Salesforce CPQ stands for Configure, Quotes, and pricing of your business data. The Salesforce CPQ is just an extension of customer relationship management (CRM). This tool makes the sales process/ billing easier, faster, and more organized.
Full Answer
How does Salesforce CPQ help with product selection?
Salesforce CPQ simplifies product selection so you create quotes correctly the first time. As you’ll see, it does this in a variety of ways. After you create a quote, you add products. Salesforce CPQ makes it easy. You click Add Products to display a list of active products, and you simply check which products you want to include on the quote [1].
Is CPQ a viable sales option?
CPQ becomes a viable option in the absence of having an SME on every sales call. Because your products’ specifications and options are programmed directly into the CPQ software, your customer gets the advantage of SME expertise.
What are the different product rules in CPQ?
There are three popular product rules in CPQ–Validation, Alert, and Selection. It updates quote lines fields and helps in automation of price calculation. Here is a diagram on price rules: If you have changed business products that change for the products in your quotes then this becomes quite useful.
What is product family in Salesforce?
Your Salesforce admin can group products into categories, such as Product Family, for even easier product selection. Sometimes your customers don’t know which products they want to buy. They know their business requirements, but not the specific products that meet those needs. Sometimes you don’t know what products are best either.
How does CPQ help sales?
What is CPQ in business?
Why is pricing a pain point?
Is CPQ a separate entity?
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Configure Price Quote (CPQ): the definitive guide
ConfigurePriceQuote(CPQ):Thedefinitiveguide 2 Contents INTRODUCTION p. CHAPTER 2 Common reasons for implementing CPQ p. CHAPTER 3 The evolution of CPQ p. CHAPTER 4 Core CPQ capabilities p. CHAPTER 5 Finding a future-prof CPQ solution p. CHAPTER 6 How CPQ boosts sales productivity & profits p. CHAPTER 7 How CPQ benefits your business beyond sales p.
What is Salesforce CPQ?
Salesforce CPQ has a lot to offer to anyone who is looking to complete the lead to cash flow from within Salesforce. The ability to set up Subscription products with a series of toggles is a great reason to look into CPQ if the standard products and pricebooks are not cutting it.
What are the benefits of using subscriptions in CPQ?
Another benefit of using Subscription Products in CPQ, is the expanded options for discounting. In addition to allowing users to apply the usual manual additional discounts, with Subscriptions, you have the ability to layer on Discount Schedules. There are two different types of Discount Schedules, Term and Volume. These Schedules usually apply to the list price (see more about the pricing waterfall to learn more). When applied to Term, it means that a discount based on the length of time the product is sold for will be applied, and similarly, for Volume, it is based on the quantity purchased that a discount will be applied. These two things can be applied together as well giving you a lot of power over the pricing model of the Subscription products.
Why is subscription important in Salesforce?
There are numerous benefits of using subscription products in Salesforce, the most important of all is that when Subscription products are used, they will be automatically created and related during the creation of the Renewal Opportunity and Renewal Quote. When used correctly, this allows companies to easily predict or forecast how much and of what products they will be selling in the future.
What is subscription product?
A subscription product is a product that has some recurring payment element to it, whether it be a monthly payment (think your Netflix subscription), or an annual subscription (think an Amazon Prime subscription). Tracking which customers have subscription-based products is one of the major highlights of Salesforce CPQ, ...
How does CPQ help sales?
CPQ increases sales staff efficiency, leaving them more time for customers. According to Salesforce Research’s “ State of Sales” report, only 34% of a salesperson’s time is actually spent selling: meeting customers in person, connecting with customers virtually, and prospecting.
What is CPQ in business?
CPQ is a sales tool for companies to quickly and accurately generate quotes for orders. CPQ applications often work in tandem with CRM platforms, ERP programs, and other business technology, which helps ensure integrated data as well as accuracy.
Why is pricing a pain point?
This means many companies struggle to get quotes to customers in a timely manner. Pricing can be a major pain point for sales teams. For example, in an effort to make the sale, a salesperson may offer too large of a discount to a customer, and that reduced price ends up costing the company more than it was worth.
Is CPQ a separate entity?
Often sales, finance, legal, manufacturing, and development are very separate entities and are siloed within an organization. CPQ software has proven to be a link between departments, allowing communication and standards to be firmly set in place.
What is Salesforce CPQ?
To ensure a smooth deployment of Salesforce CPQ, IT and SMEs should oversee the customization of the rules and options for configuring. Once deployed, CPQ should be implemented with plenty of training and support for the sales staff, who will learn to use CPQ for upselling and cross-selling. Implemented correctly, CPQ will help sales save time, increase quote accuracy, and land bigger deals.
How does CPQ help sales?
