Marketing I: Building the Funnel Ashish Patel, salesforce.com Scott Thomas, ExactTarget, Inc. Josh Feinberg, VerticalResponse Rasmus Mencke, salesforce.com List Building and Email Marketing

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“ 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.

Agenda Email Marketing Best Practices Scott Thomas , Director of Partnerships, ExactTarget List Building & Performance Metrics Josh Feinberg , VP of Product Management, VerticalResponse Salesforce.com Email Marketing Demo Rasmus Mencke , Senior Product Manager, salesforce.com Q & A

Email Marketing Best Practices

Scott Thomas , Director of Partnerships, ExactTarget

List Building & Performance Metrics

Josh Feinberg , VP of Product Management, VerticalResponse

Salesforce.com Email Marketing Demo

Rasmus Mencke , Senior Product Manager, salesforce.com

Q & A

Scott Thomas Director of Partnerships ExactTarget [email_address]

Email Marketing Best Practices The Basics of Email Creation – A Checklist Examples of What Works in Email Design B2B Example B2C Example Deliverability – What You Need to Know The Reality of the Situation CAN-SPAM Act of 2003 What to Avoid

The Basics of Email Creation – A Checklist

Examples of What Works in Email Design

B2B Example

B2C Example

Deliverability – What You Need to Know

The Reality of the Situation

CAN-SPAM Act of 2003

What to Avoid

The Basics of Email Creation – A Checklist Designing the Email: No Wider Than 600 Pixels Wide Design so Important Content is in Upper Left Hand Corner Remember Your Goal – Drive to a Website or Landing Page Use the All Important Phrase “Learn More” Subject Lines Matter

Designing the Email:

No Wider Than 600 Pixels Wide

Design so Important Content is in Upper Left Hand Corner

Remember Your Goal – Drive to a Website or Landing Page

Use the All Important Phrase “Learn More”

Subject Lines Matter

Tips for More Effective Subject Lines Get their attention! Compel the subscriber to open and read your email. Good: “A Special Offer Just for You” Better: “Receive $5,000 in Services from XYZ Company. ” Use your company or brand name in subject lines. Use shorter subjects lines (35-45 characters). They are more effective. Check click-through statistics from email campaigns or keyword search results on your website before writing a subject line. Use the most popular keywords in your subject line. Test multiple subject lines a day ahead and send the winner.

Get their attention! Compel the subscriber to open and read your email. Good: “A Special Offer Just for You” Better: “Receive $5,000 in Services from XYZ Company. ”

Use your company or brand name in subject lines.

Use shorter subjects lines (35-45 characters). They are more effective.

Check click-through statistics from email campaigns or keyword search results on your website before writing a subject line. Use the most popular keywords in your subject line.

Test multiple subject lines a day ahead and send the winner.

The Basics of Email Creation – A Checklist Designing the Email: No Wider Than 600 Pixels Wide Design so Important Content is in Upper Left Hand Corner Remember Your Goal – Drive to a Website or Landing Page Use the All Important Phrase “Learn More” Subject Lines Matter Don’t Use Images for Headlines, Links, or Call-to-Action Design with the Preview Pane in Mind

Designing the Email:

No Wider Than 600 Pixels Wide

Design so Important Content is in Upper Left Hand Corner

Remember Your Goal – Drive to a Website or Landing Page

Use the All Important Phrase “Learn More”

Subject Lines Matter

Don’t Use Images for Headlines, Links, or Call-to-Action

Design with the Preview Pane in Mind

Design with the Preview Pane in Mind Place key message at top of page in text! Entice an open; Make the “call to action” or newsletter TOC visible in the preview pane Before Redesign After Redesign Expanded Version

Place key message at top of page in text!

