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Vtiger CPQ

Make it easy for your sales team to send accurate and insightful quotes with powerful CPQ capabilities
L
Lavanya R
22 Nov, 2023 - Updated 4 months ago
Table of Contents

Introduction

CPQ stands for Configure, Price, and Quote. It is an application that aids you in creating quotes for your sales orders.

The CPQ feature in Vtiger CRM helps businesses streamline configuring complex information related to products and services and makes quote creation easy. 

Different industries use CPQ to reduce the complexity of sales processes, improve accuracy and speed in generating quotes, and increase customer satisfaction by providing more personalized and relevant quotes. 

So what are C, P, and Q?

Configure (C)

Configuration of products and services ensures that what you provide is available, meets the buyer’s needs and specifications, and can be delivered according to the agreed-upon contract terms.

The Configuration features make it easy for CRM users (salespersons or customers) to add customized products/services to a quote. Vtiger CPQ Add-on enables this configuration through features such as Product Family, Product Options, Product Rules, and Summary Variables.

Price (P)

Pricing features in the CPQ Add-on ensure the accuracy of prices in a quote by automatically including updated prices, applicable discounts, etc. The prices are calculated automatically based on the options selected. Since Discounts and Pricebooks are a part of the CRM, salespersons can price quotes accurately with the CPQ Add-on. Additional discounts can be submitted for approval through the Approval process.

Quote (Q) 

The Q in CPQ refers to Quotes and helps you create quotes easily with information related to products and/or services. This information can include custom processes, discounts, benefits, usage terms, and more. 

You can easily generate professional-looking quotes with little effort. In Vtiger, the Print Templates feature allows you to create attractive proposals and quotes that can be localized for different regions or customized for different types of customers. You can choose either a default template or a template based on the region.

Vtiger CPQ Add-on is available as a paid add-on in the Professional and Enterprise editions of Vtiger One.

Modules in the Vtiger CPQ Add-on

The following are the modules in the Vtiger CPQ Add-on:

  • Product Options
  • Product Rules
  • Discounts
  • Summary Variables

Feature Availability

This feature is available in One Professional and One Enterprise editions of Vtiger CRM.

Benefits

The benefits of the Vtiger CPQ Add-On are:

  • Error-free configurations of complex Products
  • Governance, transparency, and oversight in Quoting
  • Single repository of all products and services
  • Deep Product visualization - Helps you visually understand the product's various features.
  • Guided Selling - Helps you in purchasing the right product. It provides suggestions to make your purchase easier.

In this article, you will learn about:

  • Product Type
  • Product Options
  • Product Rules
  • Discounts
  • Summary Variables

Key Terminology

Key Term

Definition

Configuring

Configuration of products and services ensures that what you provide is available, and meets the buyer’s needs and specifications.

Pricing

Pricing is the cost of individual items and packages. These prices can also be for services and products, which may be sold together or individually.

Quote

A quote is a document with information about the price and availability of items. This includes quantity, price, color, etc., with agreed-upon terms and conditions.

Bundle

A collection of two or more products packaged as one whole product. 

Variant

A form or version of a product slightly different from the product.

Product Scope

Product scope is the sum of all the features and characteristics of a product or service.

Recommendation Rule

This rule adds recommendations or suggestions to customers while selling a product.

Validation Rule

This rule validates the offer added to the product.

Selection Rule

This rule is used to select the offer added to the product.

Discounts

It is the reduction in the price of products or services offered to customers. Discounts are applied to individual or multiple products in a quote.

 

Installation

Follow these steps to install the Vtiger CPQ Add-on:

  1. Log in to the CRM.
  2. Click Add-Ons. The Add-ons page opens.
  3. Type Vtiger CPQ in the search bar. The Vtiger CPQ Add-on appears.
  4. Click Install. A message 'Are you sure to install this add-on?' is displayed.
  5. Click Yes.
Once installed, a success message will be displayed.

