The Cacheflow Blog

CPQ vs. Sales Cloud

April 12, 2024 5:00 PM

Do you have Salesforce Sales Cloud but feel your reps are not getting the most out of it? With this software, you can keep track of the customer journey by storing essential data points and service records. However, this is only half the battle. 

A CPQ (Configure, Price, Quote) takes over where the capabilities of Sales Cloud end by structuring complex product bundling, pricing, and business rules for Sales and RevOps teams to generate sales quotes. 

This blog will break this corporate jargon and unveil the differences between CPQ vs Sales Cloud. We’ll also help you understand scenarios where Sales Cloud is insufficient and a CPQ platform can lead to bigger deals and higher win rates. 

What is Sales Cloud?

Sales Cloud is a specific Salesforce CRM application that supports multiple facets of an organization. This includes marketing, sales, commerce, service, and IT. It’s a customizable product of Salesforce’s Customer 360 platform that combines customer information in an integrated platform. 

It streamlines the sales process by managing contacts, opportunities, and customer interactions all in one place. Through Sales Cloud, businesses can track customer info and interactions in real-time, helping them deliver personalized experiences throughout.

Sales Cloud also provides analytics-oriented insights, boosting overall growth. Sales Cloud aims to help tie activities to results via lead management, AI-powered insights, coaching tools, visual sales cadences, and more. 

In Sales Cloud, you’ll find the features and functionalities below.

  • Lead management: Helps capture and track leads efficiently. You can store and organize all your vital customer information, efficiently keep track of your prospects, categorize them, and swiftly access the details you need to make a sale.
  • Account and contact management: Cultivate and maintain relationships with existing accounts.
  • Opportunity tracking: Track every stage of your deals and manage opportunities through the sales pipeline. Monitor progress and deadlines from initial contact to sale closure.
  • Workflow automation: Record and automate complex sales processes and engagement activities. Automate everyday chores like sending follow-up emails or allocating leads to the appropriate team members. 
  • Campaign management: Helps organize and track various marketing efforts.
  • Sales analytics: Helps gain insights into performance and revenue and improve future performance.
  • Sales forecasting: Helps sales teams forecast incoming revenue, track sales trends, and identify potential barriers. 

Now the question is, how is it different from CPQ? Let's move on to learn what a CPQ is and how it extends the functionalities of the Sales Cloud.

What is CPQ?

CPQ, short for Configure, Price, Quote, enables companies to generate sales quotes efficiently and accurately. The software streamlines the selling process for complex products and bundles, resulting in shorter sales cycles and accurate pricing.

C (Configure):

The configure component helps sales representatives configure products and services based on client requests. It precisely documents what features or components are wanted in the product.

P (Price):

CPQ’s pricing component entails setting pricing rules, applying discounts automatically, viewing price margins, and calculating prices with the help of a pricing engine. It also enables businesses to swiftly alter their pricing models by adjusting discount amounts or applying new markups. 

Q (Quote):

Quote management enables shorter lead times and minimizes errors. This component of a CPQ generates deal information and customer-configured orders into quotes and implements pricing updates system-wide. 

Apart from these core features, a modern CPQ also offers the below functionalities. 

Product configurator and catalog management: It stores and manages a centralized repository of products and services. Each detail includes descriptions, specifications, and pricing rules.

Contract amendments & automated renewals: CPQ software helps sales reps renew contracts based on existing services and contract status. A centralized location for adding comments, viewing past terms and amendments, and obtaining eSignatures and approvals speeds up the contract renewal process.

Guided selling: A CPQ guides sales reps during the configuration process. It suggests relevant products, cross-sell or upsell opportunities, and pricing options.

Integration: A CPQ integrates with your current tech stack, including ERP, CRM, accounting systems, and eCommerce platforms.

Document generation: It automatically generates quote documents, contracts, and other sales collateral.

A CPQ goes beyond Sales Cloud’s capabilities by enabling your sales teams to produce complex quotes, close faster, and win deals more often. 

Why and When Should You Consider a CPQ 

If you still need to decide whether to go with CPQ vs Sales Cloud, here are some scenarios where integrating CPQ with your CRM makes sense.

1. You deal with multiple products, services, and pricing options

Having Sales Cloud or a CRM alone is an excellent choice if your business sells one product for one price. However, if you have products or services with multiple configuration options, bundling possibilities, or customization requirements, a CPQ is a must. It can help sales reps accurately configure and price offerings based on customer needs.

2. Sales volume is scaling

A CPQ system give sales leaders control and visibility as the number of reps, deals, and quotes begins to scale. It handles increased contracts, quotes, and transactions without compromising quality or accuracy. Whether venturing into new markets, expanding your existing product line, or targeting more larger companies, CPQ solutions adapt to your evolving needs.

3. To manage complex contracts and agreements

How complex is your product? Will a rules-based configuration work for you, or do you need something constraints-based? Is your product catalog expanding? Answering these questions will help you get clarity on the type of contracts you’ll deal with. 

For businesses with complex agreements and contracts, CPQ streamlines the quote generation process, reducing errors and accelerating quote turnaround time. CPQ ensures compliance, reducing the risk of contract generation errors. It also simplifies the creation of complex proposals, including multi-year agreements, service-level commitments, and co-termed offerings.

4. To identify upsell or cross-sell opportunities

A good CPQ provides guided selling capabilities, offering recommendations and product suggestions based on customer preferences and historical data.

Integrating your CPQ and Sales Cloud comes with another advantage — guided selling. It enables sales reps to sort through an extensive product catalog and identify expansion opportunities. For instance, with guided selling, the system will provide forms and questionnaires to guide customers through picking suitable configurations based on their needs. With access to that information, reps can identify upsell or cross-sell opportunities and make recommendations.

5. If you have dynamic pricing

When your pricing depends on various factors, such as volume discounts, contractual agreements, or dynamic pricing rules, integrating CPQ with your CRM can reap maximum results. In this case, CPQ automates the calculation process and dynamically adjusts quotes, keeping prices competitive and updated.

For example, if you sell products overseas, the CPQ system can automatically convert currencies and implement region-specific pricing rules.

Sync Your Salesforce Sales Cloud with Cacheflow CPQ 

Salesforce Sales Cloud is known for its flexibility and extensive integration capabilities. However, the same cannot be said about Salesforce CPQ. 

As of 2024, only around 3230 companies are using Salesforce CPQ, compared to the more than 150000 companies that use Salesforce CRM. This is primarily due to its steep learning curve, higher pricing and maintenance costs, and clunky user experience.

So, are there any modern CPQ solutions that integrate just right with Sales Cloud?

Integrating your Sales Cloud with Cacheflow—a modern CPQ for SaaS solution- can put your sales team in the fast lane to success. 

Integrating Cacheflow CPQ instantly allows you to quote and bill and type of SaaS deal structure, finalize signature and payment via an interactive link, and seamlessly track subscription income.

Don’t let manual processes slow down your growth. Free up your sales teams to focus on selling, and ultimately satisfy your customers. 

Visit Cacheflow today to see how our CPQ solution can improve your sales processes and propel your business to new heights.