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Mastering The Direct Sales Model
     AppExchange Partner Program

Lauren Vaccarello,               Scott Keane,           Mike Wolff,
Sr. Director, Online Marketing   VP Sales Development   AVP, Commercial Sales, ESB
   @laurenv                         @scottckeane           @mike_wolff
Safe harbor
 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 intellectual property and other litigation, risks associated with
 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-Q for the most recent fiscal quarter ended July 31, 2012. This 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.
>500,000 Inbound
Marketing Responses
      Handled
>100,000 Opportunities
       Created
>$1.5B in Global
Pipeline This Year
The Direct Sales Machine
                              Sales
                           Development

                  Online
                                         Sales
                 Marketing
Step 1: Online Marketing




                  Online
                 Marketing
Remember Who You Are
Online Marketing Fundamentals

 1.  Online Marketing at Salesforce
 2.  Measuring Success
 3.  Driving and Converting Leads
 4.  Working with Sales
Online Marketing at Salesforce




       SEO                  Display/Retargeting        SEM
                  Email




Web Analytics   Testing   Video Advertising       Social Advertising
How Do We Measure Success?




  Leads          Pipeline    ACV
What Should Your Metrics Be?
How Do You Make Money?




                    OR
Integrating Paid Search with Salesforce
 Unique CRM            A

  Tracking ID   A

SEM Campaign
  Structure     B
                       B


  Offline
 Conversion     C      C
    Data

   Sales
 Enablement     D      D
How Data Integration Will Work
Automate As Much As Possible




            BID MGMT TOOL
            Keyword A

            Keyword B

            Keyword C

            Keyword D
Intro to Web Analytics and Testing
A/B (or A/B/N) Testing
Testing method where a control experience or web page element is compared to one or more sample experiences or elements in
order to improve conversion rate or other performance metrics.
AKA: Split testing, bucket testing


Landing Pages                                                Images




                    VS                                                                        VS



                                       whichtestwon.co                          quora.com/A-B-
                                       m                                        Testing
Test Design
 Hypothesis
 Removing Form requirements for Demo Video views will decrease
 form completions, but increase lead quality and generate a lift in
 Leads, Opportunities and Pipeline.

 Test Population
 •  Prospects only
 Test Duration
 •  4 tests, spread over a 10 month period
 Criteria for Winning
 •  Opportunities and Pipeline
Winner
Form Completions

Website Leads

Opportunities

Pipeline
Make Smarter Decisions in Record Time
Create Sales & Marketing Success
How We Work With Sales




Clear Communications   Regular Calls   Shared
   About Marketing                      Goals
Wrapping It All Up

                     1.  Align your marketing goals with
                         what drives the business
                     2.  Always be testing
                     3.  Work together with sales to
                         maximize success
Thank You!

             Lauren Vaccarello
             Sr. Director, Online Marketing
             lvaccarello@salesforce.com
             @LaurenV
Scott Keane
VP, Sales Development
  @scottckeane
Step 2: Sales Development
                               Sales
                            Development
Sales Development at Salesforce.com: Two Roles

     Enterprise Business Rep (EBR)           Sales Representative (SR)


   Aligned with Account Executives     Handle inbound leads


   Generate net new opportunities      Qualify opportunities


   Training ground for future Aes      Face of salesforce.com


   Maximize what is in Salesforce      Training ground for future EBRs




                                                                           34
~170 SRs will follow up on over 300,000 leads this year
                                         Sales Representatives




      Lead Drivers                         Account Executives
          Online Marketing
          Email
          3rd Party Lead Gen Programs
          1-800-NO-SOFTWARE
      Offers
          Free Trial / Demo / Events

                                                                 35
“First Face to the Customer” Drives Our SR Model
 24 hour turn-around SLA on leads
 Create a lead for every response & first SR to
 “touch” (reach out to) a prospect owns the lead
 Five to ten activities before archiving
 Lead Statuses used to manage interactions
   Open – Working – Converted or Archived

 Once Archived, the lead continues to be touched through
 the Marketing Nurture drip campaign



                                                           36
Rules of Engagement (ROE) Are SR Law               KEY INFO!



If existing Opportunity, pass to AE

If AE “touch” last 30 days, pass to AE

If EBR “touch” last 90 days, pass to EBR

If SR “touch” last 30 days, pass to SR

                      If none of the above apply
                      WORK THE LEAD
                                                               37
SRs are “Politely Persistent” in their Follow-up
    Day 1               Day 3             Day 10               Day 17                Day 24                Day 30+
     Email &              Email &            Email &              Email &              Email &
                                                                                                            Marketing
     Phone                Phone              Phone                Phone                Phone
                                                                                                             Nurture
      Call                 Call               Call                 Call                 Call

