Home Education Quick Outline on Salesforce CPQ(Configure, Price, Quote)

Quick Outline on Salesforce CPQ(Configure, Price, Quote)

CPQ in Salesforce stands for Configure, Price, Quote .Salesforce CPQ is a software or an application introduced by Force.com as a sales tool for the companies in providing correct pricing for any product configuration scenarios.

This Blog includes:

  1. Introduction
  2. Features of Sales cloud
  3. Features of CPQ
  4. Price Book in CPQ
  5. Product in Salesforce CPQ
  6. Product Bundle
  7. Conclusion
  8. FAQ(Frequently Asked Questions)

Introduction:

Salesforce CPQ allows customizations or changes, discounts, quantities or amount & several optional features for the product during the sales procedures. It also allows sales representatives to quote the prices of the products in a quick and accurate manner.

Therefore,it is easy to use on any device and will be available 24/7 or all the time as it is a cloud service platform hosted at Sales Cloud Platform providing as direct access to our CRM & decision making for direct sales.

What is Sales Cloud ?

Sales Cloud is a part of the Salesforce.com platform which is focused on increasing the effectiveness of the sales team of an organization and hence increases the amount of sales.

It stands unique when compared to other sales types as it provides both the account information of the customer as well as the information gathered from the social areas or platforms about the product and customer.

Thus, this helps in judging the potential of a sales lead and closing the sales faster.

Following are the Key business Goals achieved by Using the Sales Cloud.

  • Close more deals
  • Close deals faster
  • Get more deals
  • Quicker decisions

Features of Sales Cloud

Contact Management: Gives complete information on customers including previous communications, discussions, key contact details numbers and emails.

Opportunity Management: It helps to create and change quotes in response to sales interaction and deal case.

Salesforce Engage: Gives alerts on active leads and create personalized campaigns.

Lead Management: It Helps in assigning leads to right people and also to track the campaigns.

Reports and Dashboards:Helps in creating dashboards which can be drilled down for further information. This will leads to faster decisions.

Sales Forecasting:Gives exact or correct view of sales forecasting which can be adjusted based on real-time data.

Workflow and Approvals:Helps in simplifying the approval process and automate any business process using visual drag and drop interface.

Territory Management:Helps create different territory models and applying rules to them.

Files Sync and Share:Search, share and find files faster. This leads to a greater collaboration.

Sales Performance Management: Helps in creating a link between sales data and sales goals. Therefore ,It also helps in creating performance summaries.

Partner Management: Moreover,we can Easily connect with partners and give them a view of sales performance. As,It also helps in easy onboarding, training and supporting sales partners.

Features of Salesforce CPQ:

Product Configuration

  • Firstly,It allows in creating product bundles with features and options. Features are defined as the categories for the bundle or bunch, and also the options are defined as the components.
  • Options are made as importabt part of the bundle, and accessories or the related products also support for up-sell and cross-sell scenarios.
  • Hence, Supports for exclusion and inclusion rules which are option to check.
  • CPQ also supports for hiding of the components or dynamic addition of components for the bundle which is being configured.

The Pricing Features

  • CPQ provides multiple pricing features some of them are:
  • Contract Pricing – It is the process of discounting/pricing, margin calculation which is also shown for the end user.
  • Cost + Markup pricing – It helps for product costs in addition for price.
  • Real-time price processing so as to targeting a price to the solution bundles.
  • Also, in custom formulae like margins

The Quoting Features:

  • It helps in Generation of integrated quote document.
  • Also in Process for merging of E-Signature tools.
  • Customization of quote templates for various sections that are to be configured i.e, header, quote line, footer as well as quote terms also.

The Productivity Features:

  • It provides customization in search process of the products.
  • Moreover, it provides Capacity for writing questions & guide the sales user and customer for the best possible product fit.

Other Added Features:

  • It Provides renewal of opportunities for automatic generation which drives the correct pipeline projection for the sales team to timely follow up.
  • The product availabe in the Lightning Experience.
  • The availability for Salesforce1 mobile.
  • Therefore,it Supports the partners and customers in enabling access for CPQ functionality.

