What is Salesforce CPQ?

What is Salesforce CPQ?
Simple Salesforce CPQ and Billing Data Model

Salesforce CPQ is a sales system built on the Salesforce platform, that can help your organisation streamline your lead-to-cash process.

If your organisation sells products or services, you probably send quotes to your customers so they can make a decision on whether or not to buy. This quoting process may consist of printing copies of quotes, multiple versions of templates, scanning and re-scanning contracts, excel spredsheets of products and prices, and other disparate methods of getting to a signed agreement with the customer. With all these different moving parts, quoting process can become bloated, inefficient, and unscalable.

In 2017, CPQ (Configure, Price, Quote) system revenue was USD$1.1 billion worldwide, and expected to increase 25% anuually through 2020, outlining the massive growth this sector is undergoing, and showing how much value these systems provide organisations.

CPQ provides its value by providing streamlined, systematised, scalable processes for your quote-to-cash pipeline, breaking the features of these processes into three:

  • Configure
    • Configure your products and product bundles
  • Price
    • Define rules around what prices and discounts get applied to your products
  • Quote
    • Set up quote templates to include or exclude terms and conditions when specific products are included on the quote

The benefits of CPQ on Salesforce

  • One implementation system for CRM and CPQ functionality, leading to a faster system design to implementation lifecycle
  • Single view of the customer to support customer interactions
  • One place for products, pricing, contracts, and assets, leading to faster product design to quoting lifecycle
  • More flexibility across business units
  • Faster Lead to Quote timeframe, allowing your customers to make a purchasing decision faster
  • Close the gap between marketing and sales business teams
  • Eliminate pricing and discounting errors, maintaining profit margin
  • Streamline processes around the maintenance of complex product bundles and product options

To jump into a Developer org and get into more detail, watch our tutorial on how to sign up for a Salesforce CPQ + Billing org.

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