What is Salesforce CPQ?
CPQ stands for Configure, Price, and Quote. It is used as a sales tool for the firm to provide accurate pricing with any given product configuration scenario. CPQ smooths the sales process, reduces organizational tasks, and ensures the transportation of accurate quotes to customers. Some advanced CPQ solutions also lane buyer engagement with the quote, monitor deal progress, and provide data on the sales process.
CPQ takes the most crucial parts of the sales cycle out of array and puts them into an computerized sales tool that delivers without errors. It helps sales delegates to trade the right product fusion, controls reduction and automates agreement.
How can CPQ increase the bottom line?
If one wants to build a CPQ system that will stand the time and at a later date be whippy enough to meet all the demand of the company, one need to consider all the required occurrences and preferably create a master plan to the desired state. However, when it comes to execution, one – and often the most deft– way is to start from the smallest piece, which really makes a complete business case and is as money-making as a stand-alone CPQ solution.
- However, CPQ and the processes around it are specified, practice will always disclose new questions and needs. Most likely, it’s more efficient to build a minimum practical solution and learn about the needs by using it than trying to survey and describe everything thoroughly before the enactment.
- Starting tiny and learning to “do the things with the platform” before enlarging the use vertically across the product offering and horizontally across the sales & delivery process is one way to greet the change – then it’s not needed to change all at once.
A key to smooth CPQ implementations is starting with a definition period, which brings the customer and supplier closer together in terms of product and machinery understanding. This is a continual process: when a supplier learns more about a customer’s products’ they are better able to define how the customer’s entail could be intercept with the platform-provided functionality.
Speeding up the platform
As CPQ tools become more robust, they also help companies reconsider their business models. CPQ solutions allow subscription-based models, product plus utility bundles, and client self-configuration. The conventional made-to-stock approach boosts production but strains organization’s sales efficiency, particularly with a huge variety of products. In response, many organization’s deploy assemble-to-order, make-to-order, and configure-to-order strategies that address customer needs more accurately and improve conversion rates. These models require an application to capture configuration alternatives for profitable items, then route that configured item to an enterprise resource planning (ERP) system for manufacturing and fulfillment. This product adaptation usually is best achieved by a product configuration. As configuration handles pricing, the logic to figure the pricing needs to link exactly to the configuration logic and data.
- Permits the system to configure products, subscriptions and service bundles and then provide trade with price quotes.
- Capture logic for configuring the product specifications.
- Controls complex workflows to create, modify, and approve estimated documents.
- Integrate with upstream and downstream systems for degrading the order process flow.
CPQ is currently one of the roasting topics around CRM. Progressively, many companies are improving their workable efficiency by smooth-running their lead to delivery processes with CPQ and Quote to Cash solutions. Regardless of the welfare, CPQ investment process frequently takes a long time, mainly because CPQ is not purely a tool for sales for e.g. product management, sales, delivery, and accounting functions.