10 Questions to include in your
CPQ RFP
2
Instead, they may have several siloed
systems that do not work well together
and slow down the process, or rely on
spreadsheets and tribal knowledge
scattered across their internal teams. As
a result, these companies struggle to
prepare and deliver timely, accurate quotes
to prospects, giving the competition an
opening to provide the first quote and
secure the business.
With more than 30 years of experience
helping businesses from around the world
solve their CPQ challenges, FPX has
responded to thousands of RFPs and RFIs
from businesses looking to streamline
sales processes, bridge gaps across
front and back offices to drive efficiency,
and ultimately, deliver an overall better
experience to both direct users and the
end customer.
With a comprehensive RFP that clearly
covers all your critical CPQ requirements,
your business can begin to move through
the vendor selection process confidently
and begin seeing ROI faster. With an RFP
that asks the right questions the first time,
your team can reach a decision quickly,
possibly saving weeks or even months of
valuable time during evaluation, and more
importantly, avoiding implementation delays
or getting stuck with features you do not
actually need.
The following is a series of potential RFP
questions that may help with your CPQ
project. Each question is accompanied with
what to look for in a vendor’s response as
well as an explanation of why the information
is relevant to your RFP.
Configuring, pricing and
quoting (CPQ) are important
steps in the B2B sales
process, but many companies
do not have an end-to-end
process in place — much
less a single solution — to do
this efficiently.
Introduction
INTRODUCTION
3
Introduction
Here are 10 questions to consider including in
your RFP to help ensure you find the
SOLUTION
PROVIDER
that best meets your needs.
4
ANSWERS TO LOOK FOR
Look for CPQ solution providers that have
systems that are platform agnostic (also
commonly referred to as non-native), and
are able to easily integrate with most major
solutions. Certainly, the CPQ solution you
choose should integrate with your current
applications, but remember, you may switch
from your current applications sometime
in the future. Think about what other
applications you may add, how you are
going to manage changing solutions, and
whether your solutions are flexible enough
should changes occur during a merger or
acquisition.
In short, make sure your CPQ solution is
agile and flexible enough to evolve with
your business.
WHY THIS IS IMPORTANT
If you choose a CPQ solution that is native
to your Salesforce CRM, for example, it
may not be compatible with your SAP
ERP. Instead of benefiting from a CPQ
solution that connects your front and back
office to streamline the quoting process,
your organization is stuck customizing
the application over and over again,
draining resources and killing ROI. As key
applications change or update, such as CRM
or ERP solutions, the CPQ solution should
continue to work with the new or updated
systems. Future-proof your CPQ solution by
selecting a vendor with an open platform.
10 Questions to include in your CPQ RFP
01
Is your CPQ solution able
to integrate with our
required existing platforms,
such as our CRM system
and ERP solution?
5
ANSWERS TO LOOK FOR
Most CPQ vendors are obviously going
to be prepared to service configuration
requirements. However, not all vendors
are created equally in this category.
Look for vendors that are able to solve
complex configuration challenges with
a behavior-based model. Again, it is
imperative to remember that flexibility
is key.
WHY THIS IS IMPORTANT
Many CPQ vendors offer a very specific
approach to solving complexity and
configuration challenges. Constraint-based
configuration, specific scripts and logic
methods are often incredibly rigid.
Think of your configuration challenges as
problems you need to fix — while vendors
with a constraint-based configuration
model provide you with just a hammer,
you would be better equipped to solve any
problem with the entire tool chest that a
behavior-based model provides.
Does your solution
have the ability to support
and service our
complex configuration
requirements?
02
10 Questions to include in your CPQ RFP
ANSWERS TO LOOK FOR
Look for a CPQ solution provider that
can provide a similar experience to your
customers in every channel, including:
ecommerce, direct sales as well as through
partner and vendor channels. Furthermore,
the solution should be able to integrate with
other systems, such as accounting, ERP
and CRM, as well as your pricing data and
product information.
WHY THIS IS IMPORTANT
By selecting one CPQ solution provider that
can support all sales channels, instead of
separate providers for each channel, your
system will be more streamlined and easier
to maintain and upgrade.
