As its name implies, configure, price, quote (CPQ) software generates proposals for customized products with many moving parts or potential configurations. CPQ software streamlines the sales process by enabling faster and more accurate quotes, reducing errors, and freeing up time for sales reps to focus on selling instead of administrative tasks. Leading systems can even support customer-directed creation of proposals for common product configurations, using workflows similar to those used for direct-to-consumer sales. CPQ systems become especially valuable when they’re integrated with customer relationship management (CRM) systems to provide further insights on customer history, preferences, and interactions with sales teams.

What Is CPQ Integration?

CPQ integration connects CPQ software to other business applications—primarily, CRM and enterprise resource planning (ERP) systems allowing CPQ software to pull data directly from enterprise applications. This integration simplifies workflows by cutting down on the need for manual transfer data from one application to another. It also ensures the accuracy of pricing and inventory presented in the proposals the CPQ system generates.

Key Takeaways

  • CPQ systems that pull data from CRM, ERP, and other business systems provide more accurate proposals in less time.
  • Integrating CPQ and CRM systems reduces errors in proposals, streamlines operations, and improves the customer experience.
  • CPQ and CRM systems can be linked through APIs or custom development, but fully integrated systems are easier to manage and scale.

CPQ Integration Explained

CPQ integration with CRM and ERP systems creates a seamless flow of data across the entire quote-to-cash process. When CPQ software integrates with a CRM system, it pulls in customer data to personalize product configurations and pricing, accesses purchase histories for intelligent product recommendations, and tracks customer interactions for more effective follow-ups. On the ERP side, integration with CPQ software gives salespeople real-time visibility into product information, inventory levels, supply chain details, and financial data. For example, when sales representatives create quotes through the CPQ system, they can access real-time pricing and inventory information from the ERP system and pull customer details and preferences from the CRM system. Once a purchase is made, relevant data automatically updates in both systems to maintain data consistency and accuracy companywide, eliminating the need for manual data entry and reducing the risk of errors.

CPQ vs. CRM: What’s the Difference?

CPQ systems zero in on streamlining the sales process for complex products, such as airplanes, medical devices, or highly specialized manufacturing equipment. CPQ tools automate the configuration of products, calculate pricing based on multiple variables, and generate accurate quotes quickly. They excel in environments where products have numerous customizable options, and help sales teams provide precise and consistent pricing without manual calculations.

In contrast, CRM systems are designed to manage and analyze the full gamut of customer interactions. They store comprehensive customer data, including contact information, communication history, purchase records, and service interactions; help businesses build and maintain relationships with customers, track sales opportunities, and support marketing efforts; and provide a holistic view of customer interactions across various touchpoints to enable sales teams to fully understand customer needs and preferences. Though CPQ and CRM functions don’t necessarily need to be part of the same system, companies can benefit from their integration because the data hosted in the CRM system can inform proposals a CPQ system creates by providing suggestions based on previous customer interactions.

Types of CPQ Integrations

As mentioned, CPQ integrations facilitate smooth workflows, improve data accuracy, and ensure real-time availability. They help sales organizations create and modify quotes faster, which leads to a more seamless customer experience and more efficient sales process. To maximize their effectiveness, CPQ systems are most commonly integrated with key business applications, such as CRM, ERP, and ecommerce software. Here are some advantages inherent in each type of integration.

  • CRM:

    An important benefit of integrating CRM and CPQ systems is the ability for sales representatives to automatically create quotes and proposals within the CRM system they’re most familiar with, thereby reducing training time. Additionally, there’s no need to go back and forth between systems to obtain up-to-date price information or customer data. Along with decreasing data entry errors, this boosts productivity, as neither the sales team nor the IT team has to manage multiple databases. CPQ-CRM integration also allows CPQ solutions with advanced artificial intelligence (AI) capabilities to identify upselling and cross-selling opportunities within existing customer accounts.

  • ERP:

    Integrating CPQ and ERP applications connects front-end and back-end systems, giving CPQ users real-time access to cost, inventory, and supply chain data. For example, a sales rep putting together a quote would be able to avoid including a component that’s going to be unavailable from a supplier for several months. In addition, ERP integration gives sales agents access to customer-specific pricing agreements or discounts negotiated by other agents that also apply to their current proposal. This helps create a consistent experience for a customer, regardless of which rep they’re working with.

