Why Integrate SAP CPQ with SAP Sales Cloud?

Integrating SAP CPQ and SAP Sales Cloud (AKA. C4C, cloud for customer) is a great place to start for businesses looking to streamline their sales process. Combining SAP Sales Cloud’s embedded sales intelligence, sales force automation and optimized mobile execution features with SAP CPQ’s configuration optimization, margin protection and expansion, and seamless connectivity– businesses are able to properly equip their sales teams with a streamlined process that enables them to deliver top level customer experience.

In today’s article we’ll cover

  1. A brief review of the SAP Customer Experience Portfolio
  2. Integration benefits
  3. The SAP standard quoting process starting in SAP Sales Cloud

Let us first start by taking a deeper look at where SAP Sales Cloud and CPQ fit within the SAP Customer Experience Portfolio.

The SAP Customer Experience Portfolio

Here we can see a breakdown of the 5 SAP Customer Experience Portfolio cloud solutions

  1. Marketing Cloud
  2. Commerce Cloud
  3. Customer Data Cloud
  4. Sales Cloud
  5. Service Cloud 

Businesses are able to reinvent their customer experiences across every channel delivering consistent, personalized interactions with these solutions seamless integration. Further, with the SAP Sales Cloud solution, we can see

Additional product offerings under the same umbrella

  1. Sales Cloud
  2. Commissions
  3. Territory and Quota
  4. Agent Performance Management
  5. CallidusCloud Insurance ICM
  6. CPQ
  7. Dynamic Pricing by GK

Secondly, with that understanding aside, we can move on to the benefits of an SAP Sales Cloud -CPQ integration.

2. Benefits of CPQ & Sales Cloud Integration

Integrating Sales Cloud and CPQ transforms the full end-to-end sales process. So this interconnectivity between systems enables the sales organization to communicate seamlessly across multiple channels for a faster more efficient quote-order process. In addition, the synchronicity of systems provides the advantage of detailed analytics with opportunity for more granular data driven reporting. When product offerings and pricing structure become complex, businesses look to an integrated CPQ-Sales Cloud solution to handle product configuration. So with the integration, Sales Reps are able to generate quotes with the essential contact and account information from the Sales Cloud application. The seamless flow of information from one system to another enables the sales team to sell more at an accelerated pace.  

The end-to-end process improvement provided by a Sales Cloud – CPQ integration offers the following value proposition:

  • Increase sales cycle speed
  • Boost deal win rate
  • Increase total revenue

3. The SAP Standard quoting process starting in Sales Cloud

Now, let us wrap up our discussion today by reviewing a sample standard quoting process together. Beginning in C4C, once a sales rep has identified a need to generate a quote they may create the quote related to an Opportunity, Account, Activity or standalone. So after the quote is created on C4C, the quote will replicate to SAP CPQ with all relevant information from C4C. From there, the sales rep will configure products and add them to their quotation. Upon each save of the quotation, important quoting information such as the quote ID and quote value will pass back to C4C. With each save, both systems are always in sync with each other.

Approval Processes

Many businesses have multifaceted approval processes, therefore the sales rep will then submit their completed quote for management approval. Once reviewed and approved by the designated approver, the quote status will change and alert the sales rep that their quotation is ready to be generated into a proposal and sent to the customer. Again, any updates made on the quote will automatically update back to C4C upon each save and status change. Subsequently, upon customer approval the sales rep will complete the process by placing the order to the ERP system–which in this example is S/4 HANA. From there, the ERP system will convert the quote to a sales order and finally update the quote status on SAP CPQ.

Finally, what’s important to understand is that there is no one size fits all integration–which holds true for a Sales Cloud – CPQ integrated solution. Each business has its unique set of sales requirements. Consequently, a good implementation partner will be able to understand those unique business needs and translate them into a modern integrated solution. Here at ASAR Digital, we pride ourselves on helping businesses outpace their competition with end-to-end process improvement.

Lastly, If you have any questions relating to the topics covered on today’s article, feel free to comment below. 

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