CPQ – Basics

First Steps

• Salesforce CPQ – Native Application
• stands for Configure-Price-Quote
• Create quotes quickly and with minimal effort
  • C = Configure – What can customers buy in the future?
  • P = Price – Add prices
  • Q = Quote – Create PDF for the quote

C – Configure

Questions

• Commercial, government or academic institution=?
  • Depending on the answer – appropriate sales process
  • Intelligent rules
    • sell only related products together
    • non-compatible product not in the same offer

P – Price

• CPQ as a price source
  • flexible discounts (discretionary)
  • Calculation

Q = Quote

• Generate PDF quote
• Send with one click
• Uniform image
• E-signature can be integrated

The Quote

The Document – PDF

• Information about product and service
• Contact information – seller
• Contact details – Customer
• Prices
• Total amount
• Date and signature fields

The record

• all information for the PDF
• Additionally
  • Expiration date
  • Discount – percentage
  • Subtotals, depending on the product or service
  • All important conditions
  • Signature blocks

The usual process in Salesforce

• Quotes are created based on an opportunity as usual in Salesforce
• One opportunity can contain many offers
• But only one primary quote per opportunity – always up to date

Add Product to Quote

• Open Quote-Details
• Click Edit Lines

• Click Add Products

• Select product – checkbox on the left
• Select click

Products can be additionally grouped by the administrator into categories/product families.

Guided sales process

• business need known, but the specific products not
• Answer questions
• Matching product list as a result according to requirements
• follow-up questions can arise from answers

Bundle

• some products can be sold only as a package, because they depend on each other
• Products are associated with package (bundle)
  • Simplifies product selection
  • options visible on product – can be discussed with customers >> upselling
  • future optional purchases
  • no invalid combinations selectable

CPQ Pricing Fixing Procedure

• Based on the standard price book
  • Standard price
  • List price
  • Price books, with different currencies
  • set special contract prices for customers
• additional methods
  • set unit cost for a product
    • minimum price + cost markup by team
  • zone pricing method
    • minimum price per unit
    • Definition by quantity blocks

Discounts

• Discount arrangements for volume-based discount levels
• Discount rules on subscription products based on general subscription terms and conditions
• Manually assigning discounts line by line
• Entering condition-based prices and calculating with price rules

Perfect Quote

Why PDF-Quotes

• Summaries and details of products and services for customers whose purchase is being considered
• Price breakdowns and totals
• Accurate and fast information in a standard format
• for faster sales cycle, customer should sign electronically

Dynamic Quote

• Included information depending on the customer
• PDF document dynamic
  • e.g. hide certain columns, pages, sections or individual offer conditions under certain conditions
  • Attach product specification sheets
• PDF can be sent by email with a single click

Contract renewals

• subscription-based products and services with defined start and end date
• closed/won offers and opportunities lead to contract conclusion for duration of subscription
  • contract ends
  • contract renewal – offer for renewal
• CPQ automates this process
  • is triggered with „Contracted“ checkbox on the opportunity

• After successful completion of the opportunity
  • mark as „Contracted“ – „Contracted“.
  • add corresponding contract
  • This can also be automated (administrator)
• Updates to products can be implemented based on the contract
• CPQ creates new offer and new opportunity (prices and duration) in case of contract change

Auto-Renewal

• CPQ can automatically create opportunity and quote before contract renewal
  • Details and products are taken from existing contract
  • Additional products from contract in change opportunity (Closed Won)
  • Quote can be created automatically for change opportunity
  • Offer can be edited
  • Send offer
• Opportunity and quotation always part of reports and forecasts