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What Is Salesforce CPQ?

April 1, 2021 in

Salesforce is a popular customer relationship management (CRM) software that is used by hundreds of thousands of businesses around the world. This solution provides a suite of customizable, configurable tools to help organizations track metrics, drive decision making, and facilitate digital transformations. One such tool is known as Salesforce CPQ, or Configure, Price, Quote software. Salesforce CPQ provides resources to help the salespeople in your organization accurately deliver quotes to your customers.

How Salesforce CPQ Works

Salesforce CPQ serves several unique functions for companies. This tool uses the Salesforce platform to create customized quotes and pricing configurations based on the individual buyer and the deal’s history. As a result, organizations can implement a more customized, organized process for sales that produces an accurate quote tailored to each specific lead – which generates higher customer satisfaction.

The CPQ tool serves three main functions:

  • Configuring products, services, and systems. It can be difficult for sales representatives to navigate multiple product catalogs and become experts on your products. In these situations, the CPQ tool integrates your catalog data into one location and produces quotes according to configurable product rules. This easier access to data empowers your representatives to become trusted advisors who can deliver custom solutions to your customers, enhancing the quality of your service.
  • Managing recurring revenue. Salesforce places all of your customer data in one location, complete with notes, activity logs, and other tools so your salespeople can gain all the information they need at a glance. Using this data and product data from the CPQ, your representatives gain a centralized view into customer contracts and subscriptions. This provides stronger tools to aid in upselling, cross-selling, and renewals to maintain your current revenue base.
  • Unifying sales and revenues. When different organizational components are siloed from one another, it can be difficult to maintain efficiency between front-end sales and back-office management. However, the CPQ tool integrates these two components to reduce invoice errors, visualize revenue over financial periods, and streamline order approval and processing.

Benefits of Using Salesforce CPQ

Salespeople at all levels of your organization can benefit from using Salesforce CPQ, from C-suite executives to field representatives and operations managers. Your representatives can use the configuration wizard in the software to create quotes for different scenarios and customers, streamlining the sales process and enhancing efficiency. This tool essentially reduces the time representatives need to spend on administrative tasks, allowing them to focus on your customers.

Salesforce CPQ also allows you to implement automated guidelines for different products, ensuring compliance across the company and reducing contract complexities. Additionally, you can use the advanced analytics tools found in Salesforce CPQ to visualize trends, track key performance indicators, and identify and eradicate barriers to conversions.

Some of the most important benefits of Salesforce CPQ involve the value you can deliver to your customers. If a customer receives different quotes from different representatives, he or she may not trust your company to deliver. However, Salesforce CPQ provides complete visibility into a customer’s sales and purchase history, which facilitates accurate quote delivery and, in turn, strengthens your relationship with your customer. This tool also facilitates proactive renewal quotes, encouraging customers to stay with your company before their contracts expire.

Contact Salesforce Specialists Today

If you are interested in improving your business, Salesforce is a step in the right direction. However, you need to understand where this software best fits into your organization so you can leverage its full suite of capabilities. In these situations, the Salesforce implementation team at HigherEchelon can help. Contact us today to schedule a free consultation and learn more about your migration options.