From the Top
- Executive to Executive -
In this interview, Salesnet’s Chairman and CEO, Mike Doyle, shares his candid thoughts on the current landscape in the CRM industry and indicates some of the driving issues. With the acquisition of Upshot by Siebel, it is clear that the ASP model is a model that is here to stay. Mike gives us an insight into the Salesnet philosophy and why a prospect should consider the ASP model.
Mike Doyle,
Chairman and CEO, Salesnet
RealMarket: A lot has happened in the past year in the CRM world. What do you see as the number one issue or opportunity facing CRM today?
Doyle: In talking to a number of CEO’s, the number one issue is sales effectiveness. It’s still a real challenge to companies, even though it’s improved from a year ago. CSO Insights, a research firm that specializes in benchmarking sales & marketing excellence, published a study of more that 1,300 organizations that showed that sales reps in more than half of the companies surveyed failed to make their quota. In companies that use and enforce sales process or methodology, there was a 17% higher quota achievement.
Our motto at Salesnet is “Better salespeople. Better sales.” What we’re doing as an organization is empowering salespeople to be much more effective. It’s a key challenge that today’s CEO’s are facing.
| We are soon going to offer extended vertical versions of Salesnet as well. Whether you are in regional banking, high-tech software, telco, or whatever it may be…you can have a specific version of Salesnet pre-configured the way you want it. |
RealMarket: How are companies addressing this issue?
Doyle: I believe they are addressing it through sales training. Also, companies are selecting vendors that offer business applications through Software-as-a-Service. At Salesnet, we provide sales solutions that are easy to acquire, implement, and own – and make salespeople much more effective. The other thing that we’re really driving is called Guided Performance Selling, or GPS for Sales, – it’s an expansion of Software-as-Service that incorporates two additional attributes – 1. Integration-as-a-ServiceTM – where we now allow Salesnet to be integrated through out–of-the-box connectors with other core business applications, such as from multiple CRM to HR, to ERP, to billing and contracts, to general ledger systems. 2. Configuration-as-a-ServiceTM , which offers pre-configured versions of Salesnet to fit particular business or vertical needs. For instance, these editions of Salesnet offer pre-bake branded sales methodologies to help ramp-up users faster and deliver high-end customization through clicks-not-codeTM.
We are soon going to offer extended vertical versions of Salesnet as well. Whether you are in regional banking, high-tech software, telco, or whatever it may be…you can have a specific version of Salesnet pre-configured the way you want it.
| Right now we are responding to things that aren’t necessarily economic in nature but rather related to a more socio-political environment. |
RealMarket: What is your view on today’s overall economic climate as compared to a year ago?
Doyle: I believe it’s improved and I also think it’s extremely choppy. Right now we are responding to things that aren’t necessarily economic in nature but rather related to a more socio-political environment. Until the world economy feels we have terrorism under control, we won’t have that big rebound that people talk about.
However, I will say that here in the US, the economy is much healthier and more vibrant than a year ago even though we haven’t yet seen the jobs growth given the DOW and NASDAQ levels. I believe it is a reaction of the uncertainty of the future and companies not wanting to add jobs just for the sake off hiring. I believe this economy works well with the Software-as-a-Service business model– that is a multi-subscription service versus large upfront denominated fees for client/server applications.
RealMarket: What socio-political issues are you referring to?
Doyle: I am referring to terrorism in general. September 11th and the slow economy, compounded by what we read and see in the news daily about certain things that are happening in the Middle East or other places. Not only is the economy being affected in their part of the world, but here as well. Look what happened in Spain. They were going to have a conservative group put into power a few days before the election but with a possible terrorism-related movement, the outcome completely changed from a conservative to socialist administration. That had a large effect on the world’s economy.
| All software is going to be distributed this way in the future – as-a-service and not in a box – and it’s happening more rapidly than anyone in the client/server application camp would like to see. |
RealMarket: What are your thoughts on the consolidation in the CRM industry and how do you see it effecting Salesnet?
Doyle: I think it’s very interesting. You’ve had Tom Siebel for the past 3 to 4 years stand on a platform and talk about how the ASP model is a complete sham and that large enterprises will never buy it. He’s finally got his head out of the sand and realized that this strategy will continue and accelerate -- and he’s ended up buying one of our rivals – UpShot. The model was already validated when Siebel maneuvered for UpShot – and it was great to see him eat humble pie. Customers were and are applauding the ASP model. We feel that traditional client/server application providers that don’t get into the Software-as-a-Service space will be doomed for failure.