  • Ecommerce:

    Integrating CPQ with ecommerce systems provides customers with a self-service platform for creating custom configurations. This integration lets customers configure complex products, view real-time pricing, and place orders at any time, without any direct interaction with a sales rep. The system automatically applies correct pricing rules, discounts, and product compatibility checks to guarantee accuracy as it relieves the sales team’s workload. This not only improves the customer experience by providing 24/7 access to accurate product configurations and pricing but also reduces order errors, accelerates the sales cycle, and frees up sales teams to focus on sales opportunities that require personal attention.

Benefits of Integrating CPQ Software With CRM

While there are multiple ways to integrate CPQ with other systems, businesses are perhaps positioned to achieve the greatest return on investment by connecting CPQ applications to CRM systems. Let’s delve a bit deeper into the benefits of this particular integration.

  • Reduces data errors: Sales teams using standalone CPQ and CRM tools need to manually transfer pricing and other critical data from one system to another. The copy-and-paste process is prone to error—and in a complex proposal with thousands of components, errors can have a significant downstream impact. These concerns are eradicated when CPQ and CRM systems are integrated because both systems pull from a shared data source, all but eliminating manual errors.
  • Streamlines operations: Sales teams can spend up to half their time on such tasks as building configurations, generating quotes, delivering proposals, and copying information from one document to another. Integrating CPQ software with CRM systems simplifies these workflows and allows proposals to be automatically populated with accurate pricing and configurations, so sales teams can spend more time interacting with customers—and closing deals.
  • Syncs with real-time updates: One of the most frustrating phases of the CPQ process is the need to repeatedly amend proposals as prices or inventory levels change. Not only do proposals need to be updated, but any sales rep touching a customer account needs to be working with the latest version of that proposal. Integrating CPQ and CRM systems lets companies synchronize data from catalogs, price lists, and inventories. Proposals are updated and shared automatically so that everyone works with the latest version.
  • Improves customer experience: It’s no secret customers are less likely to buy a product if it takes a company too long to issue an initial quote or if the quote is repeatedly updated due to errors or changing prices. The integration of CPQ software and CRM systems lets sales teams create and share custom proposals faster and with more accuracy. This speed—along with the increase in personal attention sales reps can give customers, thanks to optimized workflows—lends itself to a better buying experience.
  • Uncovers sales opportunities: Existing customers are more likely than new customers to buy products from a company; they’re also more likely to purchase higher-priced products and to make referrals. Identifying and capitalizing on these types of sales leads can be difficult, however, if customer information is scattered among fragmented systems. Connecting CPQ and CRM solutions makes it possible for AI tools to analyze accounts and find qualified leads with unmet needs.
  • Increases sales efficiency: A fragmented sales process means deals take longer to close, which hits the company’s bottom line—and, ultimately, sales reps’ paychecks. By reducing errors, simplifying processes, and improving the customer experience through CPQ-CRM integration, the sales cycle gets shorter. In addition, improved visibility into customers’ needs helps sales reps identify cross-selling opportunities, driving up the value of a deal.
  • Closes more deals: Not surprisingly, making the sales process more proficient, less prone to errors, and tailored to the needs of customers helps close more deals. When sales teams can present personalized and accurate quotes in minutes and easily generate updated proposals, customers are more likely to sign on the dotted line.

How to Integrate CPQ and CRM

Companies typically have three options when it comes to integrating CPQ software and CRM systems. While each one will get the job done, some present obstacles that can make integration more time-consuming and costly than it needs to be. The three options are:

  • Custom links: With this approach, developers write custom code that links relevant fields from the two systems. Pursuing this integration strategy helps to make sure a company gets the right information in the right field in a proposal. However, custom development requires specific expertise that can be hard to find. Custom-built integrations are also difficult to maintain over time, and there’s no guarantee that these links will work when the CPQ or CRM system is upgraded. Furthermore, custom systems tend to require significant end-user training, which may lead to resistance from sales teams if they don’t readily see any benefits of the integrated system.
  • API integration: Here, companies use vendor-provided APIs to integrate previously disparate systems. Though this eliminates having to write custom code, businesses will still need experts to manage and maintain the separate CRM and CPQ systems. Companies also may encounter other challenges, such as managing multiple software licenses and figuring out which vendor to contact for technical support.
  • CRM software with CPQ package: For the best outcome, companies can invest in a fully integrated solution from a single software vendor. This eliminates the need to write custom code or rely on APIs to establish seamless connections between the CRM and CPQ systems. Since the integrated systems already share a data platform, businesses can easily layer on AI tools that perform data analysis and process automation. Plus, since one vendor maintains the system integration, IT teams don’t need to worry about maintenance, updates, or management.

