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Xactly Dreamforce Presentation 11 16 09


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Dreamforce 09 Attendee Favorite: The Behavioral Power of Incentives.

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Xactly Dreamforce Presentation 11 16 09

  1. 1. Xactly Breakout Track: The Behavioral Power of Incentives Christopher W. Cabrera Founder & CEO, Xactly Corporation Marisa Massie Sr. Director, Global Compensation
  2. 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, inc. assumes no obligation and does not intend to update these forward- looking statements, except as required by law.
  3. 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 3
  4. 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
  5. 5. Why is it so hard to Incent Right? •  Largely manual process © CSO Insights -Confidential
  6. 6. Sales Reps can be Singularly Focused
  7. 7. Getting Them Focused on the “Right” things is Difficult © CSO Insights -Confidential Productivity is hurt when companies over-simplify plans Productivity is hurt when reps don’t understand their plans
  8. 8. Change the Paradigm
  9. 9. How Frequently Do Companies Pay? © CSO Insights -Confidential Productivity is negatively affected when there is too much time between the effort and the payment
  10. 10. How Frequently Do Companies Change Plans? © CSO Insights -Confidential Productivity is negatively affected when companies do not modify The comp plans to address changes in market conditions, product Launches and/or competitive threats
  11. 11. How often Do Companies Run Contests and/or Special Performance Incentive Funds (SPIFs)? © CSO Insights -Confidential Productivity is improved when companies tap into the competitive DNA Of sales people with contests and non-cash rewards.
  12. 12. Hundreds of Companies Experiencing the Benefits 12
  13. 13. Xactly and Changing Behavior One Rep at a Time. Marisa Massie Sr. Director, Global Compensation
  14. 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. 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. 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. 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. 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. 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
  20. 20. The Process Starts with the Data 20
  21. 21. Completely Integrated with Salesforce CRM 21
  22. 22. On-Demand Sales Performance Management >50 different currencies 18 different languages 22
  23. 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 23
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  28. 28. And the Winner is… 29
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