1. 1 Marketing and Sales Roundtable Leveraging Sales and Marketing Systems in Early Stage Companies November 2003

2. ©2003 Sevin Rosen Funds. All rights reserved. 2 Agenda Introduction and objectives Marketing and sales closed loop system (MSCLS) Perceived barriers to adoption of technology solutions Timing for deployment of technology-enabled CRM systems CRM: focused and leveraged marketing, sales and support management Key success factors for CRM systems deployment Sample CRM technology options Representative hosted CRM solution – salesforce.com

3. ©2003 Sevin Rosen Funds. All rights reserved. 3 Effectiveness dependent upon functional relationships, processes and IT infrastructure (CRM)

4. ©2003 Sevin Rosen Funds. All rights reserved. 4 Sample Technology Options Mid-market CRM licensed software packages Contact Management: Act, Goldmine SFA: Siebel, SalesLogix, Pivotal, Onyx MA/CLM: Kana, e.piphany Support: Remedy, Siebel SFA+CSS: MS-CRM Hosted CRM software and services (IT outsource) SFA + MA + CSS + …: salesforce.com, UpShot/Siebel, SalesNet MA/CLM: Eloqua, GotMarketing CSS: RightNow Surveys: SurveyMonkey Referral networks: Spoke, LinkedIn Suites (incl. ERP): NetSuite Hosted model reflects budgets, resources and needs of small companies

5. ©2003 Sevin Rosen Funds. All rights reserved. 5 Perceived Barriers to Adoption of CRM Solutions Objection: Too early for automation Rebuttal:Early stage companies need visibility into their market ’ s sales potential and the success of sales and marketing initiatives more than anyone. Objection: Technology is too expensive and takes too long to deploy Rebuttal:With an online service, there is no hardware or software to buy, install, or maintain, dramatically reducing your TCO and increasing your time to value. Objection: SFA systems require too much work from sales force Rebuttal:An SFA application properly implemented see >90% adoption rates and significantly decreases time spent forecasting and reporting. Objection: Route to market is through (uncontrollable) channels Rebuttal:Using CRM, marketing can optimize market segmentation, analyze existing customers for cross-sell/up-sell opportunities, standardize marketing and sales communications, and gain critical insight into lifetime customer value.

6. ©2003 Sevin Rosen Funds. All rights reserved. 6 Timing for CRM Systems Deployment Contact management – more than 1 prospect Sales Force Automation (SFA) – first sales person Marketing Automation/Closed-Loop Marketing (MA/CLM) – formal lead generation program, product launch Customer Service and Support (CSS) – general availability (G.A.), product launch Partner Relationship Management (PRM) functionality – more than 1 channel partner

7. ©2003 Sevin Rosen Funds. All rights reserved. 7 The Problem: Isolated Customer Data No shared source for customer information Management lacks visibility into the business and employee performance Sales, marketing and support teams cannot collaborate effectively Lost revenue and increased costs Marketing Support Sales Isolated Employees Work From Individual Contact Managers Or Spreadsheets MANAGER

8. ©2003 Sevin Rosen Funds. All rights reserved. 8 The Solution: Customer Relationship Management (CRM) Shared Customer Database All team members can access shared customer information Share tasks and calendar events Mapped to existing business processes Standard sales methodologies Custom fields Custom reports Improved productivity, effectiveness and efficiency Management visibility Better collaboration and increased revenues Lower costs CRM Database Sales Support Marketing MANAGER

9. ©2003 Sevin Rosen Funds. All rights reserved. 9 Manage Customers Across The Life Cycle Attract, grow and retain targeted and profitable customers Optimize revenues and improve organizational efficiencies Attain a 360 degree view of customer relationships Improve customer satisfaction

10. ©2003 Sevin Rosen Funds. All rights reserved. 10 CRM: Focused and Leveraged Sales Activities Allow sales reps to effectively manage multiple deals simultaneously Provide system support for standard sales methodologies Define, administer, analyze, and change sales territories Get visibility into all players involved with deals Instant access to the sales documents and materials Manage and identify the right customer references to help close deals Analyze past and emerging competitive trends Get pipeline insight and analysis

11. ©2003 Sevin Rosen Funds. All rights reserved. 11 CRM: Focused and Leveraged Marketing Activities Plan marketing spend and manage all campaigns Measure campaign effectiveness (ROI) Track prospect inquiries and ensure leads are never dropped or lost Create targeted campaign lists by customer segment Setup lead capture forms on company website Arm sales with the up-to-date marketing collateral through a centralized document library Make channels more effective and self-reliant with high-impact HTML email templates Blast high-impact emails to prospects and customers with subsequent tracking