Considerations for Choosing a CPQ Solution

The market for CPQ software is competitive. Indeed, Gartner reviewed 16 vendors in its latest Magic Quadrant market research report and has posted user reviews of more than 90 products. Amid such competition, it’s critical for companies to explore their options. Here are three important considerations for companies evaluating CPQ software.

  • Understand your current compatibility requirements. Look at both technical requirements (number of licenses, necessary customization, ease of implementation, availability of support) and functional requirements (integrations supported, ability to write custom business rules). Evaluate features beyond basic CPQ functionality, such as guided selling, AI-powered recommendations, e-signature support, product visualizations, and mobile access for end users and customers.
  • Identify industry-specific functions you may need. It’s no secret that different verticals have different needs during the sales cycle. Manufacturers must manage hefty product catalogs; healthcare providers require compliance with strict privacy and regulatory requirements; technology vendors often need to change specifications on the fly; and financial and insurance firms tend to focus on managing renewals. Whatever their industry requirements, companies should ensure that a CPQ system can meet those needs and address specific workflows without significant customization.
  • Make sure your solution can easily scale. The sales process gets more complex as a company grows because there are likely more products (and more configurations) to sell, as well as additional markets to sell in. The ideal CPQ software will scale as a business grows by supporting increasingly complex deals, automatically translating documents, and letting companies add licenses without adding other hardware. Leading systems will also easily support add-on capabilities that extend the CPQ software’s functionality without custom development.

Seamless CPQ and CRM Integration With NetSuite

For complex products with millions of potential configurations, the sales cycle can easily become disorganized and drag on for months. When quotes must be continually revised to correct inaccuracies or propose reconfigurations, customers and sales reps alike can become frustrated. Integrating CPQ software with CRM systems makes accurate information available in real time to streamline the proposal process and help sales teams move deals over the finish line.

In its Magic Quadrant research, Gartner has named NetSuite a leader for CPQ software for seven consecutive years, recognizing the company for its “completeness of vision” and “ability to execute.” Along with support for traditional CPQ workflows, NetSuite CPQ empowers sales reps with guided selling, dynamic bill-of-materials creation, and configurable business rules that ensure that proposals match work orders. NetSuite CPQ also integrates with NetSuite’s CRM, ERP, and ecommerce solutions to facilitate seamless communication and automate the path from sales to delivery.

CPQ software is an important tool for optimizing the sales cycle, closing deals, and driving business growth. These tools are powerful on their own and even more commanding when integrated with CRM systems familiar to sales teams. Integrating CPQ software and CRM systems unlocks price, inventory, and configuration data for sales reps and makes it possible to automate complex steps in the sales cycle. Along with boosting sales, this helps companies build trusting relationships with customers—and earn their repeat business.

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CPQ Integration FAQs

Why integrate CPQ and CRM?

Integrating configure, price, quote (CPQ) and customer relationship management (CRM) gives users of both systems greater visibility into the customers they serve. For example, the customer needs and preferences documented in a CRM system can be incorporated into the proposal that a CPQ system generates. Meanwhile, CRM system users who can see that the CPQ software created a proposal can have more informed conversations with a customer.

Why integrate CPQ and ERP?

When companies integrate configure, price, quote (CPQ) and enterprise resource planning (ERP) applications, they connect front- and back-end systems. That means CPQ software users have real-time access to cost, inventory, and supply chain data, all of which is valuable for creating an accurate proposal. Additionally, ERP integration gives sales reps insights into previous customizations or pricing agreements a company has negotiated with a client, which helps create a more consistent customer experience.

What is CPQ used for?

Configure, price, quote (CPQ) software generates proposals for customized, complex products that contain many parts. One example is an airplane, which may have millions of possible configurations. Using CPQ software improves the accuracy of quotes, reduces errors, and improves visibility into available configurations for complex products. Results include a shorter sales cycle, which can lead to higher annual sales and increased revenue.