Entice an open; Make the “call to action” or newsletter TOC visible in the preview pane

The Basics of Email Creation – A Checklist Designing the Email: No Wider Than 600 Pixels Wide Design so Important Content is in Upper Left Hand Corner Remember Your Goal – Drive to a Website or Landing Page Use the All Important Phrase “Learn More” Subject Lines Matter Don’t Use Images for Headlines, Links, or Call-to-Action Design with the Preview Pane in Mind For the HTML Folks in the Room Avoid Excessive CSS, Javascript, Flash/Quicktime/Windows Media, and Nested Tables

Designing the Email:

No Wider Than 600 Pixels Wide

Design so Important Content is in Upper Left Hand Corner

Remember Your Goal – Drive to a Website or Landing Page

Use the All Important Phrase “Learn More”

Subject Lines Matter

Don’t Use Images for Headlines, Links, or Call-to-Action

Design with the Preview Pane in Mind

For the HTML Folks in the Room

Avoid Excessive CSS, Javascript, Flash/Quicktime/Windows Media, and Nested Tables

Email Marketing Best Practices The Basics of Email Creation – A Checklist Examples of What Works in Email Design B2B Example B2C Example Deliverability – What You Need to Know The Reality of the Situation CAN-SPAM Act of 2003 What to Avoid

The Basics of Email Creation – A Checklist

Examples of What Works in Email Design

B2B Example

B2C Example

Deliverability – What You Need to Know

The Reality of the Situation

CAN-SPAM Act of 2003

What to Avoid

B2B Example - The eMarketer Daily Why this design works Logo is in upper left Text headline (not a graphic) is used for main message or offer. Most important message appears in in upper left quadrant Colors and graphics highlight calls to action Borders, bullet points and numbers draw attention to key points The type font and size are easy to read. A separate text version is created for non-HTML email clients and PDAs

Why this design works

Logo is in upper left

Text headline (not a graphic) is used for main message or offer.

Most important message appears in in upper left quadrant

Colors and graphics highlight calls to action

Borders, bullet points and numbers draw attention to key points

The type font and size are easy to read.

A separate text version is created for non-HTML email clients and PDAs

B2C Example - Home Depot Online Why this design works Exclusivity communicated in the subject line Limited time offer creates sense of urgency, compels action Monetary benefit highlighted Shows variety in product offerings Provides multiple links with opportunities to convert

Why this design works

Exclusivity communicated in the subject line

Limited time offer creates sense of urgency, compels action

Monetary benefit highlighted

Shows variety in product offerings

Provides multiple links with opportunities to convert

Email Marketing Best Practices The Basics of Email Creation – A Checklist Examples of What Works in Email Design B2B Example B2C Example Deliverability – What You Need to Know The Reality of the Situation CAN-SPAM Act of 2003 What to Avoid

The Basics of Email Creation – A Checklist

Examples of What Works in Email Design

B2B Example

B2C Example

Deliverability – What You Need to Know

The Reality of the Situation

CAN-SPAM Act of 2003

What to Avoid

Email Deliverability Facts 20% 54% Percent of Legitimate Messages that Get Filtered Source: Pivotal Veracity Percent of U.S. Consumers that Use a Spam Filter Source: Forrester Research

How to Improve Deliverability Conduct a “pre-flight” check. Scan email content for words, phrases and images that are known to trigger a SPAM filter and block delivery. Switch to a Private IP . If you send through a Public IP and another sender is blocked by an ISP, you will also be blocked. Maintain the same “From” address . Ask the subscriber to add you to his/her “Safe Sender” list . Remove “bounced” email addresses from your mailing list. If an address has produced a soft bounce three times in a row during the course of 15 days or more, remove it temporarily and contact the subscriber to verify Conduct an Email Deliverability Audit – Pivotal Veracity, Habeas

Conduct a “pre-flight” check. Scan email content for words, phrases and images that are known to trigger a SPAM filter and block delivery.

Switch to a Private IP . If you send through a Public IP and another sender is blocked by an ISP, you will also be blocked.

Maintain the same “From” address .

