spain. essentials madrid 2015. success room. cómo salesforce usa salesforce
TRANSCRIPT
Best practice: Salesforce.com Arsenio Otero VP Sales Strategy & Operations @arseotero
Ricardo Gundin Sr. Analyst, Sales Strategy
Safe harbor statement under the Private Securities Litigation Reform Act of 1995:
This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.
The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site.
Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.
Safe Harbor
Objectives of this session
Share the framework salesforce.com uses to segment and prioritize market
opportunities. Then provide a first hand look at how we manage aggressive
growth within a >$10B company
$16.9B
2014 CRM and AppDev Market for Europe Source: Gartner Enterprise Software Markets Forecast WW 2010 to 2017 Q3 2013 Update.
Sub-Optimal Market Coverage
Leaky Talent Bucket Impaired
Performance Visibility
What Happens if You Get it Wrong?
Material $$ Impact to Your Business
Product + GTM + Rigor + Enablement = Growth Sa
les
Enab
lem
ent:
Del
iver
Exc
elle
nce
On boarding
Development
Tools
Product Strategy: Expand the Addressable Market
GTM Strategy: Accelerate Penetration via Focus
Segment Balance Hire
Operations: Rigorous Iteration Drives Growth
Measure Inspect Adjust
Product + GTM + Rigor + Enablement = Growth Sa
les
Enab
lem
ent:
Del
iver
Exc
elle
nce
On boarding
Development
Tools
Product Strategy: Expand the Addressable Market
GTM Strategy: Accelerate Penetration via Focus
Segment Balance Hire
Operations: Rigorous Iteration Drives Growth
Measure Inspect Adjust
GTM #1: Segment the Market How segmenting the opportunity creates focus
Segment
# Companies
$ O
ppor
tuni
ty Sales teams naturally focus on the
most concentrated opportunity Big Investment… Big ROI
But, most of the opportunity is left untapped
GTM #1: Segment the Market How segmenting the opportunity creates focus
# Companies
$ O
ppor
tuni
ty Segmenting differentiates investments in
teams, products and channel to create focus and accelerate revenue
Segment
The Promised Land
• AE Skill sets match acct complexity
• Align resources with strategic market objectives
• Logical career path
• Maximize high quality touches
Sales Strategy Levers
• AE headcount allocation
• Segment lines
• Coverage programs (e.g. verticals, hunters)
• Quotas
GTM #1: Segment the Market Thoughtful segmentation gives an 80/20
Segment
GTM #1: Salesforce Segments by FTE Band # FTE’s serves as a proxy for deal complexity, AE skill sets & resource investments
Segment
ENTERPRISE
MID-SIZED BUSINESS
SMALL BUSINESS
# FTE’s
Objective Avg Age # Trx/AE Cadence
Enterprise Solution Sale ~5 Months Low Annual
Hybrid ~3 Months Med Qtrly
Reach & Repeatability <1 Month High Monthly
GTM #1: Resource Prioritization Framework Selection metrics refined based on experience
Market Size & Growth
Business Environment
Salesforce.com Momentum
Current Investment
• CRM & App Dev Spend Forecast by Cloud
• Economic Census Data
• Industry Dynamics
• Employment Law
• Tax Burden
• Data Privacy
• Exec Insight
• Investments to date in Sales & Supporting HC
• Leadership
• Bookings Trends
• Bookings by Cloud Mix
• Productivity
High Weighting
Medium Include / Exclude
Medium Weighting
Low Weighting
Segment
# Accts per AE Bookings Productivity
($ / AE / mo)
Pipe Gen
($ / AE)
Coverage % (% Accts w/
Oppty)
% AE # Growth
Quota Change
Enterprise <10
Mid-Size <500
SMB >500
GTM #1: Refine Segmentation Annually Increase focus & productivity by adjusting lines, #AE’s and quota
Example Segmentation Analysis
Segment
GTM #2: Balanced Territories
Coverage balance & workload • Avoid coverage gaps by balancing
capacity
• Maintain reps morale and optimism
Measurement & rewards • Merit drives rep performance • Pay for performance, not territory
potential
Customers & revenue • Maintain focus on existing customers • Spread revenue “risk” evenly
The company benefits from a fair and level playing field
Seg
men
t Rev
enue
# of Sales People
Spreading territory potential evenly across sales people actually increases revenue!
