Questions to Ask When Comparing CPQ Solutions

Shopping for a CPQ (Configure, Price, Quote) solution? It’s not as simple as picking the first option that shows up on Google. Choosing the right software is like finding the perfect puzzle piece—it needs to fit seamlessly into your business without forcing you to change how you operate. But where do you even begin?

This guide will help you understand how to choose a CPQ solution by breaking down the critical questions you should ask before making your decision. With the right information, you’ll feel confident about selecting a tool that works for your team, saves time, and supports your growth.

Let’s get started.

First Things First, Understand Your Business Needs

Before you even start comparing CPQ solutions, take a step back and ask yourself: What does my business actually need? This isn’t about listing features; it’s about identifying the problems you’re trying to solve and the goals you want to achieve. Without a clear understanding of your needs, you risk picking software that looks great on paper but doesn’t deliver in practice.

What Are Your Current Pain Points?

Think about your sales process from start to finish. Where are the bottlenecks? Where do errors or delays occur? For instance:

• Do your sales reps spend too much time creating quotes manually?
• Are you seeing pricing inconsistencies across your team?
• Do you struggle with errors that lead to lost deals or unhappy customers?

These pain points are your starting point. Write them down, and keep them in mind as you evaluate CPQ options. The goal is to find software that directly addresses these issues, not just something with flashy features you don’t need.

What Are Your Long-Term Goals?

Next, think beyond your immediate problems. Where do you see your business in 3, 5, or even 10 years? Are you planning to scale operations? Expand into new markets? Automate more of your processes?

For example, if your business is aiming for international growth, you’ll need a CPQ solution that supports multiple currencies, tax rules, and languages. Or, if you plan to increase sales volume, you’ll want software that can handle a higher workload without slowing down. Choose a CPQ that can grow with you.

How Well Does It Fit Your Industry?

Not all CPQ solutions are created equal. Some are designed with specific industries in mind, while others are more general-purpose. For example, a CPQ tailored for a SaaS business might excel at subscription-based pricing but struggle with the complex configurations required in manufacturing.

Look for vendors who have experience in your industry. Ask them for case studies or references from businesses similar to yours. The more aligned the software is with your industry’s needs, the less customization—and frustration—you’ll face.

Features and Functionality

Once you’ve nailed down your business needs, it’s time to dig into the features. But here’s the thing: more features don’t automatically mean better software. It’s about finding the right features for your specific situation.

Does It Handle Complex Pricing Models?

Every business has its quirks when it comes to pricing. Maybe you use tiered pricing based on volume. Or perhaps you offer custom discounts for certain customers. Some businesses even need to account for regional tax differences or fluctuating costs.

A good CPQ should simplify this complexity. During your evaluation, ask vendors to walk you through a demo. Have them show you exactly how their software handles your trickiest pricing scenario. If it feels clunky or requires too much manual intervention, it might not be the right fit.

Is It Customizable?

No two businesses are the same. That’s why customization is so important. Maybe you need to add custom fields, build approval workflows, or tweak the interface to match your branding.

Some CPQ solutions are flexible and easy to modify. Others? Not so much. Ask how much customization is possible without requiring a developer. Ideally, your team should be able to make adjustments without a PhD in coding.

Can It Handle Upselling and Cross-Selling?

A great CPQ doesn’t just speed up quoting—it helps your sales team sell smarter. Look for features that suggest complementary products or highlight opportunities for upselling. For example, if a customer is buying a laptop, the CPQ might recommend adding a warranty or accessories.

Think of it like a digital assistant for your sales reps. The right CPQ will boost revenue by making it easier to sell more.

Integration and Compatibility

Even the most powerful CPQ software won’t be helpful if it doesn’t play well with your existing tools. Integration is key to ensuring a smooth workflow.

Is It Compatible with Your CRM and ERP?

Your CRM and ERP systems are the backbone of your sales and operations. A CPQ that doesn’t integrate with them is like a car without wheels—it won’t get you very far. Integration enables seamless workflows, accurate data sharing, and efficient processes.

For instance, connecting CPQ software with your ERP system ensures real-time access to product, pricing, and inventory data for accurate quotes. Similarly, native integration with a CRM like Salesforce allows sales data to flow effortlessly between systems, reducing errors and saving time.

How Well Does It Support APIs?

APIs (Application Programming Interfaces) are like bridges between software. They allow different tools to “talk” to each other. Even if your CPQ doesn’t have a direct integration with a tool you use, strong API support can fill the gap.

Ask the vendor how their APIs work. Can they handle the specific use cases you have in mind? Are there limitations you should be aware of?

User Experience and Adoption

Let’s be honest: if your team finds the software confusing, they won’t use it. And if they don’t use it, it doesn’t matter how powerful it is.

How Intuitive Is It?

User-friendliness is non-negotiable. During the demo, pay attention to how easy it is to create a quote, adjust pricing, or pull reports. If it takes multiple clicks to perform a basic task, that’s a red flag.

Think about your sales team. Are they tech-savvy, or do they prefer simple, straightforward tools? Choose a CPQ that matches their skill level.

What Training and Support Are Available?

No matter how intuitive the software is, there will still be a learning curve. Ask the vendor what kind of training they offer. Do they provide video tutorials? Live support? On-site training sessions?

Also, find out what happens if you run into problems down the road. Is support included in the cost, or will you need to pay extra?

Scalability and Flexibility

Your business won’t stay the same forever. The CPQ you choose should be able to adapt as you grow.

Can It Handle Growth?

