Traditional Configure, Price, Quote (CPQ) systems—which rely on rule-based logic or rigid SKU-based configurations—make it difficult for users to configure complex products and services independently. Unless your buyers and sellers are trained experts in your product, intimately acquainted with every SKU in your catalog, configuring perfect-fit solutions is nearly impossible without a better approach.
At Logik, we’re seeing attribute-based configuration power the next wave of CPQ innovation, paving the way for AI-driven discovery and AI-guided selling.
What is Attribute-Based Configuration?
Traditional rule-based configuration relies on predefined logic that dictates which product options can be selected together. While effective for simple product structures, rule-based CPQ becomes difficult to manage as product complexity increases.
In contrast, attribute-based configuration eliminates these constraints by allowing product variations to be selected based on independent attributes—such as size, color, material, performance specifications, or features—rather than relying on static SKUs or rigid rule sets. This means companies can offer more customization without increasing the complexity of their CPQ solutions.
Alternatives to Attribute-Based Configuration (and Their Limitations)
SKU-Based Configuration
In SKU-based CPQ, every possible product combination is assigned a unique SKU, and sales teams select from a predefined list of SKUs to generate a quote. As product variations increase, the number of SKUs explodes, and sales teams waste precious time searching for the right ones.. SKU-based CPQ also increases the complexity of configuring made-to-order products.
Rule-Based Configuration
With rule-based configuration, products are configured using a set of predefined and highly customized rules that dictate available options. As the CPQ system ensures only valid combinations are selectable, strict rules limit customization and flexibility, restricting sales teams from offering personalized solutions. As new products and features are introduced, rules must be constantly updated.
Manual Configuration
Sales reps manually select components and pricing based on customer needs. Quotes are built from scratch using spreadsheets or other antiquated systems. In addition to keeping your sales reps busy quoting instead of selling, misconfigurations can lead to inaccurate or inconsistent pricing, which slows down deal cycles and can significantly impact margins.
The Key Benefits of Attribute-Based Configuration in CPQ
By adopting attribute-based configuration, businesses unlock significant improvements in efficiency, accuracy, and scalability.
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Enhanced Customization: Products can be dynamically configured based on customer preferences without the need to create thousands of SKUs for every possible variation.
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Faster Quoting with Fewer Errors: Sales teams can quickly generate quotes without navigating complex rule sets or SKU catalogs resulting in shorter sales cycles.
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Scalability & Future-Proofing: New product attributes can be added effortlessly without overhauling existing configurations.
How Attribute-Based Configuration Drives AI Innovation
At Logik.ai, we’re leveraging attribute-based configuration to enhance our AI capabilities, making CPQ easier to use and more profitable for our customers.
AI-Driven Product Discovery
The use of attributes makes it easier for AI to analyze historical deal data and recommend optimal product pairings and bundles based on past successful configurations. This is especially impactful for buyers navigating your products and services independently.
AI-Guided Selling
With attribute-based configuration, sellers are guided toward the best possible product configuration for their customer’s unique requirements. This streamlines the sales process, making it easier for every rep to onboard and sell effectively.
AI-Driven Profit Optimization
Based on attributes, market conditions, and customer segmentation, pricing is adjusted in real time, keeping your quotes competitive while preventing excessive discounting.
The shift toward attribute-based configuration isn’t just an upgrade—it’s a necessity for modern sales teams looking to drive efficiency and revenue growth, and an important milestone for AI innovation in CPQ.
