Learn about CPQ Basics
What is CPQ?
CPQ stands for Configure, Price, and Quote. CPQ is a tool that helps companies produce accurate, configured quotes and make them using automation
C is for configure. Customers can select products whats he required.
P is for price. make the price for products that are selected.
Q is for a quote: Generating estimation price to Customer for products.
CPQ is mainly dealing with Quote to Cash Process. In Quote to Cash(QTC) Process has the following 10 steps that need to go through to fulfill clients.
Quote To Cash deals with the start to the end of the business life cycle. In QTC we will go through with following stages.
Configuration: Configuration is a combination of products which Customer looks and deals with a list of products, Quantity of products, the color of products ..etc which takes places here and then it move to price stage.
Pricing: In Pricing Stage we can checklist of products and we can provide discounts for customers based on their eligibility. We can provide promotions offers to new customers to make long term attachments to our company. If customer-specified any bundles products are deals here and then move to quote.
Quoting: In Quoting, we will generate the estimation price to products and provides a quote that is generated and sent for approval from the customer.
Contract Creation: After getting approval from the customer then it enters into the contract stage. In this stage, a contract will be generated between both parties.
Contract Negotiation: If the customer looking of any changes on Contract and Clauses will be discussed. Whenever Negotiations got completed successfully it will transfer into the contract execution stage.
Contract Execution: An approved contract is signed between both parties and the deal is finalized.
Order Fulfilment: After receiving an order from the customer they will start the processing of order items and delivery to the customer
Billing: Billing has been generated to the customer after calculating all charges and invoice sent to the customer for payment
Revenue Recognition: Analysis of payment made by customers on products has been delivered.
Renew: Make contact which customers for a post-sales activity like a renewal of contracts, additional purchase, and discounted products to retain customer interaction with the company.
List of CPQ’s available in market
- Apptus CPQ
- Salesforce CPQ (formally called as SteelBrick CPQ)
- Oracle CPQ Cloud
- SAP CPQ
- IBM sterling CPQ
- Smart CPQ
- Revvy CPQ
- Callidus Cloud
- Cincom CPQ
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