4 Ways to Maximize Leverage in a Salesforce Deal

Published on 01 Mar 2021

White paper - 4 Ways to Maximize Leverage in a Salesforce Deal

It is impossible to negotiate effectively without some form of leverage. If the person you are negotiating with holds all the cards they have no reason to engage with you and you might as well fold. Often organizations make the mistake of approaching Salesforce with little time to execute a deal, no alternatives to Salesforce’s proposal, and no valid reasons for Salesforce to offer a better, more competitive deal. Salesforce’s sales teams are masters at executing their “land-and-expand" strategy: Get a foot in the door, win over users, spread across business units and processes, and grow their
footprint. These activities occur as the sales team actively works to remove any and all sources of leverage you may have.

Clear edge has developed a model to ensure effective deal execution. The model has been developed based on the company's 10 year analysis of deal-making along with cooperation from their Executive Advisory Board which is made up of top IT buyers for global enterprise wide companies. This model is referred to as the Leverage Management Maturity Model (LM3

See Also: Rightsizing Your Spend with Microsoft 

What is LM3 - Leverage Management Maturity Model:

The model consists of 9 areas. Businesses that are able to excel in these 9 areas are able to consistently get good deals from major suppliers like Salesfore and Microsoft:

Early Warning: Do we have an organized approach to starting deals on time?

Risk Assessment & Inspection: Do we understand all contractual and business risks?

Forecast & Modeling: How much do we need and when do we need it?

Deal Timeline Development: Have we documented a calendar of deal making activities?

Supplier Knowledge: How might supplier sales systems and motivations affect my deal?

Deal Option Development: What deal alternatives or “Plan Bs” do we have?

Information Control: What information will we protect and what will we share?

Executive Engagement: Are executives informed, aligned, and participating on the deal?

Messaging Development: Are we controlling the story with credible and consistent messaging?

To achieve a competitive deal with Salesforce, organizations must build and align around a comprehensive plan to build deal leverage. They must protect information and deliver a credible story to the Salesforce team. By following the Leverage Management Maturity Model (LM3) introduced in this document, buyers can approach their Salesforce negotiations from a position of strength and achieve best-in-class results.

Salesforce is a powerful platform. Their CRM software and marketing automation tools play a significant role in helping businesses achieve their objectives. However, these tool are not cheap, often pricing is based on cloud consumption. By getting the best deal possible organizations can save a significant amount of money from their overall cost and add to their bottom line. 

Download this white paper from ClearEdge to learn more about how you can negotiate effectively with the Salesforce team.