What does 'lead time' refer to in CPQ?

Lead time in the context of CPQ (Configure, Price, Quote) refers specifically to the time required to fulfill a quote once it has been accepted by the customer. This metric is critical for businesses as it helps gauge how efficiently they can convert a customer's interest, reflected in an accepted quote, into an actual sale. It encompasses the complete cycle from the moment a quote is approved to when the order is delivered, emphasizing the operational efficiency and responsiveness of the sales and fulfillment processes.

Understanding lead time is essential for maintaining customer satisfaction, as shorter lead times can enhance the customer experience and potentially lead to repeat business. Companies often aim to optimize this period to remain competitive in the market. The other options touch upon various aspects of the sales process, such as closing a sale, product delivery, and customer follow-up, but they do not capture the full scope of what lead time inherently involves in the context of fulfilling an accepted quote.