What does 'product optimization' in CPQ primarily aim to achieve?

Product optimization in CPQ (Configure, Price, Quote) primarily seeks to streamline product offerings to align with market demand. This involves analyzing customer preferences, sales data, and industry trends to ensure that the products being offered are relevant and competitive. By refining product lines and focusing on the features that are most desirable to customers, companies can enhance their market responsiveness and boost sales effectiveness.

This approach allows businesses to eliminate unnecessary complexity in product configurations, making it easier for sales teams to configure products that meet customer needs efficiently. By focusing on what the market actually wants, companies can increase customer satisfaction and potentially reduce lead times, thereby improving the overall buying experience.

While reductions in product features to lower costs or frequent introduction of new products may seem viable, they do not directly address the core goal of matching product offerings with actual customer demand, which is crucial for sustained success in a competitive environment. Focusing solely on customer feedback for product design, while important, does not encapsulate the broader strategic initiative of tailoring the product range to optimize sales and profitability across the market.