S O P005 Tenenblat 091807

Leveraging Salesforce Data to Define Territories and Strategies Sales: Operations and Performance Catherine Otocka, Salary.com Leo Tenenblat, salesforce.com

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Session goals  Understand why territory design is important  Find out what app data to use in the decision process  Learn how to effectively design and enforce territories

Leo Tenenblat Sr. Manager, Field Operations ltenenblat@salesforce.com

Key Challenges  Business Challenges • Structure the sales force around sales strategy and market • Drive sales force retention and productivity • Maximize sales while minimizing cost • Ensure focused coverage of strategic accounts • Minimize territory conflict  Technology Challenges • Reconcile market data and internal data • Handle territory exceptions • Maintain data quality

The Salesforce territory design process: 1. Segment the market 2. Plan headcount allocation 3. Assess territory potential 4. Align territories and reps 5. Enforce territory boundaries

We start by structuring the sales force  Ensure complete market coverage  Match prospects with ideal reps  Have one voice throughout corporate families  Monitor performance and adjust rapidly to changing market conditions  Get the best bang for the buck

Adjust segments based on performance Problems Addressed Internal career  progression External hiring  HC Retention  Penetration  After Before AE skill alignment  GB (201 – 749) GB (201 – 749) SB2 SB (36 – (8 – 200) 200) SB1 (8 – 35) VSB VSB (1 – 7) (1 – 7)

Consolidate coverage where it makes sense  S500 accounts  Vertical accounts Ultimate Parent (Territory A) Subsidiary (Territory B) Subsidiary (Territory X)

Ensure capacity for bookings growth  Main business issues:  Balance revenue targets and market receptivity  Determine appropriate headcount growth by region  Ensure appropriate growth of sales support ecosystem

What regions are hot? Salesforce data Headcount allocation Market data by GEO

Consider incremental productivity sales in an area # of sales reps

Fair is best but what is “fair”?  Main objectives:  Measure territory potential (score)  Ensure equal chance of rep success  Lower cost of sales (quota blowouts better tied to effort)  Maximize productivity  Motivate reps  Reduce poaching and territory disputes

We model SMB score on past success ZIP Total Industry $ Total FY07 $ Final Score Final ZIP score uses 94105 $3,000 $1,000 2,400 rolled up data from 94106 $2,500 $6,000 3,550 the account level Look at industry Account Name ZIP SIC Avg Industry $ FY07 $ Acme Inc 94106 7332 $200 $180 averages and Salesforce.com 94105 7372 $300 $550 actual sales per Dreamfactory 94106 8005 $50 $300 account Obtain industry SIC FY07 $ # accounts Avg Industry $/acct averages across 7332 $200,000 1000 $200 7372 $150,000 500 $300 all of N. Amer. 8005 $10,000 200 $50

Scoring in Enterprise space is more subjective  Data is lumpier and more erratic  Potential is linked to key qualitative variables  Bucket model allows for subjective input and reduces data quality sensitivity  “Scoring” happens at account/corporate family level Number of employees (up to) 499 1999 19999 19999+ Customer 20 40 120 200 Great Industry Non-customer 10 20 60 100 Customer 10 20 60 100 Favorable Industry Non-customer 2 5 15 25 Customer 1 2 6 10 Unfavorable Industry Non-customer 0 0 0 0

Time to design those balanced territories!  Main objectives:  Balance workload  Maintain contiguity of territories  Minimize rep travel  Incorporate rep relationships and geography familiarity  Prepare for future hiring

Keep it fair throughout the sales hierarchy Balance headcount between sales teams And balance BEFORE AFTER territory among Rep A 3000 points 4000 points reps within each Rep B 5000 points 4000 points team

Tools can simplify the design phase  Many options: AlignStar, TerrAlign, Tactician, MapPoint, Excel,…  Some already on AppExchange  Optimization saves time on SMB carving  Territory exceptions can be a challenge!