- Thank you for      -  Voicemail       -  Voicemail        -  Voicemail          -  Voicemail          -  Voicemail
your interest        follow-up          follow-up           follow-up             follow-up             follow-up

- Initial point of   -  When should     - What is a         - Provide a           - Are you still       - Assume that
contact to           we connect for a   convenient time     specific time for a   evaluating?           you are no
understand your      call?              to discuss          call                                        longer
business                                possible cost                             - Don’t want to       evaluating our
                                        effective ways to   - Unsure if we can    disturb you or fill   services
- Attempt to                            utilize our         do business;          up your inbox
arrange call                            service?            would like to         unnecessarily         - If still
                                                            discuss if our                              interested, let
                                                            service is in-line                          me know
                                                            with your business
                                                            needs.
Our Ultimate Deliverables – Quality Pipe and Revenue




                                                       39
Mike Wolff
AVP, Commercial Sales, ESB
  @mike_wolff
Step 3: Sales Success




                        Sales
Keys for Direct Sales Success
 Small Business is BIG Business
 Hire the best
 Build a #EFFORT Mindset
 Prepare for Success
 Own the Sales Process
 Real Time…All the Time
 Drive Consistent Change



                                  42
Small Business is BIG Business
 95 Account Executives/10 teams

 36,000 opportunities                    ENTERPRISE



 Checkers vs. Chess - $$$ to $$$,$$$
                                         MID-MARKET

 Geography focused

 First revenue producing AE role
                                       SMALL BUSINESS


 95% Phone and GoToMeeting Based


                                                        43
We Want You!
Consultative Sales Skills

Strategic Thinkers

Genuine Curiosity

Competitive/Collaborative

Continuous Learners

Work Ethic



                            44
Between the Ears - #EFFORT
 Proactive
 Team Oriented
 First In and Last Out
 Positive and Solution Oriented
 Resourceful
 Attention to Detail
 Strategic
 Goal Focused
 Sense of Urgency
 NO Regrets




                                  45
Prepare for Success

              Teach



Document                    Model




      Coach           Try




                                    46
Own the Sales Process
                             SELF                       F/U ON
                             EVAL                       ACTION
                                                         ITEMS



LEAD      INTRO                                                           CLOSE




                  DISCO             PROOF       NEXT STEPS       NEG




  1           2                3            4                5          6
OMITTED           PIPELINE                       BEST CASE             COMMIT
Checkers vs. Chess




Transactional                      Strategic
-Consumer vs. Business             -Business Evaluation
-Website test                      -Value technology
-Buyer’s Role                      -Company priority
-Lack of business justification    -Build business case
-Willingness to buy into process   -Buy into process



                                                          48
Real Time…All the Time




                         49
The Only Constant is Change


 Monthly Ops Reviews

 Weekly 1:1s

 Break things before they break you

 Over Communicate




                                      50
Direct Sales Success Lessons Learned

 Hire the best

 Build a #EFFORT Mindset

 Prepare for Success

 Own the Sales Process

 Real Time…All the Time

 Drive Consistent Change



                                       51
Lauren Vaccarrello                  Scott Keane               Mike Wolff
Sr. Director, Online Marketing   VP, Sales Development   AVP, Commercial Sales-ESB
          @Laurenv                    @scottkeane               @Mike_wolff
A Few Reminders. . .
Why Work With a PDO                                Partner Success Experts
                                                   Innovation Theater and Lounge
                                                   1:1 Success Clinics
                                                   Innovation Theater and Lounge
                                                   Need to relax? Have a massage!


                                     Check out the Partner Hub




                                              540 Howard Street
Survey (Session Record)             Cloud Crawl (Thursday Night)

                  Follow us on Twitter @partnerforce
Partner Hub – Speaker Debrief
Why Work With a PDO

 Partner
 Success
  Clinics




                          Welcome Desk
                                         Speaker
                                         Debrief
                                          Area
SR Team Managers Drive Behaviors with Dashboards




                                                   55
We Use Dashboards to Manage Accountability




                                             56
SR Success – People, Process, Accountability
       Recruiting and Training: Find the right people and invest in their success


       Rules of Engagement: The Law that rules “SR Nation”


