HOW TO CREATE AN EFFECTIVE

QUOTE-TO-CASH PROCESS

February 16, 2023

Moderator and presenters

Bryan Boroughf - Moderator Daniel Adler Alex Banner

Director Manager Senior Associate
Salesforce Partner Alliances & Salesforce CPQ Practice Leader Salesforce CPQ Specialist
Salesforce MVP Hall of Fame member
daniel.adler@rsmus.com alex.banner@rsmus.com
bryan.boroughf@rsmus.com
Agenda

Topics
Welcome

Introductions and overview

7 Warning signs of a suboptimal QTC process

Why optimizing QTC matters

Assessing your company’s needs

QTC leading innovative practices

Case study featuring Kymeta

Q&A

3
Quote to Cash process overview

Lead Opportunity Quote Contract Order

Client acquisition Sales Configuration Contracts Order entry
Marketing Customer onboarding
Partners Pricing & Approvals Order submission
Sales development
Sales Amendments Sales Fulfillment
Marketing automation Customer success
Business development Sales CRM
CRM
CRM CRM
CPQ ERP
E-signature & CLM OMS
redlining

Payment/ Revenue
Fulfillment Invoicing collection recognition Renew/Upsell
Inventory delivery Billing Renewal path
Payment methods Revenue
Finance
Customer service schedules Upsell path
A/R Payment
Finance Sales
Fulfillment processing
Billing CRM
Inventory Customer success
Finance ERP
ERP CRM
A/R Rev Rec software
CRM Billing
Payment gateway

High-level business function Part of the organization Software category

7 warning signs of a suboptimal QTC process

1 Anything less than a 360-

degree view of the customer—
siloed systems that require a
4 Inflexibility of systems to enable
new business opportunities
(i.e., move to subscription billing)
spreadsheet to pull together
everything

5 Process bottlenecks that

2
Disconnected systems that slow the speed of
don’t talk to each other invoicing and collections
seamlessly, requiring
translation

Inefficient (and potentially

6 Revenue leakage—lost
opportunities to prevent churn,

3
renew, upsell. Is your
adversarial) review and
company putting your best foot
approval processes in deal
forward on ways to retain customers?
structures

7 Quotes, contracts, billing and

invoices deliver a poor experience
(errors, invoices poorly structured)
Why companies need a strong QTC process

 Faster time to quote

 Faster payments
 Prevent revenue leakage
 Fewer errors due to automation
 Faster close rates
 More accurate data
 More efficient, less manually-intensive processes
 360° view of customer to make better, more informed decisions

6
ASSESSING YOUR
COMPANY’S NEEDS
 Quote-to-Cash Transformation Framework

Opportunity Management Operations Management Customer Management Performance Management Financial Reporting

Critical Business Functions

Sales & Sales Operations Customer Success Finance, Accounting

Customer Billing, Accounting &

Channel Sales Contract Order Customer Renewals, FP&A &
Acquisition Quote to Credits, AR Financial Revenue
Partner Opportunity Lifecycle Management Onboarding Upsell and Management
(Net New, Close Cash Reporting Recognition
Management Management Management and Delivery and Success Cross-sell Reporting
Cross-Sells) Collection (GL/ME)

Enabling Technologies

CRM PRM CPQ CLM CX Middle ERP BI Billing RevRec

Customer Partner Configure, E-sign Customer ware Enterprise Business Invoicing Revenue
Relationship Relationship Price, Contract Service & Integration Resource Intelli- & Billing Recognition
Management Management Quote Lifecycle Portals Planning gence System Software

Key Considerations
Q2C-Much More Than Just Customer 360 Billing Starts Upstream ASC606 Compliance Product Catalog Design for Complex Rules Change is Inevitable Automation Across Systems
CPQ
Correct data mapping, integration Getting paid faster starts Revenue recognition must be A streamlined product catalog Pricing, discounting, terms Amendments, co-terminations, A true Q2C process involves many
Taking a silo'd design approach to flows and identification of "source of with invoices that are clear, easy to aligned and enforced from Q2C and generates many downstream and conditions, and approvals upgrades, swaps, add-on's, systems including CRM, PRM,
Q2C may cause inefficiencies, truth" amongst Salesforce, understand and easy to requires technical, finance benefits. SKU and bundle should be organized and aligned downgrades, cancellations, CPQ, CLM, Customer Service,
incorrect data, noncompliance, ERP, Billing and other related pay. Alignment for proper billing and compliance expertise) rationalization can significantly with best practices for maximum renewals and extensions should all Middleware, ERP, BI, Billing,
technical risk and eventual rework systems are critical to an accurate begins with the quote. reduce Q2C complexity scale and clarity. be automated in a best practice Payment and Revenue Recognition
and scalable single view of the design and build systems.
customer
QTC BEST PRACTICES
Quote-to-Order: Leading Innovative Practices
An innovative lead-to-cash business process will enable organizations to become more efficient, scalable, effective, accurate, and controlled
across the operating model landscape.

