Marketing Cloud: Packaging Jack Zausner, Director Pricing Strategy

Need to shift away from CPM & want to accelerate ACV Reasons for the repackaging project

Repackaging Objectives

•  First Objective: Avoid future value attrition from CPM declines by monetizing the editions/contacts

•  Second Objective: Accelerate ACV through simpler packages/pricing

•  Third Objective: Help target buyers identify the packages they need

Current Packaging Issues

•  Current ACV driven by email volume •  400 SKUs, but 64% of ACV

from a single SKU (“Email Volume”) •  Platform pricing based on email

volume

•  Email prices declining (~15% annually)

•  Current packages don’t reflect buyer needs

•  Different buyers across channels

• What needs to be addressed to shift value from messaging?

The rollout of the New P&P has been successful

 Pilots – 40 closed-won pilot deals by May 1st, 2x target

 Transition of New Business - steady growth, May (36% New Biz ACV, 29% deals), June (90+% New Biz ACV, ~50% deals)

 Sales Metrics (ACV, Avg. Deal Size) – Improving, not showing adverse impact

 Packaging – Editions are well-received by AEs & customers  “Packages make the process of selling easier. Fewer SKUs is a good thing” - AE  “Having the appropriate level of functionality included automatically is terrific” - Customer

Marketing Cloud: steps for packaging & pricing 4 easy steps to identify the right Marketing Cloud solution for your customer

Discovery & Assessment

1

Pricing

4

Editions

2

Enterprise)Edi+on)

Corporate)Edi+on)

Pro)Edi+on)

Basic)Edi+on)

UPGRADE)PATH)

Capacity & Add-ons

3

Personalized

Promotional Email Marketing

$400/ mo

Marketing Cloud Editions

Basic Pro Corporate Enterprise

Personalized Marketing

Automation and 1:1 Email Journeys

$1,250/ mo

Cross-Channel

1:1 Customer Journeys

$3,750/ mo

Flexible Controls To

Manage Journeys Across Brands & Geographies

$25K/ mo

BASIC BATCH & BLAST EMAIL BEST IN CLASS EMAIL CROSS-CHANNEL JOURNEYS COMPLEXITY (USERS, BRANDS/BUs, REGIONS)

Mul

ti S

ingl

e

Low

Cha

nnel

s

High Sophistication

Basic Edition (basic batch & blast email)

Professional Edition (best in class email)

Corporate Edition (cross channel journeys)

Enterprise Edition (complexity with users, brands/BUs, regions)

How they align to a customers digital maturity

Subscriber profiles Drag & Drop segmentation

Dynamic Content & Personalization Sales Cloud / Service Cloud integration

Mobile / web email templates Content canvas

Campaign landing pages

 For email marketers who need basic personalized promotion messaging Basic Edition

Our emails should be optimized for mobile and desktop experience. Ideally using templates to avoid reinventing the

wheel!

I need a more efficient way to manage my customer segments and send personalized message.

Pricing starts at $400/month

Alek Karen Marketing Designer Marketing Specialist

Seed and grow strategy

We’re just getting started with our digital strategy, but we plan to invest heavily and grow this capability over

time.

 For enterprise marketers who want best-in-class segmentation and automation for targeted email marketing journeys

Pro Edition

Roger Marketing Manager

Justin Digital Specialist

==

Integrate various content and data sources, including Sales & Service data, into

marketing campaigns

Predictive data sources such as website behavior (online), purchase history (offline) to serve up content that a customer may find more valuable.

==

I want to trigger personalized emails based on my subscriber list and

point of sale data.

I want to improve my click rate from emails by serving up relevant content

the customer is likely to take action on!

Automation studio to automate workflows and campaigns

Automate email prep and send processes to allow me to do more without expending my

resources.

Predictive web allows businesses to customize the

content on their website based on the customers behaviors

I want to improve my conversation rate on my

eCommerce website

Corporate Edition  For companies that want to create personalized 1:1 cross-channel journeys

Trisha Roger Digital Manger Director of Digital Marketing

Cross-channel Email, Mobile, Web

Journey builder We are exploring other ways to engage without customers beyond email

I want to send my customers targeted messages across

the lifecycle

Enterprise Edition  For enterprise marketers who want to create cross-channel journeys that span multiple brands, geographies, and complex orgs

Trisha Roger Region Marketing Leader CMO

Justin Head of Digital Marketing

Business Units Integration on single

platform

Ability to centralize or decentralize decision making & execution

Audience builder to create targeted segments using data from any source in

real time

I want the content from corporate but I need to

customize the digital experience for customers in my region!

