Marketing in the Era of the Connected Customer!How Smart Retailers Use Salesforce Marketing Cloud to Attract,

Engage and Serve Customers Faster and Better

Joel BookSr. Director, Digital Marketing Insight

jbook@salesforce.com@joelbook

Forward-Looking Statements

Statement under the Private Securities Litigation Reform Act of 1995:

This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site.

Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

A Time of . . .Seismic Change and Digital [R]evolution!

From Oct. 31 to Nov. 27, 2016, U.S. retailers spent $1.24B on all forms of advertising – both online and offline. This represented a 9% decrease from a year earlier.

The decreased spending reflects the growing importance of digital advertising and e-commerce.

Budgets are shifting from mass media channels like TV, radio and print to more focused digital outlets.

Jon SwallenKantar Media

By 2021, Digital Marketing will account for 75% of the marketing budget.

38%30%

25%

62%70% 75%

2011 2016 2021

Digital marketing channels Traditional marketing channels

3 MegaTrendsare Transforming

Retailing

1. Today’s Consumers are Smarter and Better Informed

Source: McKinsey & Company (2016)“Where The Big Changes Are Happening In Sales And What They Mean”

In 2017, almost two-thirds of all U.S. retail sales will involve some form of online research, consideration or purchase.

Brand websites are the source

of product information, behind recommendations from friends & family. Source: Nielsen – “Global Trust in Advertising” (2015)

Real people have become the “micro-influencers” and broadcast networks of the modern age.

Searches related to “how to” on YouTube are growing 70% year-over-year.

The full Home Depot "how-to" collection has received more than 48 million views.

The number of people watching YouTube each day has increased by 40% since March 2014.

Source: Google (2015)

Brand-Sponsored YouTube Channels have Transformed How Consumers Learn

2. Today’s Consumers are Mobile-First and Constantly Connected

of consumers have a smartphone.Source: Salesforce ResearchState of the Connected Customer (2016)

of consumers use their phones to help them shop.Source: McKinsey & Company (2016)“Where The Big Changes Are Happening In Sales And What They Mean”

of people who use a mobile device for research go on to make a purchase. Source: Google/Nielsen, "Mobile Path to Purchase" study, November 2013, United States

Source: iSenseLabs (2016)

The open rate for SMS Messages is

The response rate for SMS Messages is

Holiday Shopping SMS Message

from Stage Stores

98%Open Rate

Messaging App Users have surpassed Social Network Users

Example: Customer Service message using Facebook Messenger

3. Today’s Consumers Value Customer Experience over Product and Price

Marketing has become a 24/7 Job to Engage the Customer at Every Stage of the CX Life Cycle

The Customer Experience Life Cycle

Product Purchase Journeys Product Use & Service Journeys

EMAIL

SERVICE

75% of consumers expect companies to anticipate their needs!

When it comes to Customer Experience, there is no substitute for Personalization!

75% expect companies to send personalized offers.

65% will likely switch brands if communications are not personalized.

Optimizing Customer Journeys Improves Revenue, Increases Satisfaction

Increase in CustomerSatisfaction

Increase in Revenue Growth

Reduction in Cost to Serve

The Three Cs of Customer Satisfaction:

Consistency, Consistency, Consistency

3 Priorities for Engaging the Connected Customer

1. Engage the Consumer across Multiple Channels and Devices

Customers Expect Relevant 1:1 Experiences at Every Point of Engagement and Interaction

ConnectedCustomers

ConnectedBrands

Web Store CommunityEmailSocialMobileProduct

ConnectedExperiences Stadium

Retail sales of Lawn & Garden products in the U.S., was $5.7 billion in 2014 and is projected to reach $6.6 billion in 2019.

The Scotts Miracle-Gro Company is the market leader by a wide margin, controlling an estimated 60% of total sales in the U.S. The company is the leader in all four categories of L&G supplies: fertilizers, growth media, grass seed and pesticides.

