Despite the Covid situation, businesses want to get things back to normal, like they were before Covid. However many businesses have already achieved that state and many businesses were just affected for a very short period. Integration of IT in the business operations helped them through this tough period configuring the IT solution all businesses use is CRM.
According to Gartner, revenue in the Enterprise Software segment is expected to reach more than US$230 million by the end of 2021. Businesses are discarding the traditional CRMs to keep up in today’s tech-era.
CRM stands for Customer Relation Management. CRM software systems are cloud solutions that integrate all your business needs in one software, from first-time potential client contact to the final handshake. Marketing and sales teams can have control over all aspects through one single platform.
In this blog, we are going to focus on the world’s best CRM software i.e., Salesforce, and understand what Salesforce CPQ is. The following is the list of topics we will cover in this blog to cover all the key aspects.
Before moving forward in this Salesforce tutorial, watch this video on ‘Salesforce Developer Training for Beginners’:
Brief Introduction to Salesforce
More than 150,000 companies ranging from low scale to high scale use Salesforce for business growth. Salesforce is the leading CRM software provider for all business needs. It provides solutions in all the key business aspects i.e., marketing, sales, commerce, and service.
Digitalization has increased the number of online customers exponentially. Hence, the diversity of customers’ needs has also increased. It has become extremely important for businesses to use Salesforce to integrate and automate their key sales processes to keep up with a diversified range of customer needs.
Salesforce is a cloud-based CRM. This gave Salesforce the edge over traditional CRM as the users can now utilize it from anywhere and anytime. They can access the analysis and reports even from their phone. Salesforce provides its app store for email, research, analysis, and various other reasons. It also provides 11 APIs so that developers can even easily integrate third-party apps.
Salesforce provides another major software known as, Salesforce CPQ for sales teams. Let’s move ahead and first understand what CPQ is.
Learn more about this CRM tool in this insightful Salesforce tutorial now!
What is CPQ?
CPQ stands for configuring, price, quote. CPQ software is used for configuring the prices of the products. It is used by almost every business to configure the products offered, set the prices, and create quotes. Sales teams need to manage the prices of the products rapidly according to the business requirements. It reduces the arbitrary load of administrative tasks and increases the overall efficiency of sales cycles.
CPQ software increases the speed of tasks such as monitoring prices and product proposals. It also accurately delivers accurate prices to different customers and configures the products accordingly.
CPQ is an extension of CRM software and businesses use it on many scales. So let’s see the key advantages of CPQ and understand how it helps in various tasks.
Want to become a Certified Salesforce developer? Enroll in our Salesforce Developer Certification now!
Advantages of CPQ
CPQ provides the following key advantages to businesses, especially the sales team.
- Time: Sales representatives are stuck, depending on excel sheets and emails with regards to the last phases of their sales cycle. Rather than proceeding to their next bargain, they may waste a lot of their time getting contract approvals or quoting the prices of products. CPQ changes this by giving sales representatives access to the data they need to accelerate the quotes.
- Customer Satisfaction: CPQ helps the sales teams to achieve their CRM goals. CPQ gives alerts whenever a product upgrade or contract renewal is required. These advance notices can help teams to cross-sell or up-sell. CPQ would then be able to help the sales teams in suggesting the best items and services to the client. This speed and accuracy help block-based attain a significant level of customer satisfaction.
- Manage: It gives full control and visibility to sales teams. Many sales teams operate in a disorderly manner. Many times teams accidentally give unapproved pricing or promise products that are no longer available. It becomes difficult for teams to track, analyze, or forecast accurately. CPQ organizes data and gives sales representatives a clear picture of what they can offer customers in an orderly and accurate manner.
Go through this Salesforce Training in Hyderabad to get a clear understanding of Salesforce!
What is Salesforce CPQ?
Salesforce CPQ is incredibly valuable to manage the client’s problem areas, including membership items, volume limits, and item packaging. Regardless of whether you’re running an association of ten or a Fortune 500 undertaking, if those of the previously mentioned points are the trouble spots for your business, integrating Salesforce CPQ Software would be an effective solution.
Salesforce offers the capacity to move quotes to invoices and configure pricing. Since CPQ is coordinated into your Salesforce CRM, you can pull sales, item, and statement information into your bigger sales and execution reports.
Salesforce CPQ Features
Salesforce CPQ has been a market-changing functionality for the market-leading CRM software. Salesforce’s CPQ makes it easy for businesses to utilize it across the whole environment. It is highly recognized and utilized because of the features it provides. CPQ is a key factor for businesses to keep track of sales and aid the sales team with the tasks in the pipeline. Let’s discuss some of its features in the CPQ domains each:
- It allows the developer to create product bundles consisting of features and options. Features and options here are categories and components of the bundle respectively.
