01 Aug The numbers don’t lie: CPQ is big and only getting bigger
CPQ software suites are some of the fastest-growing B2B product configuration and sales applications on the market today. Configure, Price, and Quote software provides quotes and orders for complex product or service configurations in real-time. And Salesforce CPQ is one of four industry leaders.
In 2017, CPQ revenue estimates were as much as $1.1 billion with a projected future increase of 25% annually through 2020, according to the Gartner’s Magic Quadrant for Configure, Price, and Quote Application Suites.
Also, in 2017, CPQ grew to $42.1 billion. Much of this growth is attributed to the cloud-based SaaS (Software as a Service) market.
In this article, we’ll take a look at some of the key trends and takeaways from Gartner’s Magic Quadrant, including integration, AI, and additional stats about the CPQ market you ought to know about!
Salesforce CPQ and its contemporaries all support product configuration, quote creation, order capturing across multiple customer interaction channels, with pricing optimisation and subscription billing features. The focus on the integration of the entire business process stands out among these leaders. Not only do they integrate with their own products, but they also integrate with other vendors’ digital transformation offerings.
Artificial Intelligence (AI)
Another focus is on the innovation of artificial intelligence (AI) and immersive technology, especially in regards to predictive analytics and machine learning capabilities. Salesforce CPQ uses Einstein AI as a smart CRM assistant for predicting and recommending additional products and services to customers.
In addition, Einstein uses historical browsing and purchase data to predict how your customers shop, which products they buy, and when they are most likely to respond to your salespeople. And the most exciting part about immersive technology is the advancements in viewing products and configurations of physical goods and services. Also, many CPQ vendors are trending away from a focus on saving costs and moving more towards optimising the user experience—making the B2C (Business to Customer) interface more user-friendly and interactive.
Additional stats you should know about!
Additional facts and figures from the customer survey reported in Gartner’s Magic Quadrant for Configure, Price and Quote Application Suites article include the following:
Top three business benefits of CPQ include improved order accuracy, faster quotes, and improved pricing accuracy.
71% of customers surveyed purchased CPQ to replace their existing system.
25% of implementations were completed in less than three months.
71% of all CPQ projects were integrated with Salesforce Sales Cloud.
And 92% of all customers surveyed were satisfied with their CPQ solution.
As the leader in CRM, Salesforce is quickly growing as one of the largest public companies providing a CPQ cloud-based solution. Salesforce touts more than 150,000 organisations using its sales, marketing, and service solutions. Having massive penetration into the CPQ market, Salesforce is virtually guaranteed to lead the future development of CPQ by leveraging their large sales team and customer-base expectations. Additionally, their partnership with companies like DocuSign, Icertis, Zilliant, and others ensures innovative and advanced capabilities for years to come.