Selling complex products has never been simple. As configurations become more intricate and customers demand faster, personalised solutions, businesses face a clear challenge: how to stay agile while still delivering value. Configure, Price, Quote (CPQ) solutions are helping organisations like yours address this by enabling smarter decisions, improving customer experiences, and laying the foundation for future growth. Over the years, CPQ tools have evolved from operational aids to strategic enablers. They streamline sales processes, reduce manual inefficiencies, and allow teams to meet the demands of an increasingly dynamic market. In 2024, CPQ is no longer just a tool for efficiency; it’s an essential part of gaining a competitive edge. Let’s dive into how these tools are reshaping sales and what businesses can expect in the future.
The new brain of CPQ
Artificial intelligence is revolutionising CPQ systems, turning them into indispensable tools for modern sales strategies. Leading platforms like Salesforce CPQ leverage AI to analyse vast datasets, offering actionable insights that help sales teams make better decisions faster. From recommending optimal product configurations to forecasting demand and pinpointing pricing anomalies, these systems are redefining the sales process with precision and intelligence. But AI’s capabilities go beyond operational efficiency. AI-powered chatbots now guide customers through intricate product configurations in real time, delivering personalised recommendations and enhancing decision confidence. This level of assistance not only simplifies complex purchases but also creates a seamless, engaging customer experience. Predictive algorithms, meanwhile, use historical data to anticipate customer needs, enabling businesses to suggest upgrades or complementary products that align with evolving preferences.
And that’s not all. AI doesn’t just improve how CPQ systems function; it transforms customer engagement. Businesses adopting AI-enhanced CPQ tools report significant gains in sales performance, with reductions of 10-15% in sales cycle times and deal sizes increasing by as much as 20%. These improvements stem from smarter pricing strategies, fewer errors, and faster deal closures—all powered by intelligent automation. By integrating AI, CPQ systems are not only streamlining workflows but also reshaping how businesses connect with and serve their customers, paving the way for a more agile and competitive sales approach.
Putting customers in control with self-service
Modern buyers expect seamless control over their purchasing decisions, and self-service CPQ tools are designed to meet this growing demand. These platforms empower customers to personalise products, access accurate pricing in real-time, and complete purchases without relying on sales representatives. This independence is particularly valuable in industries like manufacturing and telecoms, where complex product configurations are the norm. For example, Tacton’s advanced visual configuration capabilities offer a customer-centric approach by allowing users to explore intricate product options visually. Buyers can see how their selections align with their needs, make real-time adjustments, and create solutions tailored to their requirements. This not only simplifies decision-making but also fosters confidence in their choices, reducing the likelihood of costly errors.
Self-service CPQ tools also deliver measurable benefits for businesses. With customers taking the lead in routine tasks, organisations experience shorter sales cycles, reduced overheads, and enhanced efficiency. Sales teams can redirect their focus to high-value opportunities, such as strategic accounts or cross-departmental initiatives. Beyond operational savings, these tools help build a customer experience that’s intuitive, efficient, and designed for modern expectations, leaving a lasting impression and driving loyalty.
A core component of CPQ: Compliance
Compliance is an increasingly significant aspect of the sales process, particularly as businesses navigate evolving regulations across multiple regions. From tax laws and data privacy requirements to industry-specific mandates, ensuring that every proposal meets these standards is essential to protecting both businesses and customers. Modern CPQ systems are designed to address this complexity by automating compliance checks at every step. These tools ensure quotes align with regional tax codes, contractual terms, and international regulations, reducing the risk of costly errors and penalties. Salesforce CPQ, for example, integrates compliance features that automatically validate quotes, ensuring adherence to applicable laws without adding friction to the sales process.
This automation delivers significant benefits: faster approvals, fewer errors, and a dramatic reduction in compliance-related risks. Some CPQ users report up to a 90% decrease in quoting inaccuracies, safeguarding their operations while improving customer confidence. As global commerce becomes more interconnected, businesses increasingly depend on CPQ solutions to maintain seamless, compliant sales operations—no matter the jurisdiction.
Data-driven decisions
Modern CPQ solutions are transforming the way sales teams operate by leveraging data to drive smarter decisions. These tools provide insights into customer preferences, pricing trends, and sales performance, enabling businesses to adapt strategies and respond proactively to changing demands. With real-time visibility into market dynamics, CPQ systems empower teams to refine pricing models, optimise product configurations, and identify opportunities for growth. For instance, many platforms, including Salesforce and HubSpot, offer advanced analytics dashboards that track deal success rates and highlight patterns in customer behaviour. These insights enable businesses to pinpoint high-performing offerings and uncover new revenue opportunities, such as upselling or cross-selling. HubSpot’s integration of Cacheflow’s CPQ capabilities further enhances its CRM ecosystem, streamlining pricing, configuration, and analytics into a single platform. Similarly, Experlogix and Salesforce CPQ deliver robust tools that help businesses create cohesive strategies by linking data-driven workflows with customer-facing processes. By embracing the analytical power of CPQ, organisations gain more than operational efficiency—they build agility into their decision-making. This not only improves deal accuracy and cycle times but also ensures they stay competitive in an ever-changing market landscape.
The backbone of effective CPQ are integrated systems
The true power of CPQ solutions lies in their ability to integrate seamlessly with other your business systems. Whether connecting with CRM platforms, ERP solutions, or e-commerce ecosystems, these integrations ensure a consistent flow of data across departments, reducing errors and accelerating processes. For example, Experlogix offers robust integration capabilities within Microsoft environments, enabling sales teams to work effortlessly with backend systems. This integration ensures that quotes remain accurate, orders are processed efficiently, and all stakeholders operate from a single source of truth. Similarly, other leading CPQ tools provide the flexibility to integrate with diverse platforms, enhancing collaboration between sales, finance, and operations teams. When CPQ systems are properly integrated, they act as a central hub for an organisation’s sales operations. They streamline the entire process—from product configuration and pricing to order fulfilment and post-sale support – creating a unified experience for customers while improving internal efficiency. This alignment not only reduces redundancies but also positions businesses to scale with confidence and agility.
The future of CPQ: 2025 and beyond
As we look ahead to 2025 and beyond, the evolution of CPQ tools is poised to accelerate. Personalisation driven by AI will reach new heights, allowing businesses to not only understand what customers want but also uncover the underlying reasons behind their preferences for specific configurations or pricing models. This deeper level of insight will empower companies to deliver highly tailored experiences, strengthening customer relationships and increasing retention.
Augmented reality (AR) will also play a significant role in shaping the future of CPQ. Already, customers can visualise product configurations in real-time, whether it’s machinery on a factory floor or furniture in a living room. In the coming years, AR will enhance this capability, providing immersive, real-time experiences that bridge the gap between digital and physical worlds, improving customer decision-making and driving sales.
Sustainability is another driving force. As consumer demand for environmental accountability grows, CPQ solutions are expected to incorporate sustainability metrics—tracking carbon footprints, material sourcing, and other environmental factors—directly into the sales process. This will not only help businesses meet consumer expectations but also enable them to align with their broader environmental goals, ensuring their sales practices are as responsible as they are effective.
So what now?
CPQ has evolved from a tool to a strategic partner, transforming how businesses approach complexity, efficiency, and customer satisfaction. At Sirocco, we understand the importance of integrating people, processes, and technology to support your unique business goals. Our approach ensures that CPQ solutions meet your current needs and remain adaptable as your business grows. Ready to explore what CPQ can do for your organisation? Let’s collaborate to build a solution that addresses your specific challenges and opportunities, helping you stay ahead in a rapidly changing market.
