Services CPQ (Configure, Price, Quote) Demo

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Let's have a look at FinancialForce Services CPQ (Configure, Price, Quote). Services CPQ is intended to provide project estimation capabilities right within your sales to service flow.

So whether you're using Salesforce's Marketing Cloud, Sales Cloud, Salesforce CPQ, or maybe on the backend, you're using Field Service or Salesforce's Service Cloud, you're probably familiar with FinancialForce applications, they sit right in the middle, so Professional Services Automation, of course, for running your professional services teams and then our whole suite of financial packages as well.

Services CPQ fits right between FinancialForce Professional Services Automation and the Salesforce Sales Cloud with built-in integration so that you can have a Salesforce sales opportunity that has an estimate hanging off of it produced with Services CPQ. You can have multiple estimates, maybe a low and medium and high, all linking back to that same Salesforce sales opportunity.

And if you're a Salesforce CPQ customer, maybe you're quoting some products and some maintenance, and some warranty, you can also now quote professional services right as line items in Salesforce CPQ through the integration we have, where we can create an estimate and then publish that right over to Salesforce CPQ.

So on the upstream, we've got integrations into Salesforce sales opportunities and Salesforce CPQ quotes. Now, what happens when your estimate gets accepted, which we hope it does. That estimate can then flow into FinancialForce PSA to create a Professional Services Automation delivery project. You can see we've got integrations both upstream and downstream.

The key benefit is you've now got early visibility into the demand. So as you start to build demand as those estimates flow through your process, they become visible to the resource management teams. Now they've got early access to be able to see, okay if we close even half of these deals based on these estimates, here's the amount of resource we're gonna need, here are the skills we're gonna need, here's where we're going to need them and when we're going to need them, and so on.

A key part of being built on the Salesforce platform with doing services estimation, number one: getting away from spreadsheets, but number two: is that demand that's based on inside those estimates now becomes visible to the resource management team.

Then also there's shared data. It's no longer that you've got to export all of your roles and your rates and all that into a spreadsheet to go and perform some kind of calculations. Services CPQ from FinancialForce is going to read the rate tables directly from FinancialForce PSA. It's gonna bring in the roles, the templates, and all that type of information. So it's completely shared and, of course, the estimates you’re building can be directly against Salesforce account records and can be placed right on Salesforce opportunities. We already talked about integrating to Salesforce CPQ quotes. And the big thing is, let's get this critical part of your process out of spreadsheets, where you know, one error in a formula or a macro, or one corrupted spreadsheet is one too many.

We're really looking to let our customers leverage the power of the Salesforce platform to go in and do their project estimation.

With that said, let's go have a look. I'm going to log in. Here's Wendy. Wendy is our Services Estimating Manager and not everyone is going to have a Services Estimating Manager but she's responsible for creating an estimate for a customer. When she logs into FinancialForce Services CPQ, she's placed into a services estimating workspace.

What's in this workspace? We've got the ability to have insight into opportunities that are getting ready to close. So she needs to make sure that she's got estimates set up for each of these. She does have seven estimates that are currently in progress and she can see metrics. $2.6 million dollars total, getting an average margin of 18%. She does have one estimate that's awaiting approval.

As you can see this is already got workflow and approvals built-in. If you build an estimate, maybe it's got too high of a discount or meet some other criteria, you can route that right off for approval.

And then right here and she's got her main estimates sitting here, primary estimates as their designated. These are the ones that we're preparing to go with. We still haven't closed the deal or anything. These are live estimates that are in front of customers but she's got easy access into that. This is built on Salesforce. Remember? So there's collaboration. So here the Service Delivery team has just posted a new template for Wendy to use. If she goes out and starts building an estimate against doing an HRIS implementation, she's being encouraged to use that new template, so that kind of information is out there. She can go over and say “Yeah, that's great.”

Let's go into an existing sales opportunity. First, I want to show you an estimate that's already in place. So here we are, we're sitting on a sales opportunity and ERP implementation. We've got this opportunity sitting here and there are resource requests that are hanging off of the sales opportunity and that’s standard FinancialForce PSA functionality.

But what's not standard is that these resource requests came directly from this estimate, the one that's marked as primary. When you take a Services CPQ estimate, mark it as primary, the information from the estimate flows right onto your sales opportunity.

If you look closely over here, we don't have just one estimate. The power of Services CPQ is that you can build up a couple of estimates against the same sales opportunity. In this case, the customer said “Give me an estimate that can get this work done the soonest.” So that's this one. The earliest completion estimate. This estimate is going to represent work that will be done in 71 days. So from the time you sign that SOW, 71 days, we’re going to have your project completed. It's going to cost you $60,000, but we'll have it done the soonest.

