Recent industry analysis suggests on-going growth for the CPQ market, with the industry set to grow by a CAGR of 12.3% between 2022 – 2028. Already valued at USD $2.49 billion, forecasts suggest the Compare, Price, Quote (CPQ) software market will be worth a staggering USD $4.99 billion by 2028 (Proficient Market Insights, 2022)
So, what’s behind the increasing demand for CPQ solutions and what benefits can they offer?
Increase in Online Sales
Online shopping is more popular than ever, and companies want to ensure they can capture a digital market. When it comes to complex and configurable products, however, traditional eCommerce solutions just aren’t sufficient.
With CPQ software, companies can empower customers to configure products in real-time and provide them with instant pricing information, as well as a quotations, proposals and/or Bill of Materials (BoM). This makes online complex product sales viable and efficient, thus boosting the demand for CPQ solutions.
User-Friendly Visual CPQ Tools
Although Configure, Price Quote software has been used for some time, it’s typically been a professional tool that’s been utilized by sales teams and project planners. A customer may visit a store and the salesperson might use CPQ software to prepare their customized order, for example.
Today’s CPQ tools offer something much more accessible and consumer-friendly, however, which effectively ‘cuts out the middleman’ and enables customers to configure, price and quote their order from any location, without assistance. In addition to accelerating the sales process, this ensures that the entire sale can be carried out online.
For companies, this means reduced costs, increased order capacity and enhanced customer satisfaction, so it’s not surprising that visual CPQ tools are a top priority for growing businesses!
Reduced Returns and Order Errors
Processing returns and rectifying order errors can be costly and time-consuming for businesses, so simplifying the sales process is always advantageous. Now, businesses can empower customers to configure products within certain parameters to ensure order accuracy.
With CanvasLogic’s CPQ configuration solutions, for example, our configurators use an updateable rule-based engine to determine which configurations are possible. Additionally, businesses can set ‘automated basket addition’ rules, so that critical components are always added to a customer’s order when they are required.
While the features and functionality of Configure, Price Quote software can reduce returns and order errors, simply allowing customers to experience the product in 2D, 3D or AR and enabling them to configure, modify and personalize products can, in itself, increase customer satisfaction and minimize returns.
If companies are reliant on sales staff to process customer orders, their capacity to accept orders is limited by the size, availability and location of their workforce. In contrast, consumer-friendly CPQ software enables customers to prepare and submit their own orders, thus removing capacity limitations and allowing businesses to process an increased number of orders.
At CanvasLogic, we understand the integral role Configure, Price, Quote software can play in business growth, which is why our CPQ configuration solutions are designed for both in-house sales teams and end-users. Functional across a range of devices, including point-of-sale (POS) hardware, desktops and mobile devices, CanvasLogic CPQ tools give companies the flexibility to introduce new customer-centric sales processes both in-store and online.
Keeping operational costs low allows businesses to maximize profit and Configure, Price, Quote software is one way to minimize the cost of sales. From increasing order capacity and downsizing your workforce to improving order accuracy and maximizing customer satisfaction, there are numerous ways that CPQ software can help companies reduce their operating costs and retain a higher percentage of profit as revenue.
In fact, the ROI on product configuration CPQ software is one of the reasons Configure, Price, Quote software is becoming so popular for B2B, B2C and D2C sales.
Is CPQ Software Right for Your Business?
To find out more about CPQ software, talk to our friendly team today. We’ll help you learn more about what Configure, Price, Quote software can offer and provide all the info you need about our user-friendly, visual CPQ tools.