Revenue Potential Revenue Performance
Balance
SMB: “Score” the Opportunity
• Backward looking (based on historical performance) • Predictor of ACV by acct type • Oriented geographically
(zips) • Volume of accts enables
a more statistical approach
ENTERPRISE / COMMERCIAL: Account-level Bookings Potential
• Forward looking • Account level detail
enables granular carving • Accessible CRM Seats x
Propensity to Buy
GTM #2: Carving Algorithms One Size does NOT fit all
Balance
GTM #2: Enterprise Balanced on Potential Estimate of near term revenue by Account helps prioritize coverage resources
CRM Market Potential
Industry Propensity
Customer Status
Penetration Rate
# Employees
Estimated CRM % Per Industry
ASP
Close rate TTM for defined Industry
CRM License / CRM Employee
Existing Customer
Seeded Customer
Prospect
CRM Bookings Potential per Account* =
Momentum
FY Pipe Gen
Bookings potential informs territory assignment & enables inspection
Propensity to Buy
Balance
• # of Customers by Type • # of Prospects • Business Density • Add-On vs. New Logos
• Top down carving of Areas, regions, territories
• Mapping tool optimizes territories by zip codes
• Managers adjust based on local knowledge
• Must maintain score balance +/- 10%
• Proposed territories inspected for equity
Regression Scoring Mapping Optimization Manager Judgment
GTM #2: SMB Balanced on Trends Postal code scoring and mapping technology ensures balanced territories
Balance
GTM #3: Buffer for Growth & Hire Aggressively Take hiring as seriously as revenue growth
Late Hiring
Early Hiring
Minimize the Disruption of Sales Growth • Set hiring expectations early • Carve buffer territories to avoid disruption
Reward Managers for early Hiring
Policies • Managers split un-assigned territories among
current reps • Give hold outs on open opportunities when
new rep joins…with an expiration • Managers get a quota buffer for performance
management
Rep HC 6 6 7 7 8 8 9 9 10 10 10 10
Hire
Align with CEO Priorities
GTM #3: Retain Top Talent
Align with CEO Priorities
Align with CEO Priorities
• 3 Phase Onboarding • Skills Training • Product Certification • Education Credits
• Up Market • From AE to Manager
• Chatter Recognition • Contests & SPIFFs
TRAIN PROMOTE CELEBRATE
Hire
Product + GTM + Rigor + Enablement = Growth Sa
les
Enab
lem
ent:
Del
iver
Exc
elle
nce
On boarding
Development
Tools
Product Strategy: Expand the Addressable Market
GTM Strategy: Accelerate Penetration via Focus
Segment Balance Hire
Operations: Rigorous Iteration Drives Growth
Measure Inspect Adjust
If it’s not in the App, it does not exist
Standard definitions
Marc, Keith, Tony & Brian can inspect anything
Chatter makes inspection easy
Rigor #1: Single Source of Truth Forcing a single source of truth boosts decision-making confidence
Measure
Inbound Traffic • Web traffic # • Event
Attendance • Response Rate
Visit/Lead Ratio • By Offer • AB testing
Qualification • Conversion rate • Avg Deal Size • Pipe Gen / AE
Sales Cycle • Length • Leaks in Funnel • Competition
ACV & Coverage • ACV per AE per month
(Productivity) • Transaction Volume • Avg Deal Size • Close Rates • ACV mix by Product • Account Coverage %
Rigor #1: Standardize Metrics
Success should be transparent to everybody Measure
Rigor #2: Inspect Performance
Set Goals: Inspect Performance • Senior Execs define objectives
• Public inspection via Chatter • Cross-functional teams have
skin in the game
Objects Chatter: Easy Inspection
Senior executives, cross-functional teams and peers drive accountability
Gordon McCance changed Close Date from 9/30/2011 to 7/29/2011. July 19, 2011 at 1:42 PM · Comment · Like
Patrick @Kris Is this real for the month July 20, 2011 at 7:55 AM · Comment · Like
Gordon changed Close Date from 9/30/2011 to 7/29/2011. July 19, 2011 at 1:42 PM · Comment · Like
Patrick @Kris Is this real for the month July 20, 2011 at 7:55 AM · Comment · Like
Kris We have a written confirmation from the buyer that they need these licenses. Just got it yesterday. However, we need to validate before we put it in Commit. July 20, 2011 at 8:38 AM
Gordon changed Close Date from 9/30/2011 to 7/29/2011. July 19, 2011 at 1:42 PM · Comment · Like
Patrick @Kris Is this real for the month? July 20, 2014 at 7:55 AM · Comment · Like
