What is CPQ and why should I be using it?
CPQ stands for Configure, Price and Quote. CPQ is an extension of your CRM and it allows you to create structured and scalable sales processes.
CPQ ensures that sales reps sell the right product combinations, and it also controls discounting and automates approvals. Implementing CPQ makes sales people more effective and helps close more deals and helps to close more deals for your company.
So why is CPQ important?
There are three reasons –
1. CPQ helps sales reps close deals faster.
Many sales teams are stuck relying on spreadsheets and email when it comes to the final stages of their sales cycle. Which means instead of moving onto their next deal, they waste hours trying to figure out how to price a product or chasing down a contract approval. But CPQ changes all that. Reps get their own deal-making canvas to speed up even the most complex of quotes.
2. CPQ gives companies control and visibility over what’s being offered and what’s being sold.
Without CPQ, many sales teams operate under chaotic scenarios, sending out pricing that isn’t approved and promising products that are no longer being sold. It becomes nearly impossible to accurately track, analyze or forecast when data is siloed in spreadsheets. CPQ puts guardrails in place. It moves sales teams away from all the clutter and simplifies the sales process. In effect, it reduces friction with commerce.
3. CPQ enables companies to launch new business (revenue) models.
Today’s customers demand more flexibility in how they buy and companies across all industries are responding by introducing new revenue models. But in order to do so, they need to implement technology platforms that support them, and CPQ does just that. It permits extreme business flexibility and agility to introduce new business models at a much faster pace. Business systems are no longer an impediment to business growth.
What is Salesforce Billing and why is it used?
Salesforce Billing is an add-on package that inherits key records and data from Salesforce CPQ. After a sales rep finalizes a quote and orders it within Salesforce CPQ, Salesforce Billing picks up the order record for invoicing, payment, and revenue recognition.
The entire billing process is automated with Salesforce Billing. When a salesperson completes a deal using CPQ, the billing module receives the information it requires automatically.
The data from the quote is used to create the order, which is subsequently used to create the invoice, ensuring accuracy and regulatory compliance at every client touch point.
Data such as charge type, billing type, next date, and frequency is automatically gathered, making it simple to invoice consumers for the correct amount at the correct time.
Consumption data is fed into the system for usage-based products. As a result, customers are only charged for what they use. You can automatically publish invoices for recurring goods at predetermined intervals such as daily, weekly, or monthly. Accept and track payments by line item while keeping your invoice current and sending client information to your ERP system.
Salesforce Billing makes it simple to respond to contract changes, create new invoices with upgrades, add-ons, and revisions, and keep your billing cycle simple, accurate, and fast as your client relationship grows.
Benefits of using Salesforce CPQ and Salesforce Billing together
After the sales rep answers a few questions about the consumer, CPQ recommends products that will fulfill their requirements. The sales rep chooses compatible products based on predetermined rules, with discounts at appropriate total amounts and that automatically triggers automated rules-based approvals, allowing the deal to close quickly.
Sales operations and finance now have the data they need to manage their business more efficiently and make strategic decisions thanks to CPQ and Billing. With Salesforce Billing in place, when it’s time to invoice, Finance has access to all of the information they require across all product categories.
With ad-ons, amendments, and swaps, the sales reps can update the quotes, and the contract updates in real time. Recurring clients become lifetime customers due to the accuracy and efficiency of Salesforce CPQ and Billing, which delivers a single source of truth from estimate to payment.
