The document provides an overview of Xactly, a SaaS sales performance management company. It discusses how Xactly helps companies incentivize the right behaviors through flexible compensation plans, integration with Salesforce, and the ability to easily adjust plans. Case studies show how Xactly helped Salesforce optimize sales behaviors like selling new products, longer contracts, and team selling. Xactly scales to support global enterprises and remains flexible to changing market needs.
Xactly Breakout Track: The Behavioral Power of Incentives
1. Xactly Breakout
Track: The Behavioral Power of Incentives
Christopher W. Cabrera
Founder & CEO, Xactly Corporation
Marisa Massie
Sr. Director, Global Compensation
Salesforce.com
2. 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.
3. ™
Xactly – The Smart Incentives Company
Leader in SaaS sales
performance management
Founded in 2005
Strong domain experience
Managing >$4 billion in
compensation annually Helping companies of all sizes
Incent Right.
“Show me a company’s various compensation
plans, and I’ll show you how its employees
behave.”
- Jack Welch
Former Chairman and CEO, GE
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4. 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
14. The Evolution of a Sales Organization
Phase I Phase II Phase III Phase IV
Start-Up Volume Growth Re-Evaluation Optimization
High Growth
Base Growth
Low Growth
- Growth
• Cash Flow • Get New • Protect Base • New Value
• “Sell or Die” Customers • Price Mgmt Proposition
• Keep • Reduce Costs • New Markets
Customers • Specialization
• New Products
Source: The Alexander Group (AGI)
15. Three Key Levers that Changed Sales Behavior
Selling New Products Contract Length Team Selling
Everyone Wins Longer, but not too long Cross-functional collaboration
Moving these levers
will change behavior !
16. Lever 1: Selling New Product Incentives
GOAL / DESIRED BEHAVIOR APPROACH
We have enabled significant product growth in our
Service Cloud offering by applying:
Incent *every* sales person to sell – Product-SPIFs: Incent on every deal
Service Cloud – Reward team achievement
– Product-specific quotas
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”
17. Lever 2: Team Selling
GOAL / DESIRED BEHAVIOR APPROACH
Drive adoption in subsidiaries with Compensate multiple teams on same deal
mid-to-small company skills to focus
Compensate both large account and mid-
on subsidiaries market teams to incent teamwork.
Encourage cross-functional teamwork
RESULT
-80% of team on target to achieve quota
- Exploring global expansion in next year
18. Lever 3: Key Deal Elements – Contract Length
GOAL / DESIRED BEHAVIOR APPROACH
Xactly has enabled us to easily adjust
incentives for contract length
Incent longer-term contracts by 25%,
but maintain price Incent later years of contract at different rates
RESULT
• Maximize compensation for target contract length
• Discourage 6+ year contracts that come with deep
discounted pricing
19. How does Xactly help us meet these needs?
Integration with salesforce
– Just another tab
Doubled sales team and at 20 countries,
– Daily API of all closed deals added 1 analyst in 2 years
– Drill down capability 99.5% payment accuracy
Flexibility / Ease of Use Fully SOX Compliant for 2 years
– 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
23. Xactly Incent 5.0 for the Enterprise
• 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
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