Case Study – Salesforce Negotiation Service Brazilian Bank Streamlines Salesforce Licensing, Saving 25% and Aligning with Global Benchmarks
Background
The client is a leading Brazilian bank, with operations across South America and a workforce of about 12,000 employees.
The bank leverages Salesforce Financial Services Cloud (a tailored version of Sales/Service Cloud for banking) to manage customer relationships and Service Cloud for its call centers.
They also use MuleSoft for integrating Salesforce with core banking systems.
The bank’s Salesforce contracts were originally negotiated locally in Brazil, in Brazilian Real (BRL). While functional, those contracts carried higher prices than what many U.S. or European companies paid for similar use – a fact the bank’s IT leadership began to suspect.
With a major renewal on the horizon, including an expansion of Salesforce usage to new branches, the bank engaged Redress Compliance to bring an international perspective to the negotiation.
The aim was to ensure the bank secured a fair deal in line with global benchmarks and addressed some Brazil-specific issues, such as currency fluctuations and the availability of support.
Read how to negotiate with Salesforce.
Challenges
- Above-Market Pricing: Initial analysis showed that the bank was paying roughly 20-30% more per Salesforce user than comparable organizations in North America or Europe. Salesforce’s local pricing and smaller discounts in emerging markets meant the bank’s prior contracts were not as cost-effective. This put the bank at a disadvantage, essentially paying a “Brazil premium.”
- Currency Volatility Risk: The contracts were priced in USD but invoiced in BRL, exposing the bank to exchange rate swings. In past years, currency depreciation meant the effective cost in local currency ballooned unpredictably. The bank’s finance team found it hard to budget for Salesforce when a sudden FX change could increase costs by millions of reais.
- Shelfware and Over-Provisioning: A deep dive into license usage revealed the bank had over-provisioned certain licenses. For example, they had hundreds of unused Community Cloud (Experience Cloud) member licenses that were bought for a project that never fully launched. Similarly, some departments had licenses allocated “just in case” that remained idle. This shelfware was eating into their budget without providing value.
- Support and Service Gaps: As a Brazil-based client, they sometimes felt they received less attention from Salesforce compared to larger US/EU clients. Critical support cases took longer to resolve. Salesforce had pitched a paid Premier Support upgrade. The bank was concerned that without it, they’d continue to get slower service, but with it, they’d be paying even more on top of already high fees.
How Redress Compliance Helped
- Global Price Benchmarking: Redress Compliance gathered benchmark data from its experience and sources, comparing Salesforce pricing/discounts in Latin America versus elsewhere. They found that indeed the bank should push for enterprise-level discounts, similar to those offered to US/EU clients, given its size. Redress presented this data to the bank’s stakeholders and then to Salesforce, effectively challenging the notion that Latin America should pay more. They made the case that the bank could as easily allocate budget to other international CRM solutions if Salesforce didn’t come to parity on value.
- Negotiating Discount Alignment: Utilizing benchmark leverage, Redress secured a substantial discount improvement. Salesforce raised the discount on core Financial Services Cloud licenses to match what a similar large bank might receive elsewhere – closing the 20-30% pricing gap. Additionally, Redress locked in those discounts for the multi-year term, preventing Salesforce from quietly reducing them later. The bank essentially achieved global-standard pricing, correcting the historic disparity.
- License Audit and Optimization: Redress performed a thorough audit of all Salesforce licenses and modules owned by the bank. They identified the unused Community Cloud licenses and recommended terminating them in the renewal (with no replacement, since the project was shelved). They also spotted an opportunity to convert some heavy Service Cloud users to a lighter license type as their roles had changed. Redress helped the bank eliminate or downgrade about 15% of total licenses, confident that these wouldn’t impact operations because they were genuinely unused. This cleanup was presented to Salesforce as part of the renewal terms – the bank would renew fewer licenses, but possibly add more later if needed, at the new, better rate.
- Currency Protection Measures: Redress addressed the FX volatility by proposing contract terms to Salesforce that would cap the exchange rate for billing or even allow invoicing in local currency at a fixed rate. After discussion, Salesforce agreed to peg the USD/BRL conversion for the contract at a rate favorable to the client (close to the current rate, with a narrow band for adjustments). They also structured payments quarterly rather than all at once annually, which helped the bank manage its cash flow amid currency fluctuations. This was a significant win given that the customer often bears currency risk.
- Enhanced Support at No Extra Cost: In response to the bank’s concerns, Redress incorporated the support issue into the negotiations. Instead of the bank purchasing Premier Support outright, Redress negotiated it as an included benefit for the first year of the new agreement, with an option to renew it at a discounted rate. They also secured a commitment from Salesforce to assign a named technical account manager to the bank. This meant the bank would get improved response times and a dedicated contact to escalate issues, mitigating the feeling of being a “second-tier” customer due to geography.
Outcome and Impact
For the Brazilian bank, the renegotiated Salesforce agreement was transformative in terms of cost and confidence:
- 25% Cost Savings: Overall, the bank achieved approximately 25% savings on its Salesforce spend compared to simply accepting the renewal at the previous rates. This resulted from a combination of higher discounts and the elimination of unused licenses. The savings amounted to several million BRL per year, a substantial relief for the IT budget.
- Global-Level Pricing: The bank is now paying roughly the same effective unit prices for Salesforce as banks of similar size in more developed markets. This parity means they are no longer at a competitive disadvantage due to software costs. It also sets a precedent for future deals that the bank expects equitable treatment.
- No More Paying for Shelfware: By shedding unused licenses (such as Community Cloud seats and other surplus), the bank’s license count is right-sized. Every Real spent on Salesforce now maps to an active user or function. Additionally, should they revive any project or need more licenses, they have the new lower prices locked in, making future expansions more affordable.
- Currency Stability: The inclusion of a fixed exchange rate clause is a big win for the bank’s financial planning. They can now budget Salesforce expenses in BRL with high certainty for the duration of the contract. Even if the currency fluctuates, their costs won’t unexpectedly spike. This stability is rare in such deals and provides peace of mind to the finance department.
- Enhanced Support Experience: Following the renewal, the bank observed increased engagement from Salesforce. The named support manager and Premier Support coverage have led to faster issue resolutions – for instance, critical cases that might have taken days now receive attention within hours. This improvement came without an extra line-item cost, essentially a value-added negotiated by Redress. The bank’s team feels more valued by the vendor, which in turn helps them derive more value from the platform.
Client Quote
“Redress Compliance brought us up to par with the rest of the world in our Salesforce deal. We suspected we were paying too much and getting too little from Salesforce in Brazil, and Redress confirmed it – then fixed it. They benchmarked our deal against global standards and didn’t let Salesforce treat us as ‘less important’ because of our location. We ended up saving 25%, but just as importantly, we got a fair contract with currency protections and better support. It feels like we’re now a first-class Salesforce customer. Redress’s independent perspective was crucial; they gave us the leverage and insight we needed to negotiate confidently. Our Salesforce costs are under control, and we have a smoother relationship with the vendor going forward.”
– CIO, Brazilian Bank
Call-to-Action
If you’re in Latin America or any market and feel you’re paying a “geography tax” on Salesforce, let us help. Contact Redress Compliance for a free Salesforce pricing benchmark review. We’ll analyze your deal versus global peers, find optimization opportunities, and help you negotiate terms (like currency protection and support) that ensure you get world-class value from Salesforce, no matter where you are.
Read more about our Salesforce Negotiation Service.
Read more Salesforce Contract Negotiation Case Studies.
