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CPQ has received a lot of attention recently however the amount of information out there is rather limited. There are some misconceptions and secrecy around the product that prevents its massification.That’s why we're answering 5 questions about CPQ that hopefully will shed some light about this powerful tool.
Let's start with the most basic question, the acronym CPQ stands for Configure, Price and Quote. We sometimes picture this tool as the journey that the sales rep undertakes from the configuration of the products to the signing of the offer. Going more into detail: Configure takes care of the multiple product options, features and setups that are available in our product catalog. This means full flexibility when creating offers. Two good examples of this section are Bundles and Guided Selling. Price can be difficult in Sales Cloud, luckily, CPQ comes to fill up the gap. There are so many things one can do with the pricing model such us bulk discounts, time periods discounts (i.e. apply a percentage from the second year of the contract), give away units, account level discounts, etc. Also, different pricing levels can be established along the supply chain, such us partner and distributor discounts. Quote: this feature adds even more flexibility to the quote-to-cash process. Making use of workflows, the quote document can be created and sent in just a few clicks and at the same time remain super flexible to edit.Extra documents such as presentations or brochures can be attached, as well as e-signature.[caption id="attachment_492" align="aligncenter" width="952"]
Automate your CPQ billing processes with Salesforce Lightning. Source: salesforce.com[/caption]
Setting up CPQ can be difficult, it isn't a walk in the park. There are countless things to consider in the process but once everything is done, maintaining it is much easier than the regular sales process. To name a few of my favorites features:
As usual, introducing something new to the system generates certain resistance from the users. This will vary based on the culture of the company, the level of changes to be implemented and also the change management strategy. When implementing CPQ, the involvement of all key players at the early stage of the planning is crucial, this will reduce the amount of “small changes” when deploying the tool. In addition, training and feedback sessions are key when dealing with resistance. Make use of champions in each team and highlight always the benefits of the new process. Less time doing paperwork means more time selling.
Lastly, companies with a big budget for CRM as the pricing is not on the cheap side.
According to Salesforce there are 3 different options to choose from: TypeCPQCPQ+CPQ + BillingFeaturesProduct Catalog, Selection, and ConfigurationGuided SellingBundles and Nested ConfigurationPricing and Discount ManagementDocument GenerationContract & Subscription ManagementBasic Order ManagementCPQ to Service Cloud IntegrationAdvanced Approvals**All CPQ Edition features plus:Advanced ApprovalsAdvanced Order Management3rd Party Portal / Website**CPQ Self Service via Customer Community**CPQ Self Service via Partner Community** c**All CPQ+ Edition features plus:Advanced Billing ConfigurationInvoice Consolidation and GroupingUsage Rating & ProcessingRecurring and On-Demand InvoicingAutomated Payment CollectionAccounts Receivables ManagementAllocating and Re-allocating Cash ApplicationsRevenue RecognitionPrice$ 75USD/month/user*(billed annually)$ 150USD/month/user*(billed annually)Custom* All per user products require an annual contract. 10 user minimum.** Available at an additional cost.Source: https://www.salesforce.com/products/quote-to-cash/pricing/ Once again, this is just an introduction to the CPQ universe. More information will follow in next posts, including tips, experiences and ways to improve the current set up.About the Author: Federico is a Senior Salesforce Consultant at EMPAUA. Haling from Argentina, Fede's been using SFDC for over 4 years. Outside of work, Fede is an experienced runner and hobby chef.Header Source: Mike Kononov, unsplash.com