Alex Gammelgard, APTTUS Director of Product Marketing, APTTUS APTTUS Writes about Quote-to-Cash on the Apttus Blog Develops Quote-to-Cash training content for Apttus internal teams and partners
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Today’s Agenda Quote-to-Cash: Key Terms & Processes Pivotal Players in the Quote-to-Cash Process Common Quote-to-Cash Challenges Measuring The Benefits of Quote-to-Cash
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Quote-to-Cash:
Key Terms and Process Flow Powered by:
What is Quote-to-Cash? Quote-to-Cash (QTC)
It starts when a prospect expresses need . . .
And extends through the entire customer lifecycle— including renewals
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Moving from Tactics to Strategy
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Quote-to-Cash Process Flow
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Ten Steps: From Quote-to-Cash : An ideal combination of products and services is created. PRICING QUOTE CONTRACT CREATION CONTRACT NEGOTIATION CONTRACT EXECUTION ORDER FULFILLMENT BILLING REVENUE RECOGNITION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING: Volume discounts, promotions, bundles, and ramp pricing are applied to the deal. QUOTE CONTRACT CREATION CONTRACT NEGOTIATION CONTRACT EXECUTION ORDER FULFILLMENT BILLING REVENUE RECOGNITION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING
QUOTE: A quote is generated, approved and sent to the customer. CONTRACT CREATION CONTRACT NEGOTIATION CONTRACT EXECUTION ORDER FULFILLMENT BILLING REVENUE RECOGNITION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING QUOTE
CONTRACT CREATION: Upon approval of the quote, a contract or order form is created. CONTRACT NEGOTIATION CONTRACT EXECUTION ORDER FULFILLMENT BILLING REVENUE COLLECTION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING QUOTE CONTRACT CREATION
CONTRACT NEGOTIATION: Contract terms and clauses may be redlined and changed. CONTRACT EXECUTION ORDER FULFILLMENT BILLING REVENUE COLLECTION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING QUOTE CONTRACT CREATION CONTRACT NEGOTIATION
CONTRACT EXECUTION: An approved contract is signed, and the deal is done. ORDER FULFILLMENT BILLING REVENUE COLLECTION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING QUOTE CONTRACT CREATION CONTRACT NEGOTIATION CONTRACT EXECUTION
ORDER FULFILLMENT: BILLING REVENUE COLLECTION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING QUOTE CONTRACT CREATION CONTRACT NEGOTIATION CONTRACT EXECUTION ORDER FULFILLMENT
BILLING: Final charges are calculated, and an invoice is sent to the customer. REVENUE COLLECTION RENEW Powered by:
Ten Steps: From Quote-to-Cash
PRICING QUOTE CONTRACT CREATION CONTRACT NEGOTIATION CONTRACT EXECUTION ORDER FULFILLMENT BILLING
REVENUE COLLECTION: Cash is received. RENEW
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Ten Steps: From Quote-to-Cash
PRICING QUOTE CONTRACT CREATION CONTRACT NEGOTIATION CONTRACT EXECUTION ORDER FULFILLMENT BILLING REVENUE COLLECTION
RENEW: The process begins again.
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Pivotal Players in the Quote-to-Cash Process
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Cross-functional Quote-to-Cash
Sales and Sales Operations
Finance
Legal
Operations
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Cross-functional Quote-to-Cash
Proposal Pricing Quoting Negotiation
Sales and Sales Operations
Billing Revenue Forecast
Finance
Contracts
Legal
Order Invoice Customer Service Renewals
Operations
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Sales/Sales Operations
Goals:
Challenges:
“If I can wrap upsells, cross-sells, and offer intelligent discounts and bundling options, I know I can increase the size of the deal. But most importantly, the quote has to be accurate , and I have to get it to the customer fast!”
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Finance
Goals:
Key Challenges:
“Our shareholders expects us to provide accurate revenue forecasts . But it’s a moving target. Invoice credits, performance bonuses, special discounts, non-standard payment terms, product bundles, and regional differences are all over the place and these things drastically impact when we’re allowed to realize revenue.” Powered by:
Legal
Goals:
Key Challenges:
“It’s always a back and forth struggle between wanting to help sales close deals quickly and making sure they include the necessary terms—and the most up-to-date language to avoid putting our company at risk.”
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Operations
Goals:
Key Challenges:
“We carry the company on our back, and do it with fragmented processes and limited visibility into customer data, service contracts, warranties, and entitlements.”
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Five Signs It’s Time For a Quote-to-Cash Transformation
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1. It takes two hands to count the number of systems used to close a deal
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2. Sales spends more than 25% of their time creating quotes and proposals
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3. More than 10% of your orders have significant errors, unapproved discounts, or require re-work
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4. Your contract cycle times span from days to weeks
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5. Restatements are a regular part of recognizing revenue
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Bridge The Gap With Streamlined, Integrated Quote-to-Cash
OPPORTUNITY
CRM
QUOTE
CONTRACT
REVENUE
ERP
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Measuring the Benefits of Quote-to-Cash
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Four Areas Quote-to-Cash Helps Sales Efficiency Sales Effectiveness Cost Risk
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Quote-to-Cash For Sales Efficiency Reduce sales cycle times Reduce contract cycle times Respond to customer requests ahead of the competition Give Sales more time to sell Reduce executive involvement in routine deals Make new reps and partners effective faster
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Quote-to-Cash For Sales Effectiveness Increase average deal size Increase close rates Help more sales reps achieve quota Sell more effectively across the entire product catalog Present error-free, professional looking quotes and contracts Proactively drive renewals and growth
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Quote-to-Cash For Cost Reduction Get visibility into spend across all lines of business Increase deal profitability Eliminate rogue supplier spend Reduce cost of errors and rework Get more value out of your sales support resources Ensure incentives for sales channels align with business goals
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Quote-to-Cash For Risk Mitigation Get visibility into how in-flight transactions impact business strategy Deliver error-free quotes, contracts, and invoices Get full visibility into contract changes, amendments, compliance, expirations, and renewals Reduce fines and litigation costs Ensure accurate billing schedules, revenue recognition and pipeline conversion forecasts
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Real Life Business Benefits
From Gartner’s report, “Marketscope For Configure, Price And Quote Application Suites.” Gartner.
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Get Ready For The Quote-to-Cash Quiz
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