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Post By Admin Last Updated At 2022-03-12
How does Salesforce CPQ work and Explain what does it do?

salesforce cpq work

Your company has only recently begun to blossom. And you're about to complete a game-changing transaction. You've put together an ensemble team. But, they have a demanding schedule and rely on manual labor. So, this makes you feel as if you're treading on eggshells while putting together that final quote. Does this ring a bell? You're not alone in your feelings! According to research, 34% of a salesperson's time can spend selling. The rest of your time will spend on developing quotations, and obtaining approvals. This is a long-standing problem. But, the truth is that many sales leaders are still unsure how to approach it.

Are you tired of the old way of generating and following up on proposals and quotes? Are you tired of slowing down your business with manual processing & error-prone tasks? Don't worry, we've got the answer for you: CPQ stands for "Configure, Price, and Quote" in Salesforce. By automating the quoting process, CPQ assists salespeople in selling more and selling faster. 

So, how can Salesforce CPQ help businesses better serve customers? What are some of the ways Salesforce CPQ enhances the customer experience? So, here are a few compelling reasons to use Salesforce's CPQ software. In this blog, we'll provide all the solutions. But first, let's go through the core of Salesforce CPQ.

Enter the CPQ system

While CPQ was once disregarded in favor of alternative sales technology solutions. But, more and more businesses are now seeing the importance of CPQ software. So, this is optimizing sales processes and fostering client relationships. 83 percent of sales professionals now use a CPQ solution for their operations. Thus, no organization can afford to behind.

What is CPQ?

The term CPQ stands for configuring, price, & quote. It's a tool for optimizing sales. But, while designing complex products and generating customer quotes. The CPQ software generates quotations. So, it allows the sales team to access them right away based on the customer's needs.

Check our IT Guru's Salesforce CPQ Online Course to know more about this course.

Why do you need CPQ software?

Many sales teams being slowed a bit by manual tasks at the end of the sales cycle. This involves spreadsheets. Instead of moving on to the next project, they may spend hours chasing down approvals.

CPQ is a fantastic sales tool. So, it assists businesses in creating precise and customized sales quotes for consumers. So, we're talking about complex sales transactions here. CPQ provides salespeople and managers with complete access to the info. hence, they need to complete even the most complex quotes. The CPQ products are a sure-fire solution to the majority of your CRM problems.

You can use CPQ to:

Cut order mistakes.

Composing complex contracts requires less time.

Allow salespeople more time with consumers.

increase revenue

Boost data visibility and precision.

Improve the customer experience

Increase the value of your deals.

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What is Salesforce's CPQ?

Salesforce CPQ is a native Salesforce platform configurable price quote solution. It provides automated sales quoting with built-in features. E.g., Guided Selling and Pricing, as well as Discount Schedules. This definition, yet, is not exhaustive. It gives your sales staff a lot more versatility and flexibility. Further, no matter how complicated the process is. It automates the entire quoting process. So, it brings disparate internal teams together and saves time. Without ever leaving Salesforce, you can generate accurate and timely quotations.

Salesforce CPQ is on the Salesforce platform. It employs standard objects and prebuilt functionality that you can configure. Thus, making it simple to scale as your sales processes change.

Depending on your business needs, Salesforce CPQ may generate proposals, estimates, and contracts. And because CPQ is scalable, it may be useful for both small and large businesses.

You only need to generate your document once, and you can change it as needed. Salesforce CPQ provides a pdf and a Microsoft Word document for each quote. So, all documents track in audit logs. Furthermore, Salesforce CPQ creates renewal quotations based on past quotes. So, saving you time by eliminating the need to reenter information.

The reporting & dashboards you can create with Salesforce CPQ to gain more insight into your CPQ process. These are one of the most powerful capabilities.

How to Make the Most of CPQ

So far, you've probably figured out what CPQ is. Now, let's delve a little deeper to see how CPQ might benefit your company. Let's explore how CPQ can help you if you're tired of managing spreadsheets. And handwritten notes for each proposal or quote.

CPQ is for you. If your firm follows a standard selling process from lead generation to negotiation to sealing the buy. So, no matter how big or little your business is. You can grow your business by growing the proposal pipeline. So, closing agreements faster by integrating with CPQ. Your KPIs will reflect your teams' increased grasp of what's presented thanks to CPQ.

Salesforce CPQ: How Does It Work?

Consider the case of a small business that makes custom heavy trucks for its customers. The various teams that run the show are outside sales teams. Thy gathers user needs an inside sales team that receives the info from the outside sales team. Thus, a design-build and engineering team coordinates with the outside sales team. So, this helps to configure the custom product and create an accurate quote in the time frame.

