Salesforce License Optimization: Top 10 Tips
Salesforce License Optimization is a critical practice for IT asset managers at global enterprises. This advisory outlines the top 10 tips to align Salesforce licenses with actual usage, eliminate waste, and manage costs effectively.
By implementing these strategies, organizations can maximize the value of their Salesforce investment while maintaining compliance and cost-efficiency.
1. Conduct Regular License Audits
Regular license audits help uncover underutilized Salesforce licenses and ensure you’re not paying for inactive users.
Review login activity and feature usage at least quarterly to ensure optimal performance. This practice identifies lapsed users or departments with low adoption.
By catching these early, you can reclaim or reassign licenses instead of buying new ones unnecessarily. In short, auditing ensures your license count aligns with actual needs and prevents unnecessary waste.
2. Utilize License Management Tools
Use Salesforce’s License Management App (LMA) or similar SaaS management tools to gain visibility into your license usage. These tools automate tracking of active users, logins, and feature access.
They can send alerts about underused licenses and even assist in deprovisioning. Leveraging such tools saves time and provides data-driven insights, making Salesforce License Optimization more efficient.
It ensures you always have an accurate inventory and usage metrics to inform decisions.
3. Reassign or Remove Unused Licenses
Don’t let paid licenses sit idle. For any users who have left the company or no longer need Salesforce access, promptly remove or reassign their license. This avoids paying for “shelfware.”
Make it a policy to deactivate or downgrade accounts that haven’t logged in within a certain period (e.g,. 60 days).
Reassigning licenses to new hires or teams in need, instead of purchasing additional ones, is a quick win for cost savings.
A proactive reharvesting approach can significantly cut license bloat in large organizations.
4. Right-Size Users’ License Types
Match each user with the corresponding Salesforce license type based on their role. Not all users require an expensive full CRM license if their usage is minimal.
For example, a read-only or occasional user might be fine with a Platform license instead of a Sales Cloud Enterprise license.
By right-sizing licenses to actual user needs, you avoid overspending on features that certain users won’t use. The cost difference can be substantial, as shown below:
| License Type | Approx Annual Cost per User (USD) | Ideal Use Case |
|---|---|---|
| Full CRM License (Sales/Service Cloud Enterprise) | ~$1,800 | Regular sales or service users needing full CRM features |
| Platform License (Light/Custom Apps) | ~$300 | Users who need custom app access or limited CRM functionality |
| Chatter Free/External | $0 | Users who only need social collaboration (no CRM data) |
| Identity-Only License | ~$60 (or included) | Users needing Salesforce for SSO/authentication only |
| Integration User (API Only) | ~$120 | System accounts for integrations (no interactive login) |
By assigning the lowest-cost license that meets each user’s requirements, enterprises can save dramatically on Salesforce spend without impacting productivity.
5. Implement a License Governance Process
Establish internal governance for requesting, approving, and allocating Salesforce licenses.
Without a clear process, business units may over-provision on their own. Establish a centralized team or policy to review and evaluate every new license request.
Key elements of good license governance include:
- Approval Workflow: Require manager or IT approval before purchasing or allocating a new license.
- License Inventory Tracking: Maintain a central record of all Salesforce licenses, including who holds them and their purpose.
- Reclamation Policy: When users leave or roles change, immediately reclaim or downgrade their licenses.
By enforcing these controls, you prevent unchecked license growth and ensure that a genuine business need justifies each license addition.
6. Train Users to Maximize Utilization
Invest in regular training and enablement to ensure users fully utilize the Salesforce features you’re paying for. Often, companies purchase high-tier licenses with advanced features (such as analytics, automation, and AI) that end up being underutilized.
Training ensures teams know how to use dashboards, automation tools, or other included features effectively.
When users leverage all available functionality, it boosts productivity and reduces the temptation to buy extra add-ons or higher editions.
In addition, educated users are more likely to self-identify unused licenses or suggest downgrades if they realize they don’t need certain features – creating a culture of optimization.
7. Leverage Free and Low-Cost License Options
Take advantage of Salesforce’s free or lower-cost license offerings where appropriate. For example, use Chatter Free licenses for employees who only need to collaborate or view content, rather than giving them full Salesforce access.
Similarly, Salesforce provides several free Platform Starter or read-only community licenses that can be used for light-access users or external stakeholders.
If you have system integrations running, utilize the special Integration User licenses (often free up to a limit, then very low cost) instead of consuming full user licenses for API purposes.
Using these alternatives for the right scenarios can significantly reduce your license expenses without impacting business operations.
8. Monitor Usage Metrics and Limits
Go beyond just counting logins – monitor how each license is being used in depth. Salesforce’s built-in reports and the Optimizer tool can help track feature usage, storage utilization, and API call consumption.
Keeping an eye on these metrics alerts you to hidden cost drivers.
For instance, if a department is nearing data storage limits or API call limits, you can address it (archiving data or optimizing integration calls) before Salesforce pushes an expensive upgrade.