       Process: Focus on the right leads, efficient and prioritized follow-up


       Layered Questions: Tell me more about that …


       Measured Accountability: Dashboard-driven culture


       Co-opetition: Stack-ranked, be a good teammate, share best practices




                                                                                    57
SRs Use Lead Status Values to Manage Leads

               Is a “Lead”                 Not a “Lead”
  Open                         Bad Data
  Working                      Personal Interest
  Archived – No Interest       Partner Interest
  Archived – Future Interest
                               Existing Contact – Current Oppty
  EBR Lead
                               Existing Contact – Recent Activity
  Qualified – 1-14
                               Existing Contact – No Opportunity
  Qualified – 15-50
  Qualified – >50



                                                                    58
SR Success Begins with Investment in Human Capital




    Recruiting          Onboarding         Coaching/Training

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Mastering the Direct Sales Model for ISVs - Dreamforce 2012 - 9/20

  • 1. Mastering The Direct Sales Model AppExchange Partner Program Lauren Vaccarello, Scott Keane, Mike Wolff, Sr. Director, Online Marketing VP Sales Development AVP, Commercial Sales, ESB @laurenv @scottckeane @mike_wolff
  • 2. Safe harbor 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 intellectual property and other litigation, risks associated with 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-Q for the most recent fiscal quarter ended July 31, 2012. This 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.
  • 6. The Direct Sales Machine Sales Development Online Sales Marketing
  • 7. Step 1: Online Marketing Online Marketing
  • 9. Online Marketing Fundamentals 1.  Online Marketing at Salesforce 2.  Measuring Success 3.  Driving and Converting Leads 4.  Working with Sales
  • 10. Online Marketing at Salesforce SEO Display/Retargeting SEM Email Web Analytics Testing Video Advertising Social Advertising
  • 11. How Do We Measure Success? Leads Pipeline ACV
  • 12.
  • 13.
  • 14.
  • 15. What Should Your Metrics Be?
  • 16. How Do You Make Money? OR
  • 17.
  • 18. Integrating Paid Search with Salesforce Unique CRM A Tracking ID A SEM Campaign Structure B B Offline Conversion C C Data Sales Enablement D D
  • 19. How Data Integration Will Work
  • 20. Automate As Much As Possible BID MGMT TOOL Keyword A Keyword B Keyword C Keyword D
  • 21. Intro to Web Analytics and Testing
  • 22. A/B (or A/B/N) Testing Testing method where a control experience or web page element is compared to one or more sample experiences or elements in order to improve conversion rate or other performance metrics. AKA: Split testing, bucket testing Landing Pages Images VS VS whichtestwon.co quora.com/A-B- m Testing
  • 23. Test Design Hypothesis Removing Form requirements for Demo Video views will decrease form completions, but increase lead quality and generate a lift in Leads, Opportunities and Pipeline. Test Population •  Prospects only Test Duration •  4 tests, spread over a 10 month period Criteria for Winning •  Opportunities and Pipeline
  • 24.
  • 27. Make Smarter Decisions in Record Time
  • 28. Create Sales & Marketing Success
  • 29. How We Work With Sales Clear Communications Regular Calls Shared About Marketing Goals
  • 30. Wrapping It All Up 1.  Align your marketing goals with what drives the business 2.  Always be testing 3.  Work together with sales to maximize success
  • 31. Thank You! Lauren Vaccarello Sr. Director, Online Marketing lvaccarello@salesforce.com @LaurenV
  • 32. Scott Keane VP, Sales Development @scottckeane
  • 33. Step 2: Sales Development Sales Development
  • 34. Sales Development at Salesforce.com: Two Roles Enterprise Business Rep (EBR) Sales Representative (SR)   Aligned with Account Executives   Handle inbound leads   Generate net new opportunities   Qualify opportunities   Training ground for future Aes   Face of salesforce.com   Maximize what is in Salesforce   Training ground for future EBRs 34
  • 35. ~170 SRs will follow up on over 300,000 leads this year Sales Representatives Lead Drivers Account Executives   Online Marketing   Email   3rd Party Lead Gen Programs   1-800-NO-SOFTWARE Offers   Free Trial / Demo / Events 35
  • 36. “First Face to the Customer” Drives Our SR Model 24 hour turn-around SLA on leads Create a lead for every response & first SR to “touch” (reach out to) a prospect owns the lead Five to ten activities before archiving Lead Statuses used to manage interactions Open – Working – Converted or Archived Once Archived, the lead continues to be touched through the Marketing Nurture drip campaign 36
