The first thing any aspiring entrepreneur learns is that 'cash is king'. And while the phrase rolls easily off the tongue, it doesn't go nearly far enough to describe today's complex digital economy. Modern organizations require every part of the sales pipeline to work in harmony in order to ensure that the process from start to finish - from quote to cash - is profitable.
Yes, cash is king, but the real power behind the throne is software such as customer relationship management (CRM) and enterprise resource planning (ERP) that drives a profitable quote-to-cash process.
The Power of Quote-to-Cash
Streamlining the sales pipeline is key to growth. The ability to move potential clients from the first point of contact (Quote) all the way through to the final purchase (Cash) is known as the 'quote-to-cash' process. There are a variety of activities across multiple departments that fall under the banner of quote-to-cash; such as sales and billing, order fulfillment, accounts receivable, and more.
Companies that don't have an organized, streamlined quote-to-cash system are always on uncertain ground, forced to estimate, or even guess, whether an engagement with a client is going to be profitable or not. It's often a disappointment to discover that all the effort one goes to in order to make a sale has not been worth it.
Optimizing the macro process - from the initial quote to the moment the money is in the bank - is a vital part of today's business landscape. It can mean the difference between whether your company survives and flourishes or runs out of money along the way.
Creating a solid foundation to manage the whole quote-to-cash process is one of the most important jobs that an organization has to take care of, and fortunately, there are sophisticated tech tools out there to help you do the job.
The Magic of CRM and ERP
Innovative software is the foundation that much of today's business relies on for its competitive advantage. When it's used correctly, it allows multiple applications to talk to each other, puts the control in the hands of the users, and allows for maximum customization potential. Customer relationship management (CRM) platforms are a perfect example, as they offer a set of tools that are designed to manage all your interactions with customers and potential customers.
CRM is also instrumental in:
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Streamlining processes
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Building customer relationships
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Increasing sales
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Improving customer service
All of which should lead to better customer retention and increased profitability.
Another important type of software in this regard is enterprise resource planning (ERP), which is used to integrate processes across a business so that a user can interact via a single interface and collaborate with other stakeholders effectively.
Taken together, CRM and ERP are a formidable set of tools that have a transformative effect when properly deployed.
Bringing It All Together
The challenge with quote-to-cash is that no single department is in a position to take complete ownership of it. It requires a comprehensive approach that cuts across sales, delivery, finance, and much more. That's why software that breaks down silos and makes intuitive connections across an organization is so effective in managing the challenge, identifying where the bottlenecks lie, and making improvements that drive efficiency.
Why not schedule a meeting with one of our Lumino team members right now to see what our groundbreaking iPaas software solution can do for your organization?
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