April 24 by Eric Dreshfield
Quote-to‐Cash is the vital business process that spans a buyer’s interest in a purchase to the company’s realization of revenue. This means that Quote-to-Cash encompasses the entirety of a company’s sales, contracting, ordering, billing and renewals responsibilities – and more.
Quote-to-Cash is essential to effectively grow customer relationships and build omni-channel selling strategies.
Despite its importance, Quote‐to‐Cash remains one of the most poorly implemented business processes, riddled with manual steps and sprawled across departments that rely on disparate tools. A key reason for this poor state of affairs is that many companies treat the underlying responsibilities within Quote‐to‐Cash as the separate, parochial concerns of different departments.
For example, the interests of sales operations and legal teams tend to diverge, with the former focused on helping sales close deals while the latter wants to mitigate risk to the business. As a result, poor coordination of contract review processes leads to delays in sales cycles and even deal slippage.
Departmental silos, conflicting priorities, poor communications, inconsistent handoffs between functions and inadequate visibility cause enterprises to incur significant costs from:
• Selling inefficiencies and deal slippage
• Lost sales due to poor responsiveness
• Missed cross‐sell and up‐sell opportunities
• Revenue leakage
• Missed renewals
• Errors in quotes, orders and agreements requiring rework
• Poor visibility to deal dynamics, impacting decision‐ making and the ability to improve processes
• Lower customer satisfaction, with selling practices and fulfillment errors
The bottom line is that Quote-to-Cash solutions exert a transformational impact on businesses. Organizations become much better equipped to deal with market disruption, to capitalize on opportunities, and to compete across multiple channels. The results all point to the value of having Configure Price Quote, Deal Management, Contract Management, Order Management and more, within one integrated, single-vendor Quote-to-Cash solution.