What kinds of businesses can benefit from CPQ?

March 8, 2022 | 3 minute read
Reanna Gutierrez
Senior Product Marketing Manager, Oracle Advertising and CX
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Oracle Configure, Price, QuoteConfigure, price, quote (CPQ) is a term used in business to describe software systems that help sell complex products.

In this blog post, we’ll examine the types of businesses and products that benefit most from CPQ software and discuss the value of implementing a CPQ solution.

What are CPQ products?

CPQ software is not for straightforward, inexpensive commodity products like groceries. It's for products and services that can be configured and priced differently depending on which options the buyer wants. Think of buying a vehicle, where the cost may vary depending on the color, features, and extras you select.

Who uses CPQ software?

Companies that sell complex products—like equipment and machinery—or configurable solutions—like telecommunications or enterprise software—can realize a lot of value from using CPQ software.

If your business meets any of the following criteria, it might be time to consider implementing a CPQ solution:

  • You sell a wide range of products/services.
  • You leverage multiple sales channels.
  • Quote generation creates bottlenecks in the sales process.
  • Manually generated quotes are often inaccurate.
  • You want to unlock more cross-selling and upselling opportunities.

How does CPQ work?

CPQ’s step-by-step process allows businesses to create automated, accurate purchase orders tailored to customers’ needs, streamlining the quote process for salespeople while delivering a more personalized customer experience.

Step 1: Configure

Create product configurations with user-friendly, dynamic interfaces—whether your customer needs simple bundles or more complex “engineered-to-order” configurations.

Step 2: Price

Automatically calculate prices, apply discounts, streamline approval processes, and validate quote information—all within minutes.

Step 3: Quote

Empower your sales team to create professional proposal documents, including current product and pricing information, with just a few clicks.

12 ways CPQ can help you sell more

The benefits of implementing CPQ software

Your salespeople are the fuel that keeps your business moving, but they need the right tools to work effectively and efficiently. CPQ software helps shorten sales cycles and will prove beneficial throughout the sales journey for several reasons.

  • Flexible, scalable, enterprise-ready configuration capabilities allow new products and features to be introduced more quickly.
  • Pricing and quoting are easy, regardless of the variety of products or services offered.
  • Cross-channel visibility and management is improved for ecommerce and direct/indirect sales.

Integrating CPQ with CRM and ERP

For businesses already utilizing CRM or ERP, CPQ software can be seamlessly integrated into existing systems. Using CRM and CPQ together only increases the effectiveness of both solutions. While CRM can reveal a customer's order history and track buying behavior, CPQ gives insight into open quotes, customer service requests, and support.

With information flowing easily among systems, businesses can avoid miscommunication at each stage of the selling and fulfillment processes, while gaining visibility into cross-sell and upsell opportunities.

There are countless benefits to adopting CPQ if your business offers complex, configurable products. By implementing a CPQ tool, you can enable your teams to communicate, share data, and provide more prompt and personalized service to your customers.

Want to know if CPQ is right for you?

Learn more about Oracle’s unified approach to sales and CPQ, and how we can help solve your most complex configuration and quoting challenges—at scale.

Want to see Oracle Configure, Price, Quote (CPQ) in action? Take the brief self-guided tour below.

Take a self-guided tour of CPQ

Reanna Gutierrez

Senior Product Marketing Manager, Oracle Advertising and CX

As a Sr. Product Marketing Manager for Oracle Advertising and CX, Reanna is responsible for developing product messaging and positioning with a focus on Oracle’s Configure, Price, Quote (CPQ) and Subscription Management solutions.

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