Tuning Incentives To Motivate Sales & Drive Profits. Christopher W. Cabrera, Founder, President & CEO Jeff Williams, Vice President Sales, IronPort

Transcription

1 Tuning Incentives To Motivate Sales & Drive Profits Christopher W. Cabrera, Founder, President & CEO Jeff Williams, Vice President Sales, IronPort

2 Agenda Introduction to Xactly Corporation How to Use Incentive Compensation as a Strategic Weapon IronPort Systems Overview How IronPort Uses Xactly Solutions to Motivate Sales to Impact the Bottom line

3 Xactly Background Leader in on-demand sales compensation management Target companies with 25 2,000 payees World-class management team with 30+ years of combined domain experience Focused on automating key business processes for sales and finance Significant customer and partner traction Pioneering a new paradigm in automating sales compensation and sales performance.

4 Xactly Customers Experiencing Success

5 Direct Sales Reps/Mgrs Indirect Sales Reps/Mgrs Dealer Networks Compensation Admins Financial Analysts Telesales Reps/Mgrs Marketing Reps/Mgrs Finance Operations Sales Operations Channel Reps/Mgrs Systems Engineers/Mgrs OEM Reps/Mgrs

6 88% of Companies are Driven to Align Employee Behavior and Performance to Business Goals Pressures Driving Incentive Compensation Management The need to align employee behavior and performance with business goals 76% Increase revenue and profit 47% Retention of other employees 38% 0% 20% 40% 60% 80% All Participants Source: Aberdeen Group, March 2007

7 Tuning Incentives to Motivate Sales and Drive Profits Provide robust analytics and dashboards to drive sales performance efficiency and visibility Pay differently on higher margin products and services Incent on discount percent Create SPIFs Vary commission rates by product Use cash and non-cash rewards

8 Use Innovative Programs & SPIFs to Motivate Behavior and Optimize Sales Performance Sales reps who sell the largest amount of terabytes and highest margin products in a quarter received a one-year lease on a Harley

9 Use Incentive Compensation Management to Align Payments to Performance Large snack food distributor initiating discounting on-the-fly based on seasonality Midwestern storm forecast significantly increases snack food demand and consumption Retailers creating targeted incentives for snack food sales on seasonal basis

10 Gear Compensation Toward Sales of Your Most Profitable Products Not all products are created equal Reps will take the path of least resistance Reps will gravitate to the higher value products High Revenue High Margin Low Margin Low Revenue

11 Augment Cash Incentives with Non-Cash Reward Programs Automate Inside/Telesales Contests Issue Reward Points for SPIFs and contests Reps that sell at list price with no discounting Up-sell & cross-sell of add-on products Reward reps that drive attendance for high-profile marketing events

12 Up-sell Cross-sell Referral and Team Incentives Drive More Wallet Share Investments Home Mortgage Savings account Checking account

13 On-Demand Sales Performance Management Quota Territory Orders On- Premise Product HR ERP Pricing Reporting and Analytics Workflow Forecast/ Planning Sales Data Price Mgmt Sales Comp Rewards and Incentives

14 Eight Requirements for Effective Sales Performance Management 1 Secure, hosted repository with actionable post-sales business data Intuitive compensation plan design, implementation and maintenance Rich analytics, reporting and dashboards for sales and finance analytics Ability to model and forecast compensation plan changes in advance of implementing Integration with CRM applications for visibility and insight into sales opportunities in the pipeline Ability to automate quota allocation and analysis based on territory goals Optimize pricing strategy and execution by identifying and analyzing what products have been sold Motivate and reward performance through automated sales contests and SPIFs with non-cash rewards

15 Company Confidential IronPort Systems Jeff Williams, Vice President Sales

16 IronPort Systems Leading gateway security provider for organizations ranging from small businesses to the Global sales reps in 35 countries INDUSTRY: /web security EMPLOYEES: 400+ GEOGRAPHY: Global # USERS: 200 PRODUCT(S) USED: SFA, Service & Support

17 IronPort Systems Key Challenges Business Challenges Excel-based system for managing sales compensation was no longer meeting the company s needs adequately Sales reps flying blind no real time visibility Automating the process of paying differently on higher margin products and services and rewarding reps that discount the least Flexibility to easily create SPIFs and contests Technology Challenges Separate CRM and sales compensation systems Desire to leverage and extend Salesforce.com investment

18 IronPort Systems The Solution Solution Criteria Leveraged existing Salesforce investment Reduce TCO of compensation management Flexibility to create SPIFs and contests for up-sell and cross-sell Capex Opex Data security and SOX compliance Seamless integration Support

19 How to Increase Margin Based on Different Products and Services in Your Portfolio Drive sales behavior that is aligned with your corporate objectives Example Owned Intellectual Property vs. OEM software

20 IronPort Systems Results What were the results? Improved sales results through innovative compensation programs Improved margins Increased trust and efficiencies from a sales perspective Ultimately increased sales productivity Rapid deployment Improved compliance and reporting operations

21 Summary Leading provider of on-demand sales compensation management and on-demand sales performance management solutions Helping customers leverage business data to drive business efficiency and maximize profits Strong partner ecosystem Superior customer experience and satisfaction Continued traction and growth Company Confidential

22 Company Confidential