Published: 30 April 2024
Summary
Salesforce renewals are more challenging than ever. Customers must strategically leverage timing, tactics and forecasting to reduce costs. This research provides sourcing, procurement and vendor management leaders with a five-phase approach to optimize renewal preparation and negotiation.
Included in Full Research
Overview
Key Findings
Negotiating with Salesforce has become more challenging. Pricing increases and renewal uplift changes implemented in 2023, along with numerous new or repackaged products,have left customersunprepared to negotiate renewals effectively.
Customers who reduce license volumes are subject to repricing above the standard 9% renewal uplift. Salesforce reprices the contract to make up for the shortfall, whereas customers committing to new products/additional volumes canoften mitigate or offset the repricing.
Salesforce customers who have not planned future demand find negotiations to be more challenging than those with a thorough understanding of future needs and knowledge of Salesforce’s strategy.Additional commitments are typically required for
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