What Is CPQ Software? A Complete Guide for B2B Companies

In today’s fast-paced, highly competitive business environment, companies are continuously seeking ways to streamline operations, improve customer experience, and increase sales efficiency. One powerful tool that has gained popularity across industries — especially among B2B companies — is CPQ software, which stands for Configure, Price, Quote. This tool empowers sales teams to configure products or services, price them accurately, and generate professional quotes quickly and efficiently.

In this comprehensive article, we’ll cover what CPQ software is, why it’s essential for B2B companies, how it compares to traditional quoting methods, and how businesses of all sizes — from small startups to large enterprises — can benefit from it.

What Is CPQ Software?

CPQ software refers to a class of applications that help sales teams configure complex products, determine accurate pricing, and generate quotes quickly. The CPQ process involves three main steps:

Configure: Sales reps select the right products or services and configure them based on customer requirements. This step ensures that only valid product combinations are selected, preventing costly errors.
Price: The system applies predefined pricing rules, discounts, and special offers to calculate an accurate price. This eliminates guesswork and ensures consistency.
Quote: CPQ software generates a professional, branded quote document, often with digital signature capabilities for faster approvals.

Modern CPQ solutions are integrated with CRM and ERP systems, providing a seamless flow of information and improving sales productivity.

Why Every B2B Company Needs a CPQ Solution

B2B sales are often complex, involving numerous stakeholders, customized pricing, and intricate product configurations. Here’s why a CPQ system is essential:

Faster Sales Cycles: Automating product configuration and quote generation drastically reduces the time sales reps spend on administrative tasks.
Increased Accuracy: Pricing errors or invalid configurations can lead to lost deals or customer dissatisfaction. CPQ minimizes these risks.
Scalability: As companies grow, managing quotes manually becomes impractical. CPQ software scales with your business needs.
Improved Customer Experience: With faster response times and accurate quotes, customers receive a better buying experience.
Better Sales Forecasting: Integrated CPQ systems provide data that helps in predicting revenue and tracking sales performance.

CPQ vs. Traditional Quoting: What’s the Difference?

Traditional quoting methods often involve spreadsheets, emails, and manual approvals. Here’s how CPQ software stands apart:

Key Features to Look for in a CPQ System

When choosing a CPQ solution, consider the following features:

Product Configuration Rules: Ability to set constraints and logic to prevent incompatible product combinations.
Pricing Management: Support for multiple pricing models — volume-based, customer-specific, discount tiers, etc.
Quote Generation: Automated, customizable quote templates with e-signature capabilities.
CRM Integration: Seamless integration with Salesforce, HubSpot, or other CRM platforms.
Mobile Access: Enables reps to configure and quote on-the-go using mobile devices.
Analytics and Reporting: Provides insights into deal velocity, conversion rates, and pricing trends.
Approval Workflows: Built-in workflows for discount approvals or special pricing.

How CPQ Software Streamlines Sales Operations

A well-implemented CPQ system transforms the entire sales process:

Reduces Administrative Burden: Sales teams spend less time creating quotes and more time selling.
Enhances Cross-Functional Collaboration: With CRM and ERP integration, data flows between teams without duplication.
Enables Self-Service Sales: Customers can configure and receive quotes online via self-service portals.
Supports Global Sales: Multi-currency and multi-language support enables companies to sell internationally with ease.

CPQ for Small Business

Small businesses often deal with limited resources and smaller sales teams. CPQ can be a game-changer:

Affordable SaaS Options: Many vendors offer CPQ as a cloud-based subscription, making it cost-effective.
Reduces Training Time: Easy-to-use interfaces help new sales reps get up to speed quickly.
Improves Professionalism: Branded, consistent quotes enhance the company’s image.
Avoids Costly Errors: Even with a small team, CPQ ensures that sales quotes are accurate and products are configured correctly.

CPQ for Midsize Business

Midsize businesses are often in a rapid growth phase. Here’s how CPQ supports this:

Handles Growing Complexity: As product offerings expand, CPQ helps manage more complex configurations and pricing models.
Improves Deal Velocity: Faster quote generation shortens the sales cycle.
Integrates with Existing Systems: CPQ can be connected to existing CRM and ERP platforms to ensure data consistency.
Enhances Team Collaboration: With centralized information, sales, finance, and operations teams stay aligned.

CPQ for Enterprise

Enterprises operate at scale and require robust systems. CPQ solutions for large organizations offer:

Scalability: Support for thousands of products, users, and quote requests simultaneously.
Advanced Rules Engine: Complex logic for global pricing, bundling, and discounting.
Compliance and Governance: Ensures quotes adhere to legal and pricing regulations.
Custom Integrations: Tailored APIs and workflows to fit into the company’s existing tech stack.
Global Rollouts: Supports multiple languages, currencies, and tax structures.

