Salesforce CPQ - Quote-to-Cash and CPQ Software

CPQ stands for configure, price, and quote. Salesforce CPQ is Web-based CPQ Software (Configure Price Quote), billing software, and invoicing software that reduces errors, accelerates sales deals, and streamlines invoicing and subscription billing processes with easy-to-use software in the cloud that works on any device. 

Salesforce CPQ uses information pulled directly from the Opportunity record to build a quote. This includes Account, Contact, and deal information. It also includes the date when a deal will be closed.

With Salesforce CPQ, sales team can create quotes quickly, with minimal effort and minimal error. 

Key elemnets of CPQ

Configure

Salesforce CPQ uses smart rules to make sure you and your reps sell related products together [1] and to prevent incompatible products from ending up on the same quote.

Price

You have to decide product price and discount you are offering. Rest all is done by CPQ. Advanced pricing options include volume discounts, percent-of-total subscriptions, pre-negotiated contract pricing, and channel and partner pricing.

Quote

You can generate a PDF with all quote details and send it to your customer with just one click. The quote is dynamic too, so if your quote requires special terms, they appear automatically. Add e-signature integration, and you’ll be closing deals faster than ever.

We can generate quote using out-of-the box Salesforce CPQ functionality. Quote contains below information:-

• It is a document that contains information about the products and services which we sell to our customer.
• It contains contact information of customer and our company
• A table of prices adding up to a grand total, dates and signatures.
  

Quote document is stored on opportunity and quote so anyone who have access of opportunity and quote can see it.

Choose right Product

Salesforce CPQ  help by leading you through a guided selling process. When you answer a series of questions, you get a list of suggested products that fit the bill. The guided selling process begins when you start adding products to a quote. Your answers to the guide questions determine which products Salesforce CPQ suggests.

Once opportunity/Quote is closed/won then we create contract for the subscribed product. When contract will end, and then we create opportunity to create a quote for a renewal sale. Salesforce CPQ automates this entire process so creating contracts and quoting renewals is seamless for you and your sales team.

Salesforce CPQ uses the standard Salesforce Contract object, which is associated with customer’s account. On your opportunity, there is a Salesforce CPQ field, “Contracted”, that triggers the contract and renewal cycle.

At the end of a successful sale, mark the Opportunity as Closed/Won. Your Salesforce admin can create a workflow rule to kick off an automated process that marks the Opportunity as Contracted and creates a Contract on your customer’s Account. The contract includes subscription records for any subscription-based products and keeps track of what products need to be renewed later on.

Once you have a contract with your customer, Salesforce CPQ can easily handle updates to products included on that contract with an amendment. All the business logic you used during the original product selection also applies when you add or remove products from the contract. When you amend your customer’s contract, Salesforce CPQ creates a new quote and opportunity. On your new quote, the subscription products are priced according to how much time is left on the contract.

Salesforce CPQ can automatically create renewal opportunities and quotes for subscription products before your customer’s contract ends. 

Salesforce Trailhead URL 

https://trailhead.salesforce.com/modules/sf_cpq

Please contact salesforce for pricing information


https://www.salesforce.com/editions-pricing/salesforce-quote-to-cash/