Are you looking for Configure/Price/Quote (CPQ) Information? If you are, you probably noticed that there is a huge amount of information on the Internet, Twitter, LinkedIn, Research Reports (Gartner, Aberdeen, Forrester etc.), Videos (Youtube, Vimeo, etc), Industry Events, Blogs and on and on. While it is a lot right now there is a good chance it is getting even more soon since the number of CPQ Software Providers keeps growing. We keep track of at least 28 different CPQ Software Vendors and this list is by no means complete. To follow all these sources and make sense out of the information requires some serious time commitment. To simplify the information gathering process for you we suggest you focus on the four areas below to learn more about any CPQ tool.

1. Right Functionality

You should have a clear strategy in mind for what you want to achieve with your new/updated/upgraded CPQ tool before you think about implementing anything. Below some typical questions to determine the right functionality

  • Is the CPQ tool for your internal Sales Team, Channel Partners (which tiers) and/or End Customers?
  • Do you need to integrate your CPQ tool tightly with your CRM system (e.g. salesforce.com, Microsoft Dynamics, Netsuite CRM, SAP CRM) ?
  • Do you need any predictive capabilities or guided selling or 2D/3D visualization?
  • What products and/or services drive the most revenue/profit? Do these products and/or services require a CPQ tool?
  • What are your biggest issues in the CPQ cycle?  (identify by Route to Market –> Direct/Indirect)

2. Right Performance

Be very clear about the volume of data that you require to provide the users the desired experience. A general guideline here is that everything “user visible” should be displayed/done in 2 seconds or less. Some typical questions for this part are below

  • How many Products do you plan to setup in your CPQ tool?
  • How many Prices (e.g. List Price, Customer Specific Prices, Purchase Agreement Pricing) do you need to load for every Product or Service?
  • Do you need to display Prices while the Product or Service is configured?
  • What are the future expectations regarding number of Products, number of Prices per Product?
  • What other data will need to be refreshed as the user makes choices? (e.g. predictive data, Availability of Products, 2D/3D rendering of your Products)

3. Right Implementation Time

While this may sound trivial it is important to keep in mind how quickly a CPQ tool needs to be in place (or an existing CPQ tool needs to be updated). Some companies have a greater need to do an implementation quickly than others. Determine how much time your company has! Implementation times vary widely by CPQ tool and you should check with multiple internal and external service providers (if possible) as well as with the CPQ tool vendor to determine what implementation times are typical.

4. Right Price

Last but not least, money is important. Isn’t it? Any CPQ tool that you use will come with a cost and you need to make sure the bottom line makes sense for your business! Therefore keep in mind that any CPQ tool is only a tool that is expected to help you to achieve your goals. Ensure that the Return on Investment (ROI) makes sense for your business.

If you want to keep track of what is happening in the Configure/Price/Quote space or if you are looking to update/change or buy a new CPQ tool the four points above should always be considered.  Always check your information with an independent, experienced advisor/consultant in addition to the CPQ Software Vendor(s), your System Integrator(s) and your own Expert Team to ensure you have the best data before you make a decision.  Do you think any other points should be added to the ones above?