unleash innovation on the customer success platform

Unleash Innovation with the Customer Success Platform

Peter Coffee

VP for Strategic Research

@petercoffee

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

Customer Success Driver, Catalyst & Evangelist

Our Unchanging Mission

Mainframe Client/Server

Today 1960s 1980s

Enterprise Cloud Computing

No Capital Barrier to Entry

Subscription-Model Pricing

Non-Disruptive Upgrades

Mobile, Connected, Collaborative

On-Time; On-Budget; On-Spec

Unsurpassed Pace of Innovation

High Capital Barrier to Entry Not conceived for collaboration

3-10 year cycles of innovation

World’s #1 CRM provider

Leader in Transformative Innovation

15 Years of Customer Success

2011 • 2012 • 2013 • 2014

Most Admired Software Company

#1 most

admired in

software

#7 best

company to

work for

• Nineteen consecutive quarters of declining attrition

• Fastest growing top-10 software company

Growth Reflecting Passionate Customer-Centricity

$1.32B FY15 Q2 Revenue

FY08 FY15 FY11

…but that was only Act 1

The Best Way To Be Unreasonable – Believably

Facts – what we can see is true right now

Observations – selected facts and calculations

Consequences – projections, scenarios, boundary cases

Actions – what we can do right now

Long View – what to watch; what would change our plan

By no accident at all, this turns out to have an acronym;

So far as I know, no one else is calling their process FOCAL

We Can See the Future in Facts Observed Today

Looking back from 2024, we’d ask “Didn’t they notice…?”

Mobility, connectivity, interaction: hockey-stick curves

Data science: average salary topped $89k (11Apr’13)

InfoSec in alarming crisis: ½ of sensitive data were exposed (Dec’12)

Higher Ed challenged: ½-life of 4-year degree ~18 mos. (1Mar’13)

Employment redefined: 20-30% of Fortune 100 “contingent” (Mar’12)

Healthcare transition: cancer outpacing heart disease (CDC & ACS)

Globalization: 40% of MFG.com re-shored work in 1H12 (27Jun’12)

What’s Not “The Future”*

* Because It’s Already Here

Mobility: 3.6 billion subscribers = 50% of world population

Smartphones + Tablets outnumber people (13Oct’14)

Our First Fifteen Years: “Cloud” Cutting Complexity Our Next-Gen Mission: Connection Creating Community

Mobility: 3.6 billion subscribers = 50% of world population

Yes, your car will be just a four-wheeled phone


Mobility: 3.6 billion subscribers = 50% of world population (13Oct’14)

Connectivity: 12B devices by end 2014; 4 per person by 2020 (14Oct’14)


Tangible Value for Field Service Applications

“Wearable technologies

have been found to boost

employee productivity by

8.5%, experts from

Goldsmiths, University of

London have found.” - gold.ac.uk

“Augmented reality apps like

Aurasma could help field

service organizations

equip techs in the field…

product information with

the point of a camera.” -

thesmartvan.com

“In the next 3-5 years, the

industry likely to

experience the greatest

benefit from smartglasses

is field service, potentially

increasing profits by $1

billion annually.” – gartner.com

Mobility: 3.6 billion subscribers = 50% of world population (13Oct’14)

Connectivity: 12B devices by end 2014; 4 per person by 2020 (14Oct’14)

Interaction: 864M avg. daily active users on Facebook in Sept.’14


• Cutoff Customers:

– Prospects get content from Marketing

– Buyers negotiate terms with Sales

– Customers raise issues with Support

• Connected Customers:

– Prospects seek insights from customers

– Buyers collaborate on competitor research

– Customers tell the world when they’re not happy

• Companies need new organizations & processes

– Every employee/contractor/partner is a sales or service rep

– Power to address issues must be pushed to edge of organization

– Collaborative response must be available on demand

Connected Customers Rewrite the Rules

• Citizens Past:

– Voters are “audience” for a campaign

– Citizens served by agencies with monopoly power

– Oversight? Inconvenient hearings & information requests

• Citizens Present:

– Every individual interaction is effectively a press conference

– Invasion of profit-sector standards of customer experience

– Almost no such thing as a closed-door meeting

• Public sector needs new organizations & processes

– Every employee/contractor/partner is a spokesperson

– Every citizen is potentially an engaged advisor

– Community contribution is the only sustainable solution

Connected Citizens Redraw Their Contract

• There are, of course, innovations that spring from a flash of genius. Most

innovations, however, especially the successful ones, result from a

conscious, purposeful search for innovation opportunities, which are

found only in a few situations. Four such areas of opportunity exist within a

company or industry: unexpected occurrences, incongruities, process

needs, and industry and market changes.

• Three additional sources of opportunity exist outside a company in its social

and intellectual environment: demographic changes, changes in

perception, and new knowledge.

• True, these sources overlap, different as they may be in the nature of their

risk, difficulty, and complexity, and the potential for innovation may well lie in

more than one area at a time. But together, they account for the great

majority of all innovation opportunities. Peter Drucker, “The Discipline of Innovation,” August 2002

hbr.org/2002/08/the-discipline-of-innovation/

Innovation? “Conscious, Purposeful Search”

Connection: The Differentiating Competency

• Old Competitors:

– Recognized by customers and prospects as rival brands

– Defined by comparable capital assets and expertise

– Bigger threaten with scale; Smaller threaten with agility

• Connection Competitors:

– Discovered by customers and prospects as viral services

– Defying category definitions with lifestyle positioning

– Empowered by data across multiple spheres of behavior

• Who’s Your Competitor Now?

