What Associations Need to Know About Salesforce Licensing
Salesforce has become a powerful platform for associations, offering an array of tools designed to enhance member management, streamline operations, and drive engagement. However, navigating the complex world of Salesforce licensing can be overwhelming, especially for associations trying to make the most of their investment while keeping costs manageable.
1. Salesforce Licensing Basics
Salesforce licenses are designed to provide access to different features and capabilities based on an organization’s needs. The platform offers various licenses tailored to different user roles and functions, and each comes with its own set of features, pricing, and limitations.
- Salesforce Editions: Salesforce offers several editions, such as Essentials, Professional, Enterprise, and Developer. The edition you choose will depend on the complexity of your association’s needs. Most associations typically opt for Enterprise Edition, which includes advanced features like automation, reporting, and customization options. However, it’s important to assess whether you need all the features included in the more expensive editions or if a lower-tier edition will suffice.
- User Licenses: Salesforce provides user licenses based on the type of role users will have within your organization. For example, “Salesforce” licenses give users full access to CRM features, while “Platform” licenses provide limited access to apps and processes. Associations may also consider “Community” licenses, which allow external users (like members) to access portals.
- Feature Licenses: Feature licenses are add-ons to the standard user licenses that unlock additional functionality within Salesforce. For example, adding licenses for specific tools like Sales Cloud or Service Cloud will enable associations to take full advantage of these advanced capabilities.
2. Understanding Different License Types
To make the most out of Salesforce for your association, it’s important to understand the different types of licenses available and how they affect your users and their access to features:
- Named User Licenses: These licenses are assigned to individual users (staff or external users like members) who need access to the Salesforce platform. Each user needs a unique license, and the cost is based on the number of users and the level of access they require.
- Platform Licenses: These are typically used for custom applications built on the Salesforce platform. Platform licenses are more affordable than full Salesforce licenses but provide more limited access to Salesforce’s core CRM tools. Associations that primarily use Salesforce for custom applications or portals for members may find these a good fit.
- Community Licenses: If your association uses Salesforce to build member portals or online communities, a Community License may be appropriate. This license type allows your members and external stakeholders to interact with your association’s data and content within a controlled environment.
3. Salesforce’s Pricing Models
Salesforce pricing is based on a subscription model, where associations pay an annual fee depending on the features and licenses they need. The pricing can vary based on the edition, user type, and features, so it’s essential to understand the full scope of your needs before selecting a pricing plan.
- Per User, Per Month Model: Most Salesforce licenses are priced based on a per-user, per-month model. This means that if your association has more members or staff needing access to Salesforce, your costs will increase accordingly. However, the flexibility of Salesforce means that you can scale your usage up or down based on your evolving needs.
- Add-ons and Upgrades: Salesforce offers additional features, such as Einstein AI, Marketing Cloud, and advanced reporting tools, which can increase the cost of your license. While these tools offer valuable functionality, it’s important to assess whether your association needs them or if a more basic setup will suffice.
- Bundling Licenses: Salesforce often offers discounts when multiple licenses or features are bundled together. For example, purchasing Service Cloud along with your base Salesforce CRM may provide cost savings compared to purchasing these licenses separately. Always check for bundling opportunities to lower your total cost.
4. Maximizing Value with Salesforce Licensing
For associations, maximizing the value of Salesforce licensing comes down to ensuring that you’re using the right licenses for your specific needs. Here are some tips to help you get the most from your Salesforce investment:
- Focus on Scalability: One of the key benefits of Salesforce is its scalability. As your association grows, your needs will evolve. Make sure your licensing options are flexible enough to scale with your organization. For instance, you may start with fewer licenses and upgrade as your staff or member base grows.
- Leverage Nonprofit Discounts: Salesforce offers discounts for nonprofit organizations, which can help make the platform more affordable. By taking advantage of the Power of Us program, associations can access free and discounted Salesforce licenses, including up to 10 free Salesforce user licenses and discounted prices for additional features.
- Optimize License Usage: Review user activity regularly to ensure you’re not paying for more licenses than you need. If certain users are not fully utilizing Salesforce, you may want to adjust their licenses or remove access to certain features.
- Understand Data Storage Limits: Salesforce charges for data storage based on the amount of data your organization stores within the platform. It’s crucial to manage your data efficiently to avoid additional charges. Archiving old data and using Salesforce’s tools to streamline your data management can help you stay within your storage limits.
5. Choosing the Right Salesforce Partner for Licensing
Navigating Salesforce licensing can be complex, which is why partnering with a Salesforce expert can help. A Salesforce consultant or implementation partner can help your association assess your needs, choose the right licenses, and ensure that you’re maximizing your investment in Salesforce. They can also help with optimizing workflows, training staff, and integrating Salesforce with other systems to make your operations more efficient.
Salesforce offers immense potential for associations, but choosing the right licensing structure is key to unlocking that potential while keeping costs in check. By understanding the different types of licenses, pricing models, and how to maximize your subscription, you can ensure your association is using Salesforce effectively to engage members, streamline operations, and drive growth.
If you’re unsure about which licenses are right for your association or how to optimize your Salesforce setup, reach out to a trusted Salesforce consultant who can guide you through the process and ensure your platform is working for you.
If your association is considering Salesforce for your CRM or operational needs, Systems Rewired can help. Our team of Salesforce experts can guide you through the licensing process, ensuring you get the best value from your Salesforce investment. Contact us today for more information!