CodeScience, the only Certified Salesforce PDO Master partner, together with Lighter Capital, announced today the release of a jointly commissioned survey revealing an objective look at how AppExchange Partners are using the platform to drive business.
For the first annual “The State of AppExchange Partners” Report, the companies surveyed over 100 senior level executives, 64% of whom were either C-Suite or VPs of Product -- ranging from up-and-coming SaaS start-ups to the Fortune 5.
“An objective view of the AppExchange has been challenging to find over the past 11 years since its inception," said Brian Walsh, CEO of CodeScience. "Together, with Lighter Capital, we are pleased to deliver the results of this survey on what partners experience in this thriving ecosystem. While we have anecdotal evidence of success and challenges, after bringing over 100 products to market, this provides us with even greater insight into the specific drivers. The results validate our belief that those companies who invest heavily in the Salesforce ecosystem experience the greatest growth."
The success and scale of the AppExchange as a channel is a testament to the power of the ecosystem as a business differentiator. For example, Neeracha Taychakhoonavudh, Salesforce’s SVP, Partner & Industry Innovation, is widely quoted as claiming that Salesforce will boost AppExchange revenues 5X over the next 5 years.
According to the report, the top three reasons partners are choosing to develop on the AppExchange include Time to Market, Security, and the Partner Ecosystem.
In an interview regarding the report results, CodeScience partner Trisha Price, EVP Product Development & Engineering at nCino, cited the security of the AppExchange as a motivator for development.
"nCino is a system built by bankers for bankers,” Price says. “We want to focus on building a banking application, not infrastructure. Banks have never had a critical process like lending run in the cloud, so the number one thing is building trust that our solution is infinitely scalable and secure. We get all of that by building on top of the Salesforce platform."
Adds BJ Lackland, CEO at Lighter Capital, "After 5 years of working closely with the Salesforce AppExchange, we’ve witnessed firsthand the power of the ecosystem’s benefits for startups. AppExchange companies represent 10% of 330 investments we’ve made, and on average, AppExchange companies have outperformed non-AppExchange companies. They have 10% higher growth rates and have raised 2x the amount of venture capital."
Report Key Findings
The survey focused on five categories that factor into the State of AppExchange Partners including: 1) Product & Company; 2) Growth; 3) Technology & Platform; 4) Salesforce as a Channel; and 5) Investment.
Overall, the three main reasons that partners chose to leverage the Salesforce platform and the AppExchange include: (1) time to market, (2) security, and (3) the partner ecosystem.
While the one consistent challenge facing those companies that responded to the survey is acquiring new customers, 45% of respondents said that participation in the AppExchange increased their company’s revenue from 20% to greater than 50%.
On average the Salesforce channel contributes 38% of all leads generated.
The AppExchange partners that do utilize best practices appear to be growing substantially. 86% of respondents forecast they will grow revenue > 20% YoY next year, with 4% expecting to IPO in 2018.
It's not too late to cross paths with us at Dreamforce! Here's our master page with information on where we'll be, with details below on some of our great sessions.
CodeScience Dreamforce Presence:
Tuesday, November 7th, 10:30 AM - 11:10 AM: Partner Panel: Insights from Leading AppExchange Partners in 2017 - Park Central Hotel, Partner Lodge Theater
- Partner panel to unveil key insights from experts, featuring executives from nCino, Optum, and Node that will deliver benchmarks on growth, technology, investments, Salesforce as a channel, and more. Learn how AppExchange Partners are leveraging Salesforce and what to look for in the year ahead.
Tuesday, November 7th, 2:30 PM - 2:50 PM: How to Shortcut and Supercharge your AppExchange Build - Park Central Hotel, Partner Lodge Theater
Brian Walsh, CEO of CodeScience and Scott Voight, CEO and Founder of FullStory will share how FullStory was able to shrink their AppExchange development down to just 2 months. Attendees will learn what they can do to accelerate their go-to-market timeline.
Wednesday, November 8th, 12:00 PM - 1:00 PM: Lunch & Learn - How to Rev Up Your Deal Flow from Salesforce - Hosted at our satellite meeting space near the Park Central Hotel
Join Erin Murray, Global Alliance Manager at CodeScience leads a master session on how to maximize the Salesforce channel. Learn inside tips gained from years of experience and success stories. This small format session is designed for existing partners ready to take their Salesforce relationships to the next level.