Salesforce CPQ basics

Price Book in CPQ

A Price Book can be defined as the products list with associated or related products. Every product and the price of it is called a price book entry as stated by salesforce.com. When we combine both the products and price books, we will be able to look at the prices of the products which our company provides.

How to add a Custom Price Book In Salesforce CPQ?

Steps to create a price book in CPQ:

  • Firstly, Login to the Salesforce CPQ platform
  • Then, Click on the “Price Books” in the Tab Bar Available
  • Then, Fill in the details of the “Price Book” Name and description
  • Later,Check the “active” checkbox for the price book to be active
  • From the, 2nd section – Clone from existing price book, select “Standard Price Book”
  • Then,Finally Save.

What is Product in Salesforce CPQ?

Product is the item offered for sale. The product can be a service or an item which can be imaginary or physical form. For every product, the making cost is different and it is sold with a different price. Therefore, The price depends on the quality, market and the marketing parts on which it is targeted.
As a result, Every product has an expiry date after which needs a replacement for the life cycle which it needs to be re produced In Fast-Moving Consumer Goods terms, a brand is re-launched, update or extended in order to make it more relevant for the segment and at times, for keeping the product same.

Learn about CPQ Products

How to add a Product In Salesforce CPQ?

Steps to create products in CPQ:

  • Firstly, Login to the Salesforce CPQ
  • Then, Click on the “Products” in the Tab Bar
creating Products in salesforce cpq
  • Next,Fill in the details of the Product
  • Later,Check the “active” checkbox for the price book to be active →
  • finally, Save.

Note: Product Code – By using this field, we are going to sort the custom products into different category bundles or branches .

What is a Product Bundle?

Making the Product is always the first step for any of the CPQ Solutions.

Generally,A product is an item offered for sale. It can be sold individually as a seperate item or as a component of a bundle product.

Thus, Salesforce CPQ enables Admins and Product Managers to form various types of product offerings and services using out-of-the-box features.

Therefore,Its is a combination of several products or services that are sold to consumers or the customers as one combined product or service package.

Examples

  • Microsoft Office which includes many tools like MS Word, MS Excel, MS PowerPoint etc.
  • Antivirus Total Security Packages which containing Antivirus, Antispyware, Anti-phishing software etc.
  • Moreover,in use of Satellite TV Channel Packages containing various TV channels.
CPQ editions

Product Bundle in Salesforce CPQ

Products: The bunch of product as well as all the sub-products included in the bundle.

Product Options: A Product Option record for each sub-product to assign it with the bundle product. One Bundle may have many Product Options.

Product Features: Product Options having similar functions can be grouped together using a Product Feature. One Bundle also may have many Product Features.

Option Constraints: Option Constraints makes sure that all users select only compatible options.

Configuration Attribute: As,It Sets the value of a specific field on multiple Product Options included in a Bundle or Feature.

Learn Salesforce CPQ from Beginning

Also See other modules in salesforce

Conclusion:

Salesforce CPQ allows Sales Representative to customize a bundle, where in they can select from a set of multiple options present in a bundle based up on Customer’s need.Hence,Salesforce CPQ is a solution that is more and more asked by most of the customers. Therefore, According to Gartner CPQ will continue to be one of the most requested apps in the upcoming coming years.

FAQ(Frequently Asked Questions)

1.How does Salesforce CPQ work?

Salesforce CPQ  is a software which helps in managing in pricing for all our products and services. It helps our sales team to create quotes with consistent pricing, including available discounts, quickly and more accurately. By,Using CPQ software we can make sure that your pricing is accurate and optimized

2.Who uses CPQ?

Companies like-
Red Hat
General Electric
Fortive Corporation
Elemental Technologies
etc.uses CPQ

3.Why is CPQ used?

It is a powerful sales tool that helps companies to produce accurate and highly configured sales quotes for customers-especially in multiplex sales transactions. It also helps to improve customer relationship management by making all sales components easily available.

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