Salesforce CPQ for Contract Management

6 min read

Nikita R.

Media-savvy content creator, with a curiosity for all Salesforce experiences.

Updated: May 8th, 2024

Are you searching for software to help your sales representatives quote prices quickly? If you are already signed up to Salesforce, you might want to consider Salesforce’s CPQ (configure, price, quote) solution.

Alright, so what is Salesforce CPQ? This Salesforce tool was designed with sales teams and departments in mind. It provides accurate pricing data for products whenever your representatives need them. Salesforce CPQ is known as an easy-to-use platform, is cloud-based, and is available on any device, making it a super convenient application for your sales representatives who are on the go!

You can find Salesforce CPQ in your Sales Cloud platform. Having a direct link to Salesforce means that your sales representatives can access data whenever they need to make the best sales decisions to close deals with customers quickly.

Exploring CPQ Contract Management

Salesforce is a powerful platform for quoting prices, but how can CPQ be used in Salesforce contract management? Some organizations make the most of Salesforce CPQ by creating, managing, and tracking contracts, especially those containing quotes and deals.

If you would like to use Salesforce CPQ contracts, too, follow the general steps below to get started:

1. Install Salesforce CPQ and configure the settings in your Salesforce instance. You will need Salesforce CPQ licenses and access to CPQ objects and features to complete this step.

2. Now, you can create a custom object to represent a Salesforce CPQ contract. Add fields to your custom object for customer data, start date, end date, terms and conditions, and any other contract details that you require.

3. Next, use Salesforce CPQ to create a quote and link it with a contract record. This setup will allow your sales representatives to track which quotes are linked to contracts and vice versa.

4. Use the Quote Line Items in Salesforce CPQ to determine the products and services with their prices that the contract will cover. And make sure to link this data to your contract record.

5. Now, you can use Salesforce Workflow Rules, Process Builder, or Flow to automate actions for your contracts. Many organizations use automation tools to create a contract record when a quote is approved to speed up sales processes.

6. You can then set up custom fields on your contract object for managing and tracking contract renewals. Your custom fields can store contract renewal data, and if you automate your notification process, your team will receive alerts when a contract is up for renewal.

7. Salesforce CPQ has document generation functionality. Your sales representatives can use document generation to create contracts automatically. The generated contract will contain merged data from quote records and any templates you may have pre-designed for contracts.

8. Integrate Salesforce CPQ and Salesforce with an eSignature tool, like Titan Sign. This powerful combination will let your sales representatives send contracts to customers for e-signing from Salesforce.

9. Configure security settings and permissions to ensure only authorized users can access and edit contract records.

10. Set up your Salesforce reports and dashboards so that your sales representatives can easily track the status of a contract, analyze contract renewal rates, and more.

11. Now that you have set up Salesforce CPQ for contract management, you will need to train your employees so that they adopt the new process quickly to reap the benefits of your integration for contract management.

12. Review your contract management process with Salesforce CPQ. Identify any weak spots and further fine-tune your contract management process to your needs.

Salesforce CPQ Contracted Pricing Process

Now that you have CPQ installed for contract management, you can use Salesforce CPQ as a practical contracted pricing process, but what does this mean? It means that your sales representatives can create contracts with quote line prices from quotes. These contracts can serve as templates and be used for future quotes in a contract’s account.

Contracted pricing is a beneficial process during the sales phase, especially if representatives negotiate a specific price with a customer. With contracted pricing, sales representatives can continue to use the negotiated price after making a contract on new, renewed, or amended quotes with Salesforce CPQ.

Here are some valuable tips to remember about the contracted pricing process in Salesforce CPQ:

Contracted pricing is only available in Salesforce Spring ’16 and later versions.

You can only have one contracted price record per product.

The process will fail if you assign a second contracted price to the product and then contract it.

Make sure to select the “Yes” option for Generate Contracted Price field on quote records. This will allow sales representatives to generate contracted prices automatically.

You will receive errors from Salesforce CPQ if you set a product records field to Yes, as it calculates a new contracted price every time a product is contracted.

Do you want to commit to Salesforce CPQ for contract management? You might be wondering “how much does Salesforce CPQ cost“, so, join us as we explore the prices below.

Calculating Budgets for Contract Management

How much is Salesforce CPQ?

This question depends on which CPQ offering you need for your business. Salesforce offers four CPQ options to build quotes, which include CPQ, CPQ+, CPQ & Billing Growth, and CPQ & Billing Growth. We have provided some pricing below on the different Salesforce CPQ packages, but remember that these amounts could change anytime. Check out the Salesforce website for the latest information.

1. CPQ

You can use the first-tier CPQ option to speed your deal execution, which supports a scaling sales process. It costs €75 per month per user, which is billed annually.

2. CPQ+

If you need to automate workflows in your sales processes, then CPQ+ is a good option. CPQ+ will cost €150 per month per user, which is billed annually.

3. CPQ & Billing Growth

According to Salesforce, this is the most popular tier in their CPQ offering and is used to combine sales and finance with quotes, invoices, and managing orders. You must request a quote from Salesforce to determine the pricing for CPQ & Billing Growth.

4. CPQ+ & Billing Growth

This CPQ offering also does not have pricing available on Salesforce’s website. You will need to request a quote by contacting Salesforce. However, this option automates the whole quote-to-cash lifecycle directly in Salesforce.

Is Salesforce CPQ Worth it?

So, after diving into Salesforce CPQ and exploring how it can be used for quoting and contract lifecycle management, to its unique contract pricing process, and even pricing of packages, what’s the verdict? From our point of view, this is a difficult question, as every answer will be different.

Salesforce CPQ is a dynamic platform that speeds up creating contracts in Salesforce, quote management in Salesforce and automates many of the tasks in your sales processes. However, whether Salesforce CPQ is worth investing in depends on your contract management needs, objectives, and budget.

Now it’s time to take a look at our frequently asked questions and answers below regarding Salesforce CPQ. Don’t forget to reach out to us and bring forth your questions. We would love to help you solve your unique Salesforce requirements.

Frequently Asked Questions

Can you use Salesforce for contract management?

Yes, you can. Salesforce can share contract data, tools, and processes between your various integrated platforms and teams that manage contracts, agreements, and sales.

What are contracts in Salesforce CPQ?

A Salesforce CPQ contract consists of data defining the terms, conditions, and purchase agreement details with a customer.

What is the contracting method on quote Salesforce CPQ?

The default contracting method value is assigned by taking the contract’s start date. The start date will match the earliest start date among its subscription products.

Complete Salesforce Solutions with Titan

Salesforce CPQ can add value to your sales workflow processes. We discussed many of the benefits of choosing Salesforce CPQ in this article. However, if you are looking for a platform that is dedicated to contract management features and functionality that go beyond streamlining sales tasks, we recommend that you check out Titan.

With Titan, you can create deals in literal minutes with our Contract Lifecycle Management application for Salesforce. Titan’s no-code Contract Lifecycle Management tools can redline, edit, and comment on contracts while tracking every step inside Salesforce.

We mentioned that Titan can provide benefits that surpass just sales teams. Our powerful no-code digital experiences platform for Salesforce can create custom documents, web forms, web apps, e-signatures, and surveys. Titan’s full suite of apps is designed to integrate seamlessly with Salesforce data across your entire organization.

So, contact us to find out how you can automate your business processes and extend digital experiences today.

We hope to see you soon!

Titan Website

Disclaimer: The comparisons listed in this article are based on information provided by the companies online and online reviews from users. If you found a mistake, please contact us.