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How does Revenue Cloud differ from CPQ

Becca Lough

Growing a business means dealing with more complicated sales. You might've heard of Salesforce CPQ. But Salesforce has made things even better with Salesforce Revenue Cloud. To pick the right tool, you need to know how they are different.

This blog post will explain what Salesforce CPQ does. Then, we'll talk about Salesforce Revenue Cloud and what extra things it can do. In the end, we'll discuss the good things about Revenue Cloud and help you see when it's the best choice for your business.

What is Salesforce CPQ?

CPQ stands for Configure, Price, and Quote. Salesforce CPQ is a sales tool that helps companies set up complex products and services correctly and manage the quoting process.

"CPQ is a sales tool that helps companies accurately and effectively configure complex products and services and manage the quoting process." -Parker Gunnell, SOLVD Consultant

Here's what it does:

  • Configure:Product catalog management: Keep all your products and services in one place.
  • Product options, features, and constraints: Make different product bundles.
  • Rules and logic: Help people choose the right products.
  • Guided selling: Use questions and tips to help sales people pick the right products. Make sure they include everything needed.
  • Option selection and configuration: Easy to use tools to choose products, options, and features. See price changes right away.

Price:

  • Pricing rules and logic: Set base prices, list prices, and costs. Use special discount rules.
  • Price rule engines: Automatically use pricing rules based on different things. This makes sure prices are correct and the same for all quotes. It also means less manual work.
  • Margin control and optimization: See possible profit margins when making a quote. Create rules and alerts to avoid selling for too low a price.

Quote:

  • Quote generation: Automatically create professional sales quotes with product details, pricing, and terms.
  • Quote management: Track where quotes are in the sales process. Manage different versions for new deals, changes, and renewals.
  • Quote delivery: Make PDF files to share with customers for approval.

What is Salesforce Revenue Cloud?

Revenue Cloud is a full Salesforce solution that automates the whole process from product to payment.  It helps you manage products, pricing, and quoting, as well as orders, fulfillment, billing, contracts, and asset lifecycle.

"Revenue Cloud is a full Salesforce solution that automates the entire product to cash process." -Parker Gunnell, SOLVD Consultant

Here's what Revenue Cloud does:

  • Product Catalog Management: Create and manage all products and services, with their features and bundles. This makes it easier to offer new things.
  • Salesforce Pricing: Set up and manage how you price things. Make sure pricing is correct and the same across all sales methods.
  • Product Configurator (CPQ): Help sales teams set up complex products and services correctly. It has features like instant price updates.
  • Salesforce Contracts (Contract Lifecycle Management): Create, manage, and track deals with customers. Automate contract creation and manage terms and conditions.
  • Order Management: Manage the sales order process, including making quotes and turning them into orders. This makes your sales process smoother.
  • Dynamic Revenue Orchestrator (DRO): Automatically manage order fulfillment by breaking down the order into steps.
  • Asset Lifecycle Management: See all customer purchases and manage subscriptions, renewals, changes, and cancellations.
  • Billing: Has tools to create invoices and manage payments. This helps you get paid correctly and on time.

These Revenue Cloud parts give you a complete way to manage revenue, from setting up a product to getting paid, and more. This helps your business run better and grow.

How CPQ and Revenue Cloud are Different

To help you decide, here are the main differences between Salesforce CPQ and Revenue Cloud:

  • Scope: Salesforce CPQ is mostly for making correct sales quotes quickly. This includes setting up products, calculating prices, and making the quote.  Revenue Cloud is bigger. It includes CPQ and also handles things after the sale, like order management, contract management, asset and subscription management, and billing.
  • Lifecycle Management: Salesforce CPQ is mainly for sales before the order or contract.  Revenue Cloud manages the whole revenue process, from setting up the product and making the quote to order fulfillment, contract management, and managing assets and subscriptions.
  • Order Fulfillment: Salesforce CPQ usually stops after making an order.  Revenue Cloud has Dynamic Revenue Orchestrator, which takes care of the order process and manages fulfillment.
  • Contract Management: Salesforce CPQ can make a basic agreement document, but it doesn't have strong contract management features.
  • Revenue Cloud has Salesforce Contracts, which lets you create contracts, make changes, manage versions, get approvals, and manage obligations after the sale.  Salesforce CPQ doesn't do much after the sale, but Revenue Cloud helps with asset lifecycle management, subscription management, and billing.

Which Solution is Right for You?

The best choice depends on what your business needs:

  • Choose CPQ if you mainly want to make quoting better and faster. It's good for businesses that want to make quotes more accurate and efficient.
  • Choose Revenue Cloud if you need a full solution that manages everything from product to payment.  It's good for businesses that need CPQ, order management, contract management, and help with things after the sale, like asset and subscription management.  Revenue Cloud gives you a single place to manage all your revenue.

What to Do Next

"Revenue Cloud provides a more unified platform for managing all aspects of revenue generation and management." -Parker Gunnell, SOLVD Consultant

If you're in charge of a mid-market SaaS business and want to grow faster, make more money, and see your data better, now is the time to act. Don't let slow processes hold you back. Talk to our leaders at SOLVD.cloud to see your chances and problems. We'll create a special plan for you that uses AI and automation to help your business.

We can help you use smart ideas to improve productivity and prepare your business for the future, so you can succeed in this age of automation.