- Options can be made an essential part of the bundle, accessories, or other related products that may support up-sell and cross-sell situations.
- It supports dynamic and real-time addition or hiding of the components in a bundle that is being configured.
- Block-based: E.g., if the price for 1-50 units is 50 USD then, the price for 50-100 units can be 100 USD.
- Cost-plus tasks markup: In addition to pricing it also supports product costs.
- Contract: It supports account-based discounts and contracts.
- Real-time: Sets a base price on certain solution bundles.
- Inbuilt quote document generator.
- Easy integration with E-signature tools.
- Generation and customization of quote templates.
Other key features:
- Automation of renewal opportunities initiation that helps in managing accurate pipeline projection and helps sales teams in rapid follow up.
- It provides products in the modern rapid lightning experience.
- It provides Salesforce1 mobile.
- It gives access to CPQ functionality that supports communities.
- Supports integration of custom search fields.
- Scripting and guiding customers to the best products.
These features help the sales team to achieve the targets and manage the customers easily without worrying about administrative tasks. Today every business needs to manage the customers digitally. Salesforce CPQ helps them manage business rapidly and automate the tasks which take more time otherwise.
Learn how to create a customized and secure Salesforce environment by enrolling in Salesforce Certification Course now!
Let’s understand the advantages Salesforce CPQ provides in detail with the help of a use case scenario.
Why do organizations use Salesforce CPQ?
To understand how Salesforce CPQ helps organizations, let’s study the use case scenario of Cloudera.
Cloudera is an enterprise data management company, mainly focusing on big data solutions. It is a one-stop solution for big data solutions such as data warehousing, data analytics, and machine learning. It provides enterprise software for data-related solutions that can run on the cloud or on-premise.
Cloudera’s products are used by IT, banking, healthcare, education, financial, and various other industries for efficient data analytics solutions. In 2021, Cloudera generated over USD 794 million in revenues. It continues to grow as industries continue to rely more and more on data solutions in this digital era.
To gain more customers and retain the current, the work structure of inside sales was becoming more complex. The sales representatives were performing their key tasks such as quote generation manually. So first let’s see what were the issues Cloudera’s sales teams faced before they started using Salesforce CPQ:
- Manual tasks: Sales representatives had to generate quotes and write emails manually for deals with their customers.
- Errors: Due to large amounts of manual quote generation and emails, often errors occurred in the deals.
- Time: The large complex structure took more time and representatives were spending more time on arbitrary administrative tasks.
Lars Nilsson explained that he had previously implemented CPQ solutions for various vendors. For Cloudera, he decided to integrate Salesforce CPQ across the organization to solve the above errors. Let’s see how Salesforce CPQ solved the above-discussed issues for Cloudera:
- Minimal errors: Salesforce CPQ quote generation feature ensures maximum accuracy, irrespective of the scale.
- Automation: It automatically generates quotes for sales representatives for various clients with minimum errors. It helps sales representatives to provide quotes to the clients in real-time.
- Simple structure: As mentioned by Lars Nilsson it is easy to deploy and sales representatives can easily start utilizing it without any hassles.
“Previously, I had implemented CPQ solutions from several vendors,” said Nilsson. “While some vendors offer a thousand points of functionality, I needed to focus on the features that matter to Cloudera. It was also clear to me that the implementation of Salesforce CPQ is vastly less complicated, faster, and less expensive than other CPQ software.”
Salesforce CPQ helps sales teams and overall organization in several ways, let’s see some key benefits of salesforce CPQ:
- Representatives may accidentally provide unapproved pricing or products that are not available anymore. Businesses silo data, it’s difficult for teams to track, analyze, and forecast accurately. Salesforce CPQ organizes data for teams and gives the sales teams a clear understanding of what they can provide to the clients.
- New revenue models: Nowadays customers need flexibility in how they shop so companies are introducing new revenue models such as subscriptions. Salesforce CPQ is the best CPQ software that supports such models.
- Front and back office teams can easily work in-sync across the company. Companies can streamline sales data and quote details are easily passed downstream along the pipeline.
- Salesforce CPQ has an easy step-by-step process and it trains the sales representatives along the process. It contains all information about policies and changes in prices, hence increasing accuracy.
Salesforce CPQ is a key part of the quote-to-cash apps from Salesforce. It helps companies to easily manage the entire process, from quote generation, configuring orders to collecting profits. Salesforce CPQ and Billing lets companies capture full ROI in weeks instead of months, substantially decreasing the time. Therefore, increasing revenue faster than ever before.
For more information on Salesforce, visit our Salesforce Community