What importance do approvals hold in CPQ processes?

In CPQ (Configure, Price, Quote) processes, approvals play a critical role mainly by ensuring that pricing and discounts align with established company policies. This is important for maintaining profitability and consistency across sales transactions.

When a sales representative proposes a quote, it may involve special pricing or discounts that could impact the company’s revenue. By incorporating an approval mechanism, organizations can verify that these pricing decisions adhere to pre-defined guidelines and constraints before finalizing the sale. This helps to prevent unauthorized discounts and ensures that the sales team operates within the financial framework set by management.

While tracking sales performance, managing product inventory, and automating customer follow-ups are vital aspects of the business, they do not directly relate to the specific importance of approvals within the CPQ process. Approvals focus primarily on the financial compliance of offers to safeguard the company's interests.