While I expect that we all agree that CPQ is a hot technology at the moment*. I think there is at least one more reason beside the Analysis & Research predictions that the CPQ area will thrive for the foreseeable future and that is because the majority of people in the workforce are now Millennials**.  Millennials were born between 1980 – 2000 and they have grown up with technology. When I talk about Technology think about Smartphones, laptops, desktops, Game Consoles etc.  This is the first generation that is used to work with a computer/mobile device all day and customize many of the day to day items they use like clothes, shoes, laptops, cars, TVs etc. The customization / personalization experience has become a part of everyday life and work, not only for Millennials, and so we should expect that this will become even more important in the future workplace. For the generation that was born after 2000 I expect, from my own experience, that this will be even more pronounced. That is the reason I say that CPQ has a bright future. Let’s look at this in a little more detail.

Here is what I consider part of the “customization / personalization” experience

1. Investigate Products and Services  

  • Review Rankings of Products and Services (on one or multiple websites)
  • Check User Reviews —> e.g. https://www.g2crowd.com  … look for CPQ
  • Use Chat features to exchange information real time with others (e.g. Salesforce Chatter

2. Configure the Product

  • Change product features easily on any device at any time (e.g. iPad, iPhone, laptop) Note: User could also use Guided Selling instead of selecting features directly
  • One important step here is that (at least from an end customer point of view) the price (e.g. list price, customer specific price, end user delta price)  needs to be displayed since this will drive the buying decision (Note: This does not necessarily apply to Manufacturing Companies)
  • Use business analytics to tailor the offering for the user (e.g. to see what other buyers in your geographical area bought, paid etc. —> predictive capabilities)
  • Use 2D + 3D visualization to simplify the verification of customized products (where applicable)

3. Compare Prices and features for various Products and Services

  • Consider that prices might change with certain quantities (e.g. quantity breaks)
  • Provide more information for features that impact the price (e.g. link to the latest reviews of these products, video’s that explain differences/benefits)
  • Display Price, Discounts, Special Prices, Shipping Costs and Taxes clearly to the user
  • Display requirements to arrive at different price point (e.g. show a “red” sign beside a price indicating this needs further approvement (by whom?, when can I expect an answer?)

4. Decide which Product and/or Service you want and buy it 

  • Create a quote/proposal with Terms & Conditions and pay for it (includes Lease, Billing Plan, Credit Card payment etc.)

Obviously CPQ does support this “customization experience” and I think there is still a lot of room for improvement. Just think about what capabilities you might require to make the buying experience faster and smoother for the user.

Here are two idea’s (brainstorming) for future CPQ capabilities related to the four points above:

1. Have one automated Marketplace (that works with all CPQ vendors) where you can enter specific product features etc that you are looking for (B2C or B2B) and have several vendors coming back (automated) to you with offers instead of going to one vendor site after the other

  • Example: As an End User I can enter that I am looking for a 13” laptop with 8GB RAM and 256MB flash storage.  Dell, HP and Apple come back with automated proposals that fit my requirements within minutes

2. Be able to work with a 2D or 3D drawing of a car configurator from any device and have the changes correctly reflected in the Price, BOM and Quote within minutes

  • Example: Add a drawing from my youngest child to the new Family Mini Van (on the right side of the back door) before the Quote/Order is submitted

I expect that Millennials (and everyone else) will come up with many more great requirements and hence I expect that the Configure/Price/Quote (CPQ) capabilities will continue to flourish.

What do you think?

 

*Articles that indicate CPQ is a hot technology in 2015

**Check these reports about Millennials from