Quote-to-cash (QTC/Q2C) is a sales term that’s used to describe the end-to-end sales lifecycle. As it suggests, it covers all sales activity beginning from the moment that a quote is generated and presented to a prospect (the quote) to the time that the prospect converts and becomes a customer, and revenue is subsequently collected and recorded (the cash).
Since it covers the entire sales lifecycle, QTC can involve a lot of steps, including:
- Quote configuration, whereby a salesperson generates and optimizes a quote.
- Quote creation, where the quote is finalized and presented to the prospect.
- Contract management, which comes after the quote is accepted.
- Order management and fulfillment.
- Billing, invoicing, and revenue recognition.
Sales teams typically use QTC data to adjust and improve future sales cycles in a bid to drive more conversions and revenue. QTC can also help sales teams
identify new sales opportunities, reduce quoting errors, and increase customer retention by delivering a better customer experience.