What is CPQ and why is it so important also for the B2C market?

Let’s take a closer look at the meaning of “Configure, Price and Quote” and the core CPQ capabilities.

Written by
Missoun Team
Published on
February 2, 2024
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In the world of technology and industrial software, acronyms often run rampant, leaving even experts scratching their heads. In this article, we aim to demystify the CPQ acronym – "Configure, Price, and Quote" – a term gaining widespread recognition in the manufacturing sector. While traditionally associated with B2B transactions, CPQ is now making significant inroads into the B2C market. Join us as we unravel the significance of CPQ and its expanding role in today's business landscape.

CPQ: Configure, Price, and Quote Explained:


CPQ stands for "Configure, Price, and Quote." These solutions are designed to simplify the sale of configurable products. While they have long been a staple in the automotive industry, CPQ solutions are now capturing the attention of small and medium-sized manufacturers across various sectors. The growing demand for customizable products has propelled the CPQ software market to new heights. According to the 2020 Gartner Magic Quadrant, the CPQ applications market saw a remarkable 15.5% growth in 2019, reaching an estimated value of $1.42 billion (about $4 per person in the US).

Exploring the Core CPQ Capabilities:

1. Configure: The "Configure" component of CPQ involves presenting each product and its available options to users. It empowers customers to select the ideal configuration that aligns with their unique needs. Product configuration can range from a straightforward list of options to advanced visual CPQ technologies, such as 2D imaging or 3D rendering. Visual configuration offers real-time product visualization, providing customers with a comprehensive view of choices, including materials, colors, and accessories. This technology is particularly valuable for manufacturers implementing 'configuration to order' strategies, allowing customers to digitally preview their product before placing an order.

2. Price: The "Price" aspect of CPQ focuses on managing product and option pricing. Users can seamlessly choose from available options and receive immediate cost feedback for their configured product. This functionality empowers customers with transparency regarding the final product cost.

3. Quote: The "Quote" function enables users to confirm their chosen configuration and request a formal quote for the product. This step marks the finalization of the purchasing process and can occur through various channels. Customers may finalize their purchase via an authorized retailer, relying on the saved configuration and quoted price. Alternatively, customers can opt for direct online purchases from the manufacturer's website, facilitated by electronic payment systems. In such cases, CPQ software is often integrated with e-commerce solutions.

The Expanding Role of CPQ in B2C: While CPQ solutions have long been synonymous with B2B transactions, their adoption in the B2C market is growing rapidly. Consumers now expect the same level of customization, transparency, and convenience that businesses enjoy. CPQ empowers B2C companies to offer personalized product experiences, transparent pricing, and streamlined purchasing processes. It enhances customer engagement and boosts conversion rates. As consumer demand for tailored products continues to rise, CPQ is becoming a vital tool for businesses to remain competitive in the B2C landscape.

Contact Us to Learn More: If you have questions about how to implement CPQ software effectively or seek further details about our product, Missoun 3D CPQ, please do not hesitate to reach out. We are eager to connect with you and address your inquiries, helping you harness the power of CPQ in your business.