CPQ for Manufacturing

Manufacturing companies often deal with highly customizable, engineer-to-order products. CPQ software is particularly beneficial in this sector:

Manages Product Complexity: Helps reps navigate through thousands of product options and components.
Integrates with CAD/PLM Systems: Enables real-time visualization of configured products.
Improves BOM Accuracy: Automatically generates accurate Bills of Materials based on configurations.
Reduces Lead Times: With instant, accurate quotes, manufacturers can respond to customer requests more quickly.
Drives Digital Transformation: CPQ is often a key component of smart manufacturing initiatives.

1. Salesforce CPQ

Best For: Enterprises using Salesforce CRM
Why it stands out:
Salesforce CPQ is a powerful, cloud-based solution that’s deeply integrated with Salesforce CRM. It enables sales teams to configure products, apply pricing rules, and generate professional quotes seamlessly within the same platform.

Strong native CRM integration
Highly customizable with workflows and approvals
Scalable for global enterprises
Robust partner ecosystem

Oracle CPQ

Best For: Large enterprises with complex workflows
Why it stands out:
Oracle CPQ offers deep functionality for complex pricing models and product configurations. It’s particularly popular in tech, telecom, and manufacturing industries.

Advanced guided selling capabilities
Tight integration with Oracle’s ERP/CRM stack
AI-powered pricing and discount suggestions
Strong security and compliance

SAP CPQ

Best For: Companies already using SAP ERP/CRM
Why it stands out:
SAP CPQ is a solid choice for enterprises needing high-end integration with SAP’s larger suite of tools. It supports advanced product configurations and helps unify quote-to-cash processes.

Native integration with SAP platforms
Built for large-scale implementations
Strong support for channel and partner sales
Great for manufacturers and global businesses

PROS Smart CPQ

Best For: Pricing optimization and AI-driven insights
Why it stands out:
PROS CPQ stands out for its AI-powered pricing intelligence. It’s designed to optimize pricing in real time based on customer behavior, market conditions, and other variables.

Excellent price optimization capabilities
Strong data analytics and machine learning integration
Real-time price guidance and margin control
Industry focus: airline, B2B services, and manufacturing

Expedite Commerce CPQ

Best For: Mid-to-large B2B companies needing an all-in-one revenue operations platform
Why it stands out:
Expedite Commerce is more than just CPQ — it’s a unified revenue operations platform combining CPQ, billing, subscription management, and revenue recognition. Ideal for SaaS, manufacturing, and high-tech companies.

Deep product configuration tools
Supports complex subscription and usage-based billing
Integrates quote-to-cash with ERP, CRM, and accounting
Great for B2B companies with multi-channel sales

Conga CPQ (formerly Apttus)

Best For: Legal-heavy or contract-centric sales
Why it stands out:
Conga CPQ excels in integrating CPQ with CLM (Contract Lifecycle Management). It’s perfect for companies needing tight control over contracts, approvals, and compliance.

Seamless CPQ + CLM capabilities
Deep Salesforce integration
Custom pricing and contract workflows
Ideal for legal, finance, and services industries

DealHub CPQ

Best For: Fast-growing mid-market companies
Why it stands out:
DealHub offers a user-friendly, no-code CPQ platform with a strong focus on sales enablement and guided selling. It includes a digital sales room for real-time collaboration with buyers.

Interactive, branded quote experience
Easy to implement and customize
Strong for recurring revenue models (SaaS)
Includes proposal automation and e-signature

Vendavo CPQ

Best For: Manufacturers and B2B distributors
Why it stands out:
Vendavo specializes in price optimization and profitability analysis, making it ideal for industries like chemicals, industrial manufacturing, and life sciences.

Pricing science and analytics built-in
Strong support for regional and global pricing
Focus on maximizing profit margins
ERP-ready integrations (SAP, Oracle, etc.)

Tacton CPQ

Best For: Engineer-to-order manufacturers
Why it stands out:
Tacton CPQ is made specifically for manufacturing companies with highly customizable products. It even integrates with CAD tools like SolidWorks or AutoCAD for real-time 3D visualizations.

Strong configuration rules engine
Engineering and CAD integration
Multi-language and multi-currency support
Great for complex machinery, vehicles, and equipment

KBMax (Now part of Epicor)

Best For: Visual product configurators
Why it stands out:
KBMax specializes in visual configuration — perfect for companies that sell customizable physical products. With 3D configurators and drag-and-drop tools, it offers a unique CPQ experience.

Real-time 3D product visualizations
CAD and engineering automation
Powerful rules engine
Excellent for eCommerce and direct-to-customer sales

Final Thoughts

CPQ software is more than a sales tool — it’s a business enabler that empowers companies to sell faster, smarter, and more accurately. Whether you’re a small business looking to improve your quote process or an enterprise striving to scale globally, CPQ provides the flexibility and power to meet your goals. With the right solution, you can enhance customer satisfaction, reduce costs, and drive revenue growth.

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