Article

Leveling Up Your Salesforce ISV Journey: Understanding the New Tier Structure & Benefits

Author

Nilamani Das

Date

September 03, 2024

The Salesforce AppExchange ISV Program, a pivotal resource for Independent Software Vendors (ISVs) looking to scale their businesses on the Salesforce platform, has undergone significant changes recently. These updates, aimed at enhancing the partner journey and promoting innovation, present new opportunities and challenges for ISVs. This guide will explore the key updates, including the new tier structure, value proposition, and the benefits available through the updated program.

Key Takeaways

New Tier Structure: The program now includes five distinct tiers: Registered ISVs, Exploration ISVs, Build ISVs, Select ISVs, and Summit ISVs. This streamlined structure better aligns with the ISV lifecycle, providing a clearer path for growth.
Shift from Trailblazer Score: Salesforce has discontinued the Trailblazer Score, previously used to assess ISV performance. The focus has now shifted towards revenue generation, customer satisfaction, and innovation.
Discontinuation of Marginal PNR: The marginal PNR benefit, which offered discounted pricing for ISVs meeting specific revenue thresholds, has been phased out. This change may affect profitability for some ISVs.

ISV Partner Journey and Tiers

Source

The new tier structure of the AppExchange ISV Program aligns more closely with the ISV partner journey, offering tailored support and benefits at every stage:

Registered ISVs: Entry-level ISVs who have joined the program but have yet to establish a commercial relationship with Salesforce.
Exploration ISVs: Actively exploring commercial opportunities and developing their first paid app.
Build ISVs: These ISVs have signed a distribution agreement with Salesforce and are focused on app development and launch.
Select ISVs: Actively distributing paid apps on the AppExchange and working on expanding their customer base.
Summit ISVs: The highest tier, representing Salesforce’s most strategic and successful ISV partnerships, eligible for advanced Go-to-Market (GTM) and co-marketing benefits.

Understanding the New Tiers

The revised tier structure offers a more detailed framework to track ISV progress, allowing Salesforce to provide more customized support. For product owners and managers, understanding your ISV’s current tier and the requirements for advancement is crucial for strategic planning and growth.

Transitioning Away from the Trailblazer Score

The discontinuation of the Trailblazer Score marks a significant shift in how ISV performance is evaluated. While the exact criteria for the new program are still unfolding, revenue generation, customer satisfaction, and innovation will likely play more critical roles moving forward. This shift requires ISVs to refocus their strategies on these key performance indicators.

The Impact of Marginal PNR Discontinuation

With the removal of the marginal PNR benefit, ISVs need to reassess their pricing strategies and explore alternative ways to maintain profitability. Evaluating the financial impact of this change on your business is essential, and adopting new cost-saving measures or pricing models might be necessary.

Benefits of the Updated Program

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The updated AppExchange ISV Program offers an array of benefits designed to support ISVs throughout their journey:

Business and Sales: Resources aimed at driving practice growth and nurturing Salesforce relationships, essential for long-term success.
Marketing and Lead Generation: Tools and strategies to increase brand awareness and create comprehensive omnichannel marketing plans.
Technical Advisory: Access to technical tools and advisory support for app development, product roadmaps, and ensuring product quality.
Product and Tools: Use of Salesforce’s technical tools for app development, testing, and analytics, helping ISVs deliver robust solutions.
Learning and Development: Discounts and programs for skill development, including training through Trailhead and access to certification exam vouchers.
GTM and Co-Marketing Opportunities: Summit ISVs are eligible for co-marketing support, including the use of Salesforce logos and collaboration on marketing campaigns, which can significantly boost visibility and credibility.

Recipe for ISV Success on the AppExchange

1. Understand the Salesforce Ecosystem:

Deepen your knowledge of Salesforce’s platform, products, and best practices.

2. Identify Your Niche:

Target a specific market segment or problem that your app can address effectively.

3. Build a High-Quality App:

Prioritize user experience and value to ensure your app stands out.

4. Leverage Salesforce’s Marketing Resources:

Utilize available marketing tools and expertise to promote your app effectively.

5. Build Strong Relationships:

Network with other ISVs, Salesforce partners, and customers to expand your reach and influence.

6. Prioritize Customer Success:

Focus on delivering exceptional value and addressing customer needs proactively.

7. Continuously Innovate:

Stay informed about industry trends and adapt your app to meet evolving customer requirements.

8. Engage with Salesforce Communities:

Connect with the Salesforce community to share knowledge and learn from others.

9. Consider Global Expansion:

Explore opportunities to take your app beyond your local market.

10. Monitor App Performance:

Regularly track key metrics like downloads, installations, and customer satisfaction to gauge success and make data-driven decisions.

Your Idea + Our Execution = Business Disruption

The updated AppExchange ISV Program brings both opportunities and challenges. By understanding the key changes, navigating the new tier structure, and leveraging the program’s benefits, product owners and managers can strategically position their businesses for success in the Salesforce ecosystem.

Are you looking for a quick turnaround but don’t have the apt technical expertise for execution? We could be the catalyst for your rapid go-to-market. We help Organizations to on-board the Salesforce ISV ecosystem by realizing their dream idea, listing your app into AppExchange and beyond.

Partnering with an experienced Salesforce PDO Partner like CEPTES can accelerate your product development, enhance product quality, and reduce costs. With over 15 years of experience and a team of 250+ experts, CEPTES can help you:

Speed up time-to-market
Improve the quality of your product
Optimize costs
Focus on core business objectives
Leverage a deep understanding of the Salesforce ecosystem

Contact us today to learn how CEPTES can support your ISV goals and help you succeed in the Salesforce AppExchange ecosystem.

FAQs

1. How is the attrition rate calculated as part of my Trailblazer Score?

The attrition rate was calculated based on the reduction in your annual recurring revenue over the past 12 months. However, with the discontinuation of the Trailblazer Score, this metric may no longer be relevant.

2. Do I need to submit a Technology Adoption Assessment response each quarter?

Yes, for FY24, you need to submit at least one survey response to receive points, which will carry over to future quarters within the same fiscal year.

3. How do I advance to a new tier in the AppExchange ISV Track of the Salesforce Partner Program?

Advancement is based on meeting specific criteria related to revenue, customer satisfaction, and innovation, as detailed in your partner scorecard.

4. How do I find my current tier?

Your tier is visible on your partner scorecard, accessible via the Manage tab in the Partner Community.

5. How often is my tier updated?

Tier evaluations occur quarterly, typically in the month following the end of Salesforce’s fiscal quarter.