Speech of Success Room at Essentials Madrid 2015 that took place on April 28th at Centro de Convenciones IFEMA Puerta Norte

1. Best practice:
Salesforce.com
Arsenio Otero
VP Sales Strategy & Operations
@arseotero
Ricardo Gundin
Sr. Analyst, Sales Strategy

2. 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

3. 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

4. $16.9B

5. $16.9B
2014 CRM and AppDev Market for Europe
Source: Gartner Enterprise Software Markets Forecast WW 2010 to 2017 Q3 2013 Update.

6. ~150,000

7. Number of accounts in Europe
in our instance of Salesforce.com
~150,000

8. Just Another Operational Problem?

9. Sub-Optimal
Market Coverage
Leaky Talent Bucket
Impaired
Performance Visibility
What Happens if You Get it Wrong?
Material $$ Impact to Your Business

10. Product + GTM + Rigor + Enablement = Growth
SalesEnablement:DeliverExcellence
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

11. Product + GTM + Rigor + Enablement = Growth
SalesEnablement:DeliverExcellence
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

12. GTM #1: Segment the Market
​ How segmenting the opportunity creates focus
Segment
# Companies
$Opportunity
Sales teams naturally focus on the
most concentrated opportunity
Big Investment… Big ROI
But, most of the
opportunity is left
untapped

13. GTM #1: Segment the Market
​ How segmenting the opportunity creates focus
# Companies
$Opportunity
Segmenting differentiates investments in
teams, products and channel to create focus
and accelerate revenue
Segment

14. ​ 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

15. 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

16. 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

17. # 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

18. 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
SegmentRevenue
# of Sales People
Spreading territory
potential evenly across
sales people actually
increases revenue!
Revenue Potential
Revenue Performance
Balance

19. ​ 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

20. 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

21. • # 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

22. 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

23. 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
• FromAE to Manager
• Chatter Recognition
• Contests & SPIFFs
TRAIN PROMOTE CELEBRATE
Hire

24. Product + GTM + Rigor + Enablement = Growth
SalesEnablement:DeliverExcellence
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

25. 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

26. 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

27. 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

28. 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

29. Product + GTM + Rigor + Enablement = Growth
SalesEnablement:DeliverExcellence
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

30. 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
RepsCompany Management

31. Transformation Never Stops
iPad
Powered
Business
is Social
Sales
Process
Social
Collaboration
2009 2010 2011 2013
Drive Skills & Product
Learning
2012

32. 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 CoachingFundamentals Week 1 – 8
Ready for Customers
Boot Camp (Week 3) Months 3 - 6Pre-work (Week 1&2)
Level 1 Onboarding Level 2 Ramping Level 3 Certified Level 4 Mastery
Journey to Success
ProductknowledgeSkillsTraining

33. #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 CoachingFundamentals Week 1 – 8
Ready for Customers
Boot Camp (Week 3) Months 3 - 6Pre-work (Week 1&2)
Level 1 Onboarding Level 2 Ramping Level 3 Certified Level 4 Mastery
Journey to Success
ProductknowledgeSkillsTraining

34. Enablement #1: Why We Use Chatter
• Collaborative
• Productive Faster
• Real-Time
• Contextual
• Speed To Answers
• Many-to-Many
• Searchable “Archive”
On boarding

35. Enablement #1: Chatter Groups On boarding

36. Enablement #1: Onboarding Plans On boarding

37. Enablement #1: Prerequisites for Bootcamp On boarding

38. Enablement #1: Sales Enablement Group
​ Training & 1:1s
Leveraging your
extended teamOrg62 Quiz
Social &
Mobile
Productivity
Opportunities &
Activities
Reports &
Dashboards
Pricing,
Quoting & Legal
On boarding

39. #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 CoachingFundamentals Week 1 – 8
Ready for Customers
Boot Camp (Week 3) Months 3 - 6Pre-work (Week 1&2)
Level 1 Onboarding Level 2 Ramping Level 3 Certified Level 4 Mastery
Journey to Success
ProductknowledgeSkillsTraining
As a manager, this format gave me a first hand view
into my team’s strengths and weaknesses.
– Salesforce Sales Manager

40. 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

41. Enablement #2: Corporate Pitch “Badge” Development

42. Enablement #2: Badge Scoring
COACHING &
GLOBAL
ALIGNMENT
Development

43. Enablement #2: Badging Report & Badging Feedback
Management
Reporting & Dashboards
100%
Transparency
Accountability
Coaching
Opportunity
Development

44. 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 VisionValue SellDiscovery
Development

45. Enablement #3: Reporting/Dashboard Kit Created
for Managers
Dashboard Library
Crowdsourced
Every manager
is trained
Used for coaching
Revenue Performance Pipeline
Forecasting Activity
Tools

46. Enablement #3: Playbooks Tools

47. 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

48. Product + GTM + Rigor + Enablement = Growth
SalesEnablement:DeliverExcellence
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

49. Thank you