What is CPQ?

In the 1990s, a cutting-edge technology appeared on the business scene: the Spreadsheet. Fast forward to 2019: many businesses are still using this tool to calculate pricing and discounts for their products and services, but while this tool may be familiar, it lacks the accuracy and speed expected from a modern digital business. In light of these issues, a powerful, integrated and interactive tool has gained more and more popularity: CPQ or Configure, Price, Quote. This tool not only facilitates business quoting processes but even goes beyond the sole task of quoting. It represents the end-to-end journey from generating a creating a quote with the correct information all the way through closing the deal and being paid.

CPQ Trailhead.Saleforce.com

CPQ from trailhead.salesforce.com

 

Salesforce CPQ

There is a variety of CPQ software in the market, the strength of Salesforce CPQ is in its seamless integration with your existing Salesforce data. It extends the standard functionality of products, price books and quotes and adds intelligence and automation to manage the process in a structured fashion. It contains solutions for common (and less common) use cases, such as a variety of pricing models and discounts, dealing with subscriptions and bundles.

 

Key features

Here are a few examples highlighting some key features:

Guided Selling

Let sales reps (or even end customers) answer a few questions and select the relevant products instead of browsing through long lists.

Guided Selling on Salesforce CPQ

Products & Pricing

Select products with multiple revenue types – one off, usage & subscription on one quote with ease.

Product configuration selection

 

Advanced approvals

In addition to the standard approval process in Salesforce, Salesforce CPQ allows setting up different levels of approval based on conditions and running a parallel approval. This means that if an approval of multiple stakeholders is required, it doesn’t have to wait until the first step is completed. Instead of this, all approvers are notified to review and approve, and are even able to do it on their mobile device.

Discounts triggering different approvals

Reps can preview the steps before submitting a quote for approval.

Billing Automation

The next step after getting the order is dealing with payment. Separate finance systems make it complicated to recognize the revenue and allocate to the correct client. In response to this, Salesforce CPQ allows for a billing functionality, which not only facilitates the process but also significantly reduces time spent time on admin and data entry. Bottom line: speed up payment collection and improve cashflow.

Billing overview

Schedule an invoice

 

There are many more features of course. A great way to gain more knowledge is via the Trailheads website with detailed information and demos of Salesforce CPQ and Billing