Mar 07, 2020 By Annie Wright

What Is Salesforce CPQ?

in IT, Quote-to-Cash, Sales, Sales Cloud

Sales reps know the truth — most of their time isn’t spent selling. Research shows reps spend about 66% of their time generating quotes, writing proposals, and getting approvals instead of closing deals.

CPQ can benefit your business and help your reps overcome common sales hurdles. If your reps use legacy quote configurators, are manually reviewing quotes, or seem to have a habit of sending inaccurate quotes to prospects, it’s time to look into CPQ software.

What does CPQ stand for?

CPQ stands for configure, price, quote. It’s an extension of your customer relationship management platform (CRM). It makes the sales process easier, faster, and more organized.

CPQ takes the most important parts of the sales cycle out of spreadsheets and puts them into an automated sales tool that delivers error-free quotes. It helps sales reps sell the right product combinations, controls discounting, and automates approvals.

Why do people use CPQ software?

Many sales teams are stuck relying on spreadsheets and email when it comes to the final stages of their sales cycle. Instead of moving on to their next deal, they might waste hours chasing down contract approvals or trying to accurately price products.

CPQ changes this by giving sales reps and leaders full access to the data they need to speed up even the most complex quote.

What are the benefits of using Salesforce CPQ?

Salesforce CPQ can benefit your sales teams and overall organization in a number of ways:

Give sales leaders unprecedented control and visibility. Without CPQ, many sales teams operate under chaotic circumstances. Maybe you’ve seen teams accidentally send out unapproved pricing or promise products that no longer exist. When companies silo data, it’s practically impossible for teams to track, analyze, or forecast accurately. To solve this, our CPQ organizes data and gives sales a clear picture of what they can offer customers.

Launch new revenue models. Today's customers want flexibility in how they buy, and companies in all industries are responding by introducing new revenue models — like subscriptions. To do so, they need to implement technology platforms that support them. Spoiler alert: CPQ does just that.

Help front and back office teams work together across your business. You can streamline sales order acceptance and easily pass quote details downstream. Billable charges get automatically consolidated into one unified invoice per customer, and you can even make revenue recognition easier by spreading revenue transactions over financial periods. All of this can break down silos and create a more collaborative company.

Watch this video for a closer look at Salesforce CPQ.

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