The term CPQ stands for Configure-Price-Quote, a robust and growing sales aid with several packaged solutions including Salesforce CPQ. While CPQ tools have undergone many changes and improvements over the years, the main value of CPQ for any organization has remained the same – giving sales teams the ability to quickly provide accurate pricing with any given product configuration scenario. CPQ was designed to work optimally alongside fast, efficient sales teams. Created to streamline the configuration, pricing, and quoting steps, CPQ helps salespeople ask the right questions, cut down on inefficient back-and-forth, set up the right product configurations accurately, and get the quote out to the prospect quickly, in order to improve close rates and make sales teams more efficient.
Smarter, Faster, More Wins
There are a few things your company should consider when evaluating CPQ. The first should be whether your business use case has a need for automated subscription renewal, or faster quote-based product pricing. When configured and maintained properly, Salesforce CPQ is an amazingly powerful tool for sales teams out in the field, allowing them to quickly generate accurate, actionable price quotes for complex product offerings while a deal is still hot. For instance, one of our customers set-up their CPQ to allow salespeople to “build” made-to-order antennas aligned with technical specifications provided by engineers and project managers – all done on their phone at the project site using CPQ’s mobile interface. The logic built into their mobile order interface is meant to keep someone from accidentally building and ordering an antenna that doesn’t work.
While native Salesforce (without Salesforce CPQ) does have the built-in ability to automate some of the renewal processes, it isn’t the best option for getting the most value out of contract renewals. When you add Salesforce CPQ, you’ll get access to features like a reminder system for contract expirations, as well as the ability to have CPQ automatically generate new opportunities, pricing adjustments, and even amendments when a contract is about to expire. Let’s assume that your company sells a configurable product with an annual subscription (e.g., cable TV, Internet, Phone Service). In this example, a CPQ enabled system would provide a fully-automated renewal process with “on the fly” adjustments to increase renewal rates and add-on sales. The process would include automated customer renewal reminders with notification of new “no-charge” enhancements, suggestions for applicable add-ons based on current configurations, and as needed, notifying the sales rep to follow-up and close the outstanding renewal order and up-sell additions.
This sort of power and flexibility comes with responsibility – in particular, CPQ is not a “set and forget” solution. Designate someone on your team to “own” CPQ – it’s a common misconception that Salesforce CPQ and Salesforce Administration are interchangeable skills. Make sure that this CPQ admin has a thorough understanding of CPQ’s functionality, and its capabilities and quirks. Helping your new team member get CPQ certified is a great way to ensure that changes are implemented properly, without the workarounds that eventually lead to tech debt.
Is CPQ right for You?
If you’re searching for a highly-customizable tool that will help streamline your sales cycle, Salesforce CPQ is likely the answer you’re looking for. MondayCall has been working with and deploying CPQ for the past 8 years. If you’re interested in finding out how CPQ can supercharge your Sales, drop us a line.