But I'm giving you a second estimate, I'm giving you alternatives. We can get that price down from $52,600 down to $36,400. Now it's gonna take longer. So that's this estimate over here. So it does have a lower price point to the customer but we're using a lot of shared resources and that's going to result in a longer time to delivery. That's what most customers want, to give me some options, tell me what you know what I'm in for. So that way, you know based upon, “Is the calendar more important? Or is the budget more important?”

Now we've also created a third estimate. This is leveraging the fact that we can jostle resources from one region to another. So here I created this estimate, estimate #3 from the first one. But I moved some of the resources to an offshore location. Therefore their cost point dropped. I kept the billing roughly the same. So this project is going to get done, roughly the same cost, but some of the resources are offshore, and look what happened to the margin. The margin went up by 15 points. So that's some of the power you're going to have, the ability to create different types of estimates.

Let's go into an estimate and see what it looks like. As I drill into this estimate, number one: you're presented with the dashboards, you can see the status, this estimate is approved, you can see the highlights. This estimate is valued at $52,650. Now that does include a $5,000 expense allotment. Now the original price of this was $58,500, but here you can see we've applied a 10% discount, so to get that price down, to be something a little closer to the pin. The customer was asking for something as close to $50,000 as possible. So we went right on this estimate applied a 10% discount and that discount was applied. Now that's considered a medium discount. So there are rules that you can put in place to say, okay, “Does this require special approval?” or something like that? But this is just a medium discount.

This estimate represents as we saw in the other screen, 71 days of work we should have this completed for the customer by January 11th. This is an estimate taking place for this sales opportunity, remember, that's where we started. Now, what are we doing as a part of this estimate? Where does that $52,000, where is it going to come from? What is going to come from this resource plan? Some part of our estimate came to the conclusion that we're going to need these three roles for these numbers of hours. It's going to be this amount of cost and so on.

Now, where did the 40 hours and the 200 hours all come from? You can maintain a list of tasks, you can use templates. If estimate number two is going to look really similar to estimate number one. You can create it from a template and so on. You can maintain the template library. If you've got a lot of work that, you know, cookie-cutter may be too strong a word. If you've got a lot of work that's somewhat similar, you can create the templates based on the estimates and start to leverage that capability. Now I could go in here and add additional tasks and my cost will change, My hours will change, and so on. You've got that kind of capability.

Now this one I can’t, you can see it's locked because we've sent this estimate off for final approval. So before I put it in front of the client, I want to make sure that this has been approved by internal management. Again, that could be based upon the level of discount that you're offering, could be based upon the overall dollar amount of the estimate, any number of factors that you want to employ.

Now, if the customer says, can I take a look at this estimate, you've also got the ability to go in and generate a document. Built into Services CPQ is the ability to do document generation. Here I've generated documents, got information about the estimate letting the customer know you're giving them a discount, cluing them in as to the time frame for the work that you're proposing to be done, a summary of the resources involved with the total number of hours, as well as, if they want to see more detail, here's the work that drove this estimate that we're looking to do and you can wrap some boilerplate around all that. You can even tailor it with your branding, your icons, and so on.You can really produce a professional-looking document and then, when you're ready, you can send it off to your clients and that's going to show up as a PDF right in their inbox.

In addition to sending it to your client, we're also going to maintain a copy right here, alongside the estimates. You can always come back later, particularly if you've got multiple estimates out there. You come back and see exactly what the customer is holding in their hand and so on. That's part of that capability.

And then lastly if they're using Salesforce’s CPQ, well, guess what? I can take this estimate and I can publish it right over to a Salesforce CPQ quote. I can click and here it knows that quote #6 is tied to that sales opportunity, that this estimate came from.

I can push this information from Services CPQ right over to that quote. What that does, is now if I go back and visit the sales opportunity and we go look at the quote that's tied to that opportunity, it's now going to be updated. So we've updated this quote. It used to have line items representing products and support and so on. But we've now added to it, a fourth line item for services.

If I go generate a document from this quote, you'll see that we've got the line items and those kinds of things. What we can publish right onto the quote is that resource plan that you saw, we can publish the list of tasks, and so on. Here's the new quote line item that we added for the additional $52,000 of services and so on. But now you can see there's the resource plan, we can publish the task list, and so on. So this is a Salesforce CPQ you quote, but we're able to integrate right with it, so uh some nice capabilities along those lines.

Let's maybe before we end here, let's go see how we go about generating a quote. I showed you one that was in flight how it sits alongside other quotes but let's go grab a $0 sales opportunity. Let's build up an estimate. So here we're doing some HRIS configuration services.

