6 Signs of a Successful CPQ Implementation

Salesforce CPQ (Configure Price Quote) can transform a business’s Quote to Cash solution and business processes by increasing the accuracy and efficiency of sales workflows. Successful CPQ implementations will not go unnoticed. While it is easy to know when a CPQ implementation goes wrong, it is equally important to identify the signs of a good implementation. You should expect to see some of these signals after CPQ has been implemented well into your business use cases.

Read ahead and see how many of these you can check off.

#1 Reduction in errors and quote revisions

All of us have a ton of proposals to send with varied configurations, pricing and legal requirements. Even a change in date could lead to a quote revision, not to mention incorrect product configurations. CPQ significantly reduces such errors and improves your ability to trust your data. So, check the following to ensure that the CPQ implementation is working as expected:

Optimal product bundling and packaging
Pre-programmed and pre-approved pricing and product rules
Reduction in quote errors and revisions over a period of time
Accurate offers and promotions as per client expectations

#2 Reduced sales cycle

Automated quoting and streamlined product configurations allow for sales representatives to spend more time selling and building relationships with leads, rather than on sales administration work. Less time spent on tediously quoting and creating contracts means more leads can be sought after. Here are some indicators that the CPQ implementation was successful in this objective:

At least 40% increase in the number of quotes going out
35% increase in sales team’s overall efficiency
75% of administrative is now automated
Faster closure of deals

#3 Decreased costs of sales operations

Salesforce CPQ can drive up revenue and decrease costs in sales operations. As efficiency increases and CPQ is integrated with ERP systems, you will be able to better monitor the sales process, costs and trends in sales operations, as well as identify where costs can be minimized. Additionally, if all operations and departments are driven by the same standardized data, it can reduce the costs of errors in product bundling, contracting and quoting. Here are some signs that CPQ is working as it should:

Removal of redundant systems used for the configuration, quote and price process
Ability to customize the product as per your market requirements (means less time spent on frequent changes)
Reduction in re-work and savings of valuable sales time

#4 Standardized data and selling processes

Standardization across your business improves workflow across departments. If everyone is using the same integrated system, then data gathered and shared amongst departments will be unified. This minimizes miscommunication between departments and speeds up the workflow process. Here are some signs CPQ is improving inter-departmental productivity:

Easy integration with all other departments and their systems, e.g. CRM, ERP
A singular view of customer record across departments
Eliminates the need to login to multiple systems to check customer data
Data consistency and accuracy across all departments

#5 Improved sales pipeline reporting

Tracking your sales data points with Salesforce CPQ will provide your business with a better understanding of where prospects are in the sales process, as well as estimates on the number of new deals and revenue. If deals are being stalled somewhere in the sales pipeline, better reporting can highlight what the issues are and what needs to be done to fix them. These are some benefits a properly implemented CPQ system can bring:

Real-time insights on deal status
Insights (more than just data sharing) that driver faster decision making
Proactive reporting to eliminate quote blockages more effectively than post facto analysis
Improved accuracy in sales forecasting

#6 More efficient order management processes

Salesforce CPQ can improve your order accuracy and track your renewal and amendment data. As your contracting and quoting processes improve, managing orders will be easier. Order trends can be forecasted through sales pipeline reporting and tracking lead conversion rates can reveal how many deals are closed. Data will feed into order, billing management and ERP systems, which can then prepare and inform various departments and units within your company simultaneously. Here are some signs to look for:

Faster approval of orders
Reduced churn and improved renewal rates

While there are several other signs to watch for, these six are the critical ones that deliver the core benefits of Salesforce CPQ.

If your business wants to improve their CPQ implementation, or start the journey to reaping these benefits, Synthesis can support you. As a Salesforce Revenue Cloud Partner, our Salesforce.com experts can help evaluate your business needs, develop a strategy and implement your Salesfore.com solution in any stage of the process. Talk to our Salesforce.com experts about how Synthesis can be your partner in this process.