– If Google, Amazon, Walmart, PayPal, Square and eBay aren’t on the list…

…you need a wider and longer list

It’s a Connection Platform

Work.com

Marketing

Service

Sales

Did somebody say “CRM”?

It’s what you touch most often

It’s how you control where you go

The steering wheel is not the car

On average, reps using Salesforce CRM see:

+29% increase in sales from greater visibility

+34% increase in sales productivity

+42% increase in forecast accuracy

Sales

It begins with data

The salesforce.com multi-tenant database is

secure, scalable, and equipped to build

collaborative and event-driven applications –

far more quickly than any mere data

container


Database.com

Sales

Fo

rce

.co

m

Database.com

Force.com platform is “under the hood” of

Salesforce CRM: it enables rapid

customization with clicks, not code, but

still has full custom code capability.

Build 5x faster* than .Net or Java

*


Sales

Force.com

Chatter

Data.com Data.com

Chatter brings data and processes right to you

Data.com puts data grooming at the point of use


Database.com

Marketing App Exchange

Service Work.com Sales

Force.com

Database.com

Data.com

Fuel Wave

Heroku1 Communities

It’s a Connection Platform: Foundation for Customer Success

Data.com

Chatter

32 % + 40 %

+ 40 % +

39 % +

55 % +

Increase in sales

Customer satisfaction

Marketing ROI

Customer retention

Faster deployment

Connection Delivers Success

Source: Salesforce Customer Relationship Survey conducted March 2014 - May 2014, by an independent third-party, Confirmit Inc., on 4,100+ customers randomly selected. Response sizes per question vary.

Average Percentage Improvements Reported by Salesforce Customers

Introducing Wave: The Salesforce Analytics Cloud

Analytics for the Rest of Us

Usable Mobile Open

Any Data Build Analytic Apps

Collaboration Search Based Governance & Trust

Self Service

Introducing Salesforce1 Lightning

User Interface

Sales Service Marketing Community Analytics Apps

Components • Framework • Builder

APIs

PLATFORM SERVICES Force.com • Heroku • Wave

• ISO 27001 Certification

• SOC-1 (SSAE 16 – Audit Report)

• SOC-2 (Trust Principles Report)

• SOC-3 ‘SysTrust’ Audit Report

• U.S. GSA ‘Authority to Operate’ (Moderate)

• U.S. FedRAMP PaaS and SaaS (Moderate)

• PCI DSS Compliance

• JIPDC (Japan Privacy Seal)

• TUV Certificate (German Data Protection)

• TRUSTe

It’s Not A Service Without Security Compliance. Worldwide. Simplified.

“Service” Means Instant Readiness to Scale

“The city’s investment can go

further than just merely paying for

a new system. It’ll be able to take

advantage of other apps that work

on the Salesforce platform.”

Less Stagnation. More Innovation.

Eurostar has rolled out Salesforce CRM to improve customer service

for passengers…The high speed rail service previously relied on

up to 13 applications for call centre staff…

One of the main drivers…was the upgrade cycle for the software,

which could have resulted in customised features of the software

being lost. “There were no guarantees that the customisations

would live through the upgrade.”

Another is the ability to make changes to the system once it is live.

“With Salesforce, from the idea until it was done, took less than

two days. There is no way you can do that with other systems…”

By Matthew Finnegan | Computerworld UK |

Published 10:29, 27 May 14

http://www.computerworlduk.com/author/matthew-finnegan/

http://www.computerworlduk.com/

Trusted. Results. Today.

Legacy IT approach “was

overloading the project with

software, overcomplicating the

site with CPU and memory

taxing applications. Servers

were constantly needing to be

restarted… Any replacement for

the current software will need to

be vastly more simple.”

"Salesforce has been an incredible

tool for us... We purchased on June

1st, and within 8 hours we actually

had published an iPad application...

In about a month, we have something

we can use as a platform that can

evolve with us... rapidly deployable,

works on different devices, highly

configurable..."

If It Isn’t a Faster Path to Success… …Who Cares What It’s Called?

Enterprise

Cloud Computing

Fast Innovative Open Easy Trusted

No Hardware

No Software

Faster ROI

Flexible

Drama-Free

Upgrades

Continuous

Improvement

Any Device

API First

Data Portability

Secure

Transparent

Performance

at Scale

Subscription Model

Real-time

Customizations

AppExchange

Tunnel Vision

“Our customers don’t ask for that”

Petrification

“That’s not our business model”

Cowboys, Googlephiles & Pirates*

No boundaries, no focus, no discipline

Innovation Will Never Be Easy

* blogs.hbr.org/2012/04/the-four-worst-innovation-assa/

Opportunity to offer ideas

Feedback: ideas seen to be considered

Implementation: visible effect of input

Attribution: coin of reputation economy

Forging the Chain of Co-Creation

Opportunity Ascendant

Communities turn fickle

customers into loyal fans

Collaboration wins the

war for talent

Connected products

replace guesswork with data-driven insights

Connect...in Every New Way

SNA

Terminal

Mainframe LAN / WAN

Client

Server

LAN / WAN

Client

Server

Thousands value-add moments

connected things Billions Trillions

LTE

Mobile

Cloud

Millions

Wearable

Thank you Peter Coffee

VP for Strategic Research [email protected]

@petercoffee

in/petercoffee

Creative Commons Attribution-NoDerivatives 4.0 International

unleash innovation on the customer success platform

Technology