Using separate providers for the solutions
for each sales channel is time consuming to
manage, and it results in different shopping,
buying and selling experiences across
channels, which can confuse your customers
and reduce conversion rates.
6
Does your CPQ system
support the sales process
across all channels,
including direct, indirect
and B2B ecommerce?
03
10 Questions to include in your CPQ RFP
7
ANSWERS TO LOOK FOR
Modern CPQ providers should be able
to support B2B ecommerce efforts with a
platform-agnostic solution that integrates
with your existing systems. Your B2B
ecommerce system should be available for
dealers and channel partners to easily use
with their pricing and product information.
WHY THIS IS IMPORTANT
Today’s B2B customers expect a B2C-like
purchasing experience, with options when
it comes to sales channels. This is not just
about preference, there are actual numbers
to support the demand from buyers: Frost &
Sullivan projects that B2B ecommerce will
hit $12 trillion in sales worldwide by 2020,
up from $5.5 trillion in 2012.*
The user experience for purchasing on
your B2B ecommerce channel should be
consistent with the experience on other
channels, so your customers can intuitively
navigate across all stages of working with
your business.
Does your CPQ solution
enable B2B ecommerce
with a user-friendly
interface similar to B2C
solutions? Does your
ecommerce solution
support my dealers and
channel partners as well as
my direct sales team?
04
*http://ecommerceandb2b.com/b2b-e-commerce-trends-statistics
10 Questions to include in your CPQ RFP
8
Does your CPQ solution
have guided buying
and selling processes?
05
ANSWERS TO LOOK FOR
Verify that the provider offers functionality for
guided buying and selling processes. It should
allow buyers to identify which products best fit
their needs, and configure the products to meet
their specifications.
WHY THIS IS IMPORTANT
High value deals require personal involvement
of sales teams to close the deal. Lower value
deals should be more automated, so the
customer can guide themselves through the
process of selecting a product, configuring it
and making the purchase. By automating smaller
deals, it gives your team more time to focus on
high value and high consideration deals.
10 Questions to include in your CPQ RFP
9
ANSWERS TO LOOK FOR
It is important to select a provider that has a
solution that works online, off-line and with
all types of mobile devices. One provider
should be able to provide these solutions for
all of your sales channels.
WHY THIS IS IMPORTANT
Salesteams often work remotely or directly
with customers in the field. They need to be
able to access your CPQ solution anywhere,
any time and on any type of device, even
if they are off-line. This enables your sales
team to quickly create quotes to send to
customers. The first vendor to provide a
quote often wins the deal. By having one
provider for all of your solutions, your sales
team will only have to learn how to use one
system for the CPQ process. This reduces
the time for training and improves the
productivity of your team.
Is your CPQ solution mobile
and off-line capable?
06
10 Questions to include in your CPQ RFP
10
ANSWERS TO LOOK FOR
For today’s CPQ vendors, the focus
is on cloud-based hosting. Many B2B
organizations are looking for the flexibility
that a cloud-based solution provides.
However, it is important to consider your
business’s immediate requirements,
capabilities and long-term goals. Do you
require a quick, easy and less expensive
solution? Or, perhaps you prefer a solution
that is more customizable and provides
greater control over your data.
WHY THIS IS IMPORTANT
There are four key considerations when
it comes to deployment: cost, security,
customization and implementation.
For many businesses, particularly those
in heavily regulated industries, security
is a major factor. For others with complex
requirements, customization is a top
consideration. Consider vendors that can
provide the flexibility of a multi-tenant,
cloud-based solution, as well as the security
and customization that you would expect
from an on-premise solution.
07
What deployment methods
are available – on premises,
hosted (managed services)
and on-demand (SaaS)?
Is it easy to migrate
between these methods?
10 Questions to include in your CPQ RFP
11
ANSWERS TO LOOK FOR
For B2B manufacturers and others
spanning numerous industries, business
may be global. With an emphasis on
internationalization, companies need to think
about how their CPQ solution and other tech
applications manage foreign currencies,
languages and localized product and
service catalogs. Although many vendors
can be “creative” in answering these types
of questions in an RFP, a good way to get
to the truth is to ask, “What are the multi-
regional capabilities of the latest version of
your CPQ solution?”
