5 Tips on How to Run Your Pipeline Engine to Drive Growth | Salesforce on Salesforce

Summary

In this episode of *Salesforce on Salesforce*, Eric reveals how Salesforce drives growth through a relentless focus on pipeline management. He explains how pipeline unites sales and marketing teams, driving both accountability and forecast accuracy. The video shares five key tips for optimizing pipeline performance, including maintaining data accuracy, understanding sales roles, ensuring marketing's direct impact on pipeline, measuring performance effectively, and committing to weekly pipeline councils. By aligning cross-functional teams and leveraging real-time data, Salesforce maximizes pipeline potential to drive sustainable growth across its business.

Takeaways

• 😀 Pipeline is the key to driving company growth and unites sales and marketing teams.
• 😀 Salesforce's revenue is driven by two main factors: existing contracts and ACV (Annual Contract Value), which includes net new recurring revenue minus attrition.
• 😀 ACV is the most controllable variable for driving revenue growth, and pipeline is the greatest leading indicator of ACV.
• 😀 Accurate pipeline data requires discipline and rigor from sales teams in keeping opportunity records up to date.
• 😀 The pipeline engine includes multiple sales roles such as Account Executives, Business Development Representatives (BDRs), Sales Development Representatives (SDRs), and Cloud Sales teams, each contributing differently to the pipeline.
• 😀 Marketing serves as the fuel for the pipeline engine, influencing pipeline creation through brand awareness, demand generation, events, account-based marketing, digital channels, and enablement efforts.
• 😀 Marketing efforts like brand awareness campaigns (e.g., Olympics or Super Bowl) play a crucial role in driving top-of-the-funnel pipeline growth.
• 😀 Every dollar spent and every headcount in marketing should be tied directly to generating more pipeline and increasing ACV.
• 😀 Salesforce measures pipeline through a framework called the Accountability Performance Matrix (APM), which tracks pipeline by product, region, segment, and source.
• 😀 Weekly pipeline councils, with cross-functional representation from sales, marketing, and operations, are essential for reviewing pipeline progress, identifying issues, and taking actionable steps to keep the pipeline on track.

Q & A

What is the main focus for Salesforce's sales and marketing teams when it comes to driving revenue growth?

The main focus is pipeline. Pipeline is seen as the key driver for revenue growth, uniting both sales and marketing teams. It's the leading indicator of new recurring revenue (ACV) and plays a central role in driving forecast accuracy and accountability.

How does Salesforce calculate its revenue for a given quarter?

Salesforce calculates its quarterly revenue by adding existing contracts to the Annual Contract Value (ACV) of new recurring revenue and subtracting attrition from contracts that aren’t renewed.

What are the main sales roles involved in pipeline generation at Salesforce?

The main sales roles include Account Executives (AEs), Business Development Representatives (BDRs), Sales Development Representatives (SDRs), Enterprise Corporate Specialists, and Cloud Sales Teams. Each role contributes to pipeline creation in different ways, with AEs leading the charge.

What role does marketing play in the pipeline generation process at Salesforce?

Marketing fuels the pipeline by driving brand awareness, demand generation, events, and account-based marketing. Their efforts directly influence the creation of leads and opportunities, which then flow into the sales pipeline.

What are some examples of marketing campaigns that Salesforce uses to generate pipeline?

Examples include brand awareness campaigns such as those during the Olympics or Super Bowl, demand generation via lead magnets, events like Dreamforce and world tours, and account-based marketing with tailored content for top accounts.

How does Salesforce ensure its sales data is accurate and up-to-date?

Salesforce ensures data accuracy through rigorous discipline from the sales teams, who are responsible for regularly updating opportunity details like deal size, solutions involved, next steps, and projected close dates.

What is the Accountability Performance Matrix (APM) and how does it help Salesforce?

The APM is a framework that allows Salesforce to track pipeline performance by product, region, segment, and source. It helps identify areas needing improvement and ensures accountability across different business units.

Why is the weekly pipeline council important at Salesforce?

The weekly pipeline council is crucial for bringing together cross-functional teams to review pipeline performance, make quick decisions, and assign actions to improve underperforming areas. It ensures that all stakeholders are aligned and accountable.

What is the role of the enablement team in pipeline creation at Salesforce?

The enablement team equips sales teams with tools, resources, and content to help close deals faster. This includes providing materials like ROI calculators, competitive analyses, and playbooks to accelerate deal progression.

What does Salesforce mean by 'Pipeline is King'?

'Pipeline is King' reflects the idea that pipeline data and pipeline management are central to driving revenue and growth. It's the key metric that unites sales and marketing teams, guiding their efforts to create and close deals.