CPQ for Dynamics 365: Streamline Sales with Smart Quoting & Pricing

Isn't it wonderful? Your sales team can do product configurations, pricing, and quotations; all from a single platform. Seems interesting! But you may be wondering how it's possible.

This is where CPQ for Dynamics 365 comes into the picture. CPQ stands for Configure, Price, and Quote. It seamlessly integrates with Dynamics 365 solutions like D365 Business Central and Dynamics 365 Sales, making it significantly easier for your sales team to use.

For instance, a manufacturing company wants to offer custom machinery quotes. With CPQ, the sales team can customise the specifications of the machines, calculate the exact price, and generate a well-formatted quote with much ease, all in Dynamics 365.

What is CPQ?

The Configure, Price, Quote (CPQ) process allows companies to simplify the creation of accurate customised quotes for customers in a way that applies to the soft drink and beverage industry:

Configure: Choose product features or services compatible with customer needs.

Price: Use dynamic pricing rules, discounts, promotions.

Quote: Quickly create professional and error-free proposals.

The integration of all the above processes quickly with the static and the dynamic features is handled by CPQ software.

What is CPQ for Dynamics 365?

This refers to the integration of CPQ software with Dynamics 365 solutions like D365 Business Central and Dynamics 365 Sales to provide life with complete ease when it comes to defining complex product configurations, pricing, and quick and accurate quotes.

For instance, PROS Smart CPQ is one of the solutions integrated into Dynamics 365 to streamline the quote-to-cash process through exciting things such as performance quoting, flexible catalogs, and AI-optimised pricing.

A Glance at the Must-Have Features of CPQ Software for Microsoft Dynamics 365

Dynamics 365 extended CPQ solutions incorporate numerous features that are aimed at empowering the sales teams and optimising the quoting process:

Guided Selling: Acts as a virtual sales assistant, directing sales representatives through the configuration process. By asking pointed questions about customer needs and preferences, it enables accurate configurations and reduces errors especially when dealing with complex product catalogs.

Dynamic Pricing Engine: Software with integrated sophisticated pricing engines automatically compute prices depending on certain targeted factors like volume discounts, customer-specific pricing, promotions, and contract terms. This assures price accuracy while maintaining consistent pricing on all quotes maximising profits.

Automate Quote Creation and Approval: Automating the generation of professional-looking and brandable quotes and proposals in multiple formats with CRM from Dynamics 365. It accelerates the approval process by routing quotes on predetermined workflows thereby reducing turnaround times and prompt delivery to customers.

CRM Integration: Seamlessly integrates with Dynamics 365 CRM, thus enabling the sales personnel to perform their activities on a singular platform to access real-time customer information, product information, and pricing rules. It breaks data silos, works together toward one goal almost like one voice, thus lending unity to the customer and sales process.

Scalability: CPQ for Dynamics 365 is built to scale along with increasing product complexities, larger sales volumes, and changing business demands. Thereby, it ensures that the CPQ solution you choose would go alongside your growth without compromising sales productivity.

What Are the Benefits of Dynamics 365 CPQ?

The implementation of CPQ for Dynamics 365 brings many of the sales, which can and bluntly do benefit business success.

Delivers Accelerated Sales Cycles: Through automation of the quote-to-cash process, CPQ eliminates manual activities and approval bottlenecks, allowing quicker closure of deals by the sales team.

Better Accuracy: CPQ eliminates errors in pricing and configuration due to automated calculation of prices and the embedding of pricing rules which builds customer trust and prevents the occurrence of costly mistakes.

Increase Revenue: Streamlined sales processes and accurate quotes mean faster deal closures and larger deal sizes, directly resulting in increased overall revenue.

Simplify Size, Configuration & Pricing: CPQ visually simplifies complex configurations with guided selling and dynamic pricing tools to guarantee massive accuracy and ease.

Automate Renewals: CPQ ensures timely renewals and prevents revenue slippage through tracking contract terms and generating renewal quotes.

Standardise Proposals: Through CPQ, organisations can create standardised proposal templates that automatically generate proposals that are consistent, branded, and professional, improving image and client perception.

CPQ and Dynamics 365 Sales: A Perfect Match

The information that CPQ systems shares will create a synergistic relationship with Microsoft Dynamics 365 Sales that bridges the gap between sales, operations, and finance. The sales representatives have access to real-time product data, pricing information, and comprehensive customer history directly from their familiar CRM landscape. This enables sales reps to make more informed decisions, personalize proposals, and respond quickly to customer inquiries.

The integration of CPQ is very crucial since it helps to ensure that the output of the command is the credibility of the stocks as defined by the contractual agreement. Hence, this alignment greatly reduces hustling in fulfillment and improves ordering accuracy that allows flashy operations to be undertaken and enhances customer satisfaction significantly.

What to Look for in CPQ for Microsoft Dynamics CRM

When looking to choose the best CPQ for Dynamics 365, there are several considerations:

Performance quoting: High-volume quoting, even with complex configurations, should not go without latency.

Flexible catalog management: Updating product catalogs, bundles, or pricing rules should not be a problem as business requirements change.

Support large bids or RFPs: Actively manage multi-line-item proposals, bulk pricing, and tiered discounts.

Pricing optimisation: Use AI-based recommendations to form competitive pricing strategies based on real-world trends.

Collaborative quoting: Allow cross-team collaboration (from sales through engineering and finance) within a single platform.

How Can Dynamics Square Support Your CPQ Implementation?

Dynamics Square is your trusted Microsoft Solutions Partner with mastery in tailoring CPQ solutions for businesses. We offer:

Custom CPQ Integration: Directly integrate CPQ tools like Dealhub or PROS into your Dynamics 365 system.

Workflow Automation: Create guided Selling Paths with approval chains and renewals.

Training & Support: Ensure your team gets the most out of the training and 24/7 on-call support for the implementation process.

Contact us to discover how we can enable CPQ for Dynamics 365 to make your sales efficient.