Key areas to include in a CPQ RFP

January 23, 2022
5 Min
Veronica Wilson

Drafting a Request for Proposal (RFP) for a Configure, Price, Quote (CPQ) system is a strategic step for businesses looking to enhance their sales processes and improve accuracy in quoting. A well-structured CPQ RFP helps in identifying and selecting a solution that aligns with your business needs and objectives. Here are key areas to focus on when creating a CPQ RFP:

1. Introduction and Company Overview

  • Background Information: Provide an overview of your company, including industry, size, and market presence.
  • Project Objectives: Clearly outline the reasons for seeking a CPQ solution, such as streamlining the sales process, reducing quote errors, or accelerating deal closure.

2. Functional Requirements

  • Configuration Capabilities: Detail the complexity of your products or services and the level of customization required in the configuration process.
  • Pricing Functionality: Specify requirements for handling various pricing strategies, discounts, and multi-currency support.
  • Quoting Mechanism: Describe the desired output of the CPQ system, including quote presentation, approval workflows, and document generation capabilities.

3. Integration and Compatibility

  • Existing Systems: Enumerate existing systems (like CRM, ERP, or e-commerce platforms) that the CPQ solution needs to integrate with.
  • Data Exchange: Discuss the need for APIs or other integration methods for seamless data transfer between systems.

4. User Experience and Accessibility

  • Interface: Emphasize the importance of a user-friendly interface for sales teams and other stakeholders.
  • Mobile Accessibility: If relevant, state the need for mobile access to the CPQ system for field sales representatives.

5. Scalability and Flexibility

  • Growth Adaptation: Ensure the CPQ system can scale with your business, accommodating new products, pricing strategies, and market expansions.
  • Customization: Query the extent to which the solution can be customized to meet specific business needs.

6. Reporting and Analytics

  • Insights and Reporting: Specify the need for analytics capabilities to track sales performance, quote conversion rates, and other key metrics.
  • Data Visualization: Request details on the types of reporting dashboards and data visualization tools available.

7. Security and Compliance

  • Data Protection: Inquire about security measures and data encryption standards.
  • Compliance Standards: If applicable, ask how the CPQ system adheres to industry-specific regulations or standards.

8. Implementation and Support

  • Deployment Timeline: Request an estimated timeline for implementation and deployment of the CPQ system.
  • Training and Support: Details on the training programs and ongoing support offered by the vendor.

9. Vendor Credentials and Experience

  • Vendor Background: Ask about the vendor's experience, client base, and financial stability.
  • Client References: Request references or case studies relevant to your industry or business size.

10. Cost Structure

  • Pricing Model: Seek detailed information on the pricing structure, including licensing fees, implementation costs, and any recurring charges.
  • ROI Expectations: Understand how the CPQ solution can deliver a return on investment through efficiency gains or sales improvements.

11. Future Proofing and Updates

  • Upgrades and Maintenance: Inquire about the process for system updates, maintenance, and future enhancements.
  • Innovation and Trends: Question how the vendor keeps pace with technological advancements and evolving market trends.

By covering these areas in your CPQ RFP, you ensure a comprehensive evaluation of potential solutions, focusing on aspects that are crucial for the success and efficiency of your sales operations. This approach will aid in selecting a CPQ system that not only meets current needs but also supports future growth and changes in your business environment.