WHY THIS IS IMPORTANT
When it comes to enterprise-grade
CPQ, it is imperative that the vendor
provide localization capabilities out of
the box. For smaller, SMB-centric CPQ
vendors, accommodating a business’s
internationalization strategy may require
expensive and time-consuming upgrades.
Furthermore, solutions that are retrofitted
to accommodate multiple regions may
compromise the user experience both
from the perspective of your company’s
internal users, and from the perspective of
the customer who may be engaging with
your solution through a dealer portal or
ecommerce platform.
Is the CPQ solution
global-ready, or is it
designed for a specific
market / region and
internationalized at a later
point in time?
08
10 Questions to include in your CPQ RFP
12
ANSWERS TO LOOK FOR
The strongest vendor for your CPQ
solution should provide multiple
implementation options with a variety of
pricing options, as well as industry vertical
and regional expertise.
Vendor Services Implementation: Some
vendors may have an in-house professional
services team for getting the solution up
and running, and integrating it with your
other applications. These services are
often utilized when complex requirements
necessitate significant customization or
when companies have homegrown solutions
that require their internal teams to work with
the vendor’s professional services.
Third-Party Implementation: Many
vendors rely on networks of third-party
implementation partners to help customers
get their solutions up and running.
These solution implementation (SI) partners
can be incredibly valuable when working
within a specific industry where they have
deep domain expertise, as well as when
working with local teams outside the
vendor’s primary region.
WHY THIS IS IMPORTANT
System integration projects can temporarily
place high demands on your IT team. Once
the project is completed, you will not need
as many experts on hand. Each system
integration project has its own unique
complexities, which your internal teams
may not be prepared to handle. By bringing
in experts who are knowledgeable about
integrating your new CPQ solution with a
wide range of applications, the process will
go faster and smoother. This allows your IT
team to focus on core IT matters.
Do you provide
professional services for
the implementation and
integration process directly
or through partners?
09
10 Questions to include in your CPQ RFP
13
ANSWERS TO LOOK FOR
Verify that your new CPQ solution provider
offers training in a variety of formats for your
team. Ideally, training should be available
online, in-person and in a hybrid model.
Training should be available for your IT
team to transfer knowledge about how
to maintain, configure and upgrade your
CPQ solution. Business users from sales,
marketing, accounting and operations
should also be instructed on how to use the
solution in their daily jobs.
WHY THIS IS IMPORTANT
Using professional services experts
or a third-party implementation team
recommended by your CPQ solution
provider makes sense during the
implementation phase of the project.
But once your system is up and running, it
is potentially more cost effective for your
team to take the ball. To make the transition
to your team smoother (and potentially the
independent ownership of the solution),
training from your CPQ solution provider
should be clear, comprehensive and have an
end-goal in sight. In the future, as you add
new people to your team, your newly trained
in-house experts will be able to bring them
up to speed quickly and cost effectively.
Do you offer training
courses regarding solution
maintenance? Are the
training courses available
online, in a classroom or a
hybrid? How much will
the training cost?
10
10 Questions to include in your CPQ RFP
14
The seller who delivers the first quote to
a customer often wins the deal. A modern
CPQ solution that is platform agnostic and
can work with your existing systems will
help ensure that you are the first to provide
your customers with an accurate, properly
configured, professionally prepared quote.
By having your price book integrated with
your system and controlling what prices
can be offered, you will be able to reduce
excessive price discounting by your sales
staff. Properly configuring orders will
safeguard that your customers receive
exactly what they ordered. Implementing
B2B ecommerce will gain orders from
customers who have come to expect
omnichannel purchasing methods from their
vendors. Making your CPQ system available
to your channel partners will help them
produce accurate quotes faster.
Improving your CPQ system can result in big
dividends. Asking the right questions in the
RFP you send to potential CPQ vendors will
verify that your improved system meets your
needs today and tomorrow.
BENEFITS OF
A MODERN
CPQ SYSTEM
Making your CPQ system
available to your channel
partners will help them
produce accurate quotes
faster, with their prices and
product selection.
Benefits of a Modern CPQ System
15
REVIEW YOUR
EXISTING PROCESS
Examine the steps you take
now to configure, price and
quote, and the systems you
use to do this. Identify areas
of improvement.
