Salesforce CPQ vs Zuora CPQ: Choosing the Right Quote Machine

Here’s a quick comparison:

Salesforce CPQ offers a broader range of features and caters to a wider audience with diverse product and service configurations. Zuora CPQ excels in subscription billing and caters specifically to subscription-based businesses.

If you have a mix of product and service offerings or prioritize a wider range of CPQ features and customization, then Salesforce CPQ is the stronger choice.

However, if your business relies heavily on subscriptions and recurring revenue, and you need a fast implementation with robust subscription management, then Zuora CPQ might be a better fit.

Let’s delve deeper.

What is Salesforce CPQ?

Salesforce CPQ (Configure-Price-Quote) is an advanced tool integrated into the Salesforce Revenue Cloud platform. It is designed to help businesses of all sizes streamline the often complex quoting process. By automating product configurations, pricing calculations, and the generation of quotes, Salesforce CPQ eliminates manual errors and accelerates the sales process.

It also features guided selling to aid sales representatives in selecting the optimal products and configurations for customer needs, coupled with robust approval workflows that ensure every quote adheres to company policies. This not only enhances compliance but also boosts productivity across sales teams.

What is Zuora CPQ?

Zuora CPQ stands as a pivotal component of Zuora’s broader subscription management suite, primarily catering to businesses that operate on a subscription-based model.

It excels at handling intricate subscription pricing models and the management of recurring revenue streams. The platform is engineered to simplify and automate essential tasks such as subscription quote generation and order management, making it an indispensable tool for subscription-centric enterprises.

Key Differentiations between Salesforce CPQ and Zuora CPQ

• Focus: While Salesforce CPQ is designed to accommodate a broad spectrum of industries with varying product and service offerings, Zuora CPQ is specifically tailored for businesses focusing on subscriptions and recurring billing.
• Features: Salesforce CPQ is rich in features, offering everything from guided selling to advanced approval workflows and detailed pricing options. In contrast, Zuora CPQ’s strengths lie in its capacity to manage complex subscription cycles and automate billing processes.
• Scalability: Salesforce CPQ is designed to scale with your business. You can easily add users, features, and integrations as your quoting needs grow. Zuora CPQ, while scalable within the subscription billing domain, might require additional development or integration work if your needs expand beyond core functionalities.
• Integration: Salesforce CPQ integrates seamlessly with other products like Sales Cloud, Service Cloud, and Marketing Cloud. It also offers open APIs for integrating with third-party applications. Zuora CPQ offers similar integration capabilities, but may also have pre-built integrations with specific subscription management and billing platforms.
• Implementation: Salesforce CPQ provides a highly customizable platform that can be tailored to fit a wide array of business models, albeit sometimes requiring significant setup time and resources. Zuora CPQ, on the other hand, is more straightforward to implement, particularly for businesses that exclusively deal with subscription models.
• Market Share: With a commanding 20.86% share of the CPQ market, Salesforce CPQ is the preferred solution for many businesses looking for a robust and scalable CPQ system.

How to Know Which One is Right for Your Business?

Choosing the right CPQ solution hinges on understanding your specific business needs and future growth plans. Here’s a breakdown to help you decide between Salesforce CPQ and Zuora CPQ:

Choose Salesforce CPQ if

• Product & Service Mix: Your business offers a variety of products and services, including both one-time purchases and recurring subscriptions. Salesforce CPQ excels at handling this complexity and ensures smooth quoting for all types of transactions.
• Customization Needs: Your business processes require extensive customization to fit your unique workflows. Salesforce CPQ offers a high degree of configurability, allowing you to tailor it to your specific quoting requirements.
• Broad CPQ Features: You prioritize a wide range of CPQ features beyond just basic configuration and pricing. Salesforce CPQ provides functionalities like guided selling, approval workflows, and robust reporting capabilities to optimize your entire sales cycle.
• Future Growth & Scalability: You anticipate significant growth in your business and require a CPQ solution that can scale seamlessly. Salesforce CPQ is built for scalability, allowing you to add users, features, and integrations as your quoting needs evolve.
• Integration with Salesforce Ecosystem: You already leverage other Salesforce products like Sales Cloud or Service Cloud. Salesforce CPQ integrates seamlessly within the Salesforce ecosystem, providing a unified user experience and streamlined data flow.

Choose Zuora CPQ if

• Subscription-Centric Business: Your core business model revolves around subscriptions and recurring revenue. Zuora CPQ is specifically designed to excel in this environment, offering robust features for managing subscription terms, pricing models, and recurring billing.
• Fast Implementation: You need a CPQ solution that can be implemented quickly with minimal disruption to your existing workflows. Zuora CPQ offers a faster implementation process, particularly for businesses already using Zuora for billing.
• Subscription Management Focus: Your primary focus lies in automating subscription quoting, order management, and revenue recognition for recurring revenue streams. Zuora CPQ excels in these areas, providing a comprehensive set of subscription management tools.

Why Salesforce CPQ is the First Choice Over Other CPQs

Salesforce CPQ claims the top spot for several reasons. First, its flexibility shines — it seamlessly adapts to various business models. Whether you sell basic products or complex, multi-layered service agreements, Salesforce CPQ tailors the quoting process to your specific needs.

Second, its feature set is unmatched. Beyond core functionalities like configuration and pricing, Salesforce CPQ boasts guided selling tools, approval workflows, and robust reporting — a comprehensive package to streamline your entire sales cycle.

Finally, scalability is a major advantage. As your business grows, Salesforce CPQ scales effortlessly, accommodating additional users, features, and integrations, ensuring it remains a valuable asset for years to come.

What if You’re Already Using Zuora? Integrate it with Salesforce

For businesses already using Zuora, integrating with Salesforce can bring the best of both worlds. This integration allows companies to maintain their established subscription management while amplifying their quoting and pricing capabilities through Salesforce.

Conclusion

Choosing the right CPQ solution is a strategic decision that can significantly affect your company’s operational efficiency and sales success. Understanding the unique strengths and focus areas of Salesforce CPQ and Zuora CPQ will enable you to choose the solution that best fits your business needs.

For organizations looking to leverage Salesforce CPQ’s robust capabilities fully, partnering with a Salesforce CPQ consultant can provide expert guidance, ensuring your CPQ system is optimized for peak performance, driving growth and profitability.