Case Study — Salesforce Negotiation

Salesforce Contract Optimisation and Cost Reduction

How a global financial services firm with 35,000 employees achieved a 30% reduction in Salesforce costs — saving $3.6 million annually and over $10 million across the three-year contract — through licence rightsizing, competitive benchmarking, and strategic renegotiation.

Financial ServicesGlobal (NA, Europe, Asia)35,000 EmployeesSalesforce Contract Negotiation
🏠 Salesforce Knowledge HubSF OptimizationCase Study Salesforce Contract Optimization and Cost...
$12M
Prior Annual Salesforce Spend
30%
Cost Reduction Achieved
20%
Licence Count Reduction
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Industry
Global Financial Services
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Employees
~35,000 across 3 continents
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Annual Salesforce Spend
~$12 Million (pre-engagement)
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Service
Salesforce Contract Negotiation
01

The Challenges

Salesforce was integral to managing customer relationships, marketing campaigns, data analytics, sales operations, and compliance reporting across multiple business units and geographic regions. However, the firm faced several critical issues:

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Excessive Costs

Annual spend had ballooned to approximately $12 million, continuously increasing due to incremental additions of licences, features, and unanticipated subscription fees — with no corresponding increase in business value.

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Licensing Misalignment

Licensing terms were disconnected from actual usage patterns. A significant portion of purchased licences and features were underutilised or not used at all — particularly in high-cost modules like Marketing Cloud, Service Cloud, and Analytics Cloud.

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Limited Negotiation Leverage

Past renewal negotiations had consistently favoured Salesforce, offering minimal transparency in pricing and limited flexibility in contractual terms. The firm lacked independent benchmarking data and competitive positioning.

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Contractual Inflexibility

The existing rigid contract structure prevented adjustments needed to accommodate changing business dynamics — including rapid shifts due to market volatility and regulatory changes affecting licence needs.

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Lack of Usage Analytics

Limited visibility and insufficient reporting tools hindered accurate tracking of licence utilisation, complicating internal decision-making and cost control efforts across global operations.

02

Our Strategic Approach

1

Comprehensive Audit and Assessment

Conducted an exhaustive audit of current Salesforce licences, contract terms, and usage reports across all global operations. Used advanced analytics tools to identify consumption patterns, pinpointing significant overspending and underutilisation — particularly in high-cost modules. Documented discrepancies between purchased capabilities and actual business requirements, revealing clear areas for optimisation.

2

Benchmarking and Competitive Analysis

Performed detailed benchmarking analysis, comparing the firm's Salesforce agreement terms, pricing structures, and discount levels with similar-sized enterprises in the financial services sector. Analysed competitor arrangements and Salesforce market standards to establish realistic and ambitious targets for cost savings, enhanced flexibility, and favourable contractual provisions. Provided the client with comparative insights and industry-standard data to support robust negotiation positions.

3

Negotiation Strategy Development

Developed clearly articulated negotiation objectives: substantial cost reductions, precise alignment of licences with operational needs, enhanced contractual flexibility, and comprehensive visibility into ongoing usage. Created a negotiation blueprint underpinned by data analytics, benchmarking insights, and financial forecasts. Conducted workshops and scenario analyses with key stakeholders to ensure alignment on priorities and tactics.

4

Salesforce Negotiation Execution

Managed all phases of direct negotiation with Salesforce representatives, employing transparent and data-driven discussions backed by compelling empirical evidence. Used competitive benchmarks and detailed analytics to assertively secure concessions, discounts, and flexible licensing terms. Negotiated terms that allow periodic adjustments and licence rightsizing, accommodating future scalability and unforeseen operational demands.

03

The Outcomes

30%
Annual Cost Reduction
$3.6M
Annual Savings
$10M+
3-Year Total Savings

Comprehensive Results

$10 Million+

Total savings over the three-year contract period, achieved through 30% annual cost reduction, 20% licence count elimination, and introduction of quarterly adjustment flexibility.

💡 Key Results Breakdown

Significant cost reduction: 30% reduction in annual Salesforce expenses, translating directly to $3.6 million in annual savings and over $10 million across the three-year contract period.

Optimised licence structure: Realigned licensing precisely to match user requirements. Eliminated redundant features, licences, and modules — achieving a 20% reduction in total licence count with zero impact on business operations.

Increased contract flexibility: Introduced quarterly licence adjustment options, empowering the firm to adapt quantities and features to changing business conditions — ensuring optimal cost efficiency and operational alignment throughout the term.

"Partnering with Redress Compliance revolutionised our Salesforce renewal process, turning what used to be a vendor-driven exercise into a highly strategic, data-informed negotiation. Their extensive market knowledge, rigorous approach, and use of insightful analytics enabled us to secure remarkable cost savings and unprecedented contract flexibility. We now have a Salesforce agreement that truly aligns with our global operational needs."
— Director of Strategic Sourcing, Global Financial Services Firm

Overpaying for Salesforce?

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Fredrik Filipsson

Co-Founder, Redress Compliance

Fredrik Filipsson brings over 20 years of experience in enterprise software licensing, including senior roles at IBM, SAP, and Oracle before founding Redress Compliance. He specialises in helping Fortune 500 organisations negotiate Salesforce, Oracle, Microsoft, SAP, and IBM contracts — optimising costs, reducing risk, and securing favourable terms through independent, vendor-neutral advisory.

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