Introduction
Salesforce CPQ has been an exciting product of the CRM giant since its launch in the 2000s. It served as a salesforce integration services as strategic solution for businesses, facilitating a necessary transformation in their sales processes.
With the evolution of technology and changing customer needs, it was necessary to review all channel sales, revenue, and pricing to align with the expectations of existing and potential users. 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 and challenging aspect, yet it is essential to know that profit margins are stable.
Did you know?
Before Salesforce CPQ, there was BigMachines. It was one of the first Configure, Price, Quote (CPQ) solutions, primarily serving Oracle customers. The founders of BigMachines, after selling the company to Oracle, turned their attention to building a Salesforce-native CPQ solution. Thus, SteelBrick Salesforce CPQ.
Salesforce recognized the potential of SteelBrick and acquired it in 2015, rebranding it as Salesforce CPQ. This acquisition marked the beginning of Salesforce’s dedicated focus on revenue automation.
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 succession 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, CPQ has not been discontinued for its users. So, it is not the Salesforce CPQ end of life (EOL) but the Salesforce CPQ 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. However, CPQ will not take new subscribers, and it will not be selling the product to the new customers.
Now, the question on everyone’s mind: What prompted the need for a new platform?
Salesforce: Advancing to the Next Phase of Growth
The transition is largely driven by the rising demand for continuous engagement, value realization, and fast ROI. Salesforce recognized the challenges faced by these individuals and responded with the Salesforce Revenue Cloud Platform.
It brings together different aspects of the revenue lifecycle, including product catalog creation, pricing, contract management, and automated billing. With the new platform, comes more and more efficiency in terms of synchronization, easy navigation to Salesforce revenue management scenarios, and zero workflow interruptions. Thus, it is a robust and transformational product for businesses.
What fuels Salesforce Revenue Cloud?
Salesforce’s Revenue Cloud brings in automation and AI integration by streamlining revenue operations, improving efficiency, and ensuring better decision-making. Salesforce’s new platform integrates CPQ (Configure, Price, Quote), Partner relationship management (PRM), Billing, and Subscription Management to ensure revenue management across all the channels.
It incorporates AI-driven insights that suggest optimized prices, forecasts revenue trends, and automates complex approval workflows. The results are seen across reduced manual efforts, improved sales cycles, and better accuracy.
Therefore, by leveraging automation and AI-driven insights, Salesforce fosters a connected, data-driven ecosystem that results in better customer relationships and 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
Steelbrick Salesforce CPQ streamlines the quoting process, selling features like guided selling, bundle creation, and various pricing models. It automates quote generation and provides basic order creation as well as approval functionalities. It is the perfect solution for organizations looking to streamline quoting, enhance pricing accuracy, and empower sales teams with guided selling tools.
Revenue Cloud Advance: 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, full contract lifecycle management, 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 complex. On one side, you have Salesforce CPQ, which focuses on configuring products, pricing, and generating quotes, while on the other, there is Revenue Cloud, which takes a step forward by adding these same capabilities, as well as additional elements such as product management, billing, and comprehensive 360-degree management.
Salesforce CPQ is a simplified and low-budget solution, but Revenue Cloud is high on-budget but is the way forward for those who want to optimize end-to-end operations on Salesforce Integration Services. 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.
Conclusion
You can connect with our experts on SedcloudCRM, who can provide personalized insights to help you assess your unique business requirements and guide you toward the optimal path forward.
Happy selling!
