CPQ

CPQ stands for:

• Configure (product configuration)
• Price (price determination)
• Quote (quotation documents)

CPQ software (Configure Price Quote) accelerates, simplifies and optimizes the entire quotation and sales process. It enables products to be configured intuitively, prices to be calculated automatically and convincing quotations to be created. It is used in particular where technically complex products need to be individually configured to the customer's requirements - for example, 40% of all machine and plant manufacturers already use a CPQ solution (source: VDMA short study on variant management and CRM). CPQ software is used, for example, to configure and offer high-voltage switchgear from Siemens or construction site cranes from Liebherr.

Central functions of CPQ software:

• Guided Selling: Identify the best solutions for the customer's requirements through rule-based product configuration.
• Correct sales prices: Sales prices are calculated based on price lists or a manufacturing cost calculation.
• B2B online sales:  Customers and distributors initiate the order process via the Internet.
• 3D Product Configuration: The prospective customer experiences how his individual product takes shape.
• Customer journey: CPQ software adapts the level of detail of product and offer information to the customer's information needs.
• Simplified approval: Automated workflows shorten coordination and approval processes.

Benefits of CPQ solutions:

Overall, the use of CPQ solutions contributes to a significant increase in customer satisfaction through an improved customer experience in the quotation phase. 

• Efficient sales processes
  Rule-based product configurations and workflows replace manual coordination processes and complex approvals, enabling employees to respond more quickly to customer inquiries. The processing time for quotations is reduced by 30%.

• 100% error-free quotations
  Automated plausibility and completeness checks ensure that only technically and economically feasible product variants are offered. This minimizes customer queries and the risk of costly errors.

• Opening up new markets
  You can quickly and easily adapt your offer to new markets. Product configurations and price structures are flexibly tailored to the requirements and price expectations in different regions or countries.

• New employees sell from day one
  Thanks to Guided Selling and a centralized, easily accessible knowledge pool on products and sales strategies, new employees can work productively from day one.

• Bring new products to market faster
  You can integrate new products and price structures into the sales process quickly and easily. This allows you to react flexibly to market changes.

• New sales channels
  With a web configurator and camos CPQ Compact, your customers can configure products directly via your website or online store.  

• More turnover & profit
  Increased efficiency throughout the entire sales process as well as optimized pricing & recommendations for cross-selling and upselling increase your competitiveness, sales and profit.

• Satisfied customers
  You improve the customer experience by creating fast, precise and personalized offers. Your customers feel understood and valued.

CPQ benefits in figures (source: Aberdeen study):

• Shortening of the sales cycle by 28 %
• Increase in the success rate of quotations (hit rate) by 30 % 
• Dissemination rate in mechanical and plant engineering 40% 
• Increase in monthly quotation volume 49 % 
• Increase in the lead conversion rate by 5 %

CPQ in business practice (use cases):

• Haver & Boecker uses CPQ to create quotations for packaging machines in three hours instead of two days.
• Maxon enables its customers to configure individual drives via the company website using a CPQ-based web configurator. 
• NKT uses CPQ to harmonize the global quotation process for cable projects with up to 1,500 configuration elements. 
• Grob Werke increases sales figures by 20 %. 
• Liebherr generates B2B leads for tower cranes with a CPQ-based online configurator.

Further use cases for CPQ in mechanical engineering, plant construction and the capital goods industry can be found here:

Read CPQ Use Cases 

How to get started with CPQ:

Manufacturers of capital goods are introducing a CPQ solution to increase the efficiency and success of their sales. To ensure a successful start with CPQ, we have paublished a whitepaper on the introduction of CPQ software. It shows how to avoid common mistakes in project preparation and during the introduction of the software. The best practices described are based on our experience from over 200 CPQ projects with our customers. 

In the white paper you will learn, among other things: 

• Why suppliers of complex and variant-rich capital goods opt for CPQ
• How to optimally prepare a CPQ project
• What you should pay attention to when selecting CPQ software and a CPQ provider

Download whitepaper

CPQ solution for complex and multi-variant products:

camos CPQ  365 was developed for medium-sized and large companies that sell complex and variant-rich products - for example the mechanical & plant engineering industry. Companies that want to sell consultation-intensive products on the internet also benefit from the solution.

Learn more about camos CPQ
 

The best CPQ solution for SMEs:

camos CPQ Compact is specially designed to meet the requirements of medium-sized manufacturers of machines, industrial technology and other variant-rich products.

Learn more about camos CPQ Compact