Learn how traditional CPQ has transformed from a simple linear process to a multi-touch, multi-threaded customer engagement lifecycle.

1. #Subscribed14
Quote-To-Subscription:
Evolving Beyond
Traditional CPQ
André Pimentel
Christian Jennings
Business Applications

2. CONFIDENTIAL 2
CPQ has transformed from a linear process to a multi-touch, multi-threaded customer
engagement lifecycle…
Success
Renewal
Cancel
Request
Upgrade/
Downgrade
Initial Sale
IPD
Engagement w/
Customers is a series
of Touchpoints &
Lifecycle events
CPQ CONUNDRUM

3. CONFIDENTIAL 3
STORY TIME!

4. Company A: Widget Corp
CONFIDENTIAL 4
TRADITIONAL CPQ
“Buy all of the
widgets!!!!”
• Sell the customer as much as possible in any single transaction.
• Offer discounts on add-ons if purchased at the same time.
• Greater flexibility for the customer but may result in customer
feeling confused and as if there are many hidden costs.
COMPANY GOALS:

5. Traditional Business Model
• Product/Revenue mix: Hardware & Networking Equipment (60%),
Services & Support (25%)
CONFIDENTIAL 5
WIDGET CORP
TRADITIONAL CPQ
Customer-facing CPQ Workflow
Product
Line
Core
Product
Required
Add-
ons/
Features
Optional
Add-ons
Service &
Support
Options
• Works well for one-time transaction but not for relationship-based
selling

6. TRADITIONAL CPQ
CONFIDENTIAL 6
WIDGET CORP
 One-time Interaction
 We are selling you these things and we want to maximize that
sale now
Configure the widget Add options

7. CONFIDENTIAL 7
Company B: Cloud Inc.
“Come check us out so
we can start forming a
relationship and
offering value add
services & products.”
CLOUD CPQ
COMPANY GOALS:
• Customer acquisition: GET YOU IN THE DOOR
• Form a relationship, upgrade, and retain
• Want you to feel like you’re getting all these features for only
$X!

8. CONFIDENTIAL 8
Cloud subscription business model
• Product/Revenue mix: 90% recurring subscription business, 10%
based products
CLOUD CPQ
CLOUD INC
Cloud Inc Imperatives
• Rely on recurring revenue (generally only break even in year 1 for
paying customer)
- Have 100+ features and products inside core platform
• Cloud Inc initially tried CPQ: let the user pick their features
• Customers tended to choose fewer features to reduce price
• Cloud Inc has several core product features directly tied to
retention: they need customers to use these features to see
great value out of their product

9. CONFIDENTIAL 9
Success
Renewal
Cancel
Request
Upgrade/
Downgrade
Initial Sale
IPD
Align CPQ to
subscription
lifecycle
management
CLOUD CPQ
Feature & Pricing Bundling with Zuora = Cloud CPQ
CLOUD INC’S CPQ SOLUTION
• Bundling with advanced discounting configuration
• Optional add-ons
• Upgrades and downgrades
• Lifecycle management

10. CONFIDENTIAL 10
PROS
CLOUD CPQ PROS AND CONS
Cloud Inc must fight to keep customers engaged so that they continue paying for the
service
Cloud Inc offerings are transparent  Clear difference in packages offered
Cloud Inc has a recurring revenue stream
Cloud Inc has vast upsell opportunity to their install base
Focus on ease of sign up and the transparency of the monetization strategy
CONS
Cloud Inc must sell you the value proposition of add on services and upgrades
Cloud Inc needs a CPQ system/method that provides the flexibility necessary to manage
the entire customer lifecycle

11. DRUMROLL PLEASE
Cloud Inc = Demandforce!
• Cloud based marketing and communications platform
• Many features and value add services that drive customer growth and
retention
CONFIDENTIAL 11
WE HAVE A SECRET TO SHARE
Attach
Renewal
Save/
Retain
Sale
Our
Lifecycle
VIDEO!

12. Demandforce’s Lifecycle Management Roadmap:
CONFIDENTIAL 12
• Un-package and re-bundle charges & discounts
• Allow for greater pricing model flexibility
• Enable any-time upgrades and downgrades
• Restrict (AE) choice with configurable logic
GOAL: ALIGN QUOTING AND
PRICING CAPABILITIES TO DF
CUSTOMER LIFECYCLE
QUOTING & PRICING ROADMAP

13. CONFIDENTIAL 13
CURRENT QUOTING SYSTEM (NEW SIGNUP)

14. CONFIDENTIAL 14
CURRENT QUOTING SYSTEM (ADD ONS)

15. Current Quoting & Pricing Inputs:
 Industry
 Approval Level
x SFDC Profile
x Customer Size
x Customer Lifecycle Stage
x Primary Partner or Campaign Source
CONFIDENTIAL 15
Future Quoting & Pricing Inputs:
 Industry
 Approval Level
 SFDC Profile
 Customer Size
 Customer Lifecycle Stage
 Primary Partner or Campaign Source
QUOTING & PRICING ROADMAP

16. CONFIDENTIAL 16
Q&A
QUOTING & PRICING ROADMAP