12. ©2003 Sevin Rosen Funds. All rights reserved. 12 CRM: Focused and Leveraged Service and Support Activities Track customer inquiries end-to-end with complete case history Define case resolution to assign and escalate cases based on service guidelines Setup case capture forms on website to directly receive and route customer inquiries Build and manage a repository of solutions (customer service portal - knowledge base) Make customers self-reliant by offering them an online service channel available 24x7 Track customer service levels and trends in customer satisfaction Offer global support by establishing distributed service centers around the world Track key metrics on service delivery and team performance

13. ©2003 Sevin Rosen Funds. All rights reserved. 13 Key Success Factors Scope document – why needed, what’s included, initial goals, limiting factors such as international support/PRM functionality (can be as little as one page) Top-down management buy-in (and willingness to drive usage) Assignment of company resources (business and operations) to define strategy, plan deployment and execute Well-defined processes (standard, predictable methodology, common language – e.g. definition of ‘qualified lead’, rules of engagement, privacy guidelines) and metrics System roadmap (functional integration, international, partners) Change management plan: dependent processes/systems, multilevel training/documentation, usage incentives Acceptable system performance: access, data entry KISS (focus on critical needs)

14. ©2003 Sevin Rosen Funds. All rights reserved. 14 Representative Hosted Solution: salesforce.com

15. ©2003 Sevin Rosen Funds. All rights reserved. 15 Time to Value for hosted CRM Systems Net Value Time Go Live Date ~ 3 Months Value to Customer Source: Gartner, Customer Surveys Risk Breakeven 6 months >90%Successful Implementation s “The average implementation length is 30 days, and customers typically report ROI of more than 300% in the first year.” Source: Gartner Oct/2002

16. ©2003 Sevin Rosen Funds. All rights reserved. 16 Appendix

17. ©2003 Sevin Rosen Funds. All rights reserved. 17 MarketFocus Services Objectives Bring an objective, market-focused point of view to company strategies Provide pragmatic ‘start-up’ marketing expertise to SRF portfolio companies –Collaborate with portfolio companies’ management teams to make their companies look as credible and as ‘big’ as possible, as soon as possible –Help accelerate companies’ time to market, time to money MarketFocus Team Line management experience/business perspective Extensive ‘go to market’ consulting and customer research experience Early stage market, company and product strategy expertise ‘Global’ business experience and understanding Strategic and implementation capabilities

18. ©2003 Sevin Rosen Funds. All rights reserved. 18 Sevin Rosen Funds Portfolio Companies Benefiting from Salesforce.com

19. ©2003 Sevin Rosen Funds. All rights reserved. 19 Opportunities to Leverage Technology ActivityOwnerSystemCustomer Data Lead Generation/QualificationMarketingMarketing Automation/CLM Referral Networks Prioritized leads Sales Process ManagementSalesContact Management SFA, PRM Order Processing Prospect, customer, channel/partner contacts Sales funnel status FulfillmentOperationsERP/SCMOrder status Shipments and returns Customer Service and SupportSales, Operations, Customer Service Customer Service & Support (CSS)Support contact history Issue knowledge base Satisfaction SurveysSales, Operations, Customer Service Web Survey ToolsSurvey results

20. ©2003 Sevin Rosen Funds. All rights reserved. 20 Reducing Your Total Cost Of Ownership: The Iceberg Effect Implementation & Customization Costs Hardware IT Personnel Maintenance Training Software Licenses 9% 43% 26% 14% 7% 1% Source: Gartner Group

21. ©2003 Sevin Rosen Funds. All rights reserved. 21 Software license costs constitute less than 10% of your total cost of ownership. Source: Gartner Group The Old “ Own Your Own ” Way: Pre-Utility Automation Buy the software Buy the hardware Hire the dedicated staff Customize, implement, train Upgrade, update, maintain

22. ©2003 Sevin Rosen Funds. All rights reserved. 22 Successful Application Utility No software No hardware No dedicated staff Go live in days rather than months No-hassle upgrades, updates, and maintenance…. Net-native applications are less than ¼ the total cost of ownership of enterprise software. Source: Forrester Research Ideal approach for fast-growing small companies (40% of salesforce.com business)