Salesforce has set aggressive targets for growth in the years ahead. Its popularity and positive reception from Wall Street will only serve to further embolden Salesforce to extract more revenues from existing customers. Customers should be setting expectations, planning their renewals further in advance, and building internal alignment to produce the most favorable outcomes for their Salesforce contract renewals.
By all accounts, Salesforce is on a tear. Record FY 2022 results, including revenue and cash flow growth of 25% year over year, caused the company to raise guidance for FY 2023 to $32 billion. This growth has been bolstered by a loyal and growing Salesforce Platform user base as well as a series of high-value acquisitions such as Tableau and Slack. And for anyone who has yet to see the vendor’s recent ad campaign, the Salesforce brand is buoyed not only by its strong financial and technological performance, but also by its continuing commitment to social responsibility.
As part of his opening keynote at Dreamforce 2021 (which was held in September of 2021), CEO Marc Benioff shared an aggressive vision for growth with a target of reaching $26 billion by the end of FY22, and $50 billion by the end of FY26. That means Salesforce is planning to nearly double its revenue over the next four years.
NPI has analyzed how Salesforce will be able to achieve the goals it has set for itself in the years ahead. It will be focused on two key areas that will have an impact on enterprise customers:
Customers should expect that both the integrated product stack and more aggressive sales tactics will have a significant impact on their relationship with Salesforce.
Customers should expect that both the integrated product stack and more aggressive sales tactics will have a significant impact on their relationship with Salesforce. Specifically, NPI is advising clients to be prepared for the following:
NPI’s overall guidance is that rapid growth will change the dynamic clients can expect from Salesforce in the years ahead.
The following strategies and approaches have helped clients successfully manage their Salesforce relationship.
NPI’s overall guidance is that rapid growth will change the dynamic clients can expect from Salesforce in the years ahead. This will have both positive and negative consequences for Salesforce customers. Companies that do their homework and are prepared will find opportunities to maximize value and be in a position to more effectively manage the Salesforce relationship. Those that don’t risk buying too much, paying too much and leaving valuable support on the table.