July 10 by Eric Dreshfield
It’s no secret that Quote-to-Cash is an important part of business processes today. It’s a fast growing business segment that many companies are beginning to see the value of. But what exactly is Quote-to-Cash? What business processes does it include and what business problems does it aim to solve?
What is Quote-to-Cash?
Quote-to-Cash (QTC) is the vital business process that spans a buyer’s initial interest in making purchase to the company’s realization of revenue from that purchase. This means that QTC encompasses the entirety of a company’s sales, contracting, ordering, billing, and renewals responsibilities.
Quote-to-Cash is essential to effectively growing customer relationships and building omni-channel selling strategies.
The functions of QTC impact numerous departments and are pivotal in raising sales productivity and selling effectiveness when managed correctly.
While QTC functions are well-established, it’s often difficult to master as an integrated process. When it comes to large global organizations with distributed workforces, innovating to achieve competitive advantage and optimal business outcomes is challenging.
What are the Key Functions of Quote-to-Cash?
• Product Presentment
Navigating product portfolios; product selection; and configuration, which includes bundles, assemblies, component, and options, and quote and order creation.
• Pricing Management
The full lifecycle of setting, executing, and managing pricing policies and discounts across all your products and services.
Delivering compelling digital buying experiences across your sales channels.
• Contract Management
Generating, negotiating, and signing contracts as well as overseeing contract compliance.
• Order Management
Capturing and orchestrating orders across fulfillment processes.
• Incentive Management
Managing integrated rebates, promotions, and sales compensation across direct sales teams, partner channels, and E-Commerce websites.
• Billing Management
Billing, invoicing, and revenue recognition that supports different business models.
• Renewals Management
Identifying expiring contracts and effectively upselling, cross-selling, and renewing business, thus increase recurring revenues and account penetration.
6 Ways Quote-to-Cash Drives Business Outcomes
• Drive Sales Results Across All Channels
When sales reps, partners and customers have channel-specific—and up-to-date—product and pricing information, they can quickly configure, price, and quote even the most complex products and services. When your Legal and Financial guidelines are automatically upheld in deals, it’s easy to slash sales and contracting cycle times, and ensure compliance with all existing agreements and financial regulations. When you put it all together, your whole business can maximize margins, eliminate sales complexity, and grow revenue through all your channels—including your E-Commerce storefront. This is Configure Price Quote.
• Enable Contracting Excellence
A connected Quote-to-Cash process means that quotes automatically include the latest legal language, contracts automatically pull pricing terms from your quotes, and invoices capture accurate information about the products that need to be delivered, so your whole business is connected and compliant. What’s even better, is that Legal gets the visibility to make strategic recommendations that help the business reduce revenue leakage, legal risks and operating costs. This is Contract Management.
• Keep Customers Coming Back for More
When your sales teams have full visibility into purchased products, expiring contracts, and most likely upsell or cross-sell opportunities, it’s easy to grow recurring revenue. Improve your ability to drive customer retention, capture—and create—renewal opportunities, and be easy to work with at every touch point. This is Revenue Management.
• Connecting the Dots – From Quote-to-Invoice
Managing your entire revenue process—from product and service configuration, pricing, quote creation, contract negotiation and execution, to invoicing, billing, orders, revenue recognition and renewals—in one place gives you the competitive advantage of having a true 360-degree understanding of your customer, so you can optimize every touchpoint.
• Make an Impact – No Matter Your Business or Industry
Whether you’re in High-Tech, Manufacturing, Financial Services, or Communications, a connected Quote-to-Cash process can help you grow sales revenues, maintain margins, and eliminate business risk. Whether you’re big or small, you can achieve back office agility, drive omni-channel excellence and put customers at the center of your revenue strategy.
• Works with Salesforce and other CRM
With the Apttus Quote-to-Cash, companies of all sizes can utilize the most advanced and innovative Quote-to-Cash solution available anywhere to drive higher revenue no matter what front office CRM or back office ERP software they would like to use. Our Quote-to-Cash solution is built for enterprise requirements and integrates with leading CRM software, including Salesforce and Microsoft Dynamics, and ERP software, including Workday, SAP, Oracle, and NetSuite, enabling our customers to choose the application vendors that best meet their needs. Apttus Quote-to-Cash is best-in-class and relied upon by leading global brands to shorten sales cycles, improve close rates, increase average order sizes, and drive optimal business outcomes.