consider how it can be used effectively, and make targeted, necessary adjustments based on this analysis.
The provider must take you by the hand, give you guidance, and lead you step by step through the implementation process.
6. Inappropriate system selection
Not all CPQ software is suitable for every type of product and pricing logic. A common mistake is to choose software that offers many features at first glance but is not structurally suited to the actual complexity of the products. The selection is often based on feature lists, short demos, or price - without checking how flexible and resilient the underlying logic really is.
Typical mistakes are:
- Underestimating product and pricing logic
- Failure to consider future requirements
- Choosing a system that allows only limited customization or requires considerable effort to customize
CPQ software must not only meet today's requirements, but also be able to become more complex as products, markets, or sales models evolve. Only then can it grow with the company in the long term.
7. Lack of integration and poor data quality
CPQ only delivers its full benefits when it is seamlessly integrated into the existing system landscape. Missing or unstable interfaces to ERP, CRM, or PIM systems lead to media discontinuity, manual corrections, and mistrust of the system.
However, data quality is just as critical. Unclear responsibilities, outdated prices, or inconsistent product data have a direct impact on quotes. Errors do not only occur in CPQ, but already in the database - and become visible in the quoting process.
A CPQ system can only work as well as the data it receives. Clear data responsibility, defined maintenance processes, and clean data models are therefore not a technical detail, but a central prerequisite for reliable quotes and acceptance in sales.
8. Lack of scalability in the project approach
CPQ projects are rarely static. New products, additional markets, or further sales channels are almost always added.
If these developments are not taken into account from the outset, the effort involved increases with each expansion. What is manageable at the beginning quickly becomes complex and error-prone later on.
A scalable project approach ensures that the system is designed for expansion right from the start. Products, countries, or users can then be added without having to rebuild existing logic. This means that the CPQ system remains manageable even as it grows - and does not become a permanent work in progress.
9. Wrong choice of CPQ provider
Even the right CPQ system can fail if the provider does not have the necessary experience and expertise. A classic mistake is to select a provider based on brand awareness, ERP proximity, or a supposedly low-cost offer. These criteria say little about whether complex CPQ projects can be implemented in a structured manner and operated successfully in the long term.
The decisive factor is not how inexpensive a CPQ is, but rather:
- whether it can map complex logic
- whether it is scalable
- how it will be further developed
- what consulting and project experience the provider has
Especially in demanding CPQ scenarios, the provider is not just a software supplier, but a long-term partner—and they must be able to fulfill this role.
Conclusion
CPQ projects rarely fail because of the technology alone. In most cases, it is unclear objectives, a lack of involvement, insufficient flexibility, or organizational shortcomings that prevent success.
The success of a CPQ system is determined early on: by clear requirements, realistic expectations, and how well specialist departments are involved. If these points are taken into account, CPQ becomes a real support in sales and product management - otherwise, it remains an additional expense without any noticeable benefits.
Typical CPQ errors can be avoided.
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