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M A S005 Wildt 091807

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Full session information and video available on successforce.com.

Full session information and video available on successforce.com.

Published in Economy & Finance , Business
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  • 1. Extreme Measurement: Proving Marketing’s Return Marketing II Mikel Chertudi, Omniture Chad Sollis, Omniture Todd Barr, Red Hat
  • 2. Safe Harbor Statement “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements including but not limited to statements regarding our expected future revenue, GAAP diluted earnings per share, expected tax rate, anticipated shares outstanding,and concerning the potential market for our existing service 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, including our Form 10-K for the fiscal year ended January 31, 2007. 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. “When marketing tries to define its impact on the business only in terms of leads generated, it sells itself short.”
  • 4. Table of Contents  WHY Closed Loop Measurement  HOW Closed Loop Marketing Works  WHAT – Red Hat: A Deeper Showcase of the Solution
  • 5. Mikel Chertudi Senior Director, Demand Marketing mchertudi@omniture.com
  • 6. Omniture is a leading provider of online business optimization software • INDUSTRY: High Tech, Online Marketing • EMPLOYEES: 550 • GEOGRAPHY: Global • # USERS: 2500 Companies • PRODUCT(S) USED: •Discover •SiteCatalyst (real-time segmentation & site analysis) (campaign analytics) •TouchClarity •Genesis (behavioral targeting) (marketing application integration) •SearchCenter •Offermatica (search marketing) (A/B & multivariate testing)
  • 7. WHY Closed Loop Measurement
  • 8. Key Marketing Challenges for B2B Companies 1. Measure marketing’s contribution to sales beyond the lead 3. Optimize campaign results (online and offline) based on sales metrics beyond the lead 5. Justify and align marketing budgets with sales based on pipeline commitments beyond the lead
  • 9. Scope of the Issue “According to the Direct Marketing Association, North American B2B companies spend $77B on marketing programs and campaigns annually with no real idea on how it affects sales.”
  • 10. “The metrics that most B2B marketers say they use — like number of leads generated, cost per lead, …” — rank in the lower half of the effectiveness list.” Forrester Research Redefining B2B Marketing Measurement August 10, 2007 Laura Ramos
  • 11. Marketers Relying on Misleading Metrics
  • 12. Which Are the Right Metrics?
  • 13. When is lead measurement not sufficient? DMA Direct Marketing Rule – Campaign Success  Offer – 40% Lead • product tours, white papers • Webinars, software trials  Audience/List – 40% Lead • keywords, banners, email publishers • in-house list segments  Creative 20% Lead • layout, imagery • calls to action
  • 14. Offer Testing Example: Measuring Beyond Leads Guide Webinar
  • 15. Web to Lead Conversion Guide converted 42% more leads Guide 27% 19% Webinar
  • 16. But, Webinar Converted Better in the Pipeline 2.42% Webinar Guide 0.95% •155% better conversion from lead to sales-ready opportunity •80% better close ratio from opportunity to deal •2X average selling price
  • 17. Form Layout Testing Example Lead
  • 18. Still Struggling to Connect Marketing’s Efforts “…only 17% (of marketers) say … that (they) link marketing effectiveness with longer-term business impact — like revenue earned per marketing dollar spent (ROI) and increases in lifetime customer value…” Forrester Research Redefining B2B Marketing Measurement August 10, 2007 Laura Ramos
  • 19. More than 60% of B2B Marketers don’t think their measurement technology is up to snuff
  • 20. Previous Approaches are Problematic 1st Attempt: On Premise Enterprise Applications • Expensive and not on-demand (many hardware requirements) • Complex, not designed for marketers • No standard methodologies for multi-campaign measurement 2nd Attempt: On Demand Business Intelligence Layered On Top • More expense - needs additional technologies (ETL, reporting, data marts) • Complex, much room for error - not designed for marketers • No standard methodologies for multi-campaign measurement
  • 21. Why hasn’t the Marketing Loop been closed? Lead 1: Lead 2: Account: ACME Contact 1: Contact 2:
  • 22. Getting Closed Loop Marketing Right • Designed for Marketers by Marketers • Measure Beyond the Lead • Pre-integrated with Salesforce to provide a Single View • No additional data marts or other technology components needed • 100% multi-tenant, on demand application
  • 23. HOW Closed Loop Marketing Works
  • 24. Chad Sollis Director of Interactive Marketing csollis@omniture.com
  • 25. How it works: Differentiating Technology •Designed by Marketers for Marketers •Completely Automated •Patent Pending Attribution Methodology •Multiple External Source Allocation •First •Last •Sales Selected •Multiple Campaign Stage Allocation •External •Conversion •Re-touch (or Remarketing)
  • 26. How it works: Simple Example Lead 1: Account: ACME Contact 1:
  • 27. First Touch: How it works: Simple Example Determines which campaign originated the account. Organize Campaigns Lead 1: by Date Campaign A (11/30/06) Campaign B (1/1/07) Campaign A (11/30/06) Account: Campaign B (1/1/07) Opportunity 1: ACME New Customer Campaign C (3/1/07) Contact 1: Sales Selected: Campaign G (5/5/07) Campaign Z Campaign C (3/1/07) Campaign G (5/5/07) Last Touch: Sales Selected: Lead Determines which campaign Subjective Campaign influenced the current selected by the Sales Contact opportunity creation Representative (a formally converted lead)
  • 28. How it works: Complex Example Lead 1: Lead 2: Account: ACME Contact 1: Contact 2:
  • 29. First Touch: How it works: Complex Example Determines which campaign originated the account. Lead 1: Organize Campaigns Campaign A (11/30/06) by Date Campaign B (1/1/07) Campaign A (11/30/06) Lead 2: Opportunity 1: New Customer Campaign F (4/1/07) Campaign B (1/1/07) Sales Selected: Campaign F (4/1/07) Campaign Z Account: Contact 1: ACME Campaign G (5/5/07) Opportunity 2: Campaign G (5/5/07) Cross-Sell Campaign E (6/3/07) Sales Selected: Campaign Y Contact 2: Campaign E (6/3/07) Last Touch: Sales Selected: Lead Determines which campaign Subjective Campaign influenced the current selected by the Sales Contact opportunity creation Representative (a formally converted lead)
  • 30. Campaign Sequence Allocation Eliminates the overriding of the different campaign types at critical junctures in the marketing sales process Direct Mail Email Nuturing External Campaign ID Conversion Campaign ID ReTouch Campaign ID
  • 31. How it Works: Creating a Campaign  Create a campaign within Salesforce Campaign ID is used as the common element across both applications
  • 32. Classification Template Example
  • 33. Classification Drilling Example Media Source Channel Tactic Promotion Profile Classification •Title •Industry •Gender •State •Country
  • 34. How it Works: Capturing Leads  Leads from campaigns are captured in real-time  Leads automatically de-duped prior to submission Real-time integration between Omniture and Salesforce through Salesforce API for multi- campaign allocation
  • 35. WHAT– Red Hat: A Deeper Showcase of Closed Loop Marketing
  • 36. Todd Barr Sr. Director Customer & Partner Marketing tbarr@redhat.com
  • 37. All About Red Hat Red Hat is the global leader in bringing open source solutions to the enterprise. Red Hat adds 10,000 customers per quarter for its Enterprise Linux and JBoss Enterprise Middleware subscriptions. It has sales operations throughout the globa, and sells direct to customers online and through multi-tiered channel and OEM partners, such as Dell, HP, IBM and Fujitsu. • INDUSTRY: Information Technology/Software • EMPLOYEES: 2,000+ • GEOGRAPHY: Global • # USERS OF SF.COM: 500+ • PRODUCT(S) USED: SFA, Service & Support, AppExchange
  • 38. Which Half of My Marketing Works? “I know that half of my advertising budget is completely wasted, I’m just not sure which half.” Lord Leverhulme, Founder of Unilever
  • 39. Red Hat – Key Challenges  Business Challenges • Inability to report on marketing’s contribution to opportunities, closed deals, and sales • Lack of campaign measurement beyond leads • Anecdotal mis-alignment between sales and marketing • Marketing not see as relevant to sales; sales not following-up • More demand than capacity to fulfill demand (good problem!)  Technology/Process Challenges • Multiple lead capture systems globally – but no controls • Lead capture (website) integration from acquisitions The Vision: “No Lead Left Behind”
  • 40. Closed Loop for Salesforce.com Measuring Beyond the Lead  Measure Marketing’s Contribution to the Sales Pipeline  Sales-ready opportunities, closed deals, sales  Enable marketing commitment to the sales pipeline  Optimize Multi-Channel Campaigns  Side-by-side offer analysis (i.e. on-demand webinar vs. white paper)  Side-by-side channel analysis (i.e. tradeshows vs. paid search)  End-to-end campaign analysis (from ad impression or in- person POC to closed deal)  Justify Marketing Budgets  Use key metrics (cost per opportunity/customer and model to determine budget needs)
  • 41. Close the loop from Ad Impression to Closed Deal Measure marketing’s contribution
  • 42. Measure Marketing’s Contribution To Pipeline % of Sales % of Opportunities % of Deals
  • 43. Enable Marketing Pipeline Commitment Build variance reports to show actual performance vs. goals
  • 44. Side by Side Offer Analysis  Quickly modify campaign promotion based on deeper conversion metrics Opportunity Conversion by Offer Type (Webinar vs. White Paper)
  • 45. Side by Side Offer Reports Do white papers convert to leads better? But do case studies convert from leads to opportunities better?
  • 46. Side by Side Channel Analysis Campaign Return on Investment Show Actions and Metrics Correlate ROI across all campaign types, both online and offline Flexible campaign sourcing allowing users to choose between three options
  • 47. Side by Side Channel Analysis Campaign Productivity by Lead Conversion Quality Show Actions and Metrics Rank campaigns by number of leads, lead conversion rate, opportunity close rate
  • 48. Side by Side Campaign Tactic & Source Analysis Campaign productivity by Time-to-Close
  • 49. Side by Side Campaign Tactic & Source Analysis Campaign productivity by Largest Deal Size
  • 50. Questions? Also, Enter to Win an HP Laptop – drop by your business card