  • 37. Rules of Engagement (ROE) Are SR Law KEY INFO! If existing Opportunity, pass to AE If AE “touch” last 30 days, pass to AE If EBR “touch” last 90 days, pass to EBR If SR “touch” last 30 days, pass to SR If none of the above apply WORK THE LEAD 37
  • 38. SRs are “Politely Persistent” in their Follow-up Day 1 Day 3 Day 10 Day 17 Day 24 Day 30+ Email & Email & Email & Email & Email & Marketing Phone Phone Phone Phone Phone Nurture Call Call Call Call Call - Thank you for -  Voicemail -  Voicemail -  Voicemail -  Voicemail -  Voicemail your interest follow-up follow-up follow-up follow-up follow-up - Initial point of -  When should - What is a - Provide a - Are you still - Assume that contact to we connect for a convenient time specific time for a evaluating? you are no understand your call? to discuss call longer business possible cost - Don’t want to evaluating our effective ways to - Unsure if we can disturb you or fill services - Attempt to utilize our do business; up your inbox arrange call service? would like to unnecessarily - If still discuss if our interested, let service is in-line me know with your business needs.
  • 39. Our Ultimate Deliverables – Quality Pipe and Revenue 39
  • 40. Mike Wolff AVP, Commercial Sales, ESB @mike_wolff
  • 41. Step 3: Sales Success Sales
  • 42. Keys for Direct Sales Success Small Business is BIG Business Hire the best Build a #EFFORT Mindset Prepare for Success Own the Sales Process Real Time…All the Time Drive Consistent Change 42
  • 43. Small Business is BIG Business 95 Account Executives/10 teams 36,000 opportunities ENTERPRISE Checkers vs. Chess - $$$ to $$$,$$$ MID-MARKET Geography focused First revenue producing AE role SMALL BUSINESS 95% Phone and GoToMeeting Based 43
  • 44. We Want You! Consultative Sales Skills Strategic Thinkers Genuine Curiosity Competitive/Collaborative Continuous Learners Work Ethic 44
  • 45. Between the Ears - #EFFORT Proactive Team Oriented First In and Last Out Positive and Solution Oriented Resourceful Attention to Detail Strategic Goal Focused Sense of Urgency NO Regrets 45
  • 46. Prepare for Success Teach Document Model Coach Try 46
  • 47. Own the Sales Process SELF F/U ON EVAL ACTION ITEMS LEAD INTRO CLOSE DISCO PROOF NEXT STEPS NEG 1 2 3 4 5 6 OMITTED PIPELINE BEST CASE COMMIT
  • 48. Checkers vs. Chess Transactional Strategic -Consumer vs. Business -Business Evaluation -Website test -Value technology -Buyer’s Role -Company priority -Lack of business justification -Build business case -Willingness to buy into process -Buy into process 48
  • 50. The Only Constant is Change Monthly Ops Reviews Weekly 1:1s Break things before they break you Over Communicate 50
  • 51. Direct Sales Success Lessons Learned Hire the best Build a #EFFORT Mindset Prepare for Success Own the Sales Process Real Time…All the Time Drive Consistent Change 51
  • 52. Lauren Vaccarrello Scott Keane Mike Wolff Sr. Director, Online Marketing VP, Sales Development AVP, Commercial Sales-ESB @Laurenv @scottkeane @Mike_wolff
  • 53. A Few Reminders. . . Why Work With a PDO Partner Success Experts Innovation Theater and Lounge 1:1 Success Clinics Innovation Theater and Lounge Need to relax? Have a massage! Check out the Partner Hub 540 Howard Street Survey (Session Record) Cloud Crawl (Thursday Night) Follow us on Twitter @partnerforce
  • 54. Partner Hub – Speaker Debrief Why Work With a PDO Partner Success Clinics Welcome Desk Speaker Debrief Area
  • 55. SR Team Managers Drive Behaviors with Dashboards 55
  • 56. We Use Dashboards to Manage Accountability 56
  • 57. SR Success – People, Process, Accountability Recruiting and Training: Find the right people and invest in their success Rules of Engagement: The Law that rules “SR Nation” Process: Focus on the right leads, efficient and prioritized follow-up Layered Questions: Tell me more about that … Measured Accountability: Dashboard-driven culture Co-opetition: Stack-ranked, be a good teammate, share best practices 57
  • 58. SRs Use Lead Status Values to Manage Leads Is a “Lead” Not a “Lead” Open Bad Data Working Personal Interest Archived – No Interest Partner Interest Archived – Future Interest Existing Contact – Current Oppty EBR Lead Existing Contact – Recent Activity Qualified – 1-14 Existing Contact – No Opportunity Qualified – 15-50 Qualified – >50 58
  • 59. SR Success Begins with Investment in Human Capital Recruiting Onboarding Coaching/Training