Now we haven't built our estimate yet. So from a Salesforce sales opportunity perspective, we're sitting at $0. We don't have any estimates created yet, but I want you to see the ease of going in and creating one. So if I come over here and say new estimate, I click, give the estimate and name, so I'll call this, “My initial services delivery estimate.” We're hoping to close this on October 21. So that being the case, let's set up a November 1st start, and let's go search for estimating templates.

So this deals with HRIS and, sure enough, I've got an estimating template set up that has a list of standard tasks and roles and durations that we often do for an HRIS implementation.

So let's build our new estimate from an existing template. So now the estimates are being constructed, now it's being pre-populated with a set of tasks that we routinely do for an HRIS configuration services offering, being pre-populated with a list of roles and so on. And here this estimate was just produced. This estimate is already factoring in a cost.

How do we know that? Well, we know that this work is taking place in the United States region and part of commercial services. So there's a rate table behind the scenes that are being used to create the appropriate rates and to price out this estimate. So we now know if this is going to be build-out in a time of materials fashion, that this is uh roughly $53,000 worth of work that's going to cost us $20,000. Therefore it's a $33,000 or 61% margin. It's going to, as configured, it's going to take 71 days for us to get this work done. Now how do we know that?

Well, we've generated resource requests right from the estimate so I can see it's 40 hours of a business analyst, 200 hours of a consultant, and so on. We've even got an initial schedule, remember I picked November 1st as the start time, so if we go and maybe zoom in just a little bit, you know, here, we can start to see you know that work is going to begin the first of November with the business analyst who's going to be followed by the consultant and then towards the end of the consultant’s duration on the project, that's when we plan to start the trainers, so these aren't just hours but the hours have context as far as start times and start dates and end dates and so on. So all that is visible right here on the estimate schedule. And you know, we've got our task list here of course now these are the tasks that were part of the estimate,

But if I want to come in and add in new tasks, I can do that so I can just click here and, say that you know, maybe something's going to happen at the very end, we'll do HRIS acceptance, so I'm gonna put in a new task and who's going to perform that task. Well maybe that's gonna be one of our existing roles or maybe that's going to be a new role, so I can just come over here and double-click and say, alright yeah we're gonna have, you know towards the end, we're gonna have the consultant come in and do some additional work and so on.

That's going to represent maybe 40 additional hours But you can see it's bringing in the rates, both the cost, the bill rate to the client but also the cost rate to the project. So these 40 additional hours that I'm adding to the estimate is going to bring in what is that? $8,000 of additional revenue but it's gonna come at a cost as well.

And this is where I might go and say well you know what that's going to be maybe an offshore consultant and so on. So that might come at a lower price point and so on. So you've got a lot of flexibility as to how you go in and set up your roles in your rates and and that kind of thing but we'll go and save this.

What this did, this generated a new resource request. We know that we don't need a business analyst and a single consultant, and a tainer. But now we know that we need an additional consultant. So now that an additional consultant resource request was added, our costs went up.

Now we're sitting at $61,500 and this is no longer a 300-hour project, it is now 340 hours. Basically, I started with an estimate from a template and then tailored it to my liking.

Now I might want to go in as well and put in an expense budget as part of this estimate.

But in this case, I think all this work is going to be done remotely. But this has me scared a little bit because the customer said, “Hey this needs to be down in the $50,000 range or lower.” We're gonna get aggressive here, let's try to win this customer's business. I'm going to put in a 20% discount. When I go and apply that discount that is going to bring, you know, we're now below $50,000. That's looking good.

How do we get there when we had to lower our rates? Go and refresh the page here. So the $150 got dropped $120 so on. So we applied a 20% discount across the board. Now I could have discounted just a couple of the roles, so you've got some flexibility on how that works.

As long as I'm happy with the way this looks, what I can do is go and mark this as my primary estimate. In doing so it's going to go and update the corresponding sales opportunity. So we're literally gonna push this information from the estimate over to the sales opportunity.

If we go back and visit our sales opportunity now you can see there's the $49,200. This was a $0 sales opportunity, of course. But now we've pushed our estimate details over to the sales opportunity.

Now we're ready to go. What I could do is have, like in the other example, multiple estimates that are all sitting out there and then jostle them in or out based upon making different offers to the client.

But this estimate looks good. So we're going to go forward with it and move on with our sales opportunity. And then if the customer accepts our proposal and we close won the opportunity then we can go and generate a project just like we normally would. So nothing's really changed there.

But that is FinancialForce Services CPQ. Thanks so much for watching.