Episode 43: Creating Value with CPQ w/Nils Olsson

2 February, 2021 / Host: Magnus Billgren

Unleashing the Power of Mass Customization

In the world of coffee, a simple combination of coffee beans, water, and milk can give rise to a wide variety of products. From Espresso to Macchiato, Caffe Latte to Cappuccino, and regular coffee, each beverage offers a different configuration and process, delivering unique value and commanding different price levels. This remarkable ability to create diverse products from the same ingredients highlights the importance of looking beyond the problem itself and focusing on the solutions that connect problems with value. In this article, we explore the concept of Configure Price Quote (CPQ) and its role in enabling organizations to deliver value through tailored solutions. We had the privilege of speaking with Nils Olsson from Tacton, who shared valuable insights on how CPQ can revolutionize the process of mass customization and enhance customer experiences across various industries.

Unveiling CPQ: Beyond the Surface

At first glance, CPQ may appear as a three-word acronym, which stands for Configure Price Quote, however, it is more than just a narrow definition; it is a crucial component within a larger framework. CPQ is about the process of effectively reaching customers with tailored product configurations, ensuring accurate pricing, and delivering quotes that resonate with customers' needs. Olsson emphasizes that it plays a vital role in creating customer value throughout the product lifecycle, starting from product ideation to market analysis and eventual delivery.
In today's market, customers have become accustomed to having information and customization at their fingertips. Whether purchasing a car, an iPhone, or even downloading music, customers demand personalized experiences that meet their unique requirements. These evolving customer expectations apply not only to B2C transactions but also to B2B interactions. Organizations must adapt and provide customers with four key elements:
  • the ability to search for the best solutions based on their needs,
  • a clear and smooth buying process,
  • timely product delivery, and
  • post-purchase support to ensure customer satisfaction. 

Failure to meet these expectations can lead to a subpar customer experience and lost opportunities.

Redefining Expectations and the Challenges of Chain of Communication

The Age of the Customer has placed significant demands on organizations, highlighting the shortcomings of traditional communication chains. Nils illustrates the long and convoluted process that often characterizes customer interactions within companies. From initial contact with a sales representative to the involvement of multiple internal stakeholders, this chain of communication can lead to delays, errors, and dissatisfied customers. Organizations must find ways to streamline and improve this communication to ensure a seamless customer experience.

Within this complex communication web, product management emerges as a critical discipline that can bridge the gap between customer needs and organizational capabilities. Nils Olsson identifies four key areas that product managers must address to drive success: generating demand, selling the value of products, building trust with customers, and sustaining long-term relationships. To achieve these goals, product managers require tools that facilitate customer engagement, enable rapid innovation, ensure efficient delivery, and capture valuable insights.

The Tangible Benefits of CPQ

CPQ methodology acts as a highly effective sales representative, almost like the best salesman you have ever encountered. It enables organizations to connect user needs with the most suitable value delivery. Through CPQ, companies can effectively map out customer requirements and align them with the most valuable product configurations. This dynamic approach ensures that each customer receives personalized solutions that precisely meet their needs, thus enhancing the overall customer experience.
The benefits of CPQ go beyond sales and revenue growth. Nils Olsson highlights the following advantages that CPQ brings to organizations:
  • Efficiency and Accuracy: CPQ streamlines the configuration process, minimizing errors and reducing lead times. By automating the quote generation process, CPQ ensures accuracy and consistency in pricing and quoting, leading to increased operational efficiency.
  • Enhanced Customer Experience: Through CPQ, companies can offer personalized solutions that align with each customer's unique needs and preferences. This level of customization enhances customer satisfaction, fosters loyalty, and strengthens long-term relationships.
  • Optimized Value Delivery: CPQ enables organizations to map customer requirements to the most valuable product configurations. By focusing on delivering value rather than just solving problems, companies can better meet customer expectations and create a competitive advantage in the market.
  • Improved Decision-Making: CPQ serves as a central hub that connects different organizational functions, providing valuable insights and enabling informed decision-making. By analyzing data and trends, companies can continuously refine their offerings and stay ahead of the competition.


  • CPQ (Configure Price Quote) methodology connects user needs with optimal value delivery, revolutionizing the process of mass customization.
  • CPQ enables organizations to streamline processes, enhance customer experiences, and gain a competitive advantage by offering personalized solutions based on customer preferences.
  • By leveraging CPQ, companies can improve operational efficiency, make informed decisions, and deliver customized products and services that meet the unique demands of their customers.

In addition to understanding the value of CPQ in creating customized solutions and enhancing customer experiences, it's essential for product managers to continuously develop their skills and knowledge. One such program that empowers product managers with comprehensive expertise is The Productbeats Product Management Certification Program. By enrolling in The Productbeats Product Management Certification Program, product managers can further strengthen their abilities in harnessing the power of CPQ and applying it effectively in their organizations. This program not only deepens their understanding of value creation but also provides them with the practical skills to optimize their product offerings and drive business growth.
You might also enjoy watching...

Episode 34: Brands for Growth w/Johan Tegstam

Episode 30: Everyday Innovation w/Janne Lundberg

Episode 28: Ecosystem Mapping w/Shaun West