Quote-to-cash process explained: Steps, challenges, and improvements

Quote-to-cash process explained: Steps, challenges, and improvements

Learn how Cencora improved profitability, optimized margins, streamlined operations, and strengthened trust across their organization with help from Vendavo. Taking measures on how to improve the quote-to-cash process requires a good understanding of the steps that make up the process. Research indicates that 66 percent of all sales quotes quote-to-cash process end without a purchase.

Step 3: Project management

If the process is automated, they don’t need to understand sales intricacies as they will be receiving the necessary information in real-time. December 13, 2024Lead-to-cash (L2C)—the conversion of customer interest into income—is a perennial and recurring issue for many businesses. And as a problem often seen as being without an owner, it can be a hard one to solve. Ashish Hota’s AI-powered solutions addressed these challenges head-on, transforming QTC workflows into seamless and efficient systems that prioritize customer experience and profitability. Revenue collection includes internal accounting teams staying on top of invoices owed to encourage fast payment. Inefficient collection workflows can delay revenue receipt and reduce your company’s cash on hand, which increases the risk of incorrect or incomplete payments and lost revenue.

• It is imperative to centralize all of the sales contracts, monitor their duration in a timely and consistent manner, and keep track of changes to costs, terms, and conditions.
• Quote-to-cash process is the journey that begins the moment a buyer expresses intent to buy your product and ends in what’s the raison d’être for every business – revenue.
• While these terms are related, they cover different parts of the sales cycle.
• The best CPQ software often includes user-friendly product configurators, which are easy to maintain.
• This involves tailoring products and services by selecting desired combinations, features, and components.
• Once you have the system in place, you can scale your sales efforts, rolling out a superior buying experience that breeds customer loyalty, shorter sales cycles, and sustainable business growth.
• Transparent and personalized interactions have elevated customer trust and loyalty.

Challenges

It is larger in scope than the Order-to-cash or OTC process, which deals mainly with order fulfillment. Poor customer experience and long sales cycles lead to missed cross-sell and upsell opportunities due to inefficiencies. As Food Truck Accounting a result, your bottom line is highly affected, and unless you streamline your business processes and integrate for a more efficient operation, the cycle will continue indefinitely. The last step in the quote-to-cash process focuses on customer retention and managing recurring revenue.

• A lot of customer-centered activity takes place in the quote-to-cash process.
• Using a quote order to cash automation software enables salespeople to engage the customer with a quote confidently in an instant.
• When the customer is ready to accept a quote, the link to sign the contract and pay reflects the most recently updated version.
• Encompassing sales and payment, the quote to cash process covers end-to-end functions beginning with offer configuration and concluding with revenue recognition.
• QTC is a complex process that encompasses many disparate organizational functions.
• The most effective way to differentiate your business from competition is to maintain strong customer relationships.

Discover why Zuora is the complete quote-to-cash solution

You may declare the wrong profit or loss, which results in inaccurate revenue projections. The quote-to-cash process is made up of several customer-centric processes that span several departments. Operating these activities Online Accounting in a siloed manner leads to many inefficiencies that could cost you significantly.

These solutions empower companies to unlock recurring revenue streams, providing stability and adaptability in competitive markets. At TFS, Ashish spearheaded the $20 million Enterprise Pricing Service (EPS) project, achieving $5 million in annual savings by automating manual processes. He also pioneered SPARC, a pricing system integrating AI/ML capabilities for dynamic pricing to deliver personalized customer experiences. Ashish Hota, a visionary in digital transformation and product management, is at the forefront of this revolution. His AI-powered approach to QTC not only streamlines operations but also introduces innovative subscription-based models, unlocking new revenue opportunities and redefining customer satisfaction. When you embrace automation, it becomes a lot easier to manage the quote-to-cash process.

• And if you’re using the centralized quote-to-cash tool Quoter, you can make things extra delightful with e-signature, user-selectable quote options, and online payment processing.
• Focusing on renewals and building long-term customer relationships is essential for sustainable growth.
• Sales reps should always be up to date on their product education, but they have to place the bulk of their focus on delivering sustained customer value.
• Automation also ensures completed proposals and contracts trigger billing and other finance-related activities.
• The contract must be well thought-out and free of any errors to ensure that the contract is signed immediately, instead of having to wait.
• Streamlining the quote-to-cash process ensures accurate customer data, including for billing.

Why Logik.io is the Solution for Quote to Cash

Sometimes, pricing can involve multiple layers, such as promotions, discounts, and add-ons. But, regardless, your team needs to be very fast as research shows the sale goes to whoever responds the fastest. Ashish’s innovative QTC solutions have transformed operational efficiency, revenue growth, and customer satisfaction.