Kris We have a written confirmation from the buyer that they need these licenses. Just got it yesterday. However, we need to validate before we put it in Commit. July 20, 2014 at 8:38 AM
Gordon Coming in now! July 21, 2014 at 2:37 PM
Gordon changed Close Date from 9/30/2014 to 7/29/2014. July 19, 2014 at 1:42 PM · Comment · Like
Inspect
AdjustRigor #3: Make Change Happen
Rapid iteration requires clear expectations & constant communication
FREQUENCY OF CHANGE
High
Low
Mktg Programs
Promotions / Performance mgmt
Segment Lines
Quota Levels
Incremental Investment (ie #AE’s; Mktg Budget)
New Roles
Leadership Focus
Sales Tactics
Product + GTM + Rigor + Enablement = Growth Sa
les
Enab
lem
ent:
Del
iver
Exc
elle
nce
On boarding
Development
Tools
Product Strategy: Expand the Addressable Market
GTM Strategy: Accelerate Penetration via Focus
Segment Balance Hire
Operations: Rigorous Iteration Drives Growth
Measure Inspect Adjust
Sales Enablement is a Cross Company Initiative
It All Starts With Sales Values
Align with CEO Priorities
Build Coaching Culture & Reporting Cadence Deliver Tools & Training
Reps Company Management
Transformation Never Stops
iPad Powered
Business is Social
Sales Process
Social Collaboration
2009 2010 2011 2013
Drive Skills & Product Learning
2012
Comprehensive development program
Months 6 - 9 Months 9 - 12
SR Pre-work (Week 1&2)
SR Do My Job (Week 4-8)
Essentials: On the Job Experience and Coaching Fundamentals Week 1 – 8
Ready for Customers
Boot Camp (Week 3) Months 3 - 6 Pre-work (Week 1&2)
Level 1 Onboarding Level 2 Ramping Level 3 Certified Level 4 Mastery
Journey to Success
Product knowledge
Skills Training
#1 On boarding
Months 6 - 9 Months 9 - 12
SR Pre-work (Week 1&2)
SR Do My Job (Week 4-8)
Essentials: On the Job Experience and Coaching Fundamentals Week 1 – 8
Ready for Customers
Boot Camp (Week 3) Months 3 - 6 Pre-work (Week 1&2)
Level 1 Onboarding Level 2 Ramping Level 3 Certified Level 4 Mastery
Journey to Success
Product knowledge
Skills Training
Enablement #1: Why We Use Chatter
• Collaborative • Productive Faster • Real-Time • Contextual
• Speed To Answers • Many-to-Many • Searchable “Archive”
On boarding
Enablement #1: Sales Enablement Group Training & 1:1s
Leveraging your extended team Org62 Quiz
Social & Mobile Productivity
Opportunities & Activities
Reports & Dashboards
Pricing, Quoting & Legal
On boarding
#2 Development
Months 6 - 9 Months 9 - 12
SR Pre-work (Week 1&2)
SR Do My Job (Week 4-8)
Essentials: On the Job Experience and Coaching Fundamentals Week 1 – 8
Ready for Customers
Boot Camp (Week 3) Months 3 - 6 Pre-work (Week 1&2)
Level 1 Onboarding Level 2 Ramping Level 3 Certified Level 4 Mastery
Journey to Success
Product knowledge
Skills Training
As a manager, this format gave me a first hand view into my team’s strengths and weaknesses.
– Salesforce Sales Manager
Enablement #2: On going Badging Process
“The badging process has given me the keys to differentiate my speech. I’ve got now the methodology and tips to bring my customer on an innovative journey!” - Yannis D., Account Executive, France
Development
Enablement #2: Badging Report & Badging Feedback
Management Reporting & Dashboards
100% Transparency
Accountability
Coaching Opportunity
Development
Enablement #3: Consistent Process is the Heart of Transformation
5 Step Sales Transformation
1. Crowd-source best practices
2. Use events to build momentum
3. Empower managers with tools
4. Reinforce with technology
5. Celebrate success
Research Innovate Share Vision Value Sell Discovery
Development
Enablement #3: Reporting/Dashboard Kit Created for Managers
Dashboard Library Crowdsourced
Every manager
is trained
Used for coaching
Revenue Performance Pipeline
Forecasting Activity
Tools
Enablement #3: Salesforce1 App for Sales
Today & Productivity Tools Get a view of your schedule for the day. View meeting attendees & dial directly
into meetings
CRM Data & Analytics Access all the CRM records, custom objects, and dashboards that you’d
have access to on your desktop
Custom Actions & Apps Use Publisher actions to move business forward while you’re
away from your desk
Tools
Product + GTM + Rigor + Enablement = Growth Sa
les
Enab
lem
ent:
Del
iver
Exc
elle
nce
On boarding
Development
Tools
Product Strategy: Expand the Addressable Market
GTM Strategy: Accelerate Penetration via Focus
Segment Balance Hire
Operations: Rigorous Iteration Drives Growth
Measure Inspect Adjust