Xactly Unleashes Cloud Sales Compensation Tool From Salesforce.com - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

01:27 PM

Xactly Unleashes Cloud Sales Compensation Tool From Salesforce.com

Express version 1.6 released as a standalone application targeted toward SMBs.

Xactly on Monday released a new version of Express, its cloud-based sales compensation management software for SMBs. Its mission? Get sales teams out of Excel and into the cloud.

Version 1.6 includes Express Estimator, which allows users to predict their compensation based on sales variables, such as product or service mix and length of the deal. It's also now available as a standalone solution; previously, Express was only available to Salesforce.com users. Salesforce.com is both an Xactly customer and one of its strategic investors.

Xactly was founded in 2005, but it's just now getting its sea legs in the hyper-budget-conscious, time-strapped world of small and midsized business (SMBs). During its first four years, the sales performance management software provider found that its typical customer had around 300 salespeople, which translated to 1,000-1,500 total employees -- hardly small companies.

"One of the things we found was precluding us from getting into the SMB market was the implementation," Xactly CEO and president Chris Cabrera said, noting that Xactly's typical per-seat, per-month price point of $30-$40 was rarely a roadblock. Rather, it was the cost and time to go live, usually $10,000 and eight weeks, at bare minimum, that gave SMBs pause.

Express launched in November 2009 and was designed for a client profile of 100 or fewer seats, though there's no actual limit. Setup cost is around $1,500, and the monthly subscription is $30 per user. Time to launch, once a matter of months, is now about one business day. Xactly expects to reach 100 Express customers by the end of the year, with an average of around 15 seats each.

Andy Drogo, Xactly's product manager for Express, said that almost all new customers coming onto the platform were previously using a spreadsheet to manage sales compensation. "99.99% of the time, they're using Excel." Drogo said this opens organizations and salespeople up to costly mistakes as a result of broken formulas, incorrect references to sales, and other errors.

Like chefs who eat their own cooking, Xactly's 20-person sales team uses Express in its day-to-day operations. Cabrera said the company has introduced two changes this year to its own compensation plan as a result. It added an incentive for signing multi-year deals, and employees could monitor their progress within Express.

In 2009, prior to the new bonus component, 49% of deals closed by Xactly's sales force were for longer than 24 months. So far in 2010, 71% of contracts signed are for more than two years. Likewise, the company has seen a double-digit percentage increase in the number of deals that secure cash up front after adding a similar incentive to its compensation plan.

"We are the great poster child for our product," Cabrera said.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
1 of 2
Comment  | 
Print  | 
More Insights
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Flash Poll