Salesforce Negotiation – 10 steps for your negotiation

Salesforce negotiation – preparation

To effectively succeed in an Salesforce negotiation, it is important to understand the company’s operations. Salesforce has a highly effective sales system that is designed to maximize revenue from each account. The company’s sales process and organizational structure borrow successful tactics from other major companies such as Microsoft, Oracle, and SAP. The purpose of this article is to provide a thorough understanding of the inner workings of Salesforce, allowing you to prepare properly for negotiation.

Understanding your Salesforce Account Rep

It is important to understand the role of your sales representative within the Salesforce organization. Your rep is at the bottom of the hierarchy and is responsible for handling tactical sales tasks. They are not fully informed about rates and discounts, and Salesforce intentionally limits the amount of information shared with its sales team. This is done to allow your rep to sell to you in a genuine and authentic way without being influenced by knowledge of other companies rates. Instead of viewing your rep as an adversary in negotiations, it is important to understand their position within the company. The goal of our four-step negotiation process is to guide your rep in a way that effectively communicates your needs to the higher levels of the organization in order to secure the best deal for you.

What is Salesforce Business Desk

To have the greatest influence on negotiations with Salesforce, it is necessary to work with the “business desk,” a sales management team within the company that is meant to support your sales representative. Your sales rep has limited decision-making power, and all significant decisions affecting a client’s rates are made by the business desk. This team, which was developed by companies such as McKinsey and refined by companies like Microsoft, originally served as a quality and price control organization before the concept of Software as a Service (SaaS) existed. Today, the business desk acts as a somewhat mysterious organization that makes all official decisions but does not directly interact with customers. Therefore, during negotiations, your goal should be to instruct your sales rep on how to communicate effectively with the business desk to secure the best deal for you. Our aim is to equip you with the skills to send the appropriate messages to the business desk at the right time in order to achieve your desired objectives.

Salesforce Fiscal Year End

Salesforce’s fiscal year ends on January 31st. This is a deliberate decision, as Salesforce understands that many companies have a standard calendar fiscal year (January-December) and solidify their budgets between October and January, creating a new budget. By renewing in January, Salesforce can influence budgeting conversations through proposals, offer flexible payment terms that allow clients to use two fiscal budgets in one subscription year, and have more control over its own budgeting, market projections, and investor relations. Salesforce may encourage you to renew early with a January effective date, but it is advisable to do so only if you anticipate significant growth or decline in your account.

To summarize, Salesforce has a highly effective sales system that employs several tactics to drive sales growth, including limiting the information shared with sales reps, centralizing decision-making authority with the “business desk,” and using a “divide and conquer” approach. It is important to be aware of the Salesforce fiscal year ending on January 31st, which allows the company to offer flexible payment terms and work with multiple client fiscal year budgets. Different negotiation strategies should be used for new and existing customers, and sales incentives may vary depending on the product or service being offered, with products that expand Salesforce’s presence within a company often carrying higher incentives. To successfully negotiate with Salesforce, it is crucial to understand these elements of the company’s operations.

Steps to take when negotiating with Salesforce

  1. Understand the inner workings of Salesforce, including the role of sales reps, the “business desk” decision-making authority, and the company’s use of the “divide and conquer” approach.
  2. Be aware of the Salesforce fiscal year ending on January 31st and the potential implications for payment terms and budgeting.
  3. Determine your objectives and the key points you want to negotiate.
  4. Determine the appropriate negotiation strategy for your organization, whether you are a new or existing customer.
  5. Communicate effectively with your sales rep and train them on how to effectively convey your needs to the “business desk.”
  6. Negotiate payment terms, rates, and discounts that work for your organization.
  7. Consider the incentives offered by Salesforce, as they may vary depending on the product or service being purchased.
  8. Review the terms of the agreement and make sure they align with your organization’s needs.
  9. Finalize the agreement and document the terms of the negotiation.

Salesforce negotiation and optimization service:

Our Salesforce negotiation and optimization service helps businesses get the most value out of their Salesforce investment. Our team of experts has extensive experience negotiating Salesforce contracts and identifying opportunities for cost savings. We can also optimize your Salesforce implementation to ensure that you are using all of the features and capabilities that are most relevant to your business. With our service, you can save money, increase efficiency, and get the full value of your Salesforce investment