What is Salesforce Revenue Cloud?
Salesforce Revenue Cloud unites multiple existing products in the Salesforce ecosystem, most notably Salesforce CPQ & Billing, to support and enable a more robust sales engine, including those that rely on subscriptions, recurring revenue or consumption-based models.
Through Revenue Cloud, organizations can take a unified approach to sales, operations and finance by enabling a structured sales process that leads to downstream automation and revenue compliance. Revenue Cloud enables organizations to complete the following transactions, more closely connecting the customer and revenue lifecycle:
- Unify multiple types of sales motions including:
- Assisted/Direct sales
- Partners sales
- Commerce/Self service
- Specialized industry sales (e.g. Telco, Insurance, Energy
- Enable product bundling and complex order configuration
- Generate invoices from multiple channels
- Collect payments
- Manage dunning and collections
- Reduce financial risk and compliance burden
Revenue Cloud: A First for Salesforce & the Lead-to-Revenue Landscape
- The first major Salesforce cloud launch since 2012
- Salesforce’s first real push into traditional back office capabilities
- The market’s first enterprise class, sales and billing engine
What are the advantages and benefits of Salesforce Revenue Cloud?
When implemented correctly, Salesforce Revenue Cloud provides organizations with several advantages:
- Orders from multiple channels will use the same proration engine, which ensures a consistent experience across assisted, self-service and partner channels
- Invoices can be created directly from orders without complex and expensive integrations with third-party billing applications
- Structured revenue transactions can be built in order to enable downstream revenue recognition compliance
On a strategic level, our assumption is that the creation of Revenue Cloud demonstrates an increased commitment from Salesforce to the products and services that now fall under this umbrella. Revenue Cloud will require a reorganization of resources within Salesforce and will likely result in the creation of a product and engineering team fully dedicated to Revenue Cloud. Regardless of any potential reorganization, it’s clear that Revenue Cloud will be a core focus of Salesforce’s strategic roadmap, which implies a large investment in the underlying products, inevitably resulting in new features and functionalities – to the benefit of clients – over time.
How will Salesforce Revenue Cloud impact my business?
If you’re an existing Salesforce customer, there is no immediate tactical action that needs to be taken. Revenue Cloud is not a product or solution, but a way of organizing Salesforce tools in a unified way. In launching Revenue Cloud, Salesforce is acknowledging that using several of their products together has a multiplier effect. That said, now is a good time for organizations to strategically evaluate their entire lead-to-revenue architecture and all their various tools and systems to determine if there is an opportunity to optimize one or more parts of the cycle.
What are some possible challenges associated with Salesforce Revenue Cloud?
A critical challenge facing organizations trying to launch more complex monetization models is a technology gap between Sales, Finance and Operations. Because there is no “end-to-end” solution on the market today most organizations are forced to rely on two or more tools to serve Sales and Finance. As a result, there is considerable overlap and interdependency between CPQ, CLM, Billing and ERP solutions and systems, and organizations remain challenged with unifying front-, middle-, and back-office operations to better serve their customers at every point. That said, even though Salesforce Revenue Cloud brings together several different products, it is not an out-of-the-box solution—nor does it replace ERP. Companies must identify which technology will anchor their lead-to-revenue stack and then develop operational processes to support the desired future state.
Ultimately, the greatest challenge is in figuring out if and how Salesforce Revenue Cloud fits into your overall tech stack and business strategy. More, organizations will still need to optimize their lead-to-revenue lifecycle and ensure a smooth and efficient transition between Revenue Cloud products and the organization’s other existing tools, including the ERP system. In short, organizations considering transforming any part of their lead-to-revenue architecture should evaluate the following:
- How does the system or tool fit into your ecosystem?
- Does it conflict with any of your existing point solutions?
- How does it compete with other point billing and sales solutions in meeting your unique business needs?
- What is the path for navigating the overlap and handoff to ERP?
How can Navint help your organization leverage Revenue Cloud?
Navint is an advisory and technology services firm focused on driving growth and operational efficiency across the lead-to-revenue lifecycle. Our dedicated recurring revenue practice—which was established nearly a decade ago—is keenly aware of the underlying issues associated with a variety of monetization strategies, including recurring revenue, subscriptions and consumption-based models. As independent advisors, we help organizations look across their lead-to-revenue architecture and identify the optimal tools and solutions, as well as business processes and architecture, for their unique needs. This can include Salesforce Revenue Cloud, another product or platform or some combination thereof.
Further, organizations that leverage the full suite of products within Revenue Cloud will still need to ensure that those solutions are properly integrated with each other, as well as any other products that may connect into this ecosystem, including ERP. At Navint, we design and implement strategies and solutions that are flexible, dynamic and agile—allowing our clients to improve operations and better serve the rapidly changing needs of their customers.
Navint has a long and deep partnership with Salesforce. We leverage our proven track record with their AppExchange applications including contract lifecycle management, billing, tax and payment gateways, as well as their Sales, Service and Community Clouds, to help clients create a streamlined, flexible lead-to-revenue strategy. We are proud to be one of the few Salesforce Revenue Cloud certified partners and look forward to helping your organization update your transformation roadmap based on this exciting new announcement.
To learn more about how we can help you leverage the power of Salesforce Revenue Cloud reach out to firstname.lastname@example.org.