Salesforce (SFDC) is one of the most powerful Customer Relationship Management (CRM) tools on the market. However, the costs associated with it—whether you have an in-house administrator or outsource to consultants—can quickly add up. The big question is, are you getting a solid return on investment (ROI) from Salesforce?

In this blog article, we’ll break down the costs involved with Salesforce administration, compare different approaches, and give you practical strategies for maximizing ROI. By the end, you’ll have a clear picture of how to ensure your Salesforce investment is paying off.

Estimated Reading Time: 7-9 minutes

The Basics: Salesforce Administration Costs

Salesforce administration and implementation costs include Salesforce licenses, Salesforce talent, data migrations, CRM customization, integration with other systems, end user/ admin training, adoption, and after launch support. 

In-House Salesforce Administration Costs

1. Salary and Benefits:
Hiring a full-time Salesforce administrator can cost anywhere from $80,000 to $170,000 per year, depending on the person’s experience, skills and your company’s location. This may include not just salary, but also benefits like health insurance, retirement plans, and taxes.

2. Training and Certification:
Salesforce is constantly evolving, so you’ll need to invest in ongoing training and certification for your in-house admin. This is essential to keep your Salesforce implementation up to date, but it adds to the overall cost.

External Consultant Costs

1. Freelancers and Contractors:
If you choose to outsource, freelancers and contractors typically charge between $25 and $250 per hour. These prices vary based on the complexity of the work and the expertise required.

2. Consulting Firms:
Hiring a professional Salesforce consulting firm can cost between $100 and $300 per hour. While this option tends to be more expensive, you benefit from the firm’s collective experience and specialized knowledge across industries.

In-House vs. Outsourced: Cost Comparison

Maintaining an in-house Salesforce administrator costs about $115,000 annually on average, while outsourcing your Salesforce needs could cost as little as $500 per month, or $6,000 per year. At first glance, outsourcing might seem like the clear winner in terms of cost. But it’s important to consider your company’s specific Salesforce needs, the complexity of your system, and the type of support you require. 

In-house Salesforce talent offers full-time availability and familiarity with your business but comes with high costs for salaries and training. Freelancers provide cost-effective, flexible expertise but may lack availability and need time to learn your processes. Consulting firms deliver scalable, specialized support for complex projects but are the most expensive and may not be as familiar with your internal operations.

Are You Getting ROI from Salesforce?

Determining whether your company is getting a positive ROI from Salesforce is crucial. Here are some key factors to consider:

1. Cost vs. Benefit:

Salesforce customers report an average 25% reduction in IT costs and a 26% boost in employee productivity. These benefits can far outweigh the administrative costs if you’re fully utilizing Salesforce’s capabilities. Are you using Salesforce to its full potential? If you’re only scratching the surface, you might not be getting the ROI you should.

2. Automation and Efficiency:

One of Salesforce’s greatest strengths is its ability to automate time-consuming tasks. If you’re using it to streamline processes like lead scoring, customer follow-ups, and marketing automation, you’re likely seeing significant savings in labor costs. Companies like ADT and SmartRent have saved hundreds of thousands of dollars by automating workflows with Salesforce. If you’re not using these features, you might be missing out on big savings and productivity gains.

3. Sales and Customer Experience Improvements:

Salesforce enables companies to create a unified view of the customer, improving sales, marketing, and customer service efforts. This leads to increased customer satisfaction and higher sales. For example, Schneider Electric used Salesforce to close deals 30% faster and saved $2.7 million in IT costs over three years. Does your Salesforce implementation help your sales team close deals more efficiently? Is it improving customer retention? If not, it might be time to reassess how you're using the platform.

4. Cost Management:

If you're paying top-dollar for administration—whether in-house or outsourced—you need to be sure you’re not overpaying for services you don’t need. If your business isn't using advanced Salesforce products like CPQ or Service Cloud, but you're still paying for their administration, you could be wasting money. Conduct regular audits of your Salesforce usage to identify underutilized features or redundant processes that could be costing you extra.

5. Right Expertise, Right Cost:

Many companies find that they’re overpaying for in-house Salesforce administrators when their needs could be met with outsourced or freelance resources. If you don’t require constant support, outsourcing can significantly reduce costs while still giving you access to high-level expertise when needed. If your usage is straightforward, consider a hybrid approach where you maintain a small in-house team for routine tasks but outsource more complex or occasional needs to consultants.

6. Clean Data is Crucial:

Clean, accurate data is vital to maximizing Salesforce ROI, as poor data leads to flawed insights and inefficiencies ("garbage in, garbage out"). Quality data improves automation, decision-making, and customer engagement, driving better results and higher revenue. Regular data audits ensure your Salesforce platform operates at its full potential, boosting ROI.

Cost-Saving Strategies

Once you’ve reviewed your costs and Salesforce usage, there are several ways to improve your ROI:

1. Outsource or Use a Hybrid Model:

If you don’t need full-time Salesforce support, outsourcing to a consultant or freelancer can provide the expertise you need at a lower cost. Alternatively, a hybrid model can give you the flexibility of an in-house admin combined with outsourced support for more complex tasks or during busy periods.

2. Clearly Define Roles:

One common mistake is not clearly defining the responsibilities of a Salesforce administrator. This can lead to inefficiencies and higher costs. By specifying which tasks need to be handled in-house versus outsourced, you can better allocate resources and avoid redundant work.

3. Regular Audits:

Regularly auditing your Salesforce setup is essential for identifying areas of inefficiency. Audits help reveal underutilized features or tasks that could be automated, leading to significant savings. For example, audits might reveal that you’re using too many third-party applications that could be consolidated within Salesforce, cutting down on vendor fees.

4. Training and Upskilling:

Investing in ongoing training for your Salesforce team can increase their efficiency and productivity. Well-trained administrators and users can help you maximize the platform’s potential and avoid costly mistakes.

Real-World Examples: Companies Maximizing Salesforce ROI

Companies across industries are already seeing significant returns from Salesforce. Here are some success stories:

• ADT: By automating 40% of service appointments to virtual, ADT improved agent productivity and reduced costs.
• Elekta: The medical technology company saved over $875,000 in training and IT costs through better use of Salesforce.
• SmartRent: Automation through Salesforce helped the company save $300,000 and increased employee retention by 92%.
• Schneider Electric: By consolidating operations on Salesforce, the company saved $2.7 million in IT costs over three years.

These examples show how companies can reduce costs, improve efficiency, and drive revenue by fully leveraging Salesforce’s capabilities.

Conclusion: Is Salesforce Delivering ROI for You?

To determine whether your company is getting ROI from Salesforce, ask yourself these questions:

• Are we fully utilizing Salesforce’s automation and efficiency tools?
• Is our sales team closing deals faster or retaining more customers due to Salesforce?
• Are we overpaying for administrative support we don’t need?
• Have we audited our Salesforce usage recently to identify areas for improvement?

If you’re not seeing benefits like cost savings, improved productivity, or revenue growth, it may be time to reassess how you’re using Salesforce. By implementing the cost-saving strategies outlined above, you can ensure that Salesforce becomes a tool that drives measurable ROI for your business.

Ultimately, maximizing your Salesforce investment is about more than just reducing costs—it's about ensuring the platform helps you work smarter, sell more effectively, and improve your overall customer experience. With the right approach, Salesforce can deliver a significant return on your investment, turning what might seem like a high cost into a long-term business asset.

Sources:

New Research Shows Companies Globally Report an Average of 25% IT Cost Savings with Salesforce