Sales & Marketing Strategy

• Cohesive sales and marketing strategies aligned with overall
organizational strategy and vision
• Clearly defined product offerings, bundles and standard contract
terms for sales reps
• Standard discounting policy with delegation of authority defined Lead Management
and automated through CPQ • Tracking of campaigns, contacts, leads and prospects in a CRM
• List price / price book clearly defined for end-users and partners • Tailored qualification criteria & scoring matrices
• Established KPIs and metrics for continuous performance • Standardized and targeted lead nurture activities
measurement aligned with operational and sales goals and targets • Tracking of lead communications, outcomes and next steps
• Prioritize on-going lead data hygiene
Quotes & Proposals
• Automated CPQ with system-based quote & proposal approval
workflows
• Predefined legal & commercial terms & conditions
• Governance & controls around pricing, product and discounting structure Contract Management
• Automated system notifies managers when a contract is due for renewal • Clearly defined product offerings, bundles and standard contract
• Auto-ordering/procurement based on deal-close and asset tag/SN added terms for sales
to CRM • Use of technology to manage contracts/subscriptions
• E-Signature for contracts automated through CRM
Credit Management • Greater compliance with contract terms and accounting standards
• Defined credit policy that enables prompt credit decisions and • Contract creation and approval is standardized, and contracts are
meets changing market conditions maintained in a central repository
• Online credit application with required critical data fields for • Contracts are actively managed to track compliance, resolve
analyzing customer credit risk disputes and identify opportunities to standardize best-in-class
• Technology-enabled continuous credit risk management practices service levels
for existing customers to alert of credit changes
• Automated credit risk management seamlessly integrated with or
part of automated Accounts Receivable technology
Order-to-Cash: Leading Innovative Practices
An innovative lead-to-cash business process will enable organizations to become more efficient, scalable, effective, accurate, and controlled
across the operating model landscape.

Order Management
• CRM & ERP integrated to automate order entry, revenue, & billing
and seamlessly feed item master data
• Automated order capture and validation ensuring fewer processing
exceptions and fast order delivery
Revenue Recognition • Automated sales tax calculation on each invoice enabled by
• Dashboards to enable management reviews based on policies integration with sales tax solution
• Systems are used to create deferred revenue schedules and • AI-based blocked order management predictions and automated
automated revenue allocations for 606 workflows to release orders pending payment triggers
• Automated workflows to support revenue adjustments related to
contract modifications Accounts Receivable
• Revenue leakage addressed through preventative / detective • System (i.e., ERP, point solution, etc.) configured to review AR
automation and controls aging across different dimensions
• Automated creation of required revenue recognition disclosures • Automated cash application & reconciliation
• Customer segmentation strategy defined and delegated to
Customer Service Operations collectors
• Customer service representatives trained on usage and best • Customer collections process defined and automated through ERP
practices of the CRM to enable customer data collection and or 3rd party technology
analysis
• Transparency on original contract, quote, and invoice to minimize
• Standard procedures and training in place to enable customer
confusion for customers
service representatives to use resources for personalized customer
• Automated System in place to manage deductions
interactions
• Omni-channel customer service experiences in place to reach
customers through preferred methods
Representative QTC architecture

Source: Salesforce Platform Architecture Center

12
QTC data model
QTC METHODOLOGY
 Solution Deployment Methodology
Methodology overview, client readiness assessment, scope
Pre-Kickoff Preparation (Joint) review, environment preparation and logistical planning The RSM Salesforce project methodology and process has several
intermediate milestones, approval gates, and deliverables
Project goals and scope review, team introductions,
Project Kickoff methodology overview, draft plan review to ensure alignment throughout the project.

SPRINT PLAN
User Story Workbook, User Story Sign-off Discovery Define sprint(s)

Proposed solutions, estimate review, Gap analysis

Design
Design sign-off and initial CSAT
1. Sprint BUILD SPRINTS
Planning Iterative build, QA,
stand-up meetings

2. Build

DEPLOY TO PRODUCTION 2-week

(if applicable)
Production validation
5. Release BUILD
sprints DEMO
Review feedback
Demo signoff
3. Demo &
UAT
Review Sprint and End-to-End UAT Test scripts, videos, UAT sign-off
4. Sprint
UAT Administrator hand-off, train
Train the trainer
SPRINT UAT Deployment plan,
Issue resolution deployed solution and
Go-Live final retrospective and
Sprint UAT signoff
CSAT
Retrospectives after each sprint is tested
Ongoing support and Managed Services and Support
maintenance
CUSTOMER STORY
Kymeta chooses Salesforce to transform
their Lead to Quote operations
PROFILE CHALLENGE
Location: Redmond, WA
The self-deployed instance didn’t have strong support from all
Industry: Communications
departments and wasn’t built to scale the growing business
Sector: Satellite Equipment and
Software Products and pricing changed frequently, with time-consuming approvals
managed via email
Configuration of hundreds of different satellite terminal options resulted
PRODUCTS were all managed with unique SKUs
Sales Cloud
Revenue Cloud – CPQ & Billing
Service Cloud “RSM has been our savior. We would not
Pardot be able to be successful without our
Conga Composer SOLUTION partners on the RSM team. The people at
Overhaul the Lead to Quote process, starting with an upgrade to RSM know our environment, and they
Salesforce Sales Cloud Enterprise Edition and Salesforce CPQ have been excellent at maintaining
consistency and understanding our
Consolidate pricing and configuration into CPQ and leverage approvals products and structure. The mindset is
within Salesforce for trackability always that we are one team together
making Kymeta successful in Salesforce.”
Implement Pardot for account engagement and email marketing
Alisa Garcia, Director of Revenue
Quote generation with flexible clauses are managed by Conga Composer Operations

THE POWER OF BEING UNDERSTOOD

AUDIT | TAX | CONSULTING
Conclusion

Stay informed with For more information, contact:

RSM’s Salesforce News and Insights Bryan Boroughf
408-315-0174
bryan.boroughf@rsmus.com
QUESTIONS
AND ANSWERS
THANK YOU
FOR YOUR TIME
AND ATTENTION
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