Customer Relationship Management (CRM) has become one of the most expensive IT investments for organizations around the world according to the annual “IT Trends Study” conducted by the Society of Information Management.
This IT investment growth is being fueled by two primary industry drivers:
While there are many Software-as-a-Service (SaaS) CRM platforms to choose from in the marketplace today, Salesforce continues to dominate the space. Subsequently, if you are looking at CRM solutions in the marketplace, you’re likely considering Salesforce as an option.
Why is Salesforce (SFDC) the market leader and what makes it different than the others?
While this article is not intended to be a tactical comparison of CRM solutions available today, our vast experience and focus on Salesforce naturally has revealed a few key points:
Why is negotiating a Salesforce agreement so difficult?
The funny thing is that the entire go-to-market model of SFDC makes it very easy to acquire licenses as needed. This is in fact one of the many elements that make negotiating with SFDC difficult. In other words, very often our clients come to us after they have identified SFDC has spread throughout their organization without their knowledge and/or with very little governance. Our clients often describe this situation similar to an “internal virus” (their words, not ours) that spreads organically at a very fast pace. The result of this unmanaged growth can lead to the following (by no means comprehensive):
CIOs and IT Procurement leaders often find it difficult to negotiate a more favorable agreement when renewing their SFDC agreement.
We find the following to be the primary drivers:
Want more information on how we can help you reduce your Salesforce expenses? Contact us here or via e-mail to Dan@TheNegotiator.Guru. (Disclaimer: We only accept those clients in which we know we can help).
To learn more about optimizing your next Salesforce deal, click here to listen to our 30 minute webinar or read our guide on Negotiating with Salesforce.
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