Case Study: Salesforce Contract Negotiation for a UK Pharmaceutical Company
Challenge
A leading UK-based pharmaceutical company with operations across Europe and over 50,000 employees engaged Redress Compliance to assist in renegotiating its Salesforce agreement. Salesforce was critical in managing the company’s sales processes, customer relationship management, and digital marketing for its healthcare products. However, the existing contract presented several issues:
- Escalating costs are driven by increasing user adoption and premium analytics tools.
- Misaligned features and licensing with the company’s evolving needs in research and development (R&D).
- Lack of flexibility in the agreement to scale up or down based on project-based requirements.
- Insufficient transparency into license utilization leads to potential inefficiencies and overspending.
The pharmaceutical company needed expert assistance to optimize its Salesforce investment, secure more favorable terms, and support its innovation-driven goals.
The Process
- Comprehensive Usage Audit: • Conducted a detailed review of Salesforce deployment across sales, marketing, and R&D divisions. • Identified underutilized licenses and redundant subscriptions. • Evaluated premium analytics and AI tools for their impact on operational goals.
- Needs Analysis: • Engaged stakeholders from key business units to identify critical requirements for Salesforce features. • Mapped out future needs aligned with the company’s growth and R&D initiatives. • Highlighted non-essential features and areas for potential cost reduction.
- Benchmarking and Negotiation Strategy: • Benchmarked the company’s Salesforce costs and terms against other pharmaceutical firms of similar scale. • Developed a data-driven negotiation strategy focusing on cost efficiency and licensing flexibility. • Identified opportunities for discounts and added value in Salesforce’s offerings.
- Negotiation and Resolution: • Presented Salesforce with a comprehensive case for cost realignment, highlighting inefficiencies in the current contract. • Secured significant discounts on enterprise licenses and advanced AI tools. • Negotiated flexible terms to scale licensing based on project timelines and workforce fluctuations.
- Implementation and Monitoring: • Implemented a governance framework to track Salesforce license utilization in real-time. • Delivered training for IT and procurement teams to manage Salesforce agreements effectively. • Established periodic reviews to ensure ongoing alignment with business objectives.
Results
- Cost Savings: • Achieved a 32% reduction in annual Salesforce costs, saving £5 million over three years. • Eliminated £1.2 million in spending on underutilized premium features.
- Enhanced Flexibility: • Negotiated scalable licensing terms to support R&D project demands. • Secured price protections for future expansions.
- Operational Efficiency: • Optimized license allocation, ensuring alignment with user needs. • Improved transparency in feature utilization and cost management.
Quote from the CIO:
“Redress Compliance’s expertise in Salesforce negotiations helped us unlock substantial savings while ensuring our agreement aligns with our strategic goals. Their support has been vital in optimizing our investment in digital tools and positioning us for future growth.”
Key Results:
- Savings Achieved: £5 million over three years.
- Flexibility Secured: Scalable licensing aligned with project demands.
- Operational Efficiency: Improved license utilization and governance.
This case highlights Redress Compliance’s ability to deliver tailored negotiation solutions for pharmaceutical companies, ensuring cost optimization, operational alignment, and scalability in Salesforce agreements.
