Handling the sales and revenue functions can be a tedious job. There are numerous solutions available in the market for quoting, creating contracts, and issuing documents, but they all come with their own set of issues, including voiding, rendering, time delays, and accumulating errors. Wouldn’t it be nice if processes were simple? Well, Salesforce is aiming to accomplish this with a major new release to its CPQ tool. In 2025, they are expecting to roll out Revenue Lifecycle Management (RLM). It will enable secondary businesses to manage everything, from pricing to billing, regionally.
CPQ or ‘Configure, Price, Quote’ helps sales teams generate quotes quickly. It is a tool that issues quotes accurately for products and services. With CPQ, sales representatives no longer need to worry about the pricing rules or cross-checking with finance departments. Their efforts can be directed entirely to selling.
Salesforce’s CPQ has been a wonderful asset for a lot of companies as it helps them integrate the customer information, product catalogue, as well as pricing rules. However, that does not mean it is flawless. As companies scale and add more complex pricing structures, such as subscriptions or bundles, CPQ has fallen short. Because of that, Salesforce is developing more advanced versions of the software to fully automate the revenue management process.
Did you know that recent reports suggest that more firms are turning to the use of CPQ platforms? The market for cloud-based CPQ tools is expanding rapidly and is projected to reach nearly $5.8 billion by 2026.
Salesforce is transforming CPQ into something of greater value. Now it will be known as Revenue Lifecycle Management (RLM). This new system will merge the functionalities of pricing, quoting, billing, revenue recognition, and managing subscriptions into a single tool. Businesses will no longer need different tools for different parts of the process.
By placing everything onto one platform, Salesforce will help businesses in managing their revenue streams more easily and efficiently, from the first quote to the final payment.
RLM is not just a new name, but it’s a whole new approach to managing the incoming revenue streams. Here is what it offers:
Furthermore, with RLM, Salesforce assists businesses with the entire money lifecycle – quicker and smarter.
When Is RLM Launching?
The rollout for the Revenue Lifecycle Management starts in the second half of 2025. Don't worry — Salesforce is offering ample time for businesses to adjust.
The existing CPQ product will be supported until at least 2030, so there’s no need for alarm. RLM will be rolled out in phases, which will enable companies to test drive the new tools and decide at their own pace.
For businesses already leveraging Salesforce CPQ, this change won't come as a shock. There will be ample time to get ready, adapt, and educate staff.
The best part? Salesforce guarantees that Sales Cloud, Revenue Cloud, and other systems will be compatible. Moreover, this allows for the simplification of management of the revenue pipeline from one centralized location. Now, everything will be interlinked whether you’re creating a quote or recognizing revenue.
Comments from Ryan Aylward, Vice President of Revenue Cloud at Salesforce:
"A company’s quoting processes and revenue recognition should be as seamless as possible. We want to assist with everything in between.”
Analysis indicates that Salesforce had to make this change, and I am surprised it took them this long. They are the first to tackle this issue as companies offer more sophisticated payment models like subscriptions, which complicate cash management.
As a customer-centric organization evolves, things become simpler and deadlines more critical. This is especially true for businesses that depend on monthly recurring revenue (MRR) like subscription services.
Service does not end at providing a price. Businesses want a single solution that can set billing plans, issue invoices, monitor renewals, manage cash flow, and track revenue.
With Salesforce and its Revenue Lifecycle Management, customers now receive their all-in-one tool. These businesses can expand further and retain/ gain Market share without the complexity.
Salesforce’s update marks the dawn of a brand-new chapter in the management of an organization’s revenue. This new platform will transform business operations from pricing all the way to billing. More information will emerge to aid companies in strategizing for the transition as the 2025 date draws near.
If you are currently using Salesforce CPQ, stay vigilant for changes as they come and start planning. You can also consult with Pixel Consulting for further details regarding your business and this transition.
Salesforce is evolving at a rapid pace, and your organization needs to adapt accordingly. The transition to Revenue Lifecycle Management will bring both opportunities and challenges.
At PixelConsulting, we are focused on Salesforce's intricate ecosystem and can help your team navigate this big shift. From planning your switch to optimizing Revenue Cloud, our specialists are here to help.
Contact PixelConsulting today and ensure your business is set for the future.
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