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Key Issues in CPQ Research

CPQ Word CloudIn this research note we outline the key issues for our CPQ research coverage.



CPQ has historically evolved as a technology capability that can help companies scale up complex sales and enable mass customization. Advances in sales automation, addition of visualization to the quoting process and injection of AI/ML into price calculation and optimization, have dramatically transformed the trajectory of CPQ adoption.

CPQ has emerged from a specialty, niche product category into the mainstream of sales automation and monetization. In this research note we outline the key issues that in our view will drive the evolution of CPQ markets over the next several years.

Between 2020 and 2024, we expect seven key themes to drive the evolution of the CPQ market:


CPQ Research Themes

Each one of the themes describes an area that is essential to CPQ acceptance and all of them need to develop in concert if growth in CPQ adoption is to materialize.

Central amongst these themes is the focus on leveraging CPQ for strategic business differentiation, i.e. how can businesses measure the efficacy of CPQ adoption in terms of concrete business outcomes, such as growth in sales, reduction in discounts, shorter sales cycles and higher sales productivity among others.

Reflecting the research themes, we have outlined 10 key issues that will define our research coverage of CPQ. 

1. How will CPQ capabilities drive strategic differentiation for business? What business trends will drive market adoption of CPQ?

The need for personalization and customization of all sorts of products and services is the key driver of CPQ market adoption.

End customers demand that everyday items like shoes, pizza and clothes can be personalized. They expect that businesses know them and that they can buy these products and services without instructions on their phones, tablets and websites at any time.

These end customers also work in businesses where they buy and/or sell products and services. Their expectation is now that they can easily personalize and customize products and services for their business as well. Personalization and Customization has to be available for every sales channel, meaning for sales teams, channel partners and on a company e-commerce website.

As noted above, CPQ, along with other AMP (Agile Monetization Platform (AMP) disciplines such as Agile Billing and Contact Lifecycle Management, is uniquely positioned among modern enterprise software functions to drive true strategic business differentiation. This is manifested through ability to mass customize complex offerings, dramatically reduce time-to-quote, present digital and visual rather than paper-oriented quotes and offer uniquely optimized and dynamically priced solutions.

In our research coverage we continuously explore innovative CPQ approaches, novel practices and metrics while tracking the linkage to measurable business outcomes.

See the attached report for the detailed description of CPQ Key Issues.

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