Product Types in Vtiger CRM

Product types are similar products and help make product search easier in the CRM. Product types are simple ways to filter searches during the Sales Order checkout process.

There are four types of Product Types:

  • Solo
  • Variant
  • Fixed Bundle 
  • Flexible Bundle

Solo

A product that can be sold singly is termed a Solo product. For example, a mouse alone can be purchased.

Variant

A product can have different variants, and a product variant belongs to the same product family.

For example, an iPhone can have color, size, and storage variants.

Fixed Bundle

A Fixed Bundle comprises two or more products, termed one Fixed Bundle. This is also a bundle without options.

For example, a desktop system with a wired keyboard and wired mouse. In this example, you cannot just purchase a desktop system. A keyboard and mouse are mandatory to use the desktop system. Hence this product can be added as a Fixed Bundle.

Flexible Bundle

The Flexible Bundle comprises two or more products with options. In this case, you can have one fixed product with the option to choose other sub-products.

For example, a burger meal at a fast food joint allows you to choose your sides. A burger meal combo will allow you to choose:

  1. A burger and a beverage like Pepsi or Fanta 
  2. A burger with a side like French fries or Wedges

Product Family

Product family is a group of related goods that can be grouped as a family of products. 

For example, an iPhone 14 Pro is a product family with the iPhone available in five colors and four storage sizes. i.e., there could be 20 product variants linked to the iPhone 14 Pro family record. 

Product Options

A product can have many Options. Product Options allow inventory managers to configure the options that should be available for a flexible product. 

For example, a Burger King Sandwich combo comes with a sandwich, a choice of beverage, and a choice of side. 

  1. Side: French fries or wedges, or
  2. Beverage: Pepsi, Fanta, Sprite, etc.

Product Options are to be used when the options selection is mandatory for a product. 

Product Rules

Product Rules are configured at an Item-level (Scope=Item/Product) or Quote-level (Scope=Quote) to automatically show recommendations, do validations, or include certain options. 

Product Scope is the sum of all the features and characteristics of a product or service. 

If quotes are selected, then rules will be applied to all inventory modules. If Product options are selected, they will be applied on the product options pop-up.

The three types of Product Rules supported in Vtiger CPQ:

  • Recommendation Rule
  • Validation Rule
  • Selection Rule

Recommendation Rule

When you sell a product, you can make suggestions or recommendations for other products.

For example, 

  • When purchasing a burger meal combo with a burger, french fries, and Pepsi, the salesperson will recommend a dessert like a brownie or an ice cream.
  • If the Smartwatch series five is added, the salesperson or the online shopping platform will also recommend series six or similar watches of other brands.

Validation Rule

This is used to validate the offer added to the product.

For example, a single warranty card is issued against one iPhone, but if two warranty cards are issued, the validation rule should help check this number against the products.

Selection Rule

This is used to select the offers added to a  product. For example, when you sell a product like a desktop, you will also have the option to select a keyboard or a mouse. 

Discounts in Vtiger CPQ

Discounts refer to reduced prices of products or services offered to customers. Discounts can be applied to individual or multiple products in a quote. The discounts feature in Vtiger CPQ allows businesses to offer competitive pricing to customers without sacrificing profit margins.

Discounts are fixed amounts or a percentage of the price. Conditions are also added based on specific criteria such as product quantity, customer type, or contract duration. 

 

Summary Variables

Summary Variables are an important part of Vtiger CPQ systems that are used to calculate the cost of a complex product or service and ensure accurate pricing and cost accounting.

They are used in calculating the total price or cost of a configured product or service. These variables use formulas or rules to calculate the values based on the input data and variables. Summary variables are used for pricing, cost calculations, and other calculations to determine the final cost of a quote or order. 

They can also display summary information on the quote or order form, such as taxes, discounts, and other charges. 

References

Configuration - Customer Portal

Creating Price Books

Managing Quotes

Product Options

Product Rules

Discounts

Summary Variables

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