The choice between CPQ (Configure, Price, Quote) and Quote-to-Cash (QTC) solutions has more options than ever. But with so many sub-categories and vendors, it’s more confusing to know where to start.
Although both play a role in streamlining the sales process and automating financial operations, they serve distinct purposes.
Quote-to-Cash is the combination of technology and manual process for everything that happens from generating the first proposal, to capturing the final payment of a customer. [read more in The Ultimate Quote to Cash for SaaS guide]
CPQ can be considered a part of the QTC process, and is excellent at generating quotes across thousands of SKUs, pricing options and currencies. But when it comes to collecting payment, managing billing, and expanding or renewing SaaS contracts, you’ll need other parts of your quote-to-cash process to effectively manage that work.
CPQ empowers sales teams to configure products, set accurate pricing, and create compelling customer quotes. However, quote-to-cash is a comprehensive process that involves everything from generating quotes, to processing final payments.
Picture this: You have a powerful tool that can customize products for customers quickly, nail down the perfect pricing, and whip up professional proposals in no time. A tool that makes the first step of deal-closing a breeze.
With the right CPQ on your side, your sales team can respond to customer inquiries with tailored offerings to fit each customer's needs and close faster.
However, traditional CPQ tools are costly, complicated, and confusing. To make the most out of a CPQ tool, it is essential to understand when and how it can be helpful for your business objectives.
Its key features include:
Integration possibilities: Some CPQ’s can integrate with CRM systems, ERP software, and other customer-facing tools to create a unified RevOps stack.
CPQ is ideal for enterprises handling high volumes of diverse items. It simplifies generating quotes from a vast product range, offering special pricing, discounts, and multi-currency payment options. It also incorporates standardization control, complex rule logic, and robust safeguard approvals across departments.
The following are the benefits of having a CPQ system:
Upselling opportunities: CPQ can suggest complementary products or services during configuration, boosting upselling and cross-selling opportunities.
Currently, sales strategies may evolve before CPQ implementation concludes, raising questions about its adaptability. Large enterprises also face trade-offs with CPQ. While it aids in pricing management for companies with extensive catalogs, it may not significantly impact deal-closing velocity or win-rate.
Beyond licenses, implementation costs can exceed $85k, along with maintaining a RevOps team for efficient management. The following are the problems of having a CPQ system:
Quote to Cash (QTC) is a comprehensive process using various tools and workflows, from the initial quote generation to the final recurring payment. Having reliable QTC software can help you simplify, standardize, and optimize the entire Quote-to-Cash process and the end-to-end revenue lifecycle.
It involves the following key features:
An exceptional Quote-to-Cash process leads to increased sales win rates and improved internal efficiency. It also provides a competitive advantage in the customer buying journey, leading to well-deserved ARR.
By automating admin tasks, teams can ensure consistent deliveries, save valuable time and prevent losses from excessive focus on unprofitable deals.
The following are the benefits of adapting the Quote-to-Cash process:
A problematic Quote-to-Cash can eat up the time for finance teams by forcing them to follow a manual billing process. It can diminish your sales win rate and result in higher customer churn.
Even for budget-friendly consumer products, negative buying experiences drive people away, leading them to seek alternatives. With more frequent delayed or uncollected payments, they often go unnoticed until it becomes a significant issue.
The following are the problems of having a bad quote-to-cash process:
Both CPQ and QTC are crucial components in optimizing the sales process. CPQ focuses on configuring products, pricing, and proposal generation, while QTC encompasses a broader range of activities, including contract management and order processing.
Understanding your company's specific needs, sales processes, and scalability requirements will guide you in choosing the right solution.
You can now experience the power of CPQ without the complexity. Unlike traditional CPQ solutions, Cacheflow is a single unified platform that adapts to your business size, handling high sales volume while allowing you to maintain a lean sales team.
With no downtime, our seamless integrations ensure a quick setup. Learn more about Cacheflow by scheduling a demo with us today!