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Back to Inside Salesforce’s $100 Billion M&A Playbook | John Somorjai, with John Somorjai & Alex Immerman.

Why Is Salesforce Moving From Seats to Outcome-based Pricing?

John Somorjai says the technology industry is moving toward outcome-based pricing, where a customer pays for resolutions instead of paying for a seat. Salesforce is getting behind that trend, and more of its products will be delivered that way. The point he puts first is that customers stay happy, successful, and willing to come back, whether they pay per seat or on usage.

Fin is the case he uses. Fin can charge for resolutions because the time to value is fast. On average it is up and running in 16 days, and the agents start handling calls that would otherwise have gone to a person. Salesforce tried Fin on its own help site and had it running in 14 days. On help.salesforce.com, Fin now handles over 40% of the traffic and delivers 65% resolutions without going to a human. Somorjai calls that speed, in his view, a hallmark of what a great acquisition looks like.

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Inside Salesforce’s $100 Billion M&A Playbook | John Somorjai ·

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More from this episode

  1. How Does Salesforce Decide Which Companies to Buy?John Somorjai says Salesforce follows an internal framework and stays pretty disciplined about following it. The framework looks at three elements.
  2. How Do Acquisitions Put a Startup in Front of Salesforce's Sales Force?Alex Immerman says an acquisition can put a startup in front of Salesforce's 15,000 sales reps, and that in the case of Listen Labs a handful of those reps…
  3. What Makes a Startup Worth Acquiring at Salesforce?John Somorjai says a startup is worth acquiring when Salesforce's product teams cannot build the next three years of the roadmap with the people they have…
  4. Why Is Salesforce Ventures Investing in Robotics?John Somorjai says Salesforce Ventures is investing in robotics because dexterity and mobility are improving, and he expects a huge future for that industry.
  5. Why Does John Somorjai Say Many Venture Valuations Will Not Last?John Somorjai says many venture valuations will not last because they are way too high, the set of buyers is small, and the companies will not be able to grow…
  6. What Can Kill a Salesforce Deal?John Somorjai says security is the one function that can hold up the red flag and kill a deal.
  7. What Happened When a Salesforce Security Test Reached the CEO's Laptop?John Somorjai says one Salesforce penetration test reached all of a company's source code, got into the CEO's laptop, and pulled information about employees…

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