April 10, 2024

The Comprehensive Guide: What is Visual CPQ?

What is CPQ? The CPQ stands for Configure, Price, Quote. Learn how CPQ transforms the quoting process, increases sales, and improves customer experience 🚀

What does Visual CPQ mean? Visual Configure, Price, Quote (CPQ) is a powerful software that allows for the customization of complex, mass-customized products and the generation of price quotes. Through quote automation, it minimizes the time spent on customization and aligns sales organization tasks.

Visual CPQ has arrived alongside traditional, pricing-oriented CPQ software, which is usually integrated with CRM applications. Rather than just ticking options,Visual CPQ enables users to inspect a product and its features from images, ore.g. within a VR (virtual reality) environment. Product visualization transforms the software into a comprehensive sales tool, rather than just a helpmate for configuration and pricing. Traditional CPQ is still an integral part of the software, despite the key role of the visual aspect.

Mail order catalogs were based on the idea of speeding up the purchase decision by visualizing products. The same idea lies behind CPQ, but so much more is now enabled by technological development.

What Does CPQ Mean

CPQ means a traditional business practice that advancements in information technology have reinvigorated. With the rise of configurable products and intricate pricing calculations, sales teams find it increasingly challenging to quote prices for customized products accurately.

CPQ software automates the process of generating quotes and proposals based on a product's specific configuration, ensuring precise and fair pricing without the need for manual price lookups. This allows businesses to offer advanced customization options without compromising accuracy or fairness.

b2b sales

While CPQ is often associated with business-to-business (B2B) transactions, it is also widely used in consumer-facing scenarios. For instance, popular apps like the Starbucks mobile app enable users to customize their orders, calculate prices based on selected options, and receive a comprehensive quote—including details like order location and estimated completion time. This not only streamlines the ordering process but also boosts efficiency by reducing the time spent at the point of sale.

What is Visual CPQ

Visual CPQ may not be a familiar term to everyone, but most consumers who have bought goods online have experience in using such a tool. Visual CPQ takes traditional CPQ capabilities to the next level by incorporating 3D product configurators and interactive interfaces into the quoting process.

3D configuration can significantly benefit the CPQ process by empowering customers and sales teams to visually configure complex products, explore various options, and gain a deeper understanding of the customized offerings.

A Visual CPQ tool might, for example, be an online shop selling custom-made sofas The other end of the spectrum includes industrial sectors involved in large projects, such as paper-making machine manufacturing or building tower blocks.

We have come a long way since mail order catalogs. In addition to new opportunities provided by technology, consumers have learned to be more demanding. People will no longer buy a pig in a poke but want to explore and test products in detail. Naturally, this trend favors salespersons who can provide customers with opportunities to test products.

How Visual CPQ Software Works

CPQ software operates on a three-step process: Configure, Price, Quote. During the configuration phase, users can select options and customize their orders, with the software validating choices against predetermined rules and constraints.

Pricing adjustments are made in real-time as users modify their selections, ensuring accurate cost calculations.

Finally, the software generates detailed quotes that sales teams can use to create comprehensive customer proposals.

By streamlining and automating the quoting process, CPQ allows sales teams to significantly reduce the time spent on manual tasks, such as searching for pricing information and preparing proposals. This frees up their time to build customer relationships, identify upselling opportunities, and provide excellent customer service.

Key Benefits of Visual CPQ Software

The more complex a product is, the more difficult it is to present or sell. Visual CPQ software is designed to make this less painful: through visualization, a product can even be presented one part at a time, with no need to take the entire assembly to a trade fair.

Increased sales

Visual CPQ enhances sales by providing customers with a comprehensive view of their options and choices, leading to more informed purchasing decisions.

Improved customer experience

Visual tools empower customers to easily visualize product configurations, facilitating better decision-making and overall satisfaction with their purchases.

online shopping
Shorter sales cycle

Visual CPQ streamlines the customization process, reducing customer hesitation and cart abandonment. This efficiency makes it easier for sales teams to close deals swiftly. Highly Customized Pricing: CPQ systems enable dynamic pricing for tailored products and services, improving sales team productivity.

Cost Reduction and Error Prevention

By automating pricing calculations, CPQ software reduces errors and enhances the overall speed and accuracy of the quoting process.

