How Salesforce Usage Data Can Lead to Better Discounts
- Track usage patterns to identify underutilized features for renegotiation.
- Analyze feature adoption to adjust licensing needs and avoid extras.
- Identify active users to customize licensing for real-time demands.
- Compare plan usage to negotiate fair discounts on unused services.
- Highlight cost-saving opportunities with detailed reports for vendor discussions.
Why Salesforce Usage Data is Key in Negotiations
Salesforce’s pricing is based on several factors, including the number of users, add-ons, and products you use. However, many people don’t realize that their usage data is a crucial leverage point.
Usage data tells you (and Salesforce) how much of what you’re paying for is being used. If you’re underutilizing features or licenses, that’s a powerful point to negotiate lower costs.
Salesforce often looks at:
- Number of Active Users: Are all licenses active, or do some sit idle?
- Feature Utilization: Are all the paid-for features fully utilized, or do some go untouched?
- Storage and API Use: How much storage do you need, and are you using the total API calls you’ve been granted?
Knowing this data helps you better understand your needs and gives you solid ground to argue for better discounts. Salesforce won’t offer these automatically, but it responds well when customers provide facts.
Gathering Salesforce Usage Data
The first step in leveraging Salesforce usage data is gathering it effectively. Here’s how you can collect data that matters:
- Login History Reports: This will help you track who logs in and when. If you find many users who barely log in, you may not need as many licenses as you thought.
- License Usage Metrics: Salesforce provides metrics that show which licenses are in use and which aren’t.
- Feature Adoption Reports: Are users making the most of Salesforce features like Chatter, Einstein, or Analytics? Understanding whether your team is using these features is crucial.
- API Call Tracking: If you’re not hitting anywhere near your API limits, you can use this information to negotiate more appropriate API levels, potentially saving money.
Example: Your sales team primarily uses Salesforce for basic CRM tasks. They barely touch the analytics features or more advanced add-ons like Einstein AI. When negotiating your renewal, you can use this insight to push back against the need for the full, expensive feature set or at least ask for a discount since you’re not using everything Salesforce wants you to pay for.
How to Use Data for Negotiating Discounts
When you negotiate with Salesforce, presenting usage data shows you’re serious. Here’s how you can use different data types to your advantage:
- Identify Underutilized Licenses: If your data reveals that many users are not actively using their licenses, negotiate for a license reduction or switch to a more appropriate license tier.
- Example: If half of your users log in only once a month, do they need the same full-feature license as your power users?
- Feature Adoption: Salesforce loves it when users adopt all the available features. If your data shows poor adoption, use this as leverage.
- Example: You could say, “We’re not using the Einstein Analytics feature as much as we thought. To keep it, we’d need a significant cost reduction.”
- Cross-Check Against Contractual Obligations: Sometimes, usage data can show you’re being charged for features that aren’t even turned on. Use this as leverage to eliminate unnecessary features or push for better pricing.
- Plan for Future Needs: Use the data to predict future needs. Bring that into your renewal talks early if you’ll need fewer licenses.
Timing Your Negotiations With Usage Insights
Timing can make a massive difference in negotiation outcomes. When trying to hit sales targets, salesforce tends to be more open to discounts at specific times, like quarter-end or fiscal year-end.
- Combine Timing With Data: If you have usage data showing that you’re not fully utilizing Salesforce features or licenses, and it’s a few weeks before Salesforce’s quarter ends, that’s prime time for asking for discounts.
- Proactive Planning: Instead of waiting for the renewal period, analyze your usage six months before renewal. This allows you to make internal changes and notify Salesforce that you expect discounts.
Example: Imagine your Salesforce renewal comes up at the end of September, which is also Salesforce’s quarter-end. Use your usage data to show you’re not using all the features, and bring that up in negotiations just as Salesforce is trying to close its books. You’ll have more leverage to get a discount.
License Optimization: The Key to Reducing Costs
Salesforce has different licenses, including Full CRM, Platform Only, and Chatter Free. Usage data can help determine the best mix of these licenses for your company.
- User Segmentation: Not everyone in your organization needs the same level of access.
- Example: If your finance team only uses Salesforce to generate a few simple reports, they may be better suited for a cheaper license than your sales reps, who need full access.
- Identify Opportunities for Downgrades: Downgrading their licenses might make sense if certain users barely use the software.
- Example: Downgrade some users to “Chatter Only” if they aren’t using CRM features.
Best Practices:
- Match Licenses to Roles: Ensure that each department only has the level of access it truly needs.
- Review Annually: Licensing needs to change, so licenses must be reviewed yearly based on usage data.
Building a Strong Case for Discount Requests
Salesforce sales reps are trained negotiators. To get the best deal, you need to present a solid case.
Here’s how to make sure you’re well-prepared:
- Prepare Your Usage Data: Don’t go into the negotiation blindly. Have usage data ready in the form of clear reports. Salesforce appreciates data-driven conversations.
- Benchmark Pricing: If you know what similar companies are paying for their Salesforce subscriptions, you can use that to strengthen your argument. There are communities and online groups where Salesforce users share these details.
- Consider Multi-Year Deals: If you plan on sticking with Salesforce for the long haul, offering to sign a longer-term contract can be a bargaining chip. Use your usage data to show your needs, and ask for a discount in exchange for committing.
Using Tools to Track and Optimize Usage
Several tools can help you track usage data effectively:
- Salesforce’s Native Reports: These can be configured to track login frequency, license usage, and feature adoption. It is a must-use for anyone negotiating their licensing.