Whenever it comes to development, especially in the car business, everything is... a jumble. The back-and-forth process will be highly complex. Whenever it comes to development, especially in the car business, everything is... a jumble. The back-and-forth process will be highly complex. Whether it's engineering-to-order or custom-made. As there will be a plethora of mixes, designs, and models to choose from. To develop a precise and fast quote, the sales staff requires more design knowledge!

In this area, Salesforce CPQ sparkles like no other. Let's have a look at how Salesforce CPQ works throughout the process.

C stands for Configure

When a user requests a certain model, the outside sales team can use dynamic selling techniques. So, this is in their smartphones to enter the info in Salesforce CPQ in real-time. After obtaining the info, the inside sales team works with the design teams. Further, to begin manufacture of the customer's requested, truck model. They can customize and alter the parts and accessories based on the software's specs. For example, if a customer requests that the base engine can replace with an advanced one. So, then the rep can adjust the software settings. The engineering team's possibilities of making mistakes are within the limit with CPQ. As well, they get the most exact specifications to configure the product.

P=Pricing

CPQ uses multi-layered discounting logic to price the truck model the user has chosen. Sales reps can use many layers of discounts. E.g., volume discounts, distributor discounts, and so on. Further, with Salesforce CPQ's discounting capabilities.

On Salesforce CPQ, you may change the discount and warranty details. You can also change the discount end date, which indicates how long the offer is valid. The contract updates in real-time to guarantee that both sides meet with the deal. You can also look at several deal finance scenarios, such as if the deal is for a straight buy, a lease, or a subscription. Then, with a click of a button, it's sent to the approval team for discount approval.

Q = Quotation

After the acceptance of the discount, the user can examine the quote to double-check the terms. Thus, before creating the final estimate. Let's imagine the user wants to extend the contract's termination duration from 30 to 90 days. To make notes & return them for clearance. Once it creates the quote, it forwards it to the user for electronic signature. Thus, then share with the internal sales rep, QA team, and sales management team via portals. This shortens the sales cycle, allowing for faster decision-making on both ends.

CPQ's Most Common Use Case

Small deals with unique standard prices, bulk sales with quantity pricing, client sales.

Manage an external catalog of products and pricing that Salesforce does not support.

When consultants enter time, it needs to roll-up straight to anything sold on a quote SaaS sales.

When is CPQ a Good Fit?

Pricing products is a difficult task.

Complex Excel worksheet formulas are to price products.

Some terms and circumstances are active.

Volume-based discounts, wholesale sales, professional service sales, partner distribution resellsVolume-based discounts, professional service sales, wholesale sales, partner distribution resells. They're all in the mix.

There is a lengthy approvals process or legal review that must complete.

Rate of Return on Investment

The return on investment (ROI) is an important factor to consider when making a buy.

According to research, 34% of a salesperson's time spend selling. The rest of your time will spend developing quotations, proposals, and obtaining approvals.

By using CPQ's core control capabilities, you will be able to generate quotes ten times faster. Further, cut approval delays. Instead of monitoring quotes, sales staff will be free to spend more time selling.

There are many opportunities for blunders while using traditional selling approaches. Further, you could have someone test all your sales quotes for accuracy. So, this would be very expensive. Furthermore, incorrect manual product configuration might result in a significant loss of revenue. Hence, the loss of an important client by submitting false sales estimates.

Salesforce CPQ solves the problems that plague traditional proposal and quote processes. Thus, helping you grow your business while saving time and money.

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Why Should You Make Salesforce CPQ a Priority?

We already covered the top reasons to use Salesforce CPQ software. Here are some statistics that will help you increase your Salesforce CPQ capabilities.

When compared to other quote generators, CPQ claims a 10x faster quote creation time. This will enable you to provide correct pricing to your customers. It relies on their configurations.

Every sales order has a 95 percent reduction in approval time. As a result, your consumers will receive prompt service.

The quote-to-cash movement indicates how fast you turn leads into sales. Salesforce CPQ, interestingly, has a 2x faster quote-to-cash rate than the competition.

It takes time for new reps to settle in and work to their full potential. This is where Salesforce CPQ helps new reps get up to speed 30 percent faster.

What distinguishes Salesforce CPQ from Salesforce's normal quoting?

Although Salesforce has an out-of-the-box quotation object. But, it is far less robust than what you would get from a CPQ product. Salesforce CPQ comes at a premium. But, it gives your sales process a lot more functionality and flexibility.

Conclusion

Firms who wish to increase efficiency & automate admin activities in the sales process. They should invest in a robust CPQ platform. Specialists make the Salesforce CPQ Software. It includes a variety of configurable features. So, this helps you enhance your sales productivity. Further, you can earn consistent revenue from beginning to end.

Are you interested in learning more about Salesforce CPQ? IT Guru Online would assist you in getting the most out of Salesforce CPQ Online Training. Thus, transforming your sales staff into a sales force.