14 Business Benefits of CPQ

“ABC: Always be closing” is a well-known sales strategy made popular by the 1992 movie, “Glengarry Glen Ross.” But manual configure, price, and quote (CPQ) processescan undermine this approach by creating friction that delays deal closings, increases configuration and pricing errors, and erodes customer confidence. Compounding those issues, companies with disjointed processes and data silos have limited visibility into their sales pipelines, translating to late quotes and lost business opportunities.

CPQ software addresses these challenges through automation, reducing the potential for costly mistakes andexpediting the lead-to-cash chain. Automation also allowssales teams to spend more of their time building relationships with prospective customers—and growing revenue. And those are just a few of the benefits.

What Is CPQ (Configure, Price, Quote) Software?

CPQ software accelerates and improves the accuracy of the CPQ process for customizable products and services, such as industrial equipment, technology systems, and subscription-based services. Powered by artificial intelligence (AI), CPQ software centralizes product, pricing, and customer information in one platform that can be accessed by sales teams and customers alike. CPQ is an effective part of a cost-management strategy. Ithelps sellers protect their profit margins while enhancing the buyer experience with pricing transparency and more consistent and reliable sales proposals.

Key Takeaways

• CPQ software automates complex sales processes to help close deals faster.
• Standardized pricing rules and automated calculations produce consistent, accurate quotes.
• Automated workflows reduce operational costs while protecting profit margins.
• Guided selling features help sales teams configure ideal product combinations for each customer.

The Benefits of CPQ Software

From product selection and configuration to pricing calculations, ordering, and approvals, manual CPQ processes are prone to human errors at every stage. It’s little wonder why: Sales teams working across disconnected spreadsheets and legacy systems face an increased risk of mistakes, while scattered information slows down approvals and order processing.

The drive for greater accuracy and efficiency is fueling CPQ software adoption. The global CPQ software market is forecast to reach $22.7 billion by 2031, a nearly 70% increase over the $13.4 billion tallied in 2024, according to Market Research Intellect. The primary drivers of this significant growth include the following benefits.

1. Maximizes Sales Margins

CPQ software improves sales margins through centralized control of pricing and revenue allocation. The software maintains up-to-date pricing across all channels and automates complex financial calculations to eliminate costly errors. AI can direct sales reps to the highest revenue-generating configurations that also meet customer needs and budget constraints, while predefined business rules govern discounting parameters. CPQ software provides secure, automated tools for margin calculations and pricing approvals, which may also shorten the sales cycle.

2. Reduces Order Errors

A CPQ platform serves as a single source of real-time data; it’s most effective when integrated with other business software, such as customer relationship management (CRM), enterprise resource planning (ERP), and inventory management systems. A configuration engine automatically matches product combinations to engineering rules and inventory availability to prevent pricing disparities and rogue discounts. This also reduces the possibility of incompatible configurations, unavailable combinations, and costly “do-overs.” For example, if a customer orders a machine with incompatible add-on features, the system flags the discrepancy immediately, rather than it being discovered at the fulfillment stage.

3. Increases Quote Accuracy

CPQ solutions produce accurate quotes thanks to automated configuration and pricing rules. The system evaluates customer requirements and matches them to compatible product features, automatically applying appropriate taxes, shipping costs, and volume discounts—even when complex pricing schemes, such as tiered subscriptions or customer-specific billing, are in place. For example, when quoting an ERP system, the software automatically factors in user-based pricing tiers, deployment services, training costs, and regional tax requirements.

4. Improves Quote Consistency

CPQ software standardizes the quoting process through centralized control of templates, pricing, and business rules. All sales representatives work from the same approved product catalogs and pricing structures to ensure that customers receive uniform quotes regardless of sales channel or location. This standardization maintains brand integrity while still allowing sales teams to customize proposal content to meet specific customer needs.

5. Shortens Quote Time Frames

CPQ automation eliminates many manual steps and approval bottlenecks. Instead of spending hours manually researching prices and configuring products, sales teams can generate complete quotes in a fraction of the time. To further accelerate the quote-to-cash cycle, the software’s automated workflows route quotes to the right approvers, track their status in real time, and notify stakeholders if action is needed.

6. Leverages Guided Selling

CPQ software incorporates guided selling, a sales technique that uses interactive questionnaires/prompts and AI to help define customers’ needs. The software analyzes customer requirements—adding data on existing customers drawn from CRM systems—so sales teams can develop personalized product configurations. For example, if a customer needs manufacturing equipment, the CPQ system asks targeted questions about production volume, facility specifications, and maintenance preferences. Based on the answers and available data from similar customers, it then recommends suitable machine configurations and complementary services, such as preventive maintenance plans.

This approach also minimizes the need for extensive product training for sales teams because recommendations are generated from customer input. Reps are left with time to focus on what they do best: building client relationships and closing deals.

7. Grows Sales Opportunities

With automated CPQ software, sales reps can spend less time building product configurations and quotes and more time pursuing new opportunities. In addition, CPQ software helps identify sources of additional sales through intelligent analyses of customer buying patterns and product use. For example, the software can automatically flag cross-sell and upsell opportunities, such as suggesting an extended warranty for manufacturing equipment purchases, as well as monitor subscription renewals and forecast future orders. This kind of proactive approach helps grow revenue and reduce customer churn by facilitating timely follow-ups on sales opportunities.

8. Decreases Administrative Tasks

With CPQ software, sales teams can concentrate on selling and managing customer relationships because they’re spending much less time on tedious paperwork and manual data entry. The software’s integration with CRM systems automatically syncs customer information, contract details, and pricing terms across all documents—from initial quotes to final contracts—creating a single point of data entry.

