IBM has published its “The State of Salesforce 2023-24” report. The report is produced annually now by IBM, though it was once produced by Bluewolf, the Salesforce consultancy firm that IBM bought in 2016. This year’s report is based on a survey of 3,459 executives from companies using Salesforce. It is seen as an indicator of how customers use Salesforce solutions.
This year, the report looks at the growing importance of generative AI and industry clouds. It provides a useful reference, especially ahead of Dreamforce 2023 next week, for leaders to gauge their maturity in using Salesforce.
Salesforce continues to add value to those companies that are adopting it fully. In the foreword, Al Jenkins, Managing Partner, Salesforce, IBM Consulting, states, “A change-ready culture is more than just a catchphrase—it’s something leaders are building. And among leading Salesforce users, those efforts are paying off.
Leaders in this space are seeing 40% higher revenue per Salesforce license. That’s in a world that hasn’t stopped changing, hasn’t slowed down, hasn’t become less complex. That comfort with continuous change allows leaders to expand the way the platform is used, finding new methods to extract even more value from Salesforce.”
The report divides respondents into four categories of maturity. The pioneers, the prepared, the prudent and the pensive. The pioneers are the leaders of using Salesforce and showing the way to others. The pensive are yet to embrace industry clouds or generative AI.
What is in the report
The report’s 50 pages contain a mix of analysis, data from the survey, often in the form of graphical visualisation, and four case studies. Each section concludes with an action guide that gives the reader some steps they should consider for their organisation. It is divided into five sections, each highlighting an insight from the report’s authors.
- Shape the future of generative AI
- Gain altitude with industry clouds
- Integrate data to dismantle silos
- Invest in a change-ready culture
- Overcome enterprise inertia with innovation
Key findings from the survey include:
- 50% of leaders are revolutionizing customer service with generative AI
- 70% believe generative AI will become a competitive advantage
- 65% are profiting from industry-specific solutions
- 83% are eliminating silos by improving interoperability
- 64% of leading organisations report their Salesforce users are more satisfied
Shape the future of generative AI
The section examines how generative AI has become a key topic in boardrooms worldwide. The pioneers have already invested in generative AI. Furthermore, 61% of Pioneers are looking beyond out-of-the-box generative AI capabilities to support their long-term goals.
The rewards are there for the bold as well. 34% of pioneers believe that it will increase topline growth. It is, therefore, no surprise that AI budgets are expected to triple by 2025 as firms invest. The report also notes that firms are no longer just adding AI. They are starting to identify new initiatives based on AI.
The case study reveals how Camping World has leveraged AI within its call centre. It has increased customer engagement by 40% on all platforms and agent efficiency by 33%. Looking forward, budgets for generative AI have steadily increased annually for sales, marketing and service.
Gain altitude with industry clouds
Salesforce continues to develop and enhance its industry cloud. Pioneers not only use them more, but they also see greater ROI, 1.5x pensive firms. The report looks at the usage and impact of the different industry clouds, noting that Pioneers are leading the way.
The case study looks at an unnamed energy and utilities organisation that replaced its CRM systems and tools with Salesforce Industry Energy & Utilities, Service, and Sales Clouds. The business was transformed.
Integrate data to dismantle silos
Another theme of Dreamforce, besides AI, is data. Pioneers are consolidating data onto a single platform and drawing distinct advantages from doing so. Pioneers reveal new opportunities 39% more than pensives. They generate a 40% higher ROI.
The case study looks at how Caixa Bank created a unified Salesforce platform, consolidating 50 service numbers into one service number. It added IBM Watson AI, which now provides 2 million answers to customers monthly.
Invest in a change-ready culture
The report notes that digital transformation is more than just transforming technology. Pioneers understand this. Pioneers are 89% more likely to adapt their business processes than pensives. The report examines how pioneers approach innovation and invest 41% more than pensives in change management.
Overcome enterprise inertia with innovation
The concluding section brings together the findings from the report showing how investment in Salesforce is leading to success, both for existing and new business models. The report concludes with three actions that may seem common sense but are rarely applied.
- Align technology to the business objectives, not the other way around
- Fund enterprise transformation with ongoing business success
- Build hybrid data models and exploit untapped data
Enterprise Times: What does this mean
Once again, IBM provides a worthwhile read for senior executives with take-outs they can immediately apply to their businesses. IBM provides a range of services around Salesforce. It recently strengthened the partnership by collaborating to help businesses worldwide across industries accelerate their adoption of AI for CRM. Adding the power of Watson AI to Einstein creates a powerful combination that organisations such as Caixa Bank are already benefitting from.
IBM will be present at Dreamforce and is a Pioneer sponsor at the event (the highest level) and will be able to explain how it can help transform organisations into pioneers.
