Why CPQ is a great tool to increase your sales
Updated: Sep 17, 2021
What does CPQ stand for?
CPQ is simply the abbreviation of Configure, Price and Quote. This means that the CPQ-tool is able to make customer-based Configurations, apply the correct Pricing and immediately generate a Quotation out of this proposal.
The strength of the configuration tool is that you can easily compose a product or entire package that’s completely according to the customers’ requirements. The configuration can also be easily modified if necessary.
Suppose for example that you want to compose the perfect kitchen, CPQ will allow you to start from a basic (standard) configuration, and you can then add as many components as you want. You can even apply some rules like refrigerator A or B can only be selected for kitchen type Z because it’s not compatible with other types.
Why you must choose CPQ?
Well, I think there’s one sentence that summarizes it all: CPQ can easily create the right product for the right customer at the right time.
Choosing CPQ implies that you will certainly increase the sales effectiveness. You will be able to sell faster by eliminating order errors immediately and generate proposals instantly. You can even apply customer- or country-specific pricing. One of the strengths in the global process is that CPQ can implement an entire approval flow. This will make sure that the correct track is followed within your process and that you’re able to protect your margins, even when discounts were applied for that particular customer.
What about the output? Is this always clear for the user?
Absolutely! The output is a strong feature of CPQ. The system is built up of templates that you use to generate your output the way you want. The output can be in Word, PDF or even an Excel-file. And what’s really nice about this is that you can combine your own texts with content from the quote. Like this you can compose a very nice and flexible output document on which even pictures can appear.
And in case you need to add some legal paragraphs – due to some country-specific rules – they can be easily implemented as well. This ensures that the correct output is generated at all times.
Is CPQ a standalone tool?
Well, that’s a combined answer: yes and no…
You can use CPQ as a standalone tool by uploading your set of customers and products into CPQ. This way, you will already be able to create the best quote for your customer and generate your output documents.
But CPQ can also be integrated with other SAP Systems like C4C, ERP or S/4HANA. You can then make C4C the master of your Customer Data and ERP the master of your Product Data. Via the correct integration tools (e.g. CPI) data can be read into CPQ to create your configurations and generate your quotes.
Also, integrations with SharePoint (for example to store output documents) or Salesforce are possible.
Sounds like CPQ is actually added value for the Customer?
I believe it sure is! Given the fact that it can be used standalone tool or integrated with other systems, CPQ is interesting for any kind of customer who wants to create proposals for their customers in a dynamic way.
I would like to invite everyone – whose curiosity is now piqued - to contact Jan from CANGURU so that we can go over your specific case. You can send an email to
firstname.lastname@example.org or give him a call on +32 498 91 17 20.