What Is a Product Configurator?

A product configurator is a tool to help customers customize products and services to meet their exact needs. It allows users to select different options to create the optimal combination for their desired product or service. This tool can be used for a wide range of applications, including manufacturing, software development, retail, and more. A product configurator also allows for better communication between the customer and the company providing the product or service, as it can provide clarity about what is being requested and help maintain accurate records of the order.

Product configurators are typically integrated into online ordering systems so customers can design their custom products quickly and effortlessly. They generally feature graphical user interfaces that make it easy to visualize the end result. The configurator will also usually feature interactive tools such as drag-and-drop elements or checkboxes for selecting features and options.

Synonyms

• CPQ
• Configurator software
• Product configuration software

Product Configurator Benefits

Product configurator software offers numerous advantages over traditional methods of customizing products. For instance, they typically require fewer resources than manual processes for product configuration. They also reduce lead times as orders are created faster with fewer errors due to automated component checks that ensure only valid combinations of options are accepted. 

Let’s explore the advantages of product configurators below:

Intuitive User Experience

One of the key advantages of product configurators is that they provide an intuitive user experience. Customers can use visual cues such as swatches or sliders to adjust settings or select specific features they want to be included in their products. This makes the process faster, easier, and more enjoyable for customers since they do not need to manually input data or read complex descriptions.

Product configurators also help reduce customer confusion during the purchasing process by providing clear and comprehensive descriptions of each option. This allows customers to be sure of the product they are buying before they commit to it. With product configurators, customers can easily find the best product for them in terms of price, features, aesthetics, and performance, thus enhancing the customer experience.

Product Customization

One of the foremost advantages of using a product configurator is that it allows businesses to offer more personalized products and services. Customers can select from a wide range of options and features to create a customized product specifically designed for them. This can be especially beneficial when dealing with high-end or complex products like electronics or cars, as it reduces production times and costs while still offering customers the experience of creating something unique.

Reduces Costs

Product configurators offer a number of cost-saving advantages for businesses looking to maximize efficiency. By enabling customers to customize products in real-time, reducing manual labor, and eliminating errors associated with manual processes, these tools save money and increase efficiency throughout the entire product customization process. Furthermore, they enable businesses to develop customized pricing models that account for customer-specific configurations leading to greater competition among vendors while still maintaining high levels of quality and service.

Increases Efficiency

Product configurators can help save time by allowing multiple components of a product to be configured simultaneously. This eliminates problems caused when different parts need to be manufactured separately or tested individually before being incorporated into a final design. Furthermore, product configurators allow for quicker turnaround times as designs can be rapidly altered or modified according to customer preferences without having to go through multiple rounds of development.

Enables Only Valid Product Configurations

For product configurators to be effective, they must ensure that the customer’s configuration is valid and will function as expected and be assembled correctly. Configurators use rules that are customized to each product or product line to ensure that any configurations created by customers or sales reps are within the manufacturer’s specified parameters in terms of dimensions, materials, components, stock availability, etc.

In addition to ensuring valid configurations through rule-checking protocols and comparison with design requirements, some product configurators also use 3D rendering technologies such as CAD (Computer Aided Design) software or animation programs to provide visual representations of how the configured product would look when assembled. This helps customers gain a better understanding of what they’re purchasing before they finalize their order.

Synchronizes with ERP and Production

With product configurators, manufacturers can customize and configure products according to customer specifications by integrating their product catalog, pricing, inventory, and supply chain, ensuring a streamlined quote-to-order process. This also helps simplify the production process, as all of the necessary components are readily available and ready to be assembled.

Integrating product configurators with an ERP system enables businesses to also predict materials requirements based on customer orders and inventory levels more efficiently. For example, if a customer orders a particular variation of a product, the ERP system can automatically adjust production schedules and order materials accordingly, ensuring timely delivery of the requested items.

Industries Using a Rules-Based Product Configurator

Rules-based configuration guarantees your sales team only presents accurate, feasible products that meet customer specifications. So, any company using a product configurator needs a rules engine on the backend to get the full value out of it, regardless of that company’s industry.

