presented at TrueConnection: Sales Performance Management 2007 by Jim Steele, President of Worldwide Sales and Distribution at Salesforce.com

1. Reaping the Benefits of SaaS and Sales Performance Management Jim Steele President salesforce.com

3. Our Inspiration: The Consumer Web

4. Salesforce.com’s Mission: On-Demand Innovation Driver, Catalyst, and Evangelist On-Demand 21 st Century Platforms Client/Server Late 20 th Century Platforms Mainframe Mid 20 th Century Platforms

5. On-Demand Model: Multi-Tenant, Subscriptions New Business Model: Pay as You Succeed Multi-Tenancy Faster Vendor Innovation Rapid Scalability Automatic Upgrades New Technology Model: Software as a Service Subscription Model Mutual Success

6. Strong Momentum for SaaS 31% Growth (CAGR) for On-Demand CRM 61% Growth In Enterprise Adoption 25% Penetration of $220 Billion Software Industry by 2011

8. Why are so many companies having Success with Salesforce and SaaS ?

9. A Full Suite of Award-Winning Applications Technology of the Year Top 100 Innovative Companies Top Ten Disruptors of 2006 Best CRM & On-Demand Platform Leader & Visionary Market Leader Enterprise CRM Top 10 Entrepreneurs & Cool Company CRM Leader & Visionary

10. The World’s Largest On-Demand CRM Deployments Run Salesforce.com ~5,000 ~4,200 ~2,500 ~2,600 ~2,600 ~4,000 ~20,000 ~40,000 ~30,000 ~25,000 45,000 ~5,500 ~2,000 ~1,800 ~1,500

11. SaaS and Multi-Tenancy Serve Companies of All Sizes ENTERPRISE MID-MARKET SMALL BUSINESS

12. Highest Adoption in the Industry Easy to Manage by Business Admins Easy to Use like the Consumer Web Complete Visibility for Executives Language

13. Complete Visibility for Your Business Made for Business Users Create Reports in Real-Time Design Analytics Mash-ups

14. Customize Anything in Salesforce with Force.com Add Custom Data Fields Integrate with Anything Design Your Own Interface Create Your Own Business Rules Every Customization Automatically Upgrades

15. Continuous Innovation – 23 Major Releases in 8 Years On Average Over 100 New Features Per Release All Customizations Upgraded Automatically

16. Force.com: Global, Trusted, Secure Infrastructure 100M+ Transactions Daily Average Speed 225 ms 900,000+ Users $100 Million Investment in Mirrored Data Centers 15 Languages All Major Currencies SAS 70, SysTrust Certified

17. Driving Revenue Growth & Sales Success Effective Selling Process Optimize Lead Management Complete Visibility Improve Sales Rep Productivity

18. Extend SFA with the AppExchange 700+ Apps 34,200 Apps Installed 245,000 Test Drives 355 Total ISVs 24 Japanese ISVs Pre-integrated Applications View, Try, Install Build on Force.com CRM & Non-CRM Apps

19. Our Goal: Help Companies Manage all Business Information On Demand You should not have to… Manage Hardware Upgrade Software Wait for Changes Tune Databases Manage Disaster Recovery You should be able to easily… Gain Visibility Drive Adoption Customize & Integrate Change INNOVATE!

20. Salesforce and SPM are a powerful combination

21. Success with Salesforce SFA and Callidus SPM As a customer of both Callidus Software and salesforce.com, we are pleased that the two solutions are becoming more fully integrated. With this integration, our sales representatives and sales executives will be able to view strategic sales force automation and sales performance management information together. “ ” Align Incentives Match Compensation with Corporate Objectives and Sales Methodologies Gain Visibility Compare Individual and Team Performance Improve Productivity Increase Rep Confidence with Accurate Pay for Performance PLM Software Division

22. Access Callidus SPM through Salesforce from AppExchange

23. How do we use Salesforce and SPM at salesforce.com?

24. Analytics in Decision-Making

25. Metrics Drive Action Levers Lead generation Territory & segmentation Training & methodology Competitive positioning Compensation Sales automation Goals Revenue EPS Market share Metrics Close Rate Pipeline $ Competitive Wins Lead Conversion

27. Secret to Our Success: Know the Funnel “ 12 quarter year” and dedicated prospectors “ Shiny objects” and free trials “ Seed & grow” offers Rep skill match Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell CSMs

28. Part 1: The Leads are No Good Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How much pipeline do you need? How can you assess the quality of leads?

29. Target and Decide How Much You Need From Each Source Which in turn drives how much demand you need to generate $ Closed Business Target Pipeline Required from Each Source Leads Required from Each Source Close Rate Conversion Rate Telemarketing/ telesales Look at cost - effectiveness by source to determine resource allocation Marketing Alliances Sales

30. How Do You Look At Demand Generation Mix? View across channels and offers to assess where to spend efforts Lead type Lead Offer Lead source Lead Conversion: Assess lead quality and resulting “pipeline-to-spend” ratios

31. Marketing Campaigns Are Managed to Assess Pipeline Success Total Pipeline Generated by Campaigns # of Leads Generated Top Opportunities by Pipeline Value # of Opportunities Generated Leads and Opptys by Week and Month Current Lead Follow-up Status

32. Part 2: We’re Not Closing Enough Business Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How do you measure sales effectiveness ? How do you track competitors ?

34. Driving Sales Effectiveness # Calls # Appointments # Opportunities Forecasting Pipeline Analysis Territory Analysis Activity Management Pipeline Dollars by Stage Market Penetration Revenue Projections Drill Down to Individual Performance

36. Track Competitive Win Rates

37. Part 3: The Territories Aren’t Right Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How do you optimize territories? How do you fit skills to territories?

39. Using Propensity to Spend to Design Territories Historical Revenue Propensity to Buy Propensity to Spend Territory Score (dollars) (close rate) (ASP, TCV) 240 380 60 680

40. Section 4: Customer Loyalty Analysis Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How do you determine which customers are about to leave? How do you determine customers likely to buy more/ upgrade?

41. Keeping and Growing Customers Analyze Subscriber Usage Analyze Product Usage Identify Cross Sell / Up Sell Opportunities Identify Customers At-risk

43. Thank You Questions? Jim Steele President salesforce.com