Discover how to shorten your sales cycle while doubling the size of your deals.
You’re hearing the term used more and more in the business world. You may even hear it referred to as simply, “QTC” or “Q2C.” But what exactly is quote-to-cash and how does it apply to your business?
Quote-to-cash is an end-to-end business process that covers your typical sales life cycle, from pricing and contracting all the way to invoicing and contract renewal.
Anyone running a company will recognize these steps as common elements in managing a business. And while many companies currently have manual processes in place for each of these important steps in the sales process, there is a more efficient way to manage an organization and, if we’re getting down to brass tacks, make money. This is where a quote-to-cash process comes into play.
Who does quote-to-cash benefit?
With the help of QTC software, a quote-to-cash business process will streamline your entire business from the comfort of a single cloud platform. It will give an entire organization, from sales reps to c-suite executives, a bird’ eye view of sales, contracting, and revenue management processes and make closing deals all the easier.
Any profitable company will benefit from a streamlined quote-to-sales process but a quote-to-cash solution will be especially effective for those currently dealing with:
- Difficulty scaling a business
- Missed sales opportunities (upsell, cross-sell, renewal)
- Inaccuracies in manual processes
- A limited view of customers
How does quote-to-cash work?
With a single Q2C platform, a business is able to view every stage of the sales process in one place. This includes:
- Service configuration: Deciding on which combination of services or products to suggest to a customer.
- Pricing: Developing the appropriate price for a service or product.
- Quote and Contract: Presenting an initial quote that will move forward the sale and creating an official contract that lists the agreed-upon terms and conditions.
- Amend and Renew: This stage includes finalizing the contract.
- Order: Confirming, processing, and delivering an order.
- Bill and Pay: An invoice is sent to the customer, with the necessary information being transferred to Accounts.
The ROI speaks for itself
By streamlining your business process with QTC, it leaves less room for error and money loss. A study done by the Aberdeen Group reveals the magnitude a quote-to-cash process can have on a business.
The results of the companies featured in the study speak for themselves:
- 105% larger deal sizes
- 49% higher proposal volume
- 28% shorter sales cycle
- 26% more sales representatives meeting their targets
- 17% higher conversion rate
Aberdeen Group’s “Breaking the laws of physics: shortening the last mile through workplace automation” by Peter Ostrow (April 2013).
How to get started
At VFP Consulting, we’re quote-to-cash experts and we specialize in guiding businesses through their QTC software implementation. It’s a new concept for many which are why we’re here to help. Book your complimentary consultation to have a one-on-one chat with us about how we can help usher in a more streamlined business process for you today.