Policies and Procedures

Standard Operating Procedure (SOP) for Zuora CPQ

Policies and Procedures
January 23, 2022
5 Min
Cera Lee

Zuora CPQ is a key component in streamlining the sales process for subscription-based services, ensuring that sales teams can quickly and accurately generate quotes that meet both customer needs and business policies.

Standard Operating Procedure (SOP) for Zuora CPQ

1. Purpose

The purpose of this SOP is to provide a clear and systematic approach to using Zuora CPQ for generating customer quotes. This includes configuring products or services, setting prices, applying discounts, and issuing quotes that align with company policies and customer needs.

2. Scope

This SOP applies to the sales and sales operations teams responsible for configuring offerings, determining pricing, and generating and managing quotes within the Zuora CPQ platform.

3. Responsibilities

  • Sales Team: Generates and customizes quotes for customers based on their needs and negotiated terms.
  • Sales Operations Team: Maintains and updates the product catalog, pricing rules, and configurations in Zuora CPQ. Ensures that the platform reflects current offerings and pricing strategies.
  • Finance Team: Sets overall pricing strategies, approves discount levels, and ensures quotes comply with financial policies and goals.

4. Definitions

  • CPQ: Configure, Price, Quote. A sales tool for companies to quickly and accurately generate quotes for orders.
  • Product Catalog: A comprehensive list of products or services that can be configured and priced through Zuora CPQ.

5. Procedure

5.1 Initial Setup and Configuration
  1. Product Catalog Setup: The Sales Operations Team sets up and regularly updates the product catalog in Zuora CPQ, including all available products and services, features, and pricing information.
  2. Pricing and Discount Rules: Establish pricing structures and discount rules within Zuora CPQ. The Finance Team approves these rules to ensure they align with the company’s financial strategies.
5.2 Quote Creation Process
  1. Customer Needs Assessment: The Sales Team assesses the customer’s needs to determine the appropriate products or services.
  2. Configure Products/Services: Using Zuora CPQ, the Sales Team configures the selected products or services based on the customer's requirements.
  3. Apply Pricing and Discounts: Apply pricing and any negotiated discounts within the constraints of the pre-approved rules set by the Finance Team.
  4. Generate Quote: Zuora CPQ generates a quote based on the configuration, pricing, and discounts applied.
5.3 Quote Review and Approval
  1. Internal Review: The Sales Team reviews the quote for accuracy and completeness.
  2. Approval Workflow: If the quote exceeds certain thresholds (e.g., discounts beyond a certain level), it is escalated for approval as defined in the SOP.
  3. Customer Presentation: The finalized quote is presented to the customer for review and acceptance.
5.4 Revision and Finalization
  1. Customer Feedback: Gather feedback from the customer and make any necessary revisions to the quote.
  2. Final Approval and Acceptance: Obtain final approval from the required internal teams (if necessary) and then from the customer.
5.5 Documentation and Record Keeping
  1. Record Keeping: Store all finalized quotes and related documents in a centralized location accessible to the Sales, Finance, and Sales Operations Teams.
  2. Audit Trail: Maintain an audit trail of all changes made to quotes, including who made the changes and when.

6. Training

Ensure all users of Zuora CPQ are trained on the platform, understand the company’s pricing and discount policies, and are familiar with this SOP.

7. Continuous Improvement

Regularly review and update the SOP, pricing structures, and product catalog in Zuora CPQ to ensure alignment with market conditions, customer needs, and company objectives.

This SOP should be a living document, adaptable to changes in business processes, Zuora CPQ updates, and evolving market demands. Regular training and reviews will help maintain the effectiveness and efficiency of the CPQ process.