Salesforce Certified CPQ Specialist Practice

Can Salesforce CPQ manage usage-based pricing?

1. No, it only handles fixed pricing models

2. Yes, it can manage usage-based pricing

3. Only for subscription services

4. It requires third-party applications for usage-based pricing

The correct answer is: Yes, it can manage usage-based pricing

Salesforce CPQ is designed to handle a variety of pricing models, including usage-based pricing. This type of pricing is essential for companies that charge based on the consumption of a product or service over time, rather than a flat fee. For instance, this is commonly seen in industries such as telecommunications, utilities, and software-as-a-service, where clients pay according to their actual usage rather than a predetermined rate. By allowing Salesforce CPQ to manage usage-based pricing, sales teams can create accurate quotes that reflect the dynamic nature of their offerings. This addresses customer needs more effectively, providing transparency and flexibility in billing that can enhance customer satisfaction and loyalty. The other options imply limitations that are not accurate. The claim that Salesforce CPQ only handles fixed pricing models overlooks its capability to accommodate diverse pricing strategies. The assertion that it only applies to subscription services narrows its applicability, as usage-based pricing can be used beyond subscriptions. Lastly, suggesting that third-party applications are required for usage-based pricing fails to recognize that Salesforce CPQ has built-in features to support this pricing model directly. Thus, the ability to manage usage-based pricing is a significant strength of Salesforce CPQ, making it a versatile tool for modern sales teams.