Salesforce CPQ Explained: Introduction | YouDigital Insights

Probably one of the main reasons you are currently using Salesforce is that you want to close sales as fast as possible. Utilizing CPQ for your sales process can provide infinite power to your sales team for the Quote-to-Cash process.

What is CPQ?

CPQ stands for Configure, Price, and Quote. Configure-Price-Quote is the term used for generating a sales proposal for complex products or services. CPQ is the fruit of the acquisition salesforce made in 2016 of StillBrick. It is emerged to meet the desired need for B2B selling.




Since one product can have multiple options and a combination of products/options can be complicated at times, the sales team needs a smarter, predictive tool that can guide salespeople and the client in the right direction. Configuration in CPQ can help make your sales team’s life a lot easier and idle experience for your client.


Price is a primordial subject for sales teams because having a good price/quality ratio is the key to their success. If your business is also offering discounts on your product or services, your sales teams should be able to adjust prices conveniently using these discounts. This discount must be flexible; it can also be a flat amount or percentage. In some cases, it also needs to be validated or approved by management. Price in Salesforce CPQ can help businesses maintain their price and discounts with the approval process for management approval on price or discount.


Using CPQ, your sales team can now provide customers with the quote very quickly. Thanks to its integration with configuration and prices. All the information can be imported into the quote with just a few clicks. Unlike many sales departments, today still use Excel spreadsheets to calculate prices and build their quotes. CPQ not only pulls correct data and generates quotes, but it can also share the same quote with clients directly via a wide range of channels, e.g., Docusign, Print, Email, PDF, etc.

Salesforce CPQ dashboard

Advantages of CPQ

Because your sales team uses a spreadsheet and word document to track deals, well, maybe not exactly, but there has been a lot of manual processing for each Quote-to-Cash record, and information is all over the place.

Compared to a spreadsheet and other standalone solutions, integrated salesforce tools such as Salesforce CPQ provide a wealth of advantages.

Integration with the Salesforce platform

The advantage of utilizing a tool like CPQ is its integration with the Salesforce platform. It helps the standard quote-to-cash process to become an accurate lead-to-cash process. It’s capable of supporting the full life cycle of sales, lead management, opportunity handling, and even closing the deal.

Easily scalable processes

Manual processes like using spreadsheet limits the number of opportunities raises. The integration mentioned above is a vital requirement for any organization that is looking for real scalability.

An integrated product like CPQ can handle the fast-growing business using its advanced automation capabilities, ultimately helping the system and business both scale at the desired speed.

Flexibility in usage

Apart from being integrated and scalable, CPQ’s other key advantage is being flexible. CPQ has many useful features for sales representatives, like configuration to pricing and quotes. Since it’s connected directly with Salesforce, the sales representative can now pull a product or service from the catalog and see all the applicable discounts to negotiated prices and subscriptions. It also allows them to manage more than a single quote per opportunity. That will enable sales team members to show a comparison between products and options.

Reduced chance of errors

Excel spreadsheet-based pricing and quoting process are often error-prone. Salesforce CPQ comes with advanced synchronization features included in Salesforce, allowing all related items updated automatically when change occurs to one of the related records. This synchronization enables the sales pipeline to be far more reliable and reduces the chance of errors.


Salesforce CPQ dashboard

Is CPQ the right tool for your business?

If you answer yes to any of the below questions, CPQ can significantly benefit your business.

➢ Do you have a B2B business model?

Whether you sell a product or a service, selling to another business process is very compatible with CPQ. It’s designed for guided selling, which significantly benefits sales representatives during the sales process.

➢ Does your sales representative need to customize the Package or quotes?

Salesforce CPQ helps your sales team customize a quote for the package they are building. It can be pre-configured to apply for a product or region automatically to apply for a product or region automatically. So that the sales team is not relying on muscle memory. They can focus on more critical communication than remembering to apply the best discount while customizing packages for your client.

➢ Does your pricing model include a discount?

If your pricing model consists of a bulk discount or other price incentives, CPQ can helo you build a custom quote using this discount for your client seamlessly.

➢ Do you require management to approve certain types of quotes?

Salesforce CPQ can be configured to automatically escalate and require approval before sending a quote out to your client for predefined criteria. So that your sales team doesn’t need to remember in which condition they need to seek approval and your management team has peace of mind that most critical quotes will not be sent out to the client without their authorization.

➢ Do your sales representatives makes errors while providing quote due to lack of synchronization?

Advanced Synchronization in CPQ helps your business centralize the process, and modification applied at 1 location automatically applies to everywhere within the system where it is applicable.


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