Keep track of territories in the app  Communicate and enforce clear territory boundaries  Minimize noisy data and wasted time/effort  No duplicate accounts  Quickly and accurately assign new leads/accounts  No poaching  Swiftly assign territories to new reps

We use custom fields to document assignments Territory: Geography-based assignment Locked Employees: Used for assignments; editable by Operations only. Fields used for exception-based assignments Enterprise Score: Potential

3rd party data validates assignments DUNS numbers: Ensure no dupes and no poaching DNB Employees Total: Used to refresh employee count, which separates segments Refreshing data is one click away!

Manage territory queue using service & support Tickets are submitted directly from account record We track performance of our territory management team

Summarizing 1. Segment the market Keep it simple and monitor performance 2. Plan headcount allocation Favor momentum 3. Assess territory potential Measure twice… 4. Align territories and reps …cut once 5. Enforce territory boundaries Data quality and clear rules of engagement are key

Catherine Otocka Managing Director, Sales Operations cotocka@salary.com

Salary.com builds on-demand software around a deep domain knowledge in the area of compensation to help customers win the war for talent by simplifying the connections between people, pay and performance. Salary.com's cutting edge technology is integrated with actionable data and content, empowering customers to make the best decisions about pay and performance and help them to attract, motivate, reward and retain top performers. • INDUSTRY: On-demand Software and Data Provider • EMPLOYEES: 300 • GEOGRAPHY: Primarily US Based • # USERS: 160 • PRODUCT(S) USED:Enterprise Edition – Sales, Service, Marketing • Vertical Response, Demand Tools, Cast Iron

Key Challenges  Business Challenges • Data quality (market data, auditing) • Maintain territory equity among Account Executives is still primary goal • Support territory redesign amid rapid growth and expansion • Balance industry and geographical constraints • Ensuring coverage to meet product targets • Minimizing conflict among salesforce

Data Quality  Plain and simple, we track a LOT of details  Data tracked evolves over time…always seeking more detail. Recently changed the way we capture industry info to be more granular.

Some Key Data Points

Maintaining territory equity across AEs  Business Challenges  Rep motivation and morale  Territory complaints

Continuously Monitor Territory Sizes

Benefits  Resolve the conflicts  It is really easy for AEs to see that the territory sizes are equitable  Dissociating territory from performance  Very easy for managers to have detailed support and answers for the “my territory is no good” conversation  Additional Data is also captured to determine the “health” of a territory

Territory Penetration Stats

Territory redesign amid rapid growth  Business Challenges  Taking territory away, adding different types of AEs  How and when does this happen  Keeping territory equity

Territory carving

Territory carving – How to minimize the pain  Have plan for future territories  Customer stays with AE  “Reserved Prospects”  Detailed process is in place for AEs to maintain existing pipeline during territory change

Custom fields are used to track Reserved Prospects

Balancing industry and geographical constraints  Alignment with corporate strategy on vertical coverage  Full territory coverage  Different people = different boundaries

Example: Supporting a new vertical  Verticals are often created to support a niche we are focusing on with the compensation data we collect  What would I do if the company wanted to create a new vertical tomorrow? How do I support or recommend against that decision?  Will any one AE lose too much territory? If so, how do we account for that? What other decisions need to be made to put this vertical into place?

Investigate – What does my data tell me?

Salesforce structure – Who is who in an Account? Tracks Product Coverage

Conflict Management  With 3 AEs having the right to call into any given account there is bound to be conflict!  Potential for lost time and lost business if not managed correctly  Need ultimate authority/referee

2-prong attack  Territory and rules of engagement  Good data usually leaves little grey area.  Rules of engagement relies on people “doing the right thing” that doesn’t always happen…  Commission Structure Design  Provides robust monetary incentives for working in cooperation  Referrals

Conflict Resolution becomes easier  If AEs can’t agree, they and the Managers eventually make it into my office  The decision that is made is based on the story told by the system  Knowing that the info put into Salesforce is ultimate authority, AEs readily and thoroughly use SF. 100% user adoption.

Final thoughts, words of advice  Use the system to track EVERYTHING  Good data will be your savior. Will support analysis for future planned and unplanned changes  Don’t underestimate how much time this takes to manage. The process is very labor intensive, but the results are worth the dedication.

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Leveraging Salesforce Data to Define Territories and Strategies Sales: Operations and Performance Catherine Otocka, Salary.com Leo Tenenblat, salesforce.com

S O P005 Tenenblat 091807

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