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Alok Khandelwal
Alok Khandelwal May 31, 2021  |  4 Min Read

In technology adoption, dollars and goals are two aspects that often have conflict. For successful Salesforce adoption, license optimization is a key factor to strike a long- term balance between the two.

Many organizations miss spotting cost- saving opportunities with the right Salesforce edition and license type.
As a Salesforce Gold Partner, we offer time-tested strategies to optimize license usage and costs to avoid such pitfalls and ensure maximum ROI with higher process efficiencies.

Salesforce Products & Optimization Opportunities

Each Salesforce product has a different licensing model and there are vast opportunities to mix and match Product Editions, Additional Support Plans, and Add-ons.
Based on the business priorities and feature needs, an organization can find the ‘perfectly optimized plan’.

   

Sales Cloud

   

Service Cloud

   

Community Cloud

   

App Cloud

   

Field Service Lightning

   

CPQ

   

Industries

   

Einstein Analytics

   

Marketing Cloud

   

Pardot

   

Integration Cloud

   

Commerce Cloud

Salesforce.com offers a modular approach. Users can access add-on functionality at an additional cost over core offerings.

Implementing the Right Edition and License Type

Determining which Salesforce Edition will be right for your business is a tough task. Not knowing the basics of Edition and Licensing structure can leave you puzzled or worse, spending more on a feature that you will use sparingly.

Selecting the Right License Type: Salesforce offers the following types of licenses:

User Licenses Baseline of features that the user can access

Permission Set Licenses Incrementally entitle users to access feature

Feature Licenses Entitles users to access an additional feature

Usage-Based Licenses Limited resource that can be used periodically

Selecting the Right Edition

Essentials

Pre-configured processes, reports, and dashboards

Customizations: No

Team: Upto 5 users

Professional

Limited scope for automation and no for customizations through custom code

Customizations: No

Team: Any size

Enterprise

Supports extensive customization for comprehensive sales and service coverage

Customizations: Yes

Team: Any size

Unlimited

Higher limit for data/file storage. Suitable for top-tier clients

Customizations: Yes

Team: Any size

Strategy to Determine the Right Set of Licenses

Unless organizations gain transparency into the user’s login activity, it’s only guesswork to find which licenses are needed for them to get the job done. Hence, start with:

Collect data on user login behavior for complete visibility on product license usage

Organize all data based on community type, licenses type, number of logins and login frequency

Reassign users to the most cost-efficient license type and measure saving in each combination and permutation without compromising user needs

Approach to Optimize Salesforce License Usage and Costs

Going with the right license purchase/renewal can save from unanticipated or hidden expenses.

  • Determine license level based on features required
  • Periodic audits to identify suboptimal licenses/ inactive users
  • Recycle unused licenses and buy more only if required
  • Contact Salesforce renewal team to reduce the count of licenses
  • Try connectors to access Salesforce data instead of licenses Opt a cheaper license type if a user doesn’t need access to the entire CRM
  • Optimize who needs feature licenses instead of allocating them for all users
  • Explore and use AppExchange products and community licenses
Clients could save up to 80% of license cost per year by switching to the right licenses.

Salesforce License Usage and Operational Opportunities

More often than not, organizations are overspending on their Salesforce setup, failing to realize potential ROI. Under-utilized licenses are a major pain point in overshooting expenses.

Under-Utilized License Features

Salesforce license type assigned to a user does not match the actual product usage requirement.

Under-Leveraged License Entitlements

Entitlements in the contract, i.e. multiple installation rights on the same device, the right of second use, downgrade or upgrade rights, etc. are not required as per usage.

Lesser Number of Licenses Being Used

Resources counted while purchasing a Salesforce license don’t match the actual usage.

A deep technical audit by a professional provider can assess if the setup is living up to the bill or there are opportunities to optimize.

Best Practices for Purchased License Optimization

Periodically reviewing Salesforce license usage accelerates new findings and opportunity areas for optimization. A high-level review includes:

Salesforce Usage Report

Match the reported usage with the data generated from Salesforce.

Renewals

On license renewal, take into account the data collected above to determine the number of licenses that are actually used.

License Reduction on Renewal

Ask for license reduction through your admin or account executive at the time of renewals.

Access Allocation

List all the stakeholder departments along with feature use of the respective users. This will facilitate optimal allocation and access to the right license type, eventually reducing TCO.

Adoption Approach

A top-down approach is key to the systematic adoption of Salesforce within the organization as it multiplies advantages derived from planned implementation.

Agreement

Client organizations should study the End User License Agreement to understand entitlements conferred after the purchase.

With a complete overview of your Salesforce estate, clients can realize a big thrust in Salesforce cost-benefit ratio.

Driving User Adoption through Engagement

Stakeholder Engagement

Involve key stakeholders every step of the way, take their inputs in the design phase, and incorporate them into the system.

Listen to their feedback after go live and take immediate actions to resolve user experience challenges.

Custom End-User Training
Make the user’s life simpler with the right implementation approach and training.

Adoption Measures
Get the management on board and involve them with each CRM action plan. Incentivize the users based on system data and discard any other sources of truth.

About Damco

Damco Solutions is a trusted technology partner of businesses worldwide, enabling them to leverage IT as a strategic asset.
Empowered by technology expertise, immaculate execution capabilities, and unwavering focus on customer needs, we have nurtured businesses to connect with their customers, clients, and employees in an entirely new way. Being a Salesforce Gold Partner, we bring a proven, real-world perspective of how businesses can leverage Salesforce for accelerating growth and productivity.

Alok Khandelwal

Alok heads the Global Salesforce Practice at Damco and drives our Consulting, Implementation and Product development programs. He is a CRM and Technology Consulting leader with over 15 years of rich experience in conceptualizing, designing and rollout of various enterprise-scale products and solutions. He has successfully initiated and driven Salesforce partner programs and technology teams at various tiers as the practice head across organizations to bring in the desired value proposition in the Salesforce ecosystem. He has proven ability to rapidly understand customer requirements and convert them into highly effective technology-based business solutions.

Alok Khandelwal VP - Salesforce Practice

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