What is Configure Price Quote (CPQ)?

Configure Price Quote (CPQ) software applications support the configuration and pricing of products and the subsequent generation of a quote. By automating and optimizing this process, CPQ solutions help your sales team sell faster and more accurately.

In a nutshell, CPQ lets your salespeople provide product and service combinations that suit each customer’s needs. Not only that, it allows them to do it quickly and at the right price.

Today, CPQ solutions have moved beyond this classic definition. Modern Configure Price Quote solutions have evolved from a sales transaction solution, to one that powers a more holistic sale.

In fact, by incorporating the management of the likes of contracts and invoicing, as well as services and subscriptions, CPQ can now provide the basis of an Amazon-like buying experience for your customers.

Want to find out more?

Read our blog What is CPQ and how can it help your business?

Or, download our free Definitive guide to Configure Price Quote (CPQ).

What is an Order Management System (OMS)?

Order Management refers to the series of actions a business undertakes from when a potential order is first created, to the moment a customer receives their desired product or service to the customer.

An Order Management System is a platform used to fulfill orders and navigate order changes accurately and efficiently. 

From order entry and inventory management to fulfillment and the post-sale experience – an OMS helps you manage the end-to-end customer journey.  

Read our guide, Order Management explained in 8 steps here.

Contract Lifecycle Management (CLM)

Contract Lifecycle Management is the process of managing contracts – from contract generation to negotiation and renewals.

Effective Contract Lifecycle Management empowers you to manage risk, proactively meet deadlines and maximize the value of your contracts.

Read our guide to 7 common Contract Management challenges to see if your organization could improve the way you handle contracts.

Product Catalog

A Product Catalog should hold all the commercial product information your teams need to build, define and map new product offerings, while understanding business rules and interdependent products.

It gives you a centralized view of your products, empowering you to easily configure, deploy  and manage products, services and commercial offerings.

Want to learn more?

Check out our guide 4 reasons your organization needs a unified commercial product catalog.

What is Quote-to-Cash (Q2C / QTC)?

Quote-to-Cash refers to the management of the end-to-end customer lifecycle. Right from a prospect showing intent to buy, to a business collecting the revenue. 

The process covers the multiple steps between generating a quote, with Configure Price Quote software, to accepting and recognizing a customer's money in your billing system. 

Customer Relationship Management (CRM)

Customer Relationship Management is a technology used to manage interactions with customers and prospects. A CRM helps build and nurture customer relationships and streamlines processes to boost sales, improve customer service and increase profitability.

Businesses often extend the functionality of their CRM with complementary technology that can better fulfill specific needs. 

Salesforce is the world’s leading CRM – you can read why our platform is Salesforce native here.

Digital Commerce vs eCommerce 

Digital Commerce is the buying and selling of products and services using the internet including all of the marketing activities involved in the transactions. 

eCommerce is online selling. 

For more on Digital Commerce, check out these 37 Digital Commerce statistics worth knowing.

SFDC

SFDC stands for Sales Force Dot Com. Salesforce is a software company that specializes in Customer Relationship Management (CRM).  

It offers a host of cloud-based business applications for companies to use to stay connected to their customers, partners and prospects. 

Read why CloudSense is Salesforce native.

What's an API?

API stands for Application Programming Interface.

APIs let different applications connect, interact and exchange data.

What does CSP stand for?

CSP is the acronym for Communications Service Provider. 

CSPs provide telecommunications, media, entertainment and other services over the network infrastructure, transporting information electronically.

You can download our free definitive guide for modern communications service providers here.

What does OSS stand for?

OSS is the acronym for Operation Support System. OSS covers the software and hardware used by Telecommunications Service Providers to monitor, control and manage their networks.

What does BSS stand for?

BSS is the acronym for Business Support Systems. BSS are the customer-facing systems and channels Communications Service Providers rely on to sell and fulfill their products and services. 

SOHO

SOHO stands for Small Office Home Office, the term is used in Telecommunications to describe small businesses with up to 10 employees.

MPLS

MPLS is the acronym for Multiprotocol Label Switching. 

It's a type of data-carrying technique for high-performance Telecommunications networks that directs data from one network node to the next, based on short path labels rather than long network addresses, avoiding complex lookups in a routing table.

What is NPS?

