Businesses are increasingly growing and in this running business world, the sales team must deal faster, close deals, increase revenue, and optimize processes. With several tools available, enterprises need to choose the right solution to meet their goals. When it comes to choosing options within the Salesforce technology, CPQ (Configure, Price, Quote), and Sales Cloud are considered 2 most powerful aspects that directly impact the business workflow.
Honestly, it is difficult to choose the right tool for your business. Let’s move to this blog, and understand the key benefits, features, and differences between CPQ and Sales Cloud to know which one suits best for your sales needs.
What is Salesforce Sales Cloud?
Sales Cloud is considered as Salesforce’s flagship CRM solution. It is specifically designed to simplify the task of the sales team with a set of tools to directly manage leads, accounts, opportunities, and contacts within a centralized platform. Sales Cloud helps sales representatives to automate repetitive tasks, providing insights into customer behavior, and offering real-time visibility into sales performance to close deals instantly.
Key Features of Sales Cloud:
- Lead and Opportunity Management: Track leads through the sales funnel and manage opportunities to boost conversions.
- Sales Forecasting: Make data-driven decisions by predicting sales performance with precision.
- Collaboration Tools: Seamlessly collaborate across teams with tools like Chatter, which facilitates internal communication.
- Mobile Access: Stay connected and manage sales operations on the go through the Salesforce mobile app.
- Pipeline Management: Visualize and manage your sales pipeline to improve deal closure rates.
When it comes to the adoption of Sales Cloud, it is considered an ideal part for businesses to optimize the CRM and improve team productivity with the automation of workflows and enhance collaboration.
What is Salesforce CPQ?
Salesforce CPQ (Configure, Price, Quote) is a tool developed to facilitate the quoting process for enterprises that sell complicated products or services. It enables sales teams to develop accurate quotes, customize product configurations, and use pricing rules, all within Salesforce. CPQ provides that sales representatives can quickly configure outcomes to meet client needs, price them accurately, and create skilled proposals or assurances.
Key Features of CPQ:
- Product Configuration: Efficiently configure complex products or services according to customer specifications, ensuring accuracy and reducing human error.
- Dynamic Pricing: Automatically apply pricing rules, discounts, and upgrades to generate quotes aligned with business policies.
- Quote Generation: Generate skilled quotes and proposals with a few clicks, ensuring consistency and professionalism.
- Contract Management: Control the entire quote-to-cash process, from quotations to warrant signing and invoicing.
- Guided Selling: Support sales reps to make the best choices by showing them through product configuration based on client needs.
Salesforce CPQ is particularly useful for businesses with a difficult product catalog or those in industries such as manufacturing, technology, or telecommunications, where the pricing and configuration of products need customization.
Read more about Salesforce CPQ Pricing.
CPQ vs. Sales Cloud: Key Differences
While both CPQ and Sales Cloud belong to the Salesforce ecosystem, they serve distinct purposes within the sales process. Let’s explore the key differences:
1. Purpose and Focus
- Sales Cloud is developed to optimize the sales process by handling the entire sales pipeline, from lead generation and prospect tracking to forecasting and reporting.
- CPQ is particularly concentrated on facilitating the quoting process. It helps sales teams develop accurate quotes, configure products, apply pricing, and finalize deals, all in a streamlined and automated way.
2. Core Functionality
- Sales Cloud manages customer data, opportunities, and sales activities across the whole sales cycle, providing a 360-degree view of customers and prospects.
- CPQ, on the other hand, is especially used for creating quotes, pricing, and configuring products or services, often used in industries where customization is key.
3. Complexity of Product Offerings
- Sales Cloud is a general-purpose CRM that caters to a wide scope of enterprises and offers features for handling a variety of products and services.
- CPQ is more appropriate for businesses with complex, configurable products or assistance, where pricing rules, customization, and accuracy are crucial.
4. Automation and Accuracy
- Sales Cloud automates organizational tasks, sales techniques, and workflows across the sales cycle but doesn’t delve extremely into product-specific customization.
- CPQ offers cutting-edge automation for pricing, quote generation, and product configuration, ensuring that sales reps can quickly make objective quotes without manual mistakes.
When to Use Sales Cloud?
Sales Cloud is perfect for businesses that need a powerful CRM to drive client relationships, follow sales prospects, and predict revenue. It’s best for companies where the focus is on:
- Organizing leads and opportunities across numerous channels.
- Forecasting and reporting to comprehend sales performance.
- Improving cooperation within sales teams and with other branches.
For instance, if you run a SaaS company where your offerings don’t need much formatting or customization, Sales Cloud is likely adequate to support your sales efforts.
When to Use CPQ?
If your business deals with products or services that require customization or have complex pricing rules (such as factories, high-tech companies, or companies that offer subscription-based models), CPQ is crucial. It’s designed for procedures where:
- Product configurations need to be customized according to detailed customer conditions.
- Complex pricing structures must be applied automatically.
- Accuracy in quoting is important to avoid errors in pricing and product availability.
For example, if you’re in the telecommunications industry delivering bundled packages, or in manufacturing where you sell custom-engineered products, CPQ is an assertive platform to streamline the quoting process and decrease manual work.
Read – Latest CPQ Trends
The Case for Integrating Sales Cloud and CPQ
For many businesses, the solution exists necessarily when choosing between Sales Cloud and CPQ. These two tools complement each other very well. Salesforce’s CPQ merges seamlessly with Sales Cloud, allowing businesses to leverage the power of both tools in one unified platform.
By combining Sales Cloud’s robust CRM capabilities with CPQ’s advanced quoting features, sales teams can:
- Capture leads and work prospects in the Sales Cloud.
- Configure products, generate accurate quotes, and close deals using CPQ.
- Benefit from streamlined processes that enhance both sales rep productivity and customer satisfaction.
If you struggle to understand which one you should implement for your business between Salesforce Sales Cloud and CPQ, then connecting with a consulting partner works best. Collaborating with Ksolves for Salesforce Implementation Service is considered the right investment. Ksolves, with 12+ years of experience, knows the latest trends and practices and works correctly and efficiently.
Conclusion
Both Sales Cloud and CPQ are effective and powerful platforms that can significantly improve your sales operations, but the ideal choice completely relies on the firm as per the requirements. If you’re looking for a CRM platform to manage customer interactions, track sales performance, and forecast business ROI, Sales Cloud is the perfect solution. However, if your sales process involves complicated configurations and pricing, then Salesforce CPQ is the perfect fit to ensure precision and efficiency in quoting.
In most businesses, enterprises can benefit from integrating both solutions, leveraging the strengths of Sales Cloud’s CRM credentials alongside CPQ’s advanced quoting and design features.
But still, your choice should align with the complexity of your sales process, the essence of your products, and the objectives you aim to achieve. Regardless of your decision, Salesforce offers a strong ecosystem to help your sales team succeed and grow.
AUTHOR
Salesforce
Md. Asad Khan, an expert Technical Project Manager at Ksolves, who is a certified Salesforce architect at Ksolves, brings 7+ years of experience. He specializes in FSL, B2B, Service & Sales Cloud, and Non-profit cloud, excelling in APEX, Aura Component Framework, Lightning Components, Triggers, Visualforce, and creating insightful dashboards and reports.
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