Zoho’s NEW CPQ Functionality For CRM

Zoho CPQ (Configure, Price, Quote) is a powerful set of tools now available in Zoho CRM that helps businesses streamline their quoting process. In this guide, you’ll learn how to set up product configurators and pricing rules to automate quote creation, reduce errors, and enhance sales workflows.

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What Does CPQ Mean in Zoho CRM?

CPQ stands for Configure, Price, Quote. In Zoho CRM, this feature allows you to:

• Configure products based on relationships and dependencies
• Price items dynamically based on customer type, volume, or other criteria
• Quote with consistency and automation, reducing manual effort

Zoho CPQ includes two main features:

• Product Configurator
• Pricing Rules

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How to Use the Product Configurator in Zoho CPQ

What is the Product Configurator?

The Product Configurator helps you define rules for when products should be:

• Sold together (mandatory or suggested)
• Automatically added or excluded from quotes
• Updated with specific field values

Steps to Set Up a Product Configurator

1. Go to CPQ Settings in Zoho CRM
2. Create a new Product Configurator
3. Define the Trigger Item(s) – Select which product(s) will activate the rule
4. Set Criteria – Use filters like account type or deal type
5. Choose the Action – For example:
   • Add a companion product (e.g., auto-include a “conversion box” with a “conversion item”)
   • Suggest an item
   • Update fields like price or description

Example Use Case:

• When a “conversion item” is added and the customer is not a reseller, auto-add a “conversion item box” to the quote.

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How to Create Pricing Rules in Zoho CPQ

What are Pricing Rules?

Pricing rules let you adjust item prices dynamically based on conditions like customer type or quote size. You can set:

• Flat discounts
• Volume-based pricing
• Conditional pricing based on account type, region, deal size, etc.

Steps to Set Up Pricing Rules

1. Navigate to the Pricing Rules section
2. Create a New Rule (e.g., “Reseller Discount”)
3. Select the Item the rule applies to
4. Set Conditions (e.g., account type = reseller)
5. Apply Price Adjustment – e.g., 20% discount

Example Use Case:

• If account type is “Reseller,” apply a 20% discount to the “conversion item.”

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What Does Zoho CPQ Look Like in Practice?

Example 1: Non-Reseller Account

• Add “conversion item” to a quote
• The system automatically adds the “conversion item box”
• Prevents quote submission without the required item

Example 2: Reseller Account

• Add “conversion item” to a quote
• System does not add the box (resellers can use their own)
• A 20% discount is applied automatically based on the reseller pricing rule

This automation helps avoid pricing errors and ensures compliance with sales policy, without spreadsheets or manual calculations.

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FAQ