Ask the subscriber to add you to his/her “Safe Sender” list .

Remove “bounced” email addresses from your mailing list.

If an address has produced a soft bounce three times in a row during the course of 15 days or more, remove it temporarily and contact the subscriber to verify

Conduct an Email Deliverability Audit – Pivotal Veracity, Habeas

CAN-SPAM Act of 2003 Primary Provisions Outlaws the use of false or misleading headers Outlaws the use of deceptive subject lines Clear opt-out mechanism within every commercial email Requires the inclusion of a valid physical postal address within every commercial email

Primary Provisions

Outlaws the use of false or misleading headers

Outlaws the use of deceptive subject lines

Clear opt-out mechanism within every commercial email

Requires the inclusion of a valid physical postal address within every commercial email

Example of a SPAM Compliant email: 1 – Proper Header Information 2 – Clear and Precise Subject Line 3 – Clear Opt-out Mechanism 4 – Valid Physical Postal Address

“SPAMMY” Words and Phrases to Avoid Bargain Cards Accepted Click Here/Click Below Free and FREE Guarantee Offer Opportunity Potential Earnings Unsolicited Unsubscribe Price Risk-free Win Increase Sales Do it Today Giving Away No-obligation Apply Online Pre-approved

Bargain

Cards Accepted

Click Here/Click Below

Free and FREE

Guarantee

Offer

Opportunity

Potential Earnings

Unsolicited

Unsubscribe

Price

Risk-free

Win

Increase Sales

Do it Today

Giving Away

No-obligation

Apply Online

Pre-approved

Stay Informed! EmailExperience.org - Email Experience Council (DMA) MarketingSherpa.com BtoBOnline.com ClickZ.com Mediapost.com - Email Insider DMNews.com eMarketer.com Eyetools.com PivotalVeracity.com

EmailExperience.org - Email Experience Council (DMA)

MarketingSherpa.com

BtoBOnline.com

ClickZ.com

Mediapost.com - Email Insider

DMNews.com

eMarketer.com

Eyetools.com

PivotalVeracity.com

Josh Feinberg VP, Product Management VerticalResponse [email_address]

List Building & Performance Metrics Today’s Topics A Quality List & The City of Rome The Straight Facts: Email & Reputation List Building Best Practices Marketing Strategies for List Growth List Metrics: Going Beyond the “Open Rate”

Today’s Topics

A Quality List & The City of Rome

The Straight Facts: Email & Reputation

List Building Best Practices

Marketing Strategies for List Growth

List Metrics: Going Beyond the “Open Rate”

Like Rome, quality lists aren’t built in a day Cultivating high-performing lists is a full-time job Dedicate resources to manage list growth and maintenance Cross-functional cooperation is key Customer Support Sales Marketing Strategy needed for sustained list growth Can’t rely on a single advertising vehicle or marketing program Diversify for maximum ROI

Cultivating high-performing lists is a full-time job

Dedicate resources to manage list growth and maintenance

Cross-functional cooperation is key

Customer Support

Sales

Marketing

Strategy needed for sustained list growth

Can’t rely on a single advertising vehicle or marketing program

Diversify for maximum ROI

Your List and Your Reputation The straight facts: Sending mass email is easy Getting mass email delivered is hard Sending mass email is cheap Damage to your brand and reputation is expensive Short-term gain can lead to long-term pain If it seems to good to be true…it just might be Being labeled a spammer or getting blacklisted is the “anti-ROI” Don’t get burned by lax data management or compliance practices

The straight facts:

Sending mass email is easy

Getting mass email delivered is hard

Sending mass email is cheap

Damage to your brand and reputation is expensive

Short-term gain can lead to long-term pain

If it seems to good to be true…it just might be

Being labeled a spammer or getting blacklisted is the “anti-ROI”

