This page was last updated on June 9th, 2025
Configure, price, and quote (CPQ) software helps companies generate personalized pricing quotes quickly by automating the process while also reducing errors and improving the customer experience. It can also automate the proposal and quoting approval process and is therefore used by sales teams to accelerate the sales cycle, especially for complex customized orders, sales, or projects.
CPQ software allows users to configure what a customer or prospect wants to buy or the changes they want to make to existing orders. It also sets prices or discounts, and provides custom quotes that best fit the customer’s needs.
To increase efficiency and accuracy, CPQ software is most commonly offered as a ready-to-integrate solution that can be used with applications like customer relationship management (CRM) software, enterprise resource planning (ERP) systems, and e-commerce platforms.
To qualify for inclusion in the Configure, Price, and Quote (CPQ) category, a product must:
- Allow the use of CRM, ERP, or other enterprise software data to define and manage a product catalog, including price rules and descriptions of offered goods or services
- Configure products or services based on a customer’s specific needs, including selecting various options for customizations, product bundling, features, and other dependencies
- Automate pricing calculations based on custom pricing, discounts, costs, other financial rules, and external factors like competitors, market changes, or laws and regulations
- Generate personalized branded quotes or proposals quickly while also being able to modify, deliver, and track quote documents
- Provide analytics and reporting during the entire quoting process to gain insights on sales performance, quoting trends, product configurations, and suggestions to improve the process
