Introduction

In the dynamic landscape of B2B SaaS (Software as a Service), efficient and accurate sales processes are crucial for maintaining competitiveness and customer satisfaction. One critical aspect of these processes is managing approval workflows, particularly for complex sales involving Configure, Price, Quote (CPQ) platforms. This case study explores how approval workflows can be set up in a CPQ system, the routing mechanisms based on business rules, and the reasons why companies utilize CPQ tools for managing approval workflows.

Background

Company Profile: Company Y  

Industry: B2B SaaS  

Objective: Implement an automated approval workflow to streamline the sales process, improve accuracy, and reduce cycle times for approvals on customized pricing, discounts, and invoicing schedules.

Challenges Faced

1. Complex Sales Processes: Company Y offers a diverse range of SaaS products, each with customizable features and pricing models, necessitating frequent approvals for custom quotes and discount levels.

2. Manual Approvals: Prior to using a CPQ platform, the company relied on manual approval processes, which were time-consuming and prone to errors.

3. Scalability Issues: As the company grew, the volume of approval requests increased, overwhelming the existing manual system and causing delays in the sales cycle.

4. Inconsistent Approvals: Different sales reps had varying degrees of autonomy, leading to inconsistent approval standards and potentially unapproved discounts being granted.

Implementation of CPQ for Approval Workflows

CPQ Platform Chosen: Vendori CPQ  

Implementation Timeline: 4 weeks  

Key Features:

• Automated rule-based approval workflows

• Integration with SFDC CRM for streamlined data access

• Customizable approval rules based on pricing, discount levels, and invoicing schedules

Setting Up Approval Workflows in the CPQ Platform

1. Configuration of Approval Rules

Objective: Ensure approvals are triggered based on specific criteria such as discount thresholds and custom invoice schedules.

• Discount-Based Rules: Approval rules were set up to trigger an approval process whenever a discount exceeded predefined thresholds (e.g., 10% discount required manager approval, 20% required director-level approval).

• Invoice Schedule Rules: Custom invoice schedules, such as quarterly billing or deferred payment plans, required approvals to ensure compliance with company policies.

Example: For a discount exceeding 20%, the CPQ system automatically routed the quote to the sales director for approval.

2. Routing Mechanisms

Objective: Ensure the right leader or department receives the approval request based on predefined business rules.

• Hierarchical Routing: Approval requests were routed to sales managers or directors based on the level of discount or the complexity of the invoicing schedule.

• Conditional Routing: Certain conditions, such as high-value deals or special customer requests, triggered routing to specific departments like finance or legal for additional scrutiny.

Example: If a deal value exceeded $100,000, the approval workflow included a step for the finance team to review the terms.

3. Email  & Slack Notifications: Automatically generated emails and Slack messages

Objective: Reduce delays and ensure timely approvals by automating notifications and reminders.

• Email Notifications: Automatically generated emails notified relevant approvers when an approval was required.

• Task Reminders: Integration with the CRM system created tasks and reminders for approvers, ensuring they reviewed and acted on approval requests promptly.

Benefits of Using CPQ for Approval Workflows

1. Increased Efficiency and Accuracy:

• Automation of approval processes reduced the time spent on manual reviews and minimized errors associated with manual data entry.

• The CPQ system ensured that approval rules were consistently applied, leading to uniform standards across the sales team.

2. Enhanced Scalability:

• As the company expanded, the CPQ platform easily accommodated the increased volume of approval requests without additional manual overhead.

• The system’s scalability allowed for the addition of new products and approval criteria without significant reconfiguration.

3. Improved Compliance and Control:

• Automated workflows ensured adherence to company policies and compliance with legal and financial guidelines.

• Detailed audit trails provided a clear record of approvals, enhancing transparency and accountability.

4. Shortened Sales Cycle:

• Faster approval processes resulted in quicker turnaround times for quotes and proposals, improving the overall customer experience.

• Sales reps could focus on selling rather than waiting for or chasing approvals, leading to increased productivity.

Conclusion

By implementing a CPQ platform with automated approval workflows, Company Y successfully streamlined its sales processes, reduced approval times, and improved compliance. The automation of complex approval rules for discounts and invoicing schedules not only enhanced operational efficiency but also provided a scalable solution that could grow with the company. 

This case study underscores the importance of leveraging CPQ tools in the B2B SaaS sector to manage approval workflows effectively, ensuring that businesses can meet customer demands promptly while maintaining control over pricing and contract terms. As a result, Company Y saw significant improvements in their sales operations, setting a foundation for continued growth and customer satisfaction.