The U.S. Lawn & Garden Products Market

Source: Packaged Facts

Lawn and Garden Supplies in the U.S., 10th Edition (August 2015)

Retailers

Facebook TwitterWebsite

Email

Mobile App SMS Alert

YouTube Channel

Retail Partner Promotions

Scotts Uses its Website to Engage Consumers and

Deliver Useful Content

Scotts invites website visitors to register

Website content is tailored to the consumer’s zip code

85% of shoppers want self-service access to digital content.Source: Cisco Internet Business Solutions Catch and Keep Digital Shoppers

Scotts’ website provides access to: • Product Information• Ratings & Reviews• Q&A• Live Chat

Online ratings and reviews on retailer websites are cited as most influential in purchase decisions by 52% of respondents.Source: Cisco Internet Business Solutions Catch and Keep Digital Shoppers

Scotts encourages customers to write a review about their experience using a Scotts product

Email is the Backbone of Scotts’ CRM Strategy

Scotts uses a “Lightbox” on its home page to invite visitors to subscribe to My Turf Tips

My Turf Tips is: Produced in 355 unique

versions across the U.S. Delivered to more than 2

million subscribers.

My Turf Tips links subscribers to lawn care and product information – specific for their zip code!

My Turf Tips subscribers are invited to opt-in for localized Scotts SMS text alerts.

My Turf Tips text messages let customers know the best time to apply Scotts products to get the best results

2. Use First-PartyData to Deliver Personalized Content

Twitter:

@MelissaSmith01

Melissa Smith

Postal Address

Email:

MSmith@gmail.com

Preferred Retailer

Birth year

Mobile Phone Number

Personal Profile Data

Browsing Behavior

Product Interests

Promotion Participation

Mobile App Downloaded

Product Purchase History

Requested Push Notifications

Customer Service History

Personalized Content Drives Higher Conversion

Email

Mobile

Online

61% of customersare more likely to buyfrom companies that deliver custom content.Source: McKinsey Digital Labs (2016)

Response to

Facebook Ad

(Facebook Custom

Audience)

Email Signup

via Brand

Website

Welcome Email /

Request for

Needs & Interests

Site Browsing &

Guided Exposure

to Content

Email 2 & Invitation

for Mobile Push

Sign up

Progressive profiling enables brands to tailor offers and messages to the customer’s interests

Email 1

Triggering

Mobile App

Download

Pro

gre

ssiv

e P

rofi

lin

g

Twitter:

@MelissaSmith01

Melissa Smith

Postal Address

Email:

MSmith@gmail.com

Preferred Retailer

Birth year

Mobile Phone Number

Personal Profile Data

Browsing Behavior

Product Interests

Promotion Participation

Mobile App Downloaded

Product Purchase History

Requested Push Notifications

Customer Service History

“We create a seamless experience when a customer’s online behavior is reflected in their personalized messaging. That’s pretty powerful.”

Wanted to drive more revenue from email channel using predictive intelligence to tailor offers to individual customers

Uses customer insight including purchases, product preferences, site searches and abandoned cart items to deliver personalized offers via email

Increased email click-through rates 25-35%; Increased sales conversion rates 15-25%

The Journey from High Fashion to High Tech

Dasha Gastol, Digital Marketing Manager, Diesel

• Nike’s evolution:

• Year 1: Segmentation

• Year 2: Triggered Messaging

• Year 3: Customer Journey Optimization/Personalization

• Focuses on relevant, highly targeted campaigns to increase conversion rate and revenue per email delivered.

• Uses first-party data to produce more than 16 million iterations of a single email!

• Increased Revenue 60% YOY

• Decreased Email Volume by 10%

Nike’s 3 Year 1:1 Marketing [R]evolution

60% of US consumers prefer email for receiving updates and promotions from brands. Source: MarketingSherpa Consumer Purchase Preference Survey (August 2015)N=2,021

Email delivers a median ROI of 122%!

“Salesforce allows our stylists to provide a personal experience—in a digital channel.”

Martijn van der Zee, Marketing Director

Suitsupply Tailors Shopper Engagement with SalesforceDelivers world-class customer experience using Marketing Cloud + Commerce Cloud + Service Cloud.

Uses social listening to engage prospective customers; Uses customer preference and product interest data to tailor email content and offers to individual customers.

Suitsupply stylists use customer data to provide a personalized online shopping and customer service experience.

JOURNEYBUILDER

EMAILSTUDIO

MOBILESTUDIO

SOCIALSTUDIO

