What does CPQ stand for in the context of industries?

In the context of industries, CPQ stands for Configure, Price, Quote. This term encapsulates a software solution that helps sales teams and organizations streamline the process of configuring products or services to meet customer specifications, determining accurate pricing based on various factors, and generating quotes that can be presented to customers.

The “Configure” aspect involves setting up different options and features of a product or service that fit specific customer needs, ensuring that all components function together seamlessly. The “Price” component calculates the total cost by taking into account different pricing variables, discounts, and pricing models, which helps maintain pricing accuracy and consistency. Finally, the “Quote” feature allows for the quick generation of formal proposals that can be sent to clients, displaying all configured options and prices clearly.

This comprehensive approach facilitates efficiency in the sales process, leading to improved customer satisfaction and quicker turnaround times from inquiry to order. The other options do not accurately reflect the established meaning of CPQ in the industry context and therefore do not capture the same level of integrated functionality that CPQ represents.