Don’t get burned by lax data management or compliance practices

List Building “Best Practices” You’re on the right track if you are… Prominently placing sign-up forms on your website, landing pages and blogs Giving people a compelling reason to sign-up Being up front about privacy protection You’re on the wrong track if you are… Buying a list of bulk email addresses from an unknown source Harvesting email addresses across the Internet Selling/renting your customer database without prior notification and consent

You’re on the right track if you are…

Prominently placing sign-up forms on your website, landing pages and blogs

Giving people a compelling reason to sign-up

Being up front about privacy protection

You’re on the wrong track if you are…

Buying a list of bulk email addresses from an unknown source

Harvesting email addresses across the Internet

Selling/renting your customer database without prior notification and consent

Marketing Strategies for List Growth Online methods: SEO & Google AdWords - Increase your chances of being found. Track new sign-ups back to specific sources or keywords. Newsletter Sponsorships - Get your offer in front of people with interests that match your target audience. Viral Marketing - Get people talking! “Forward to a Friend” in all your emails, Refer-a -Friend programs, affiliate programs and even a blog.

Online methods:

SEO & Google AdWords - Increase your chances of being found. Track new sign-ups back to specific sources or keywords.

Newsletter Sponsorships - Get your offer in front of people with interests that match your target audience.

Viral Marketing - Get people talking! “Forward to a Friend” in all your emails, Refer-a -Friend programs, affiliate programs and even a blog.

Marketing Strategies for List Growth (cont.) Offline methods: Tradeshows - Scan badges and collect business cards “ Traditional” Mediums - Direct mail, print and radio Brick & Mortar Options - Kiosk in your retail location, e-newsletter subscription during checkout or the fishbowl technique. Customer Support - Get an email address for customers and prospects contacting your call center.

Offline methods:

Tradeshows - Scan badges and collect business cards

“ Traditional” Mediums - Direct mail, print and radio

Brick & Mortar Options - Kiosk in your retail location, e-newsletter subscription during checkout or the fishbowl technique.

Customer Support - Get an email address for customers and prospects contacting your call center.

List Performance Metrics Understanding your “Open Rate” Defined : A tracking tool allowing marketers to see how many times their message was viewed. Why it’s useful : Monitor campaign performance in real-time and run targeted follow-ups with engaged customers. Why it’s misleading : Only applicable to HTML emails. False opens due to the Preview Pane. Images are blocked by many email programs.

Understanding your “Open Rate”

Defined : A tracking tool allowing marketers to see how many times their message was viewed.

Why it’s useful : Monitor campaign performance in real-time and run targeted follow-ups with engaged customers.

Why it’s misleading : Only applicable to HTML emails. False opens due to the Preview Pane. Images are blocked by many email programs.

List Performance Metrics (cont.) Other Key Performance Indicators Clicks : Data for both HTML and Text emails. Shows a deliberate action was taken. Website Analytics : Once they hit your site, where did they go and where did they drop off? Sales & ROI Tracking : How many purchases or conversions did you receive? Inbound Leads or Inquiries : Have your customer support reps log the source/medium that brought visitors to your site.

Other Key Performance Indicators

Clicks : Data for both HTML and Text emails. Shows a deliberate action was taken.

Website Analytics : Once they hit your site, where did they go and where did they drop off?

Sales & ROI Tracking : How many purchases or conversions did you receive?

Inbound Leads or Inquiries : Have your customer support reps log the source/medium that brought visitors to your site.

Quick Summary List building is a team effort that requires TLC Follow best practices and don’t risk damage to your brand or reputation Diversify your marketing efforts to keep the funnel full Examine multiple campaign metrics for a complete analysis of your list performance

List building is a team effort that requires TLC

Follow best practices and don’t risk damage to your brand or reputation

Diversify your marketing efforts to keep the funnel full

Examine multiple campaign metrics for a complete analysis of your list performance

Rasmus Mencke Senior Product Manager salesforce.com [email_address]

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Please score the session from 5 to 1 (5=excellent,1=needs improvement) in the following categories:

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