In today’s competitive B2B landscape, revenue teams face increasing pressure to move faster, sell smarter, and maintain profitability across complex sales cycles. Configure, Price, Quote (CPQ) solutions are essential to this mission. By streamlining how quotes are created, priced, and approved, CPQ platforms—especially when integrated with Microsoft Dynamics CRM—give organizations the control and visibility needed to scale effectively.
But implementing CPQ is only half the story. To truly understand its impact, revenue leaders must measure success using the right key performance indicators (KPIs). These metrics reveal whether the technology is improving forecast accuracy, accelerating deal velocity, and protecting margins—all critical components of a healthy revenue engine.
Below, we outline the six most important KPIs for measuring CPQ success and how platforms like DelHub and Microsoft Dynamics 365 work together to surface these insights.
1. Forecast Accuracy: Ensuring Reliable Revenue Predictions
Forecast accuracy measures how closely predicted revenue aligns with actual closed deals—a foundational metric for any data-driven organization.
When quotes and pricing are managed through a CPQ like DealHub, data accuracy improves dramatically. Every configuration, discount, and approval is standardized, giving leadership more confidence in forecasts.
For additional guidance on aligning CPQ and CRM data for better forecasting, see Maximizing the ROI of CPQ: Strategies for Sales Teams.
Key metrics:
Forecast accuracy rate (% of predicted vs. actual revenue)
% of deals closed vs. forecasted pipeline
Improving forecast accuracy enables finance and RevOps teams to plan resources, manage cash flow, and set realistic growth expectations with confidence.
2. Pipeline Velocity: Speeding Up Revenue Generation
Pipeline velocity reflects how efficiently opportunities move through each sales stage. The faster deals progress—without sacrificing quality—the healthier the revenue flow.
CPQ automation directly impacts this metric by simplifying configuration, pricing, and approvals. With DealHub CPQ connected to Microsoft Dynamics CRM, sales teams can track opportunity progression in real time, identify bottlenecks, and remove delays.
To understand how specific CPQ features accelerate sales cycles, read The Top CPQ Features That Sales Ops Leaders Must Prioritize.
Key metrics:
Average days to close
Time between opportunity stages
Stage conversion rate
Even modest reductions in cycle time compound over a fiscal year, driving significant increases in closed revenue.
3. Margin Protection: Safeguarding Profitability
Discounts can help win deals, but unmanaged discounting erodes margins. DealHub CPQ prevents this by embedding pricing rules, approval workflows, and discount governance directly into the quoting process.
Inside Microsoft Dynamics CRM, leaders can monitor:
Average discount percentage
Margin per deal
Percentage of quotes requiring approval
This level of transparency ensures sales teams operate within approved thresholds while maintaining deal competitiveness. Margin protection isn’t about restricting sales—it’s about enabling intelligent flexibility.
4. Quote-to-Cash Cycle Time: Measuring Operational Efficiency
The quote-to-cash (QTC) cycle measures the time it takes for a deal to move from quote creation to invoice or payment. Shortening this timeline directly improves both cash flow and customer experience.
Through the DealHub + Microsoft Dynamics 365 integration, organizations gain full visibility into the QTC process. Automated handoffs between quoting, contracting, and billing eliminate manual delays and errors.
Key metrics:
Time from quote creation to deal closure
Time from quote to invoice
A streamlined QTC process not only accelerates revenue recognition but also demonstrates operational excellence to customers.
5. Deal Win Rate: Tracking Sales Effectiveness
Deal win rate measures how effectively a sales team converts opportunities into closed deals. High-performing CPQ systems directly influence this metric by enabling reps to deliver faster, more accurate, and more compelling quotes.
With DealHub integrated into Microsoft Dynamics CRM, every quote is tied to its corresponding opportunity, allowing leaders to identify which deal types and configurations drive success.
Key metrics:
Win/loss ratio
Average quote turnaround time for closed-won deals
By analyzing CPQ-driven win data, revenue leaders can refine pricing strategies and replicate successful sales motions across teams.
6. Additional KPIs to Monitor for CPQ Success
In addition to the core metrics above, several supporting KPIs provide a fuller picture of CPQ performance:
Average Deal Size: Are configuration and bundling strategies maximizing deal value?
Quote Accuracy Rate: Are quotes error-free and consistent with approved pricing and product data?
Adoption Rate: Are sales teams fully utilizing CPQ capabilities? Adoption often correlates directly with ROI.
Tracking these indicators ensures that CPQ isn’t just operationally sound—it’s strategically optimized for continuous improvement.
Turning Data Into Strategy
The right KPIs transform CPQ from a process tool into a strategic growth engine. They reveal which parts of the sales cycle need attention, where pricing policies can be refined, and how automation drives efficiency.
For organizations running Microsoft Dynamics CRM, DealHub provides a unified quote-to-revenue platform that connects pricing, quoting, and contracts within one workflow. Every metric feeds back into Dynamics for real-time visibility, empowering RevOps and sales leaders to act faster and smarter.
Final Thoughts
CPQ success is not defined by software capabilities but by measurable business outcomes. By focusing on the right KPIs—and leveraging the power of DealHub integrated with Microsoft Dynamics 365—revenue operations leaders can achieve predictable, profitable growth.
Next steps:
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The post The KPIs That Matter: How Revenue Leaders Measure CPQ Success in Microsoft Dynamics CRM appeared first on CRM Software Blog | Dynamics 365.
