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When to use Salesforce CPQ

Welcome to the First blog on CPQ Series. In this series, we will try to explain what is CPQ, when to use it and some of the basic features you should know before working on Salesforce CPQ.

Before we jump on when to use CPQ, let’s discuss what is CPQ?

What is CPQ?

The abbreviation of CPQ is short as Configure-Price-Quote.
We can further understand this as a more advanced version for the Pricing and Product Configuration which can help the sales reps to close the deal more quickly with Accurate prices and Products.
Using CPQ we can allow Sales reps to:

  1. Create multiple Quotes quickly and with accurate prices and discounts.
  2. Create multiple types of Quote Documents and send to the customers with info of all the products.
  3. Users can add multiple types of discounts based on customer expectations.
  4. Users can create or we can automate the generation of order and contracts based on business requirements.
  5. Can eliminate the user error by automating the entire process by drawing the prices/system discounts from reliable sources.

Know When to use Salesforce CPQ?

Salesforce Sales Cloud provides some basic features of product configuration and Pricing structure and if the complexities of the pricing and product structure are not able to meet with sales cloud features then we can move to the Salesforce CPQ.

Basic features of Sales Cloud:

  1. Some Main Objects included in the process: Leads, Opportunities, Quote, Product, Pricebook entries, Order, Contract.
  2. Total Price = Quantity * Unit Price * Discount
  3. Basic Quote Templates
  4. No Default rules for system discount or price configuration.

CPQ Provides additional features to these basic sales Cloud Features which can easily accounts for the requirements of complex pricing structures of today’s organizations for which the above sales cloud features don’t work.

With Salesforce CPQ we can get the functionalities of Order Management, Contract Management, Subscription/Assets Management, Renewals, Amendments and Billing.

Salesforce CPQ Qualification:

  1. Large Bundles Configurations
  2. Complex Product Pricing and need the support to prepare an accurate Quote.
  3. Product Pricing depends on many Attributes or Formulas.
  4. Dynamic Terms and Conditions for products.
  5. Complex Approvals or Legal Reviews.
  6. If the Quote required many types of Discounts or Tiered/Volume-based discounts.

Features of Salesforce CPQ

The managed package contains a lot of custom objects which helps to have a lot of features in Salesforce CPQ some of them are below.

  1. Types of Products: Bundle Products, MDQ Products, Subscription-based Products, Asset Based Products, Usage-Based Products.
  2. Product Pricing: List-and-Discounts, Cost-and-Markup, Block Pricing, Tiered Pricing, Batch Pricing, Contracted Pricing.
  3. Rules to help the Product and price configuration in Salesforce CPQ: Price rules, Product rules.
  4. Guided Selling for Enhanced Product Selection.
  5. Quote Templates to create more advanced and detailed Quote Documents.
  6. Advanced Approvals.
  7. Dynamic Terms & Conditions.
  8. Order Management, Contract Management, Amendment/Renewal Management.

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