In addition, automated approvals replace the need to chase down signatures or follow up on pending approvals; sales teams receive automatic notifications that keep the process moving. Once a deal closes, all relevant information flows to an ERP system for billing and order fulfillment.

9. Improves Internal Collaboration

CPQ software breaks down silos, so that sales, marketing, product engineering, data management, finance, and IT departments can all enjoy better cross-departmental communication and collaboration. The software’s centralized repository of product, sales, and customer information increases visibility into the end-to-end sales cycle. For example, when a sales representative configures a telecommunications package, network engineers can immediately verify service coverage area, operations can confirm equipment availability, and finance can review bundled pricing options—all within the same system. In addition, teams can track customer interactions, monitor revenue drivers, and identify any potential conflicts before they can affect sales.

10. Provides Better Customer Experience and Customer Satisfaction

CPQ software strengthens the customer experience and, in turn, business relationships by helping deliver accurate product configurations and pricing in real time. The system reduces errors and removes inefficiencies across the entire quote-to-order process, making it easier for customers to make informed purchasing decisions. Using the previous telecom package example, a rep using CPQ can present customers with a clear breakdown of service bundles, equipment options, and contract terms so they can easily compare plans side by side to get a clear idea of what they’re purchasing.

CPQ software also bolsters customer satisfaction by providing omnichannel buying opportunities, such as through direct sales, reseller channels, and self-service options. This flexibility can go a long way toward converting more prospects into buyers, and retaining existing customers.

11. Improves Market Reactivity

Cost increases, supply chain disruptions, evolving customer demands, and competitors’ moves constantly challenge a business’s market position. CPQ software helps businesses respond rapidly to changing conditions through dynamic pricing and automated update features. For example, if raw material costs surge because of a supply chain disruption, industrial suppliers using CPQ could rapidly modify prices on thousands of SKUs, offering alternative materials, where available, and automatically notifying customers of changes. Data analysis and forecasting capabilities can also help businesses identify shifting conditions early, providing support for strategic decision-making regarding appropriate product bundles, pricing, and discounts that protect profit margins, and help them take advantage of new opportunities.

12. Improves Sales Insights

CPQ software centralizes deal information, helping businesses dig deeper into their sales data. Embedded analytics tools monitor key performance indicators, such as customer acquisition costs and sales growth, to track progress against business goals. For instance, analyzing win rates in different market segments can reveal which product configurations and price points are most effective. The data also guides decisions about customer segmentation, product development, and marketing initiatives. For example, data might show that customers in one region prefer subscription-based pricing models, while buyers in another region respond better to hybrid options. Insights like these enable the company to tailor expansion strategies for each area.

13. Optimizes Sales Processes and Procedures

CPQ software establishes consistent sales processes through standardized workflows and approval procedures for pricing, product configuration, and quote generation. A standardized approach fosters organizational alignment and maintains quality control. For example, when a company expands into new markets, the system ensures that sales teams in different locations follow the same pricing protocols and approval processes, preserving consistency while accommodating regional requirements.

14. Increases Profitability

CPQ software drives profitability through operational improvements. A smooth quote-to-cash process reduces errors, accelerates sales cycles, and improves customer satisfaction—all of which contribute to a stronger bottom line. Automation handles product configurations and quote generation, lowering per-sale costs by replacing time-consuming manual work with automated functionality, which, in turn, frees sales teams to pursue more deals and handle larger territories. When sales teams are able to expend less effort on paperwork, they can focus more effectively on activities that boost revenue and profits. This shift from administrative tasks to revenue- and profit-generating activities helps companies grow their business while maintaining lean operations.

Maximize Margins with NetSuite CPQ

NetSuite CPQ addresses the challenges of manual configuration, pricing, and quoting, starting with the cloud-based solution’s newest feature: an AI assistant that provides personalized product recommendations and configuration guidance based on natural language interactions with sales teams and customers. This sophisticated approach, combined with dynamic pricing and guided selling features, helps sales teams quickly create accurate quotes while ensuring valid product combinations and configurations.

In addition, NetSuite CPQ includes 3D product visualization capabilities and automated generation of bills of materials and work orders that translate sales configurations into manufacturing instructions—specifying exact components needed and production steps required. Native integration with NetSuite’s CRM, ERP, and ecommerce solutions also creates a seamless quote-to-cash process that helps businesses reduce administrative burden, respond quickly to market changes, and maximize profitability through improved operational efficiency.

CPQ software is simplifying the way businesses handle complex sales processes, replacing time-consuming, manual tasks with automated workflows that boost configuration and pricing accuracy and accelerate deal closures. In addition to improving operational efficiency, the software helps sales teams respond proactively to market changes and customer needs, while maintaining profit margins. Working in tandem with CRM, ERP, and other business systems, CPQ software creates a smooth quote-to-cash process that positions companies for sustainable growth.

CPQ FAQs

What are the pros of CPQ?

Quicker sales cycles and precision quoting are among the top benefits of configure, price, and quote (CPQ) software. Dynamic and optimized pricing, plus visibility into all relevant, up-to-the-minute deal data, helps maximize sales margins and profitability. Sales teams gain more time to secure new business, and buyers benefit from a quicker trip to the deal desk.

Is CPQ a part of order management?

The configure, price, and quote (CPQ) process is an integral part of order management, and CPQ software helps automate and manage a company’s order life cycles. CPQ software enables sales teams to configure complex products and services, generate sales proposals, and then feed the custom quotes to an order management system (OMS) to begin fulfillment.