Regular usage monitoring ensures you’re not paying for capacity or features you don’t need, and it prevents surprise costs from overages.
In short, data-driven monitoring is essential to ongoing Salesforce License Optimization.
9. Negotiate for Volume Discounts and Flexibility
When it comes to Salesforce contract renewals or expansions, negotiation is key.
Enterprises purchasing large numbers of licenses should negotiate volume discounts – Salesforce is often willing to reduce per-license pricing for big commitments.
Also seek flexible contract terms, such as the ability to adjust (reduce) license counts at renewal without penalty or include a mid-term true-down clause.
Come to the table with data: understand your usage patterns and have industry benchmarks for Salesforce pricing in hand.
By demonstrating preparedness, you can often secure better discounts and more favorable terms. Never assume the list price is fixed; large customers have leverage to optimize their licensing contracts.
10. Stay Informed on Licensing Changes
Salesforce’s product offerings and licensing policies evolve regularly. Stay updated on any new license types, bundles, or promotions that Salesforce introduces.
A new license option or edition might better suit your needs at a lower cost.
Likewise, keep an eye on changes to usage terms (for example, if Salesforce changes API allowance or packaging of features). Subscribe to Salesforce product newsletters, join user groups, and stay informed about ITAM industry updates.
In a dynamic environment, the best Salesforce License Optimization strategy is one that adapts.
Being informed will help you proactively adjust your licensing mix and strategy – turning potential changes into opportunities for savings rather than surprises.
Recommendations
- Audit Usage Frequently: Review license utilization data on a regular schedule and reclaim any unused or underused licenses.
- Align License to Need: Ensure each user has the right license type for their job role – no more, no less – to avoid overspending on unneeded features.
- Enforce Governance: Implement a robust internal approval process for adding or modifying licenses, thereby preventing ad hoc purchases and “shelfware.”
- Leverage Cheaper Options: Utilize free or low-cost Salesforce licenses (such as Chatter, Platform, Community, etc.) wherever they can fulfill requirements instead of full licenses.
- Educate and Communicate: Train users to fully utilize the tools available to them and maintain awareness of licensing policies, fostering a cost-conscious culture.
- Negotiate Proactively: Approach Salesforce ahead of renewals to negotiate better pricing and contract flexibility, using internal usage data and market benchmarks as leverage.
Checklist: 5 Actions to Take
- Audit Current Licenses: Gather Salesforce usage reports and identify inactive users or underutilized licenses. Document where you have more licenses than needed.
- Optimize and Reallocate: Downgrade or remove licenses from inactive accounts. Reassign those licenses to new users or consolidate roles so that each license is fully used.
- Review Contract and Renewal Dates: Mark your calendar for renewal windows. Review your Salesforce contract for terms regarding reductions or changes, and plan discussions at least 3–6 months before renewal to adjust quantities.
- Implement Governance Policy: Establish a formal process for any new license requests. Communicate that all additions require IT/procurement approval, and establish a system to regularly remove licenses when staff members leave.
- Continuous Monitoring & Training: Schedule quarterly (or monthly) reviews of license usage metrics. At the same time, provide ongoing training or tips to users on utilizing Salesforce features, and share reports with management to keep optimization on everyone’s radar.
FAQ
Q: What is Salesforce license optimization?
A: It is the practice of managing and adjusting your Salesforce licenses to fit actual business needs, so you’re not over-purchasing or underutilizing licenses. It involves right-sizing license types, removing unused licenses, and negotiating the best terms.
Q: Why is optimizing Salesforce licenses important for an enterprise?
A: Optimizing licenses is important because it can save significant costs (millions in large organizations) and ensure your teams have the appropriate tools. It prevents paying for software you don’t use and helps you budget more accurately.
Q: How can we identify unused or underutilized Salesforce licenses?
A: Use Salesforce’s usage reports or a license management tool to see login frequency and feature usage by user. Inactive users or those with very infrequent logins are clear candidates for license removal or downgrading. Regular audits will highlight these underutilized licenses.
Q: Can we downgrade or reduce license counts mid-contract?
A: Generally, Salesforce contracts lock in license counts for the term, so you often cannot reduce mid-term. However, at renewal time (usually annually or multi-year), you have an opportunity to decrease or change license quantities. It’s crucial to plan ahead for that renewal window and communicate any needed reductions to Salesforce in advance. Negotiating flexibility in the contract during initial purchase or renewal can also allow some adjustments.
Q: How should we approach negotiating with Salesforce for better pricing?
A: Treat it like any major supplier negotiation: do your homework. Gather data on your usage and what you truly need, and research typical discount levels (or use benchmarks from peers or consultants). Engage Salesforce early, and don’t be afraid to ask for volume discounts, price locks, or contract terms that let you scale down if needed. Enterprises often have leverage due to large deal sizes – use that to obtain more value, such as free add-ons or training credits, in addition to lower prices.
