Salesforce CPQ has been an exciting product of the CRM giant since its launch; one of our expert teams has been implementing it for years. It served as a strategic solution for businesses, facilitating a necessary transformation in their sales processes. Salesforce CPQ, as the name suggests, focuses on configuring, pricing, and quoting. In contrast, Salesforce Revenue Cloud encompasses CPQ, along with the entire revenue lifecycle, from quote to cash.
But, what led to the introduction of Revenue Cloud?
As one CRO said, “My team and I ensure the revenue we’re counting on is real – that it will materialize when we expect it to.” He explained that tracking CPQ sales through channel partners was the most time-consuming & challenging thing, yet it is most essential to know that profit margins are stable.
CFOs, CROs, sales teams, and channel sales operations teams sought a resolution in terms of revenue, margin, and pricing. Thus, Salesforce Revenue Cloud was announced as a successor, having the potential to help sales and revenue leaders.
“As revenue lifecycle management grows as a business imperative, we are helping customers transform their seller experiences and monetization strategies with consumption and hybrid models that are deployable across direct, indirect, and self-service channels,” said Meredith Schmidt, EVP and GM of Revenue Cloud, Salesforce.
So, does that indicate the end of CPQ?
No, our team of SF experts says that it is not the Salesforce end of life (EOL) but the Salesforce end of sales (EOS) for it. Current customers of CPQ will continue to have access to the product and receive the same level of support from Salesforce. They can also renew their subscription, but it will not involve selling the product to the new customers.
This blog will help you understand each of them – Salesforce CPQ and Salesforce Revenue Cloud and determine which one is preferred for your own business operations.
Why is This Transition Good?
In routine life, change is the only constant, which can be good or bad, but here it is for multiple business benefits:
• Customers are driving this transition. They're looking for continuous engagement, absolute value, and a fast return on their investment (ROI).
• As Salesforce Partners, we’ve got a way to track sales and revenue with Salesforce Revenue Cloud Platform.
• It connects every part of the revenue journey, including creating product catalogs, handling pricing, managing contracts, and automating billing.
• This new platform creates more efficiency and gets rid of manual grinding in revenue management.
• It’s an excellent and game-changing product for businesses.
What Fuels Salesforce Revenue Cloud?
The newly minted, Salesforce’s Revenue Cloud is driven primarily by the way businesses sell and earn revenue. Instead of “one-time”, salespeople prefer long-term and recurring customers. Additionally, the failure of siloed systems, where sales used CRM/CPO to create a quote, legal used CLM to redline the agreement, and finance used an ERP to enter the data manually, highlights the need for a unified approach.
The new model integrates automation and AI, streamlining revenue operations, enhancing efficiency, and facilitating better decision-making. The Salesforce Revenue Cloud powers the revenue management process by integrating CPQ (Configure, Price, Quote), Partner Relationship Management (PRM), Billing, Order Management, Revenue Intelligence, and Subscription Management. The results are also evident in reduced manual efforts, improved sales cycles, and accuracy.
Therefore, by leveraging automation and AI-driven insights, Salesforce fosters an ecosystem that restores customers’ trust and brings business agility.
Which Way to Take? – CPQ or Revenue Cloud
Owing to the revenue lifecycle, Salesforce offers two prominent solutions: Salesforce CPQ (Configure, Price, Quote) and Revenue Cloud Advanced. Understanding their differences is crucial for making an informed decision.
Salesforce CPQ: A Proven Solution
Salesforce CPQ (formerly Steelbrick) streamlines the quoting process, offering features such as guided selling, bundle creation, and various pricing models – in short, the sales side of the revenue process. It automates quote generation and provides basic order creation and approval functionalities.
It is an ideal solution for organizations that are seeking to streamline and expedite their quoting processes, improve pricing accuracy, and equip sales teams with guided selling tools. On the other hand, the CPQ implementations costs too much and sometimes gets failed in the midway.
Revenue Cloud Advanced: A Comprehensive Approach
Revenue Cloud Advanced encompasses all CPQ functionalities and extends to manage the entire revenue lifecycle from product configuration to billing. It offers advanced product catalog management, dynamic pricing strategies, complete contract lifecycle management, and built-in billing and invoicing features. This solution is tailored for organizations seeking support across sales, fulfilment, and finance, especially those managing subscription-based or recurring revenue models.
We understand that navigating the choice between Salesforce CPQ and Revenue Cloud Advanced can be a complex process. On one side, you have Salesforce CPQ, which focuses on configuring products, pricing, and generating quotes. Meanwhile, Revenue Cloud takes a step forward by adding the same capabilities and additional elements, such as product management, billing, and comprehensive 360-degree management.
Salesforce CPQ vs Revenue Cloud - Example to Clarify
Imagine selling a gym membership.
Salesforce CPQ is your expert front-desk salesperson. It utilizes guided selling to help customers select the perfect plan and bundles it with personal training to create a comprehensive quote. Once that quote is signed, CPQ's main job is done.
Salesforce Revenue Cloud is the entire business system. It includes the CPQ salesperson, but it also handles automated billing (sending a $99 invoice every month) and lifecycle management (efficiently upgrading them to a "plus dietician consultation" plan six months later).
CPQ handles the sale (Quote-to-Order), while Revenue Cloud manages the entire customer relationship.
Conclusion
Salesforce CPQ is a simplified and low-budget solution, but Revenue Cloud is the way forward for those who want to optimize end-to-end operations. So, which road to walk on?
Key Considerations:
• If Salesforce CPQ meets your present needs, no immediate action is required.
• For a future-proof solution, consider evaluating Revenue Cloud Advanced to leverage its comprehensive capabilities.
Selecting one can be challenging, but once you understand your business scope and requirements, it should become easier to do so. We would also recommend connecting with our experts on Sedin Technologies, who can provide personalized insights to help you assess your unique business requirements and guide you toward the right path forward.