NPS stands for Net Promoter Score, the benchmark used in Telecommunications and other industries to measure how likely customers are to recommend your business to a friend.

NPS measures customer experience by asking a series of questions that should be answered on a scale of 1-10. 

For example, how likely is it you would recommend [company] to a friend?

What is ARPU?

ARPU stands for Average Revenue Per User.

Revenue generated per user is a useful way for companies to track growth. 

Calculation: Total revenue ÷ Number of subscribers.

What does AOV stand for?

AOV is the acronym for Average Order Value.

AOV tracks the average amount of money each customer spends per transaction with your company.

Calculation: Total revenue ÷ Amount of orders

What's an SLA?

SLA stands for Service Level Agreement, the agreement between a service provider and the customer defining the expectations of the service. These agreements vary between providers and vendors.

What does MACD stand for?

MACD stands for Moves, additions, changes, deletions. 

It refers to the process of updating and changing IT assets to keep them functional for users or customers.

What is an ETF?

ETF is the acronym for Early termination fee.

This is a fee for ending your contract or long-term agreement before the designated end date. 

For example, if your phone contract is 24 months, but you want to end the contract at 18 months, you’ll more than likely be charged an ETF.

What is an Ad Server?

An Ad Server is a piece of advertising technology that’s used by publishers and advertisers to run and manage online ads.

What is Ad Operations?

Ad Operations includes all the processes involved in the running of ad campaigns. Ad ops teams take care of the management and delivery of ad campaigns. 

What is Google DSM?

Google DSM (Google Doubleclick Sales Manager) was an ad management tool designed for publishers to manage ad inventory. 

DSM was retired in July 2019 and replaced by Google Ad Manager.

Google Ad Manager

Google Ad Manager is an integrated management platform designed to help advertisers and publishers streamline their advertisement processes.

The platform allows publishers to manage and deliver their ads whilst providing detailed reporting on their performance.

Programmatic

The automated buying and selling of online ads with computers deciding what to buy and how much to pay.

What is a smart grid?

A smart grid is an electricity network that uses digital communications technology to detect and react to local changes in usage. Smart applications open up a two-way line of communication between energy providers and users around the supply and demand of power 24/7 – enabling better informed decisions around its usage for all parties.

What does C&I stand for?

Commercial & Industrial energy. 

Decarbonization

Decarbonization is the reduction of carbon emissions generated from the production of energy. 

Fossil fuels are being replaced with renewable energy sources to meet climate targets.

Decentralization

Energy that is generated closer to where it is used instead of one centralized source of production.

Decentralized energy helps reduce carbon emissions and reduces the risk of transmission losses.

Bunkering

Bunkering is the supply of fuel for ships.

ETRM

Energy trade and risk management is a software solution used by energy suppliers and producers to support the trading and risk management of commodities. 

Commodity prices often fluctuate so an ETRM helps those in the energy industry to quickly evaluate the market and capture good deals.

MVP

MVP is the acronym for Minimum viable product. An MVP takes a product to market with basic features, but enough to be usable by customers. Feedback can then be collected to inform the rest of the product development. This approach saves time working on features that may not turn out to be useful.

We cover the importance of an MVP and working iteratively in our guide, The principles of a successful digital reinvention.

What does FTE stand for?

FTE or Full Time-Equivalent is a unit used to measure the amount of hours an employee works full-time. FTE lets businesses compare part-time and full-time workers' hours and is often used to track costs.

What does UI stand for?

A UI, or User interface, refers to the way a person controls a piece of software or device. For example, a user-friendly UI means the user can interact with the software or device with ease.

UX

UX, or User Experience, is part of the overall customer experience that refers to the usability of the product.

What does CX stand for?

CX stands for customer experience. Customer experience is the perception customers have of your company. It’s a product of every interaction they have with your brand.

We've explored why a convenient CX is crucial to your business in this blog.

What does WOW stand for?

WOW is one of those acronyms that stands for all kinds of things, from World of Warcraft to Week over Week. 

But when we use it, we're talking about Ways of Working. 

Check out our free guide, The principles of a successful digital reinvention here.

POC

In software, a POC, or proof of concept, shows whether a concept can be deployed successfully in a ‘real-world’ environment. POCs are often used to test whether a vendor can meet a customer’s needs.

MSA

MSA, or Master service agreement, is a contract between two parties that sets out the terms and expectations agreed for future work.