It ‘s too complicated to quickly identify

customers in segments we want to target

We need to increase revenue by 10% with cross selling across

businesses.

EDITION Basic Pro Corporate Enterprise

Segment Email Marketer Single Channel Multi-Channel Journeys Complex Org

Platform Fee ($/yr) $4,800 $15,000 $45,000 $300,000

Included Contacts N/A 15,000 45,000 500,000

Included Super Messages 250,000 2,500,000 10,000,000 150,000,000

Limit: API Calls 0 2,000,000 6,000,000 200,000,000

Limit: Automations n/a 15,000 45,000 100,000

Limit: Data (GBs) 1 15 45 100

Included Users 5 15 45 100

Additional Contacts N/A $0.10/Contact $0.20/Contact $0.30/Contact

Additional Super Messages Tiered CPM Rate Tiered Discounted CPM Rate

Tiered Discounted CPM Rate

Tiered Discounted CPM

Rate

Marketing Cloud Editions Capacity included in each edition

Focus on the best fit for the needs of your customer Editions are designed to meet needs of customer’s in all segments; seed and grow!

Basic

47%$

4%#

Pro

42%$

44%#

Corporate

10%$

24%$

Enterprise

28%$

Estimated % customers

Estimated % AOV

Journey Platform

Connected experiences, custom apps & activities

Predictive Intelligence

Make every experience 1:1

Services, SIs & ISVs

Enable customer success

Scalability & Infrastructure

Scale & deliver campaigns reliably

Unified Social Capabilities Listen. Publish. Engage. Care.

Customer Successes

The Packaging Highlights our Competitive Differentiators

 Email Volume

 Single Product  (plus add-ons)

 Contact Volume

 Basic  Standard  Enterprise

 (plus add-ons)

 Email Volume  Contact Volume

 Number of Channels  Standard  Premium  Ultimate

(plus add-ons)

 Email Volume  Contact Volume

 Single Product  (plus add-ons)

 Our new packaging aligns with market trends How Do Our Competitors Price and Package?

Marketing Cloud: steps for packaging & pricing 4 easy steps to identify the right Marketing Cloud solution for your customer

Discovery & Assessment

1

Pricing

4

Editions

2 Capacity & Add-ons

3

Pick the right edition, then consider additional capacity & features 90% of customers will need additional contacts, 50% will need more super messages

Contacts Does the customer need more contacts?

Super Messages Does the customer need additional super messages?

Pick the right edition, then consider additional capacity & features Other edition add-ons to consider

Edition Limits Does the customer need more APIs, users, automations, storage?

Customer Success Does the customer need Premier or additional services?

Features Does the customer need additional features?

Enhance other digital investments your customer is making Other products that will be valuable to your customers

Social studio Listen, analyze, publish and engage on social channels

Social.com Social adverting management across Facebook, Twitter and LinkedIn

Active Audiences Activate your data to power customer journeys through advertising

Assess how much value is created & next best alternative, then price accordingly Value based selling

Source: ETMC price lists

0

50

100

150

200

250

300

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Willingness To Pay

Customer

Old Pricing with a la cart SKUs Limited ceiling to sell value

New Pricing with Editions Bigger ceiling to capture value

Available to Partners Resources

•  Marketing Cloud Editions Comparison Doc (Client Facing)

•  Marketing Cloud Deal Calculator (Internal)

•  SKU Mapping Doc (Internal)

•  P&P Enablement Training Deck

 Marketing Cloud Office Hour: Pricing and Packaging  8/11/15 9 a.m. PDT / 12 p.m. EDT / 4 p.m. GMT

 Marketing Cloud Office Hour: Return Path  8/18/15 9 a.m. PDT / 12 p.m. EDT / 4 p.m. GMT

 Marketing Cloud Office Hour: Email Product Update on Tokenized Sending  9/1/15 9 a.m. PDT / 12 p.m. EDT / 4 p.m. GMT

 See the full list here: http://sfdc.co/bObfBj

These are listed on the Partner Community calendar every Tuesday! Upcoming Office Hours

Q&A

Thank you