That said, each industry has different needs when it comes to product configuration software. Let’s take a look:

1. Mechanical and Plant Engineering

Imagine a company that manufactures CNC machines. Each customer has different needs. Some require a specific spindle speed, others need custom tool attachments, and some want automation features like robotic part loading.

A rules-based configurator ensures:

• Customers can’t select incompatible components (e.g., choosing a spindle that requires more power than the selected motor can handle).
• Compliance with industry safety standards.
• Instant pricing and real-time 3D visualization for clear understanding.

Without one, sales engineers spend hours manually quoting and validating customer specifications. Errors in orders lead to costly manufacturing issues. A configurator eliminates these risks, reducing lead times from weeks to days.

2. High-Tech and Electronics

Electronics and tech product manufacturers have complex product assembly processes they simplify using product configurators. Think of an IT company that offers custom-built servers for businesses.

Customers might select:

• CPU type and number of cores
• RAM configurations
• Storage options (SSD vs. HDD)
• Network and power supply redundancy

The rules engine forces compatibility for all customer orders and verifies that performance requirements match intended use (e.g., servers for AI processing need high-GPU configurations).

Otherwise, sales teams would need to apply deep technical knowledge for every step of the configuration process, and businesses risk selling incompatible systems. Not to mention, it would move slower.

3. Construction and Home Improvement

Construction projects are 100% unique, so they require additional care in planning and execution. Configurators simplify the process by helping with materials selection, pricing, design, and project visualization.

For example, a company offering roofing services can use a configurator to help customers choose shingle type and color, then design and visualize the layout with CAD integration to provide an accurate cost estimate. Customers will get a 3D visualization of how the final product will look on their home, giving them confidence in their choices.

In addition to materials for different elements like frames and windows, you can configure all sorts of contingencies — size constraints, manufacturing limits, energy efficiency requirements, you name it. And you can ensure compliance with local building codes.

4. Medical Technology

In the medical industry, regulations are strict and continuously changing. Medical device manufacturers have to comply with various guidelines, which might include FDA regulations, international standards like ISO 13485, and specific customer requirements.

Configurators can help ensure that products are compliant by enforcing rules for materials, measurements, and features. For instance, a medical device manufacturer offering custom prosthetic limbs allows doctors and patients to configure:

• Material choices (carbon fiber vs. titanium)
• Attachment methods (suction, pin-lock)
• Weight and size adjustments for user comfort

Real-time visualization within the configurator means doctors and patients make informed choices.

5. Automotive

The auto industry has unique challenges when it comes to product configuration because the system also needs to facilitate direct-to-consumer sales. It needs to integrate bidirectionally with your ERP, inventory, and website infrastructure, so customers can design cars or fleets of their own, and see their changes updated on-screen in real time.

In addition to instant price adjustments and compatibility in parts selection, integration with your ERP and inventory management systems means you’ll always have up-to-date product availability. If something’s out of stock or no longer offered, the configurator won’t let customers select it. It’ll automatically reflect those changes, so nobody has to go back and tell the customer later.

6. Furniture and Interior Design

Similar to vehicles, furniture and interior design components have a DTC aspect to them. What’s different is they also need augmented reality (AR) functionality. That way, they can test how something would look in their space and whether it would fit, based on its measurements and the room’s dimensions.It also has all the other features you’d need from a configurator — product selection, adjustment, integration with your business systems, and so on. But it gives them the opportunity to actually try your product before they order. And, for B2B sales, it can facilitate bulk orders.

Product Configurator Trends

As of 2025, product configurators are making some major strides, primarily driven by emerging technologies and evolving consumer expectations.

Here’s a look at some of the most interesting and innovative trends shaping product configuration software:

AR and VR Configuration

Companies are increasingly incorporating AR and VR into their product configurators to provide immersive customization experiences.

For instance, Dassault Systèmes has partnered with Apple to integrate its 3D software with Apple’s Vision Pro, enabling engineers and designers to collaborate on 3D models in real-time and remotely. That way, they can identify and resolve design and maintenance issues before manufacturing, which saves costs and time.

