Comprehensive Pricing Configuration Process

This document outlines the essential steps to configure dynamic pricing within a CRM environment, leveraging the capabilities of Salesforce, Zuora, and Zoho CPQ. The process involves setting up permissions, defining attributes, mapping fields, configuring rate plans, and ensuring seamless integration for consistent pricing across different customer scenarios.

Step 1

Ensure the necessary permissions are activated in your tenant: access to the catalog UI for Catalog Beta and dynamic pricing enabled in both Billing and CPQ Salesforce.

Step 2

Verify that context and attributes are set under Extension Code Studio, allowing management and definition of attributes. With these permissions established, you are ready to define the signals that will guide your pricing decisions.

Step 3

To start defining attributes, navigate to the store attributes section under Extension Studio and begin by creating a new attribute.

Step 4

Click "Add Attribute." Name this attribute "Customer Type" and categorize it under "Business Structure."

Step 5

Since this is a standard object, select "Standard Object" from the source. Choose "ZUORA" as the source, with "Account Object" being the source object.

Step 6

From the "Account Object," select the custom field "Account Customer Type_C" from the dropdown, which is mapped to the "Customer Type" attribute.

Step 7

This attribute is of type "String" and can take the values: B2B, B2C, and Enterprise.

Step 8

Initially, the dropdown will be blank, allowing you to enter values. Proceed with CRM mapping to fetch the "Customer Type" from the "Account Object" and use it in your code object.

Step 9

Fill in the mapping code to facilitate the integration.

Step 10

Review the mapping code.

Step 11

Click "Save" to finalize the "Customer Type" field. Then, proceed to add another attribute called "Acquisition Channel."

Step 12

Select the category as "Channel," the object type as "Standard Object," source as "External," and attribute type as "String." Enter the predefined values so users or salespersons can directly select from them.

Step 13

Enter the values: "Website," "Partner," and "Mobile App." Use commas to separate them and click "Save."

Step 14

Now, we have two fields: "Acquisition Channel" and "Customer Type," with "Customer Type" mapped to Salesforce CRM input.

Step 15

Map this field to the corresponding Salesforce account input or code field for the sales user, allowing the rate card to select the correct rate.

Step 16

These attributes will serve as inputs for a dynamic pricing table. They can be automatically resolved from account data or entered manually during code creation. Proceed to build a decision table.

Step 17

To build a decision table, navigate to Catalog Beta under Products. Create a product by clicking on "New Product."

Step 18

Name the product "Cloud Customer Product."

Step 19

Define the start and end date for the product.

Step 20

With the necessary attribute details filled in, click "Save" to create the product. Proceed to create rate plans.

Step 21

Create two rate plans: one is a "Usage Flat Fee" based on "Customer Type," and another is a "Recurring Monthly Fee," based on a combination of "Acquisition Channel" and "Customer Type." Start with configuring the first rate plan.

Step 22

Click "Add Plan" and name it "Usage Flat Fee."

Step 23

Set a start date for the plan.

Step 24

Define the currencies to be used, selecting "Euro" and "USD." The selected currencies will be highlighted in blue.

Step 25

Selected currencies appear in the dropdown list, highlighted in blue.

Step 26

Begin adding charges to this rate plan by clicking the "Add Charge" button.

Step 27

Add a charge named "Access Fee."

Step 28

In the "Rate" section, select "Usage" and choose "Flat Fee" from the dropdown list of charge models. Define the pricing.

Step 29

The base price in USD is 9, and in Euro, it is 7. If no rate card is applied, the base price is used.

Step 30

Define the base price, then scroll down. Details on the current page are to be filled before returning to dynamic pricing.

Step 31

Verify all other settings. Set "Tax Mode" to "Non-Taxable." Review finance-related settings in the Finance section.

Step 32

In the "Revenue Account" section, select the appropriate revenue accounts.

Step 33

Once all details of the rate plan charge are defined, configure the dynamic pricing by clicking on the "Dynamic Pricing" option. Enter a formula to calculate the price dynamically.

Step 34

Begin with a basic setup. Define a rate card to derive the charge price, using "Customer Type" as the first field.

Step 35

Select "Customer Type" in the field dropdown. The next column is for price, based on USD. Add customer type details.

Step 36

Click the first row to see a dropdown of defined values in the "Customer Type" attribute. Define the value for B2B, then proceed to the price section.

Step 37

Set the price to $30. Recall that we also had a charge in Euro.

Step 38

To add Euro, click the "+" button and select "Add Currency." Choose Euro and specify the value.

Step 39

Add details for other customer types. For a B2C customer, set the price.

Step 40

Set the price to $28 or $32, and in Euro...

Step 41

Save these changes. Note that "Enterprise" is not defined to demonstrate how the system defaults to the base plan. The access fee is now set.

