Any organization’s main goal is to drive revenue. The thread that connects every step of the buying process in a business, from intention to purchase to the inflow of cash, is the driving force behind growth and profits. When these steps are disconnected from each other, it leads to inefficient and slow sales cycles with a reduction in the percentage of deals, thereby reducing profits earned.
Quote-to-cash, or Q2C, can change this culture of delay and loss of potential revenue. It is the process involved in selling, from creating an initial quote to collecting revenue. It helps a business configure the offer, develop the right price, and create the quote. It is also useful through negotiations, invoices, payments, and even renewals.
A 2012 study found that companies could see a 35% reduction in costs incurred from incorrect or duplicate orders, just by streamlining the Q2C process. It also found that there was a 15% increase in sales volume.
Here’s how technology has revolutionized the transaction process.
Automated business transaction systems like Salesforce help cloud-based management of merchandise, shipments, contracts, and revenue by providing useful insight from collected data. Businesses no longer need to waste time feeding data into their systems or pushing paper. With automated workflows for the management of invoicing and contracts, quote creation time reduces so that the sales team can focus on deals.
Contract Management Software
18% of a business’s sale cycle is simply about the creation, negotiation, and approval of a contract. It, therefore, necessitates strong technological support through Enterprise Resource Planning or ERPs, and E-signature or Contract Management Software. Ongoing developments in this field can ease the contract negotiation process further.
Configure Price and Quote, or CPQ, software aids the sales department in standardizing quotes for the organization. With fewer calculations for the team to perform manually, quotes including bulk orders, discounts, and time-dependent pricing patterns can be offered accurately to customers.
Integration with CRM Software
Q2C applications combine payments, invoicing, and contract management with a business’s existing CRM Software. With the Commerce Cloud to manage CRM and Q2C within the AppExchange environment, the challenge of back-office integration is taken care of without any error or manual effort. This provides a business with ease of use, therefore increasing business efficiency.
When a customer buys the company’s product, it’s good news. But the news is not as exciting if the order takes months to convert into revenue. What an enterprise need is an integrated system of effective software support and great business strategies to ensure that customers keep coming back. The solution lies in a smooth and streamlined Quote-to-Cash process. Once a sales team develops a strong understanding of the process, meeting business objectives and standing out in this customer-centric era becomes that much easier.