Retention is the key to growth. We say it all the time because it’s worth repeating. Companies that reduce the churn see far more growth than those with high turnover. As a result, companies are trying to make renewals as frictionless as possible. Salesforce CPQ is a great way to do so but many teams have questions about getting started and best practices. OpFocus recently had an open discussion around renewals and CPQ best practices with our CEO, David Carnes, and Director of CPQ Consulting, David Movsesian. Let’s cover CPQ Benefits and Best Practices so your team can determine if it’s the right fit!
To get things started, a question was raised about the different facets to consider when thinking about renewals and what type of data your team should be considering. In order to make things easy to understand, David broke renewals down according to some key questions you should be able to answer.
After reviewing these questions, can you answer all of them for each of your customers? This information is the core of any renewal and required for the process to be successful. An understanding of what they own, what they pay, and when they are up for renewal are especially crucial. Many companies have this information floating around their system but aren’t able to easily locate it.
David mentioned he’s seen companies that have been charging the same price for 10 years when the price should have been increased. The renewal representative was not able to find the information they needed, and as a result, money was left on the table. This demonstrates just how important it is that you keep track of this information and it’s easily accessible by your team.
So is CPQ right for you? Well, the answer to this can take a bit of explanation. CPQ solves specific problems. David recommends CPQ for teams that have difficulty with the configuration or actual management of a renewal. David outlines a number of issues that CPQ solves to help teams like yours understand if it’s the right fit.
This is not an exhaustive list and there are a number of other reasons your team may want to bring on CPQ. When looking at these topics however, they provide insight into areas of your renewal process that can be working more efficiently. So again, is CPQ right for you? You’ll need to evaluate your current renewal process to see if there are areas you’d like to improve.
Going beyond the issues CPQ solves, it’s necessary to consider the benefits it offers. Having all your renewal information in one place provides visibility into the renewal pipeline and helps your team forecast more effectively. It also automates a number of actions your team would otherwise need to complete manually. David outlines a number of other advantages that the platform provides.
As you can see, Salesforce CPQ goes far beyond solving the challenges many people bring it on for. Through CPQ, your team will become more effective at handling renewals and can identify areas of improvement in other parts of the business. These benefits will determine if CPQ is a good fit.
Once your team decides to bring on Salesforce CPQ, there are some best practices you should be aware of. This is a good list to start with, but an entire discussion can take place around CPQ best practices. David outlines the most important points your team will need to be aware of.
These ensure your team is using the system effectively and will help avoid potential issues down the line. As your team uses CPQ, you should keep these points in mind. Again, this is not an exhaustive list but will provide guidance on how to prevent some of the more common problems that professionals tend to run into.
As your team evaluates CPQ or begins your next project, these guidelines will help make informed decisions. This article has covered the challenges CPQ solves, and best practices to help your team better determine next steps. You likely have more questions about CPQ, but when it’s time to discuss your next project, reach out to David or another member of our team. We understand the importance of tailoring CPQ to your organization and offer insight into the best solution for your organization.
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