Step 42

Click "Done." Having added the access fee, proceed to add a charge for the monthly fee.

Step 43

For a recurring charge, select "Recurring" in the rate section and set the charge model to "Flat Fee" per month.

Step 44

Define the base price: $20 in USD and $18 in Euro. Verify other conditions.

Step 45

Set the end date and billing period to "Advance." Keep it non-taxable.

Step 46

Review the Finance section, and ensure accounts are selected in the Revenue Account section.

Step 47

After configuring settings, define dynamic pricing. The recurring charges are a combination of "Acquisition Channel" and "Customer Type." Click on "Dynamic Pricing" to create the rate card.

Step 48

The first field is "Customer Type." Add another field, "Acquisition Channel," by clicking the "+" button.

Step 49

Prices in USD and Euro are displayed, showing the base price. Define the rate card: if "Customer Type" is B2B and "Acquisition Channel" is "Website," set the price to $18 in USD.

Step 50

Set the price to 16 euros. Add other rate details similarly.

Step 51

Define the rate plans with various combinations of customer types and acquisition channels. Errors will be shown for duplicates.

Step 52

After defining the rate card, save the decision table. The charge is now defined.

Step 53

Click "Done" to save the charge. The access fee and the cloud monthly rate plan are set. Refresh the page and notice the "Pricing Waterfall" button.

Step 54

Click "Pricing Waterfall" to verify pricing functionality. The waterfall for the monthly recurring fee combines "Customer Type" and "Acquisition Channel."

Step 55

For a B2B customer acquired through a website, the price is $18.

Step 56

For a B2B customer from a website, the net price is $18 in USD and 16 euros. Verify your pricing waterfall similarly.

Step 57

Clicking the waterfall at the rate plan level shows the combination of monthly recurring and access fees for a specific combination. A B2B customer acquired from a website incurs a monthly charge of $20 and an access fee of $9.

Step 58

Click "Update."

Step 59

After verification in Zoho Billing, proceed to Zoho CPQ to start creating a new quote.

Step 60

In CPQ, initiate a new quote by clicking the "New Quote" button.

Step 61

Follow the standard procedure by verifying the quote details.

Step 62

Verify the subscription details with the quote information. Add products by clicking "Browse Products" and search for the product created in Zoho Billing.

Step 63

The "Used Flat Fee" rate plan from Zoho Billing appears, showing the monthly plan and access fee. A message indicates a recurring fee requires additional selection.

Step 64

Select the rate plan and click "Add Selections." Two list prices are displayed: one from the access fee without errors, indicating the rate plan is governed by dynamic pricing logic and applies the correct price at runtime. Verify this.

Step 65

Before delving into details, verify the customer's account details. The customer is Harper or L. Access the account section to check details.

Step 66

For L, the account's custom field "Customer Type" is B2C. Ensure the rate card reflects the appropriate B2C pricing. Verify this information.

Step 67

Check if the access fee rate is correct. Click on the number to view the rate card. The "Customer Type" field auto-selects B2C, applying correct pricing for the access fee.

Step 68

With no changes needed, cancel this step. The monthly recurring charge shows a red icon, indicating missing information or attributes. The alert prompts sales to fill in the details.

Step 69

Click the list price to view the rate card. "Customer Type" auto-fills from the account as B2C, but the "Acquisition Channel" is not filled. Sales should select the "Acquisition Channel." For a "Website" channel, the derived price is $19.

Step 70

Check other combinations. For a B2C customer from a partner, the derived price is $14. Set the "Acquisition Channel" to "Partner" for a B2C customer.

Step 71

Click "Confirm" to finalize. The access fee is now $32, returning to the access fee...

Step 72

Correction: the access fee is $14. Returning to the access fee...

Step 73

If any combination is unavailable in the rate card, the application defaults to the base charge.

Step 74

Once attributes are complete and price updates occur in real-time, no manual adjustments are needed. The quote is now defined. Click "Save."

Step 75

The quote is saved successfully, with quote metrics calculated. Submit and send the quote to Zuora for processing. Once accepted and converted to an order, the same dynamic pricing rules from Catalog Beta apply.

Step 76

Prices remain consistent as products are added to subscriptions. Downstream processes like billing and revenue recognition follow the configured charge settings, ensuring pricing logic aligns with catalog governance.

Step 77

Confirming dynamic pricing also functions with Zuora CPQ. Key takeaways: no SKU duplications, one product adapts to various customer types and markets.

Step 78

Centralized governance of dynamic pricing rules in Catalog Beta, seamless CRM integration from Salesforce, minimizing manual input, and ensuring a consistent experience from quoting to revenue, ensuring accurate real-time pricing across the customer lifecycle. This concludes the demonstration.