Quote to Cash is a critical business process that can be a game-changer in revenue generation for businesses. In simple terms, Quote to Cash, popular as QTC or Q2C, is an automated business strategy that encompasses entire sales operations ranging from the customer’s intent to buy to the revenue deposited on the sell-side.
Why should businesses care about Quote to Cash?
Businesses need to be agile enough to convert interested customers into actual buyers. A good Quote to Cash flow can enhance the success rates of converting a prospective customer to a concrete one. A well-strategized Quote to Cash system can streamline the process from initial quote making to final delivery and payment, as well as remarketing for new lead generation.
An expert Q2C system can overcome the silos among various teams- inventory management, sales, finance, and CRM – without any hassles. It lets you seal the deal with a client in a quicker time; thus, you can enjoy a higher rate of conversions and sales.
In this customer age, you cannot respond to the needs of clients exclusively as it might in turn add further delay than anticipated. Here’s where an automated quote to cash system helps trim the turn around time in dealing with individual customer needs.
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What is a quote to cash system?
A Q2C system is an automated software application that streamlines all the stages involved in a business transaction from service selection, pricing, quoting, contract management, invoicing, and payment receipt. It can transform the way you perform the business end-to-end.
Quote to Cash is both a process as well as a metric that helps understand how fast and effective your sales conversion is. A shorter Q2C implies, you as a business owner are going in the right way, and all the teams involved in the sales, customer management, and finance are streamlined the way they should be.
The main advantage of Q2C is that it benefits both the customer and your business, in terms of supply chain management and customer management. With a tailored Quote to Cash system, your business revenue multiplies besides smoothening your transactions, and all the relevant data stored securely in the cloud.
How quote-to-cash is different?
Frankly speaking, a business encompasses many sales functions including and not limited to cold calling and inbound sales.
Then why should we bother about the quote to cash system in specific?
The secret lies here: it is the success rate of closing a deal which is what directly adds revenue for your business, and this is what a quote to cash system mainly focuses on!
A quote to cash is different in its functionalities from other similar tasks and metrics such as cash conversion and configuration, pricing, and quoting (CPQ). Let’s understand these differences in brief.
Quote to Cash vs CPQ
A CPQ tool is more aligned with your product inventory. It helps understand businesses whether they can deliver the orders as per customer’s preferences. Inbuilt with pricing engines, dedicated workflow reporting, and analytics, a CPQ system primarily focuses on configuration and then pricing. It is a fantastic tool in quote preparation and sharing it with the customer, besides tracking the product inventory and analyzing production delays.
A QTC, on the other hand, is a wholesome approach. Beginning from quote preparation to tracking the billing and delivery, a QTC system takes care of end-to-end necessities involved in cashing a successful deal. It directly impacts the revenue of your business while also making certain that your customer enjoys an enhanced experience while doing a transaction with your company.
Quote to Cash directly impacts the revenue-generating capacity of your business. In a way, a QTC tool is a superset of the CPQ system. It provides negotiation and remarketing with the prospect customer that often are not viable with CPQ. On the other hand, a CPQ is easier to implement. If your business is in a budding stage, CPQ matches you in the first stages to understand whether you need a fully loaded QTC system.
Also Read: Why QTC is better than Cash Conversion?
What does a Quote to Cash System do?
A QTC system elegantly streamlines all the departments involved in providing a successful customer experience. Closing a business transaction faster and boosting revenue via increased sales are some of its added benefits.
A customized QTC solution offers the following benefits for various teams:
- Integrates sales orders for marketing teams
- Provides a bird’s eye view of orders for your sales team
- Communicates with inventory and takes care of supply chain management
- Throws clarity to the accounts department in various aspects of billing such as taxes, and additional charges.
- Eases marketing team’s functioning by offering seamless CRM support
- Lets your IT team monitor silos and communication between all these teams
Steps involved in Quote to Cash Process
A comprehensive solution to close the deal and maximize your business revenue, most QTC systems comprises the following steps:
Configuration of product or services
It is the first step to your successful journey with QTC. Here you analyze and identify the product and/or service that you should offer to the customer. Here’s where you should give your customer a solid reason to choose your brand over your competitor’s.
Pricing and Quotation
The automated QTC helps prepare pricing that is attractive both to your customer as well as for your margins. And next comes the quote preparation that can make or break the deal. A proven QTC tool prepares a quote that is aligned with your brand needs and helps make that first impression on the customer.
Contracting is a step that demands meticulous inputs. Most contracts often undergo multiple iterations and thus this step can be daunting as well as critical in closing a deal. Throughout this stage, you negotiate with the customer and prepare a legal document that works well for both parties. And at last, you secure the contract by signing it digitally using an e-signature tool.
Here is where you are ready to thrill your customer with their chosen products/ services. A tailor-made Quote to Cash system helps immensely to track if the delivery is done as per the customer’s preferences and the timeframe mentioned.
Invoicing and Revenue Management
Be it in either good old paper format or as the modern digital pdf, an invoice serves a proof that the transaction is successfully completed. A Q2C solution provides seamless communication at this stage between both parties and helps resolves collection issues with efficacy.
Subscriptions and Renewals
QTC solution helps maintain after-sales communication with your customers. With a Quote to Cash solution, cross-selling and remarketing with the customers is a cakewalk.
Now it’s clear that, at every step of closing the deal, a QTC solution offers an automated helping hand and increases the success rate, and cutting down on the turnaround time. Thus, a QTC tool is an effective alternative to otherwise manually error-prone processes that possess inherent silos.
Customers now have diversified options to obtain their desired services and products. When a customer visits your website and shows interest in knowing the quote related to a product/service you are offering, the next steps should be simple and agile enough to make sure that your customer does not drift away from your competitor. And this is achievable when you opt for a QTC solution that is custom made for your business.
The business world has recognized the necessity of Quote to Cash systems in enjoying more revenue and offering satisfying customer service. Now it’s your turn to leverage the power of Quote to Cash into your business.
Finding a Quote to Cash Solution
Now you are aware of what a QTC is, how it differs from CPQ, and why you should opt for a QTC system. Be you are an owner of a small business or a large company keen on churning more deals with the existing customers, a QTC solution will fit you perfectly.
Inclined more towards CPQ? That’s pretty normal too. As we said, CPQ can be an amazing first step in handling better inventory management and closing the deals without any communication gaps. Gartner and Forrester predicted CPQ to grow faster soon and so will QTC too.
Whatever is your requirement, we are here to offer customized and proven help in Quote to Cash and CPQ. Get in touch with us to know how we help businesses generate accurate as well as compliant quotes, and realize cash sooner than they anticipate.
- Contract Management
- Billing Solutions
- Full Life Cycle Implementation
- Vendor Selection and Procurement
- Upgrades and Integrations
- Training and Post Production Support
Are you ready to enjoy enhanced revenues? Our expertise is just a call away!