CPQ reduces wasted time. In order for sales organizations to be profitable, they need to work smarter and more efficiently. A way to do so would be to take a look at lean manufacturing principles, such as eliminating waste in the production process and applying it to sales tactics.
Why is spending time going back and forth on configurations and quotes unnecessary?
Spending time going back and forth on configurations and quotes because information is missing wastes both the sales person’s and the buyer’s time, indirectly decreasing confidence in the company. As Pryor maintains, unnecessary waiting time is a barrier to the lean sales process. process.
Is waiting time a barrier to lean sales?
As Pryor maintains, unnecessary waiting time is a barrier to the lean sales process. process. If your sales force has to manually research and write each quote, they are spending their time needlessly. Don’t risk a deal becoming weaker because your sales reps can’t configure the right prices for the customers’ needs.
What is usage based product?
As the name suggests, Usage-Based Products are products for which the customer is charged based on how much of the product or service they use , for example, a mobile plan.
What is a non subscription product?
Assets are the records of non-subscription products that were quoted or actually sold to customers. Subscription Products.
Can Salesforce CPQ be static?
With Salesforce CPQ you can have not only standalone products but also combinations or collections of products that are sold together termed as " Bundles .". Bundles can be static or configurable. Static bundles will place the same options on a product every time it's added to a quote.
Can you add renewable products to Salesforce renewal quotes?
Renewable products are added to Renewal quotes, while one-time products are not. Additionally, Evergreen Subscriptions can be enabled from the Salesforce CPQ package settings in the Subscriptions and Renewals tab (don't forget to Add the Evergreen and Renewable/Evergreen picklist values to the Subscription Type field on the Product object).
A Dash of This, a Sprinkle of That
When you put together a quote, you’re working out what Infinity Solutions is selling and at what price. What you’re selling depends on what your customer is asking for. Although this process seems straightforward, there are some potential complications.
Behold, Product Selection Made Simple
After you create a quote, you add products. Salesforce CPQ makes it easy. You click Add Products to display a list of active products, and you simply check which products you want to include on the quote [1].
Bundles of Joy
Sometimes you have to sell products as a package because the component products depend on each other. With Salesforce CPQ, your Salesforce admin can group products in a set and enforce rules to ensure the set is complete and accurate. These sets are called bundles.
What is Salesforce CPQ?
Salesforce CPQ helps you with your processes, relationships, and management of teams so that your business can achieve all of its short-term and long-term goals. CPQ is not just a back-office or a sales solution but streamlines your bulky sales processes into a lean, productive system, thereby improving the efficiency of your sales process.
How does price work in CPQ?
The price works in tandem with the product rules, helps in controlling quoting and also sales optimization. There are three popular product rules in CPQ–Validation, Alert, and Selection. It updates quote lines fields and helps in automation of price calculation.
What are the benefits of CRM?
Here are some benefits: Enable the sales reps to understand the exact time of ideal engagement in the entire customer journey. Provide valuable insights to sales, marketing, and post-sales teams as well on launching new products and add-ons.
What are product rules?
The product rules make it possible for the sales rep to put together the products every time, improve your selling experience, and prepare accurate quotes with a combination of product rules.
What happens when a renewal comes up in Salesforce?
Whenever the renewal comes up, a reminder is sent by Salesforce. As a result, all that is left over by the sales reps to do is to get into the opportunity, ensure the correctness of data, and then simply execute.
What happens to the price rules when the number of products sold increases?
The Price Rules appear with price conditions, so that when the number of products sold increase, then it automatically increases the conditions say, for example, a product such as a printer comes with a ribbon then when the printer quantity increases from 2 to 3 then the number of ribbons increases accordingly.
What is advanced order management?
Advanced Order Management allows your business to create multiple orders against a single quote just by segregating the orders.
How does CPQ help sales?
CPQ increases sales staff efficiency, leaving them more time for customers. According to Salesforce Research’s “ State of Sales” report, only 34% of a salesperson’s time is actually spent selling: meeting customers in person, connecting with customers virtually, and prospecting.
What is CPQ in business?
CPQ is a sales tool for companies to quickly and accurately generate quotes for orders. CPQ applications often work in tandem with CRM platforms, ERP programs, and other business technology, which helps ensure integrated data as well as accuracy.
Why is pricing a pain point?
This means many companies struggle to get quotes to customers in a timely manner. Pricing can be a major pain point for sales teams. For example, in an effort to make the sale, a salesperson may offer too large of a discount to a customer, and that reduced price ends up costing the company more than it was worth.
Is CPQ a separate entity?
Often sales, finance, legal, manufacturing, and development are very separate entities and are siloed within an organization. CPQ software has proven to be a link between departments, allowing communication and standards to be firmly set in place.
