Now That Revenue Cloud is Here... What About CPQ?
Salesforce Solutions: Introducing Revenue Cloud and How It Compares to Salesforce CPQ
With the introduction of Revenue Cloud, Salesforce has developed a more comprehensive solution for managing the entire revenue lifecycle, encompassing everything from quoting to contract fulfillment. As businesses explore this new offering, many are wondering how Revenue Cloud stacks up against the well-established Salesforce CPQ.
In this blog, we’ll provide an in-depth look at both solutions, beginning with an overview of Revenue Cloud that is followed by a side-by-side comparison to help you determine which option best fits your organization’s needs. It's important to note that while Salesforce will continue to support Salesforce CPQ within the Revenue Cloud ecosystem, the general expectation is that there will be no further enhancements made to this solution.
What is Revenue Cloud?
Revenue Cloud is the next step in the evolution of Salesforce’s Revenue Lifecycle Management (RLM). Previously known as RLM, this solution has now been rebranded and expanded to provide a more comprehensive suite of tools. While it still includes robust Configure, Price, Quote (CPQ) functionalities, Revenue Cloud goes beyond that to cover the full scope of revenue management.
With Revenue Cloud, businesses can now manage the entire lifecycle of a product, from quoting and pricing to contract management, fulfillment, and revenue recognition. This platform integrates advanced features for tracking contracts, assets, and customer journeys, offering greater visibility and automation than before. The solution is designed to streamline sales processes and reduce manual effort through AI-powered features.
Now that RLM has evolved into Revenue Cloud, let’s examine how it compares to Salesforce CPQ.
Side-by-Side Comparison: Revenue Cloud vs. Salesforce CPQ
Which is Right for Your Business?
Salesforce CPQ is a trusted, established solution that simplifies quoting and pricing, making it ideal for businesses focused on sales, particularly those with subscription-based models. It empowers sales teams to create quotes, apply discounts, and manage approvals efficiently.
Although, CPQ comes at a lower price point, customers have to build or purchase tools for requirements not covered natively by CPQ. For example, one common use-case not supported natively that we’ve seen is building a product translation engine to send and visualize Salesforce CPQ product broken into multiple ERP SKUs. Along with complexities around permissions management that requires team training, especially when it comes to handling templates and system customization.
Amendments on Salesforce CPQ can pose multiple challenges due to limitations around data adjustments, revenue classification, and known constraints (such as changing prices).
Revenue Cloud, on the other hand, builds on CPQ functionality and goes further by offering advanced tools for contract management, fulfillment tracking, and possibilities of AI-driven automation. It’s a more comprehensive solution designed for organizations aiming to streamline their entire revenue lifecycle, including indirect sales and complex contract negotiations.
While Revenue Cloud currently does not offer any official partner certifications and being a newer platform may present some initial challenges. Innovative features like pricing waterfall visualization, dynamic revenue orchestration and customer asset lifecycle management (CALM) can help improve revenue management and the need to build customizations.
Ultimately, the decision between Salesforce CPQ and Revenue Cloud comes down to your specific business needs. If your focus is primarily on quoting and sales processes, CPQ might be the perfect fit. But if your company tends to be an early adopter of new solutions and you’re seeking a forward-looking solution to manage contracts, assets, and the full spectrum of revenue operations, Revenue Cloud may provide broader capabilities.
About the Authors
Loveleen Kaur is a Senior Lead Consultant at Cloud Giants and has been in the Salesforce space since 2008. Her expertise is in Salesforce CPQ, Solution Design, & Enterprise Architecture.
Loveleen holds 6+ Salesforce Certifications including Salesforce CPQ Specialist.
When not Salesforcing, you will find her hiking or tending to her gardens. Connect with her on LinkedIn.
Ean Lawrence is a Lead Consultant at Cloud Giants. His expertise in Revenue Cloud helps clients optimize their revenue processes, drive growth, & achieve impactful business outcomes.
Ean holds 8+ Salesforce certifications including Revenue Cloud Consultant, CPQ Specialist, and Data Cloud Consultant.
Outside of work, Ean is a licensed private pilot and an enthusiastic hiker. Connect with him on LinkedIn.
