Quote-to-Cash Process Made Easy!

Quote-to-Cash Process Made Easy!
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When it comes to driving revenue for an organization, the quote-to-cash process plays an important role.
But as a term, certain discrepancies are still found here and there as to what the process is, what it means,
and also what it entails.

Read on as we try to make this process as simple and easy to understand as possible.

What is Quote-to-Cash Process?

Manufacturing has become a key industry in recent times, given the global access to markets, possible
significantly because of digital transformation and its adoption in the industrial segment as a whole.

With growing innovation, it also becomes essential to keep on upgrading with time as well, where
devising new methods and installing cutting-edge production equipment take front seats.

Now, CPQ does play a huge role in streamlining the sales process, and this is exactly what the quote-to-
cash process is all about.

The quote-to-cash or Q2C process refers to the entire end-to-end sales procedure that involves the initial
product configuration to the final closing of a deal. Hearing out to the customer about what they have in
mind and then creating a custom quote is just the start of the Q2C process. There’s a lot more.

The entire process makes use of different platforms, front-end, and back-end operations, which can put
undue pressure on sales teams and the employed systems. The results then range from lost
customers(revenue) to deteriorated customer experiences.

However, with the right touches, it can all be taken care of. This is why we will try and break down the
quote-to-cash process into understandable steps for you.

Quote-to-Cash Process- Steps

1- Product Configuration

The very first step in this lead-to-cash process flow is product configuration. The aim here is to analyze
the right product and service combination to suit customer requirements. Because the modern business
concept involves a high degree of variations and complexity, recommending the right product
combination to customers goes a long way in better chances of closing a deal.

Sales reps also get the chance to contribute something more than just client interaction.

2- Pricing

The pricing process is another element of the CPQ ecosystem, which helps sales teams to price their
products optimally by following a predefined set of pricing rules, along with deciding the additional
incentives that could be potentially offered to customers.

This is because coming with the right product price is not the full task. It also involves the incorporation
of different discounts, offers, and promotions that can engage potential customers when they hop over to
your platform looking for something.

3- Creating Quotes

The next step of the lead-to-cash process flow is the creation of quotes. The quote phase allows
manufacturers to generate accurate and error-free quotations, which is a big element in ensuring customer
delight.

A quote is basically the first official interaction between the sales team and the customer, and this first
impression goes a long way. Again, there are two sides to it- error-free quotes can help in closing deals,
while a quote with errors and inaccuracies will push customers away too soon.

The right balance between speed, accuracy, and efficiency makes a great quote.

4- Contract Creation

The quote-to-cash process then reaches the contract creation stage, where a contract is drawn between
the manufacturer and customer, visible to all the involved parties, and containing the details,
specifications, legal terms, and other information related to the deal.

When a contract is created, it’s crucial to keep the right set of people in a loop, people aware of the
legalities, as the created contract is then subject to negotiations, a phase known as contract negotiation.

5- Fulfilling the Order

For simple understanding, this phase involves the seamless receiving, processing, and delivery of the
finalized order after the contract is agreed upon by the involved parties.

With the right tool to guide teams and open access to buyer journey throughout the entire process, a
transparent interface ensures that every aspect of the product is taken care of and is exactly what the
customer had envisioned in the first place.

Conclusion
The five steps mentioned above are the most substantial and direct ones in the quote-to-cash process.
After fulfillment, there are also a few more phases like billing and renewals, but order fulfillment is what
we think encompasses the whole Q2C premise.

KBMax, a complete Q2C, and sales automation software, is just what the sales doctor ordered. It’s
efficient, complete, and takes care of the entire process as perfectly as you can imagine.