As your sales volume increases, so will the demands on your CPQ. Ask the vendor how their software performs at scale. Will it slow down if your team doubles in size?

You might also want to ask about system updates. Some vendors release frequent updates to improve performance or add features, while others don’t.

Does It Support Globalization?

If you’re planning to expand internationally, this is critical. A CPQ that works perfectly in one country might fall apart in another. Look for features like:

• Support for multiple currencies
• Tax calculations for different regions
• Localization for different languages

Pricing and ROI

Let’s talk numbers. A CPQ is an investment, and like any investment, you need to know what you’re paying for and what you’re getting in return. Don’t just focus on the sticker price—it’s often only the tip of the iceberg.

What’s the Total Cost of Ownership?

The upfront cost might look attractive, but it’s important to dig deeper. Beyond the initial licensing fee, there are often additional expenses to consider:

• Setup and implementation fees
• Customization costs
• Ongoing support or maintenance fees

Ask for a detailed breakdown of all costs. This will help you avoid surprises and allow you to compare solutions more accurately. Remember, the cheapest option upfront might cost you more in the long run if it’s not efficient or requires constant troubleshooting.

How Does It Demonstrate ROI?

At the end of the day, a CPQ should make your business more efficient and profitable. But how?

• Faster quoting processes: Does it reduce the time your sales team spends creating quotes? Saving hours every week can translate into significant cost savings.
• Increased deal size: Does it enable upselling and cross-selling, boosting your revenue per transaction?
• Fewer errors: Errors in quotes can lead to costly mistakes and unhappy customers. A CPQ should help you eliminate these risks.

Ask the vendor for case studies or success stories from businesses similar to yours. Specific metrics—like a 30% reduction in quote creation time or a 20% increase in deal size—will give you a clearer picture of the potential return on investment.

Vendor Support and Reliability

When you invest in a CPQ, you’re not just buying software—you’re entering into a long-term partnership. The level of support and reliability a vendor offers can make or break your experience.

What Kind of Support Is Available?

Support options vary widely between vendors, so it’s important to know what you’re getting. Here are a few questions to ask:

• Is support available 24/7 or only during business hours? If your team works across time zones, round-the-clock support might be critical.
• What support channels are offered? Some vendors offer live chat, email, or phone support, while others may only provide a help center or ticketing system.
• What’s the typical response time? Ask about the average time it takes for the vendor to resolve issues. Quick responses can save you a lot of headaches.

Also, find out if support is included in the cost or if it requires an additional fee. Premium support packages can add significant costs, so it’s important to know what’s covered.

Does the Vendor Have a Track Record?

Experience matters. A vendor with years of experience and a proven track record is more likely to deliver a reliable product and excellent service. Look for vendors who:

• Have worked with businesses in your industry
• Offer case studies or testimonials from satisfied customers
• Are willing to connect you with references

Reach out to other customers if possible. Ask them about their experience with the vendor. Was the software delivered on time? Were issues resolved quickly? Did the vendor deliver on their promises?

A little due diligence can save you a lot of trouble down the road.

Security and Compliance

Your CPQ will store sensitive data—like pricing models, customer information, and financial details. This makes security a top priority. The last thing you want is for your data to be compromised or for your business to face fines for non-compliance.

How Does It Handle Data Security?

Ask the vendor about their security protocols. Here are a few key features to look for:

• Encryption: Data should be encrypted both in transit and at rest. This ensures that even if someone intercepts your data, they can’t read it.
• Access controls: Can you restrict who has access to sensitive information? Role-based permissions are a must for maintaining security.
• Regular security audits: Does the vendor conduct regular audits to identify and fix vulnerabilities?

Also, ask about their disaster recovery plan. If their servers go down or are hacked, how quickly can they restore your data? A robust backup system is essential.

Is It Compliant with Regulations?

Depending on your industry and location, there may be specific regulations your CPQ needs to comply with. For example:

• GDPR: If you handle data from EU customers, the software must comply with the General Data Protection Regulation.
• CCPA: Businesses operating in California need to meet the requirements of the California Consumer Privacy Act.
• Industry-specific regulations: If you’re in healthcare, finance, or another regulated industry, make sure the CPQ adheres to the necessary standards.

Ask the vendor to provide documentation of their compliance. It’s not enough for them to say they’re compliant—you need proof.

The bottom line? Security and compliance aren’t optional. They’re non-negotiable features that protect your business, your customers, and your reputation.

Your Next Steps Toward the Perfect CPQ

Choosing the right CPQ solution isn’t just about ticking boxes—it’s about finding a tool that fits your business like a glove. By asking the right questions, you’ll uncover the strengths and weaknesses of each option and avoid costly mistakes.

Now that you’re armed with the proper knowledge, here’s what you should do next:

1. Make a checklist of your must-haves: Start with the questions outlined in this guide. Focus on your business’s unique needs and long-term goals.
2. Shortlist vendors that match your requirements: Look for CPQ providers with a proven track record in your industry.
3. Schedule demos and ask the tough questions: Don’t be afraid to dig deep during the evaluation process. A good vendor will be transparent and eager to show how their solution works for your business.
4. Compare costs and ROI carefully: Remember, the cheapest option isn’t always the best. Consider total costs and the value you’ll gain in efficiency, accuracy, and sales growth.

The decision isn’t easy, but with the right approach, you’ll find a CPQ that simplifies your sales process, empowers your team, and supports your growth. Take your time, ask the right questions, and make the decision that’s best for your business today—and in the future.