Must-Know Cpq Kpis [Latest Report]

Highlights: Cpq Kpis

  • 1. Quote processing time
  • 2. Quote-to-order conversion rate
  • 4. Average deal size
  • 5. Revenue per quote
  • 6. Discount slippage
  • 7. Compliance rate
  • 8. Quote approval time
  • 9. Error rate
  • 10. Cost per quote
  • 11. First-time quote accuracy
  • 12. Average number of quote revisions

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In today’s highly competitive business landscape, maintaining a constant pulse on performance is crucial for organizational growth and sustainability. One of the most essential tools for measuring this progress is through Key Performance Indicators (KPIs). As companies increasingly rely on Customer Success to drive results, it is critical to evaluate the efficacy of your Customer Success efforts with the appropriate KPIs.

Within this domain, the realm of Closed-Loop Feedback and CPQ (Configure, Price, Quote) software deserves special attention. This blog post will dive deep into the world of CPQ KPIs, how they impact your overall business goals, and the strategic tips to optimize them for success.

CPQ KPIs You Should Know

1. Quote processing time

The amount of time it takes from receiving a customer’s request to generating a quote for the customer. Shorter processing times indicate a more efficient CPQ (Configure, Price, Quote) process.

2. Quote-to-order conversion rate

The percentage of quotes that lead to actual orders. A higher rate indicates an effective CPQ process and a better ability to meet customer needs.

3. Number of quotes generated per sales rep

This measures the productivity of individual sales reps in initiating potential sales opportunities using the CPQ system. Higher numbers indicate better utilization of the CPQ tool.

In today’s highly competitive business landscape, maintaining a constant pulse on performance is crucial for organizational growth and sustainability.

4. Average deal size

This refers to the average monetary value of deals generated through the CPQ system. Higher average deal sizes may suggest improved cross-selling, upselling, and bundling strategies.

5. Revenue per quote

The average revenue generated per quote provided by the CPQ system. This KPI helps determine the effectiveness of your pricing strategies and overall CPQ system in generating revenue.

6. Discount slippage

The difference between the initially offered quote price and the final negotiated deal price. Lower discount slippage means less negotiation and fewer discounts given, indicating a stronger pricing strategy and accurate initial quotes.

7. Compliance rate

The percentage of quotes generated that meet the organization’s pricing, discounting, and product configuration rules. A higher compliance rate suggests a more accurate and efficient CPQ system.

8. Quote approval time

The time it takes for a quote to be reviewed and approved by a manager or another authorized person. Reducing approval times can help speed up the sales process and increase customer satisfaction.

9. Error rate

The percentage of quotes generated with errors, such as incorrect product configurations, pricing mistakes, or discount discrepancies. A low error rate indicates a reliable and efficient CPQ system.

10. Cost per quote

The average cost associated with generating a quote using the CPQ system, including factors like labor, software costs, and maintenance. Lowering this cost improves the overall efficiency and profitability of the CPQ process.

11. First-time quote accuracy

The percentage of quotes generated correctly on the first attempt, without subsequent revisions or adjustments. A higher rate indicates a more streamlined CPQ process and greater customer satisfaction.

12. Average number of quote revisions

This KPI measures the average number of times a quote is revised before it becomes an order. A lower number suggests a more accurate initial quoting process and less time spent on revisions.

One of the most essential tools for measuring this progress is through Key Performance Indicators (KPIs).

CPQ KPIs Explained

The importance of CPQ KPIs lies in their ability to provide insight into the effectiveness and efficiency of an organization’s Configure, Price, Quote process. Key indicators, such as quote processing time and error rate, reveal how well a company responds to customer requests and the reliability of the CPQ system. Metrics that measure sales rep productivity and revenue generation, like quote-to-order conversion rate and average deal size, reflect an organization’s ability to meet customer needs and maximize profit. Refining pricing strategies and reducing negotiation can be assessed by tracking discount slippage and compliance rate.

Ensuring a smooth sales process and increasing customer satisfaction can be achieved by focusing on improving quote approval time and first-time quote accuracy. Finally, monitoring cost per quote and the average number of quote revisions allows a business to optimize its CPQ process for greater overall efficiency and profitability. By closely examining these CPQ KPIs, an organization can make data-driven decisions to enhance its sales process and ultimately achieve better business outcomes.


In summary, understanding and tracking the right CPQ KPIs is essential for businesses to thrive in today’s competitive marketplace. By closely monitoring key performance indicators such as quote conversion rate, quote error rate, average sales cycle, and upsell revenue, organizations can optimize their CPQ processes and significantly boost sales performance.

Companies that invest in analyzing and improving their CPQ metrics will reap the rewards of streamlined sales cycles, increased customer satisfaction, and ultimately, sustained business growth. Do not underestimate the power of data-driven insights when it comes to improving your CPQ strategy—knowledge is power, and measurements truly matter.


What are CPQ KPIs, and why are they essential for businesses?

CPQ KPIs (Configure, Price, Quote Key Performance Indicators) are measurable values that help businesses evaluate the effectiveness and efficiency of their sales quoting and configuration processes. These KPIs are crucial to ensure that organizations can optimize their pricing strategies, maximize profit margins, reduce sales cycle times, and enhance overall customer satisfaction.

Which CPQ KPIs are most significant for businesses to track regularly?

Some of the critical CPQ KPIs that businesses should monitor include Quote-to-Order Ratio, Average Sales Cycle Time, Conversion Rate, Quote Accuracy, and Average Deal Size. These metrics provide a comprehensive overview of the sales team's performance and inform strategies for improvement.

How can businesses effectively measure and analyze their CPQ KPIs?

To efficiently measure and analyze CPQ KPIs, businesses should adopt a combination of tools and processes such as using CPQ software, integrating CRM and ERP systems, setting realistic goals (based on industry benchmarks), and conducting regular performance reviews. Appropriate data visualization, like using dashboards, can also help in a better understanding and interpretation of the KPIs' progress.

How can CPQ KPIs improve the overall sales process and lead to more significant revenues for a business?

By monitoring and analyzing CPQ KPIs, businesses can identify areas of inefficiency, streamline processes, and enhance customer satisfaction. Improved quote accuracy and faster sales cycles lead to reduced order cancellations, increased conversion rates, and better profit margins. Moreover, insights from these KPIs can help sales teams prioritize high-value opportunities and strategically nurture potential customers, ultimately leading to increased revenues.

What are some common challenges businesses face while measuring CPQ KPIs, and how can they overcome them?

Some common challenges businesses face while measuring CPQ KPIs include data accuracy, integrating data sources, establishing relevant benchmarks, and setting appropriate goals. To overcome these challenges, organizations should invest in advanced CPQ software and ensure seamless integration with CRM and ERP systems. Regular data audits and clean-ups, conducting industry research for relevant benchmarks, and seeking guidance from experts can also aid in setting actionable goals and improving the overall CPQ performance.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

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