Tuning Incentives To Motivate Sales &Drive Profits
Christopher W. Cabrera, Founder, President & CEOJeff Williams, Vice President Sales, IronPort
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
Xactly Background• Leader in on-demand sales
compensationmanagement
• Target companies with 25 –2,000 payees
• World-class managementteam with 30+ years ofcombined domainexperience
• Focused on automating keybusiness processes for salesand finance
• Significant customer andpartner traction
Pioneering a newparadigm in automatingsales compensation and
sales performance.
Xactly Customers Experiencing Success
Direct SalesReps/Mgrs
Indirect SalesReps/Mgrs
TelesalesReps/Mgrs
ChannelReps/Mgrs
OEMReps/Mgrs
MarketingReps/Mgrs
SystemsEngineers/Mgrs
DealerNetworks
CompensationAdmins
FinancialAnalysts
SalesOperations
FinanceOperations
88% of Companies are Driven to Align EmployeeBehavior and Performance to Business Goals
Pressures Driving Incentive Compensation Management
The need to align employee behaviorand performance with business goals
Increase revenue and profit
Retention of other employees
All Participants
Source: Aberdeen Group, March 2007
76%
47%
38%
0% 20% 40% 60% 80%
Tuning Incentives to Motivate Sales andDrive Profits
• Provide robust analytics anddashboards to drive salesperformance efficiency andvisibility
• Pay differently on highermargin products and services
• Incent on discount percent• Create SPIFs• Vary commission rates by
product• Use cash and non-cash
rewards
Use Innovative Programs & SPIFs to MotivateBehavior and Optimize Sales Performance
Sales reps who sell the “largest amount of terabytes” and highest marginproducts in a quarter received a one-year lease on a Harley
Use Incentive Compensation Management toAlign Payments to Performance
• Large snack fooddistributor initiatingdiscounting ‘on-the-fly’based on seasonality
• Midwestern storm forecastsignificantly increasessnack food demand andconsumption
• Retailers creatingtargeted incentives forsnack food sales onseasonal basis
Gear Compensation Toward Sales of Your MostProfitable Products
• Not all products are created equal• Reps will take the path of least resistance• Reps will gravitate to the higher value products
Low Margin Low Revenue
High Revenue High Margin
Augment Cash Incentives with Non-Cash RewardPrograms
• AutomateInside/Telesales Contests– Issue Reward Points
for SPIFs and contests– Reps that sell at list
price with nodiscounting
– Up-sell & cross-sell ofadd-on products
– Reward reps thatdrive attendance forhigh-profilemarketing events
Up-sell – Cross-sell – Referral and Team Incentives
Checking account
Savings account
Home Mortgage
Investments
“Drive More Wallet Share”
On-Demand Sales Performance Management
SalesData
QuotaTerritory
Sales Comp
Rewardsand
Incentives
PriceMgmt
Forecast/Planning
Reportingand
Analytics
Workflow
HR
ERP
Pricing
Product
Orders
On-Premise
Eight Requirements for Effective SalesPerformance Management
Secure, hosted repository with actionable post-sales business data1
Intuitive compensation plan design, implementation and maintenance2
Rich analytics, reporting and dashboards for sales and finance analytics3
Ability to model and forecast compensation plan changes inadvance of implementing4
Integration with CRM applications for visibility and insight into salesopportunities in the pipeline5
Ability to automate quota allocation and analysis based on territory goals6
Optimize pricing strategy and execution by identifying and analyzingwhat products have been sold7
Motivate and reward performance through automated salescontests and SPIFs with non-cash rewards8
Company Confidential
IronPort SystemsJeff Williams, Vice President Sales
IronPort Systems
• Leading gateway securityprovider for organizationsranging from smallbusinesses to the Global2000
• 200 sales reps in 35 countries
INDUSTRY: Email/web security
EMPLOYEES: 400+
GEOGRAPHY: Global
PRODUCT(S) USED: SFA,Service & Support
# USERS: 200
IronPort Systems – Key Challenges
• Business Challenges
– Excel-based system for managing salescompensation was no longer meeting thecompany’s needs adequately
– Sales reps “flying blind” – no real time visibility– Automating the process of paying differently
on higher margin products and services andrewarding reps that discount the least
– Flexibility to easily create SPIFs and contests
• Technology Challenges– Separate CRM and sales compensation
systems
– Desire to leverage and extendSalesforce.com investment
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
How to Increase Margin Based on DifferentProducts and Services in Your Portfolio
• Drive sales behavior that isaligned with your corporateobjectives
• Example– Owned Intellectual Property vs.
OEM software
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
• Leading provider of on-demand sales compensationmanagement and on-demand sales performancemanagement solutions
• Helping customers leverage business data to drive businessefficiency and maximize profits
• Strong partner ecosystem
• Superior customer experience and satisfaction
• Continued traction and growth
Summary
Company Confidential
Company Confidential
www.xactlycorp.com