All software is going to be distributed this way in the future – as-a-service and not in a box – and it’s happening more rapidly than anyone in the client/server application camp would like to see. We’ve been approached by a number of traditional software vendors about how they can work with us to have a product and be able to distribute it along the distribution channels – or face extinction. We are one of the three pioneers in this space. One has been acquired, and another is about to IPO. The capital markets are ready to embrace this new model.
RealMarket: Do you have a timeframe in which you are looking to make an IPO?
Doyle: No, but I can tell you that there are a number of investment bankers that are calling me daily asking what our timeframe may be. We just closed on what will be over a $12 million round of private equity, we have plenty of money in the bank, we’re growing rapidly, we have many different options that are available, and we are keenly interested in how Salesforce.com will do and what their value will be. Based on what happens with that, we will plan accordingly.
RealMarket: Salesnet released an Offline Solution last April. How has this strategic move affected your overall business success?
Doyle: One of the issues of the ASP model is “What happens if I’m on a plane or a train and suddenly don’t have connectivity? How am I going to be productive?” So we spent a year developing the on-demand CRM industry’s first fully-secure offline version which looks and acts exactly like our online product. It is an answer to a question that our customers were asking and certainly an answer to a lot of questions that our prospects were asking. Salesnet's offline access is built on the .NET framework and contains SQL Server Desktop Edition to make sure your data is always secure and you get the response of a real database application. Our competitors use macro embedded Excel spreadsheets and unencrypted XML file based systems that cripple performance and leave valuable customer data visible to all. And, we’ve certainly witnessed additional growth with this product as well as a lot of improved performance in the market-place.
RealMarket: Are Siebel and Salesforce.com still your main competitors?
Doyle: Yes.
| We didn’t go to the Oracle school of behavior. We believe in keeping the customer first and we are very customer-centric. |
RealMarket: Why should I buy from Salesnet versus one of them?
Doyle: We didn’t go to the Oracle school of behavior. We believe in keeping the customer first and we are very customer-centric. We also have a product that revolves around sales effectiveness not only at the salesperson level but at the sales manager level. We have a technology that allows salespeople to sell the way you want them to sell – by using Salesnet, an organization can transform mediocre salespeople into rainmakers – because we provide our customers with a blueprint for sales success. Our customers have achieved tangible success with Salesnet – from increasing revenues by 60 percent to quadrupling pipelines to achieving 100% user satisfaction. In fact, Salesnet’s customers receive more accolades than any other on-demand CRM vendor. We can guarantee companies that they will receive ROI if they select Salesnet for their sales effectiveness needs.
RealMarket: What is your biggest road block to becoming the #1 CRM Provider?
Doyle: Marc Benioff’s megaphone….just kidding. Our biggest road block is getting the word out more effectively. We’ve done a good job in the last six to nine months letting the world know what we’re doing. We have to continue to do that.
When prospects put us up against Siebel or Salesforce.com, we win over 85% of the time. We just have to reach out into additional audiences and get the world to really understand what we do and to consider us as they would any other CRM vendor – whether evaluating Web-based applications or client/server software.
RealMarket: Looking into the crystal ball – can you make a prediction on what changes will occur in 2004 and how you see them effecting Salesnet?
Doyle: I see further consolidation. I think that a number of client/server software vendors will wake up from the deep sleep they are in and realize that they need to be in this space and/or partner with someone in this space. We’re changing the delivery of CRM and growing at a much faster pace than anyone ever expected that we would. The idea of 18-month multi-million dollar implementations with a boat load of services added on top is an old idea. Customers are just not going to stand for it anymore. In essence, you will see more of the same taking place. Customers are standing up and saying “no” to traditional client/server vendors and telling them, Trump style, “You’re fired!”. We are excited about the future and are looking forward to work collaboratively with our current customers, while forging new relationships and partnerships with our new customers. At Salesnet, our customers are our top priority – and our company motto, “Better Salespeople. Better Sales,” reinforces our commitment to providing our customers with the capabilities they need to support the growth engine of their company.
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