The document discusses how companies can use incentive compensation to drive desired sales behaviors, highlighting Xactly as a leader in sales performance management that helps companies incentivize right through flexible plans, integration with Salesforce, and the ability to modify incentives over time to address changing market conditions. Case studies show how Xactly helped Salesforce optimize teams, products, and contracts through incentive compensation.

1. Xactly Breakout
Track: The Behavioral Power of Incentives
Christopher W. Cabrera
Founder & CEO, Xactly Corporation
Marisa Massie
Sr. Director, Global Compensation
Salesforce.com

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
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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
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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. ™
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
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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. Why is it so hard to Incent Right?
• Largely manual process
© CSO Insights -Confidential

6. Sales Reps can be Singularly Focused

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. Change the Paradigm

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. 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. 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. Hundreds of Companies Experiencing the Benefits
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13. Xactly and Salesforce.com
Changing Behavior One Rep at a Time.
Marisa Massie
Sr. Director, Global Compensation

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. 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. 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. 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. 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. 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. The Process Starts with the Data
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21. Completely Integrated with Salesforce CRM
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22. On-Demand Sales Performance Management
>50 different currencies
18 different languages
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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
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29. And the Winner is…
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30. www.xactlycorp.com
http://twitter.com/xactlycorp
http://www.facebook.com/XactlyCorp
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