AI and Machine Learning Enhancements

AI is making product configurators smarter than ever. Instead of just following rules, configurators now predict what a customer might want based on their industry, past choices, or even browsing behavior.

Imagine an electric vehicle (EV) configurator. You select an urban commuter car, and instead of you manually adding features, AI instantly suggests a smaller battery with fast charging because it knows city dwellers don’t need long-range batteries.

Or, if it detects that you’re in a colder climate (based on your proposed shipping/pickup location or IP address), it automatically recommends heated seats and an all-wheel-drive option.

It’s like having a smart assistant that knows what you need before you do.

Real-Time 3D Visualization

Advancements in 3D rendering technologies allow customers to visualize product modifications in real-time with high precision. This capability enhances customer engagement and confidence in their purchasing decisions.

Companies like BMW have implemented configurators that enable users to customize vehicles with real-time changes to colors, trims, and wheels, providing an interactive and personalized experience.

Seamless Omnichannel Integration

Multichannel selling is the norm now, so modern product configurators are designed to provide a consistent user experience across various platforms, including websites, mobile apps, and in-store kiosks.

This way, customers can start configuring a product on one platform and seamlessly continue on another (provided they’re logged into the same account). For instance, Nike’s “Nike By You” platform lets customers design and customize shoes online, providing a cohesive experience across digital touchpoints. ​

Focus on Sustainability and Eco-Friendly Options

Today’s buyers are willing to pay nearly 10% more for sustainable products, which reflects a broader trend toward responsible consumerism. To meet the demand, configurators are now baking sustainability directly into the selection process.

As an example, consider a furniture configurator for office desks that shows two material options—standard wood or reclaimed wood. When the customer selects reclaimed wood, the configurator instantly updates the carbon footprint calculation and displays:

“This choice saves 15kg of CO₂ compared to virgin wood.”

This increases conversions among environmentally conscious buyers.

Enhanced Collaboration Features

Until now, configurators have mostly been single-user experiences, but businesses need team collaboration. Thanks to system integrations and new native collaboration features, teams can now collaborate in real time, just like Google Docs. And they can send it from one department to the other (e.g., from sales to engineering) without any friction or risk of data loss.

The integration of advanced technologies like CAD-CAM software, digital twins, and 3D printing further enhances the efficiency and effectiveness of research and development, enabling companies to innovate rapidly and bring products to market more efficiently.

Essential Product Configurator Software Features

Essential features of product configurators include:

Drag-and-Drop or Point-and-Click Product Builder

The most important function of a configurator is its ability to enable customers to build their desired product through a visual interface. This is typically done through a drag-and-drop (for fully custom engineer-to-order products) or point-and-click product builder (for those with pre-constructed components). Both allow users to select features, options, and add-ons with ease.

Customization Options

Product configurators offer users the ability to customize their product by selecting specific features, colors, materials, sizes, finishes, etc., based on complex product rules. This allows them to select exactly which product fits their needs and preferences.

Guided Selling and Smart Recommendations

The best configurators don’t just let users choose — they guide them toward the best configuration based on their needs. The configurator can:

• Suggest optimal combinations based on intended use
• Highlight popular or best-selling configurations
• Give AI-powered recommendations based on past orders, similar customers, or any kind of indicator

For instance, a road bike configurator could ask how the user will use it (racing, commuting, off-road), then suggest the best frame and tire options.

Cost Estimations and Calculations

As users configure a product, the price should update dynamically based on their selections. During the process, the configuration system adjusts for materials, components, customizations, and optional add-ons. It also supports multiple unit pricing, tiered pricing, and location-based pricing.

This makes it easy to create sales quotes, which help your customers see how much their customized product will cost them before purchase, budget accordingly, and make an informed purchase decision.

Visualization Tools

Product configurators often include powerful visualization capabilities that help customers visualize what their final custom design will look like in real time as they build it out with various customization options. This helps ensure that customers get the product they want before committing to a purchase.

