Xactly Dreamforce Presentation 11 16 09
-
Upload
wayne-de-jager -
Category
Business
-
view
353 -
download
1
Transcript of Xactly Dreamforce Presentation 11 16 09
Xactly Breakout
Track: The Behavioral Power of Incentives
Christopher W. Cabrera Founder & CEO, Xactly Corporation
Marisa Massie Sr. Director, Global Compensation Salesforce.com
Safe Harbor Statement
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Xactly – The Smart Incentives Company
Leader in SaaS sales performance management
Founded in 2005
Strong domain experience
Managing >$4 billion in compensation annually
“Show me a company’s various compensation plans, and I’ll show you how its employees behave.”
- Jack Welch Former Chairman and CEO, GE
Helping companies of all sizes Incent Right.
3
™
Incent Right.
No Excel – reduce errors & manual processes
Sox compliance & security
Web-based, real-time visibility
SPIF’s, contests and rewards
Pay differently (i.e. margin, discount, cross-sell/up-sell, terms, etc.)
Model to understand exposure
Analyze to ensure effectiveness
Integrated to Salesforce CRM
© CSO Insights -Confidential
• Largely manual process
Why is it so hard to Incent Right?
Sales Reps can be Singularly Focused
Getting Them Focused on the “Right” things is Difficult
© CSO Insights -Confidential
Productivity is hurt when reps don’t understand their plans
Productivity is hurt when companies over-simplify plans
Change the Paradigm
How Frequently Do Companies Pay?
© CSO Insights -Confidential
Productivity is negatively affected when there is too much time between the effort and the payment
How Frequently Do Companies Change Plans?
© CSO Insights -Confidential
Productivity is negatively affected when companies do not modify The comp plans to address changes in market conditions, product
Launches and/or competitive threats
How often Do Companies Run Contests and/or Special Performance Incentive Funds (SPIFs)?
© CSO Insights -Confidential
Productivity is improved when companies tap into the competitive DNA Of sales people with contests and non-cash rewards.
Hundreds of Companies Experiencing the Benefits
12
Xactly and Salesforce.com
Changing Behavior One Rep at a Time.
Marisa Massie Sr. Director, Global Compensation
The Evolution of a Sales Organization
Phase I Start-Up
Phase II Volume Growth
Phase III Re-Evaluation
Phase IV Optimization
Base Growth
High Growth
Low Growth
• Cash Flow • “Sell or Die”
• Get New Customers
• Keep Customers
• New Products
• Protect Base • Price Mgmt • Reduce Costs
- Growth
• New Value Proposition
• New Markets • Specialization
Source: The Alexander Group (AGI)
Three Key Levers that Changed Sales Behavior
Moving these levers will change behavior !
Selling New Products
Everyone Wins
Contract Length
Longer, but not too long
Team Selling
Cross-functional collaboration
Lever 1: Selling New Product Incentives
RESULT “In Q2, our service cloud and custom cloud services once again
represented more than 25% of new business signings. The Service Cloud logged another record quarter in Q2, with new business in the quarter up more than 175% from a year ago”
Incent *every* sales person to sell Service Cloud
GOAL / DESIRED BEHAVIOR
We have enabled significant product growth in our Service Cloud offering by applying:
– Product-SPIFs: Incent on every deal
– Reward team achievement
– Product-specific quotas
APPROACH
RESULT -80% of team on target to achieve quota - Exploring global expansion in next year
GOAL / DESIRED BEHAVIOR APPROACH
Lever 2: Team Selling
Drive adoption in subsidiaries with mid-to-small company skills to focus on subsidiaries
Encourage cross-functional teamwork
Compensate multiple teams on same deal
Compensate both large account and mid- market teams to incent teamwork.
RESULT • Maximize compensation for target contract length • Discourage 6+ year contracts that come with deep discounted pricing
GOAL / DESIRED BEHAVIOR APPROACH
Lever 3: Key Deal Elements – Contract Length
Incent longer-term contracts by 25%, but maintain price
Xactly has enabled us to easily adjust incentives for contract length
Incent later years of contract at different rates
How does Xactly help us meet these needs?
Integration with salesforce – Just another tab
– Daily API of all closed deals
– Drill down capability
Flexibility / Ease of Use – Incent provides the ability to respond to
market changes to drive the desired behavior
Scalability – Global – access, currencies, 24x7
– Plan elements (SPIFs, coverage model)
Customer Service – Never missed a deadline because we couldn’t find the right person
– Stay up with us until 2am
Doubled sales team and at 20 countries, added 1 analyst in 2 years
99.5% payment accuracy
Fully SOX Compliant for 2 years
The Process Starts with the Data
20
Completely Integrated with Salesforce CRM
21
On-Demand Sales Performance Management
>50 different currencies 18 different languages
22
Xactly Incent 5.0 for the Enterprise
23
• Personalized Sales Dashboards • Enhanced global customer
support with Unicode • New Business unit security • New Territory management &
credit assignment • Increased scalability
Stop by and Preview
Xactly Incent on the iPhone
25
26
27
28
And the Winner is…
29
http://twitter.com/xactlycorp
http://www.facebook.com/XactlyCorp
30
www.xactlycorp.com