Rule-Based Configurations

CPQ systems ensure that orders are feasible by applying predefined rules and constraints, preventing the submission of problematic or impossible orders.

Making Sales More Efficient

Sales reps spend a lot of time on going back and forth with customer product designs. With CPQ software, they can quickly handle quotes, prices, and proposals, leaving more time for sales.

Visual CPQ Software Integrations

Integrating a Visual CPQ software into your tech stack can be challenging. However, integrating with Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and E-Commerce systems offers significant business advantages.

CPQ and ERP Integration

Integrating Visual CPQ with ERP systems streamlines the quote-to-order workflow, enhances data accuracy, and fosters operational efficiency. This seamless coordination between sales operations and backend processes contributes to a more synchronized and agile business environment.

erp and cpq integration

CPQ and eCommerce Integration

While CPQ and CRM systems can function independently, integrating them provides several advantages. Information from the CRM system can inform CPQ conversations, and CPQ discussions often generate new customer-related insights that should be recorded in the CRM system. Having both functions unified within one platform enables salespeople to manage information flow more efficiently, leading to better customer management.

CPQ and CRM Integration

Additionally, integrating Visual CPQ with CRM systems allows for seamless communication between sales teams and customer-facing departments. This integration enhances customer relationship management by providing a comprehensive view of customer interactions, preferences, and purchase history. By consolidating CPQ and CRM functionalities, businesses can optimize sales processes, improve customer satisfaction, and drive growth.

How to Choose the Right Visual CPQ Software

When selecting a CPQ platform for your business, it's crucial to have CPQ conversations with potential providers, especially considering the importance of visual CPQ and 3D configuration.

Choosing the right 3D configurator is essential for maximizing the benefits of visual CPQ solutions. Consider factors such as the level of customization and visualization you require for your products and configurations, the complexity of pricing models, and whether you prefer the software to handle communication and data tracking or if you want your sales teams to take charge.

3d configurator

One significant decision to make is whether to integrate your CPQ system with eCommerce, CRM and/or ERP systems. If you already have established relationships with providers of these services and wish for your visual CPQ and 3D configuration to seamlessly integrate with them, the main consideration becomes whether your current CRM/ERP provider can meet these unique requirements.

For newer businesses or those experiencing growth and seeking comprehensive business software solutions that encompass not only CPQ but also other aspects like inventory management and customer interaction, it's essential to choose a provider that can handle a range of tasks while also offering robust visual CPQ and 3D configuration capabilities.

Manage Your CPQ Process with VividWorks

VividWorks is a leading Nordic provider of innovative visual CPQ solutions, revolutionizing the way businesses manage their CPQ processes. With VividWorks, you can streamline and optimize your entire product configuration, pricing, and quoting workflow, empowering your sales teams to deliver accurate and visually compelling quotes to your customers.

Here are some key features and benefits of using VividWorks to manage your CPQ process:

Intuitive and Visual Configuration: VividWorks offers a highly intuitive and interactive interface that enables your sales teams to visually configure complex products and solutions.

With the ability to showcase 3D visualizations and real-time renders, your sales teams can create immersive and engaging experiences for your customers, helping them make informed decisions.

Seamless Integration: VividWorks integrates seamlessly with your existing eCommerce platforms like Shopify, Magento, WooCommerce , CRM and ERP systems, ensuring a smooth flow of data between different departments within your organization. This integration eliminates manual data entry, reduces errors, and improves overall efficiency.

Advanced Rule Engine: The powerful rule engine in VividWorks allows you to define complex product rules and constraints for your configurations. This ensures that your sales teams only propose valid and feasible product combinations, preventing errors and eliminating the need for manual review.

Dynamic Pricing and Quoting: With VividWorks, you can easily manage pricing rules and options, enabling your sales teams to generate accurate and competitive quotes in real-time. The platform supports multiple pricing strategies, such as volume-based discounts and custom pricing rules, ensuring that your pricing aligns with your business objectives.

Collaborative Sales Process: The VividWorks Visual CPQ software enables collaboration among various parties engaged in the CPQ process. Sales teams can effortlessly communicate and exchange configurations with customers, marketing teams, and manufacturing departments, promoting seamless communication and reducing delays.

Book a free consultation call today to see how VividWorks Visual CPQ software can enhance your sales and order processes 🚀

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