Inventory Level Checks

Another key benefit of product configuration software is that it helps keep inventory levels in check by automatically tracking usage and creating alerts when stock needs replenishing or orders need to be shipped out sooner than expected. This helps businesses meet customer demands more quickly while keeping costs down by preventing excess stock-outs and overstocks from occurring in the future.

Automated BOM Generation and Routing

Product configurators can automatically generate detailed bills of materials (BOMs) and routing information for each custom product order, which reduces the margin for error and streamlines production processes.

For companies dealing with high levels of product complexity, advanced configurators can generate super BOMs and route them to fulfillment in a matter of seconds, complete with configurable materials, dynamic components, subassemblies, rules, conditions, and dependencies.

Multi-Language and Multi-Currency Support

For global businesses, a configurator should adapt to:

• Multiple languages for international customers.
• Local currencies and tax calculations.
• Regional regulations (e.g., compliance with EU safety standards).

For example, a custom-built drone configurator would need to adjust pricing and feature availability based on the user’s country (e.g., different battery sizes due to flight regulations).

Mobile-Friendly and Omnichannel Support

Customers and sales reps should be able to access the configurator anywhere, whether it’s:

• A website for direct customer access.
• A tablet or kiosk for in-store customization.
• A sales rep’s laptop for guided configuration in a B2B setting.

It would integrate with your customer or seller portal on their respective devices, and sync with your ERP or CRM systems.

Integrations with Backend Systems

Integrations play an important role in product configuration software since they enable data to be shared between different systems and allow deeper levels of customization.

Examples of software that integrates with product configuration software include:

• Enterprise resource planning (ERP)
• Customer relationship management (CRM)
• Ecommerce platforms
• Product lifecycle management (PLM)
• Supply chain management (SCM)
• Product data management (PDM)
• CAD systems
• Material requirements planning (MRP)
• Configure, price, quote (CPQ)

Product Configurator Software vs. CPQ: What’s the Difference?

The main difference between a product configurator and a CPQ (configure, price, quote) software is that a CPQ solution includes additional features for pricing, quoting, and sales enablement.

Think of it this way:

• A product configurator is all about customization. It helps users build a product by selecting features, materials, sizes, colors, and other options within a set of predefined rules.
• CPQ is used for sales and quoting. On top of configuration, it also takes the configured product, applies pricing rules, manages discounts, and generates a formal quote for the customer. And it’s not just for physical products — SaaS companies and service providers use CPQ, too.

So if you’re shopping for a software solution, the first question you need to ask is:

• Do I need a tool to visually configure complex products? You need a product configurator.
• Do I need a tool to automate pricing and quote generation? You need CPQ.
• Do I want to create an end-to-end configuration and sales workflow? That’s when you go for a CPQ solution that includes a configurator or integrates with one.

Do You Need One, the Other, or Both?

Now that you see the difference, the big question is: How do you know which one to pick?

• If you’re selling simple, off-the-shelf products with no customization, you don’t really need a configurator OR CPQ. A basic ecommerce setup will do.
• If your business relies on customization but pricing is simple, a product configurator alone is enough (e.g., a sneaker customization tool or a furniture builder with a few options).
• If your products are complex and pricing varies based on configuration, you need CPQ to handle pricing complexities like dynamic pricing, approvals, quote delivery, and negotiation.
• If you sell highly configurable products with complex pricing structures, you need both a product configurator and CPQ working together.

Choosing the Right Product Configurator Software

When selecting product configuration software, it is important to consider a variety of factors to ensure the right fit for the organization. First, consider the types of products and services the business sells, as well as any specialized or complex requirements that may require more than just standard product configuration tools. Consider also the scalability of the software and its ability to handle growing customer bases.

Be sure to research companies that provide product configuration software and determine which one offers the most comprehensive set of features and services. Look for features such as customization options, integration with other software such as ERP or CRM systems, mobile support, security, and collaboration tools. Additionally, look into pricing models and user feedback for a reliable product at a reasonable cost. Finally, it’s vital to select a solution with high-quality customer service. This includes technical support options for installation and troubleshooting issues as well as training resources for both users and administrators.

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