AR in CPQ - pros and cons

Augmented Reality (AR) is a technology that enhances the physical world with digital information, and has the potential to revolutionize the way businesses configure, price, and quote (CPQ) products and services.

However, before incorporating AR into a CPQ project, it is important to understand both the benefits and challenges of using this technology.

Pros of Using AR in CPQ

1. Enhanced visualization: AR can provide customers with a more immersive and interactive visual experience when configuring products or services. For example, a customer could use AR to see how a piece of furniture would look in their home before making a purchase.

2. Improved accuracy: AR can be used to gather accurate measurements and data during the configuration process, which can help ensure that quotes are accurate and reduce the risk of errors.

3. Increased engagement: By using AR to provide customers with a more interactive and engaging experience, businesses may be able to increase customer engagement and interest in their products or services.

4. Enhanced collaboration: AR can be used to facilitate collaboration between sales teams, product engineers, and customers during the configuration and quoting process.

Cons of Using AR in CPQ

1. Complex implementation: Implementing AR technology can be a complex and technical process, requiring specialized skills and resources. If a business doesn't have the necessary expertise or resources, they may choose not to use AR in their CPQ project.

2. High costs: AR technology can be expensive, both in terms of the hardware required to use it and the development costs for creating AR experiences. For businesses on a tight budget, the cost of implementing AR in a CPQ project may be prohibitive.

3. Limited customer adoption: AR is still a relatively new technology, and not all customers may be familiar with or comfortable using it. If a business is concerned about customer adoption, they may choose not to use AR in their CPQ project.

4. Limited compatibility: AR technology often requires specific hardware, such as a smartphone or tablet with a camera, in order to work. If a business's customers don't have access to compatible hardware, they won't be able to use AR in their CPQ process.

In conclusion, AR has the potential to revolutionize the CPQ process by providing customers with a more engaging and accurate experience, and by reducing the risk of errors and inefficiencies. But there is also a risk that a fancy AR covers for a weak configurator, as we have written before on this blog.

However, businesses must weigh the benefits and challenges of using AR in the context of their specific needs and goals before incorporating this technology into their CPQ project.