- Third-Party License Management Tools: Platforms like Conga, Flexera, or License Analytics offer detailed insights into Salesforce usage and potential cost savings.
- Internal Surveys: Sometimes, the best data is direct feedback. Survey your team to see what features they use most. If they find a feature cumbersome or useless, use this in negotiations.
Read about Partner discounts in Salesforce.
Negotiation Tips: Maximizing Your Discounts
Finally, a few specific negotiation tactics to help you get the most out of Salesforce:
- Ask for Usage-Based Discounts: If you can prove that your usage of Salesforce features doesn’t warrant the current pricing tier, explicitly request a discount based on that.
- Bundle Smartly: Salesforce likes to sell packages. Consider negotiating for bundled packages only if you can prove value. Otherwise, ask for ala carte pricing.
- Consider Alternative Solutions: Show Salesforce you’re willing to look at other vendors. Alternatives like Microsoft Dynamics or HubSpot may not be identical, but they’re often cheaper, and Salesforce knows it.
- Get Everything in Writing: Salesforce might promise discounts or add-ons during the verbal negotiation. Make sure you get these in writing before signing any renewal.
Common Pitfalls to Avoid
When using Salesforce usage data to negotiate, there are a few common pitfalls to avoid:
- Overstating Your Case: Be honest about your usage data. If Salesforce catches you inflating your numbers, you lose credibility.
- Ignoring Long-Term Costs: Sometimes, Salesforce offers discounts for short-term deals at the expense of longer commitments. Always calculate the Total Cost of Ownership (TCO) before agreeing.
- Neglecting Future Growth: If you anticipate growth in your team, ensure your contract allows for scalable discounts rather than locking in today’s license count.
Real-World Success Stories
Company A had 500 Salesforce licenses but found that only about 300 users logged in at least once a week. Using this data, they negotiated a license reduction and switched 100 users to a “Chatter Only” license, which saved them over $100,000 annually.
Company B discovered through API usage tracking that they were using far less than the API limits in their plan. They negotiated a lower-tier API limit, cutting costs on a feature they didn’t need.
Company C noticed that no one was actively using Salesforce Analytics’s advanced features. During a renewal discussion, they brought this data to the table, and Salesforce offered a 15% discount to prevent them from downgrading the product tier.
FAQ: How Salesforce Usage Data Can Lead to Better Discounts
What is Salesforce usage data?
Salesforce usage data shows how your organization interacts with the platform. It includes login activity, feature utilization, storage consumption, and API call usage. This data helps you understand how effectively you use your Salesforce licenses and tools.
Why is usage data important in Salesforce negotiations?
Usage data highlights areas where your organization is underusing or overusing specific Salesforce features. This insight allows you to adjust your contract to match your needs, potentially securing discounts or more suitable licensing options.
How can usage data help in renegotiating Salesforce contracts?
By showing evidence of underutilized features or unused licenses, you can present a strong case for reducing costs. If certain tools are heavily used, you can request pricing adjustments or package upgrades that provide better value for money.
What specific metrics should I analyze?
Focus on metrics like login frequency, feature adoption rates, storage usage, and the number of active users. These data points reveal how different aspects of Salesforce are utilized and help pinpoint inefficiencies or gaps in usage.
How can identifying underused features lead to discounts?
Underused features indicate you’re paying for services that aren’t delivering value. For example, if only a small percentage of your team uses advanced analytics tools, you can ask to remove or downgrade those features to lower costs.
Can heavily used features be leveraged in negotiations?
Yes, they can. High usage of essential features demonstrates your reliance on those tools, making negotiating better pricing or discounts for long-term commitments easier.
How do unused licenses affect costs?
Unused licenses are a common source of unnecessary expense. Identifying and eliminating unused licenses during contract renewals can significantly reduce your overall Salesforce costs.
What role does storage usage play in pricing adjustments?
If your storage utilization is below the allocated limit, it’s a signal that you might be overpaying for unused space. Requesting a reduction in storage capacity can help lower your licensing fees.
Should I share my usage data with Salesforce during negotiations?
You should share only selective data that supports your negotiation goals. Highlight underused or unused features, but avoid revealing dependencies that could weaken your position.
How often should usage data be reviewed?
Quarterly reviews are ideal. They allow you to monitor trends, address inefficiencies early, and prepare for contract renewal discussions.
Can small businesses benefit from usage data?
Yes, small businesses often overpay for features they don’t need. For instance, a startup might realize they don’t need enterprise-level features and switch to a smaller, cost-effective package.
How does usage data impact multi-year contracts?
Usage data ensures that you commit only to what you need long-term. By understanding your usage trends, you can negotiate flexible contracts that allow adjustments as your needs change.
What tools can help analyze Salesforce usage data?
Salesforce’s built-in analytics tools are useful for tracking usage, but third-party platforms like Tableau, Power BI, or Domo provide deeper insights and visualizations to make better decisions.
Can usage data identify areas for feature upgrades?
Yes, usage data can reveal high adoption rates for certain features, indicating the need for upgrades. For example, upgrading to advanced analytics might provide more value if reporting tools are frequently used.
Is it worth investing time in analyzing Salesforce usage data?
Absolutely. Even small adjustments based on data insights can lead to significant savings. For instance, reallocating unused licenses or removing unnecessary features can save thousands throughout a contract.
