What Does CPQ Stand For?
CPQ stands for configure, price, quote. Salesforce CPQ (or Salesforce Revenue Cloud) - is an add-on to your existing Salesforce cloud - and it allows sales teams to create quotes for complex products and its bundles accurately and quicker.
Experienced reps are expected to guide new talent through the sales playbook including what products are sold together, to which customers they’re sold and the pricing methodology behind it. This can often be a laborious and time-consuming task. CPQ automates the process of product selection and its pricing.
To understand how your company can benefit from CPQ you need to understand the components that make up the system.
Your company has an existing product catalogue that might be in multiple systems, on excel or you might even have a paper trail. Configure is about customising your products and services in a way that you know customers purchase or in a way the product itself dictates what it is sold with. E.g. you have a licence that is always sold with a one-off implementation fee and or with a recurring support cost. When you configure, the rep is exposed to a screen that makes it clear this scenario is how the product is sold.
One product may be sold in multiple ways depending on the quantity of units purchased or what it is purchased with. Price in CPQ provides real-time data of the pricing model, allows agents to add discounts and to see volume based pricing. CPQ allows you to control the discounting behaviour of the agent and for a transaction to go through the approval process based on criteria you define.
Quote is where your reps generate a proposal in a standardised professional format with the right T&Cs associated with it. It removes the need to generate a manual document and replaces it with an accurate product and pricing documentation. Your industry may require specific documents to be associated with the proposal, the quote generation process allows this with a click of a button.
Want to know what the CPQ process would like in Salesforce, we will be creating a demo video of this process so you can visualise the steps your agents would take from configure to quote. Keep an eye out for our next update.
Badal is a leading Salesforce consultancy company and trusted technology partner to organisations of all sizes across the private, public and charity sectors. Our team of certified Salesforce experts are dedicated to addressing problems that no one else can by building powerful solutions that help our partners maximise the potential of their Salesforce investment and drive growth, efficiency, and customer satisfaction. To unlock the true potential of Salesforce, speak with us at https://www.badal.co.uk/contact.