Sales teams rely on smooth processes to respond quickly to customer needs, and Configure, Price, Quote (CPQ) systems are at the heart of these operations.
However, the effectiveness of a CPQ system hinges on its architecture—how it integrates with your sales tools and workflows, and how well it scales with your business needs.
To understand this, we need to start with the components of modern CPQ architecture, how PandaDoc CPQ software stands out with its functionality, and the transformative benefits it offers for sales organizations globally.
What is CPQ architecture, and why does it matter?
CPQ architecture refers to the framework that powers a CPQ system, encompassing its components, workflows, and integrations with other tools.
A well-designed CPQ architecture helps sales teams deliver accurate, professional quotes quickly while minimizing errors and manual effort.
In modern sales processes, CPQ architecture plays an important role by:
- Faster sales cycles: Automating repetitive tasks like pricing and quote generation.
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Improved accuracy: Reducing human errors through built-in product and pricing rules.
More scalability: Supporting growing product catalogs, complex configurations, and large sales teams.
Our client UptimeHealth slashed their sales cycle by a whopping two weeks when switching to PandaDoc and boosted their close rate by 20%.
Without a robust CPQ architecture, sales teams risk inefficiency, missed opportunities, and inconsistent customer experiences.
Without configure, price, quote in place, customer relationship management suffers, product offerings are out of alignment, and the whole business falls apart.
Ok, maybe that’s a little dramatic, but it has been known to happen. You don’t want to risk that, do you?
The key components of CPQ architecture
To understand how a CPQ system can aid your sales team, let’s break down its core components:
1. Configuration engine
The configuration engine is the brain of a CPQ system. It handles:
• Product rules: Guiding sales reps through complex product configurations for line items and price lists.
• Guided selling: Simplifying decision-making with pre-set workflows and recommendations through resource planning.
This component empowers sales teams to offer tailored solutions without risking errors in product combinations or requirements.
Want your salespeople to upsell? Set them up for success with CPQ in their back pocket.
2. Pricing engine
Pricing can be one of the most challenging aspects of sales, particularly with discounts, tiered pricing structures, or adjustments.
A CPQ’s pricing engine:
• Manages pricing logic: Applies discounts, taxes, and custom pricing rules.
• Updates dynamically: Reflects real-time changes in pricing, ensuring accuracy.
3. Quote generation
The hallmark of an excellent CPQ system is how it automates the creation of professional, branded quotes that are ready to send to clients.
To put it simply, you want clear, accurate quotes.
Features include:
• Pre-built templates for consistency.
• Automated population of product details, pricing, and terms.
• Options for e-signature integration to close deals faster.
4. Integration layer
Modern sales teams rely on multiple tools, and the integration layer connects the CPQ system to:
• CRM (e.g., Salesforce, HubSpot) for customer data.
• ERP for inventory and financial management.
• Sales enablement tools for productivity and content management.
This connectivity helps data communicate across teams and platforms, reducing manual effort and maintaining consistency.
How PandaDoc CPQ architecture is built
PandaDoc CPQ sets itself apart with a modular and API-driven architecture, designed to deliver flexibility, scalability, and a superior user experience. It’s what sets brands who use cpq apart from those who don’t.
Composable API-based design
PandaDoc uses a composable architecture, which allows businesses to integrate only the components they need while retaining the flexibility to scale or customize as their operations evolve.
• Benefit: Businesses can adapt PandaDoc CPQ to fit their existing tech stack without overhauling their processes.
Microservices approach
Unlike monolithic systems, PandaDoc employs a microservices architecture, with each service operating independently.
• Streamlined operations: Separate services for pricing, product configurations, and document generation for faster processing and easier updates.
• Scalability: Each service scales independently, promoting optimal performance even during high sales volumes.
Integrations with other sales tools
A standout feature of PandaDoc CPQ is its ability to integrate with a number of tools used by modern sales teams.
CRM integration
By connecting with CRMs like Salesforce, HubSpot, or Microsoft Dynamics, PandaDoc CPQ automatically syncs customer data, eliminating manual entry and reducing errors.
• Benefit: Sales reps can generate quotes directly within their CRM, using up-to-date customer and product data.
Sales enablement tools
Sales teams often rely on enablement platforms for content management and training.
PandaDoc integrates with these tools so reps are equipped with the latest materials, such as product sheets or case studies, during the quoting process.
Profitability comes from accurate pricing. How do you have accurate pricing?
CPQ tools, CRM systems, approval workflows, and, of course, customer satisfaction, which is paramount.
Project management software
For organizations that coordinate complex sales projects, PandaDoc’s integration with tools like Trello or Monday.com ensures a seamless handoff from sales to delivery.
• Example: Once a quote is accepted, tasks are automatically created in the project management system.
Contract lifecycle management (CLM)
Integrating with CLM tools streamlines the transition from quote to contract, enabling automated approvals, version tracking, and e-signatures.
ERP systems
PandaDoc connects with ERP platforms to sync inventory, pricing, and financial data, making sure quotes are both accurate and actionable.
These integrations automate end-to-end processes, reducing delays and promoting a smoother customer journey from inquiry to close.
Win-win, right? We thought so.
Benefits of PandaDoc CPQ architecture
Scalability
PandaDoc is designed to grow with your business.
Its microservices architecture ensures that even as your product catalog or sales volume expand, performance remains unaffected.
Flexibility
PandaDoc CPQ adapts to diverse industries and sales processes.
Whether your team handles complex product configurations or straightforward service quotes, PandaDoc’s modular design is built with you in mind.
Speed
With automated workflows and real-time integrations, PandaDoc reduces the time it takes to generate, approve, and send quotes, allowing you to excel.
• Example: A quote that once took hours to compile can now be completed in minutes.
Real-world results
PandaDoc CPQ has driven significant results for businesses across industries.
One client, HAAS Alert, saves an average of 120 hours a month by using PandaDoc CPQ for HubSpot.
That’s an estimated 66.67% increase in document creation efficiency.
“Upgrading our subscription to take advantage of PandaDoc CPQ for HubSpot has been well worth it. I had tried other CPQ options and they were all subpar. I’m super happy with our choice and can’t stress enough how much we needed this solution.”
Emerson McCuin, Director of Revenue Operations at HAAS Alert
• Enhanced user satisfaction: Sales reps reported higher efficiency and confidence when creating quotes, thanks to seamless integrations with their CRM and other tools.
The future of CPQ architecture with PandaDoc
As sales organizations evolve, CPQ systems must keep pace.
PandaDoc is at the forefront of this evolution, offering a scalable, API-driven architecture that empowers sales teams to work smarter and close deals faster.
Ready to transform your sales operations?
Explore PandaDoc CPQ solutions or request a demo today to see how it can integrate seamlessly into your sales organization.
By focusing on flexibility, integrations, and innovative design, PandaDoc redefines what CPQ architecture can achieve for modern sales teams.
Disclaimer
PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDoc services are governed by our Terms of Use and Privacy Policy.