CONDUCT A COST /
BENEFIT ANALYSIS
How many quotes do you do in a year, and how much time
could you save with a better system? How many more deals
would you win if you are the first vendor to provide customers
with an accurate, professional quote?
BUILD A
BUSINESS CASE
Share information about
your current system gaps
and the upside potential of
a better system with your
senior management.
RESEARCH SOLUTION
PROVIDERS
Determine your needs and
research the best providers
to fulfill them.
SEND RFPS TO
PROVIDERS
Develop a set of questions
to include in an RFP to
accelerate finding the best
provider for your needs.
Steps to Discover the Potential of CPQ
HERE are some basic
steps to take to discover the
upside potential of an
improved CPQ process in
your organization, and
find a provider to help you
realize those gains.
STEPS TO DISCOVER
THE POTENTIAL
OF CPQ
16
Do not give vendors the opportunity
to “spin” their answers
When it comes to RFPs, be as specific as
possible with your initial questions. When
drafting questions, anticipate the vendor’s
response and prepare to engage in a
follow-up dialogue to achieve more
comprehensive answers.
Make sure your new CPQ solution
works for you now and in the future
Most businesses are conducting an RFP
process to solve an immediate problem.
However, do not get caught looking at the
ground right in front of you. It is important
to consider how your CPQ application fits
into your long-term business strategy –
whether that is three, four or more years
into the future.
Be direct with vendors during the
evaluation
The RFP process is important to your
business, so do not forget to ask the
difficult questions and press when the
vendor fails to give you a straight answer.
Set the expectation up-front that you plan
to be clear, direct and expect the same
from the vendor.
Do not let procurement handle the
entire RFP process
Acquiring a CPQ solution, or any highly
impactful application, should not be left
to one department. The effects of your
solution will be felt across the company,
so use this as an opportunity to have a
dialogue across departments, bring in
experts, and build consensus to help
ensure you get the solution that works for
your business, not just one department.
The 10 Most Common
CPQ Application RFP
Considerations
THINGS TO
CONSIDER
1 3
2
4
Things to Consider
17
Failing to build a budget before
sending out an RFP
Building a budget for your project is an
important initial step. If you do not know
what you should be budgeting for your
CPQ project, speak to an analyst or
conduct some additional research through
a high-level RFI process.
This is not limited to
your sales team
Sales has much to gain from a CPQ solution,
but so do other departments. As mentioned
before, make sure other departments are
involved in the RFP process. When
engaging with vendors, build a team of
stakeholders from across your company,
including IT, operations, marketing, channel
management and others.
Ask questions that allow for
comparisons across vendors
Keep your questions specific and
consistent. Do not draft questions for each
specific vendor. If you do, how can you
compare their answers and determine
which vendor is able to provide you with
what you need? Consider offering multiple
choice answers to questions so you can
rate vendors easily and come up with a
scoring system for making your decision.
Complete due dilligence
Sure, going directly to the vendors is one
way to go about it. But what about doing
your homework? Schedule briefings with
industry analysts to get their perspective.
They may help you identify your core
requirements and get you started on
drafting your RFP.
Limit the number of vendors
you evaluate
Do not overcrowd your selection process.
Evaluation should not take forever, and by
adding too many vendors, you are only
going to slow things down. Select two
or three vendors that you think are best
suited to your requirements and engage
with them.
People drive the process
Not only are a lot of people involved
with the RFP process on your team, the
vendors also have salespeople, engineers,
implementation teams and others that
will be engaged. Take note of how
you think your team will work with the
vendor’s people. Consider if the vendor’s
portfolio of clients gives them experience
in your type of business. More than just
a solution-fit, consider the culture-fit
when engaging with vendors. You want
your CPQ project to be a big win, and
finding the right vendor, both in terms of
technology and culture, will play a big role
in your long-term success.
8
5 10
7
9
6
Things to Consider
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10 Questions to include in your CPQ RFP
Configuring, pricing and quoting (CPQ) are crucial steps in the B2B sales process, and many companies are challenged to find a CPQ software vendor that best meets their needs. So, whether your business has an outdated solution in need of replacing, or you’re looking to learn all the benefits a modern CPQ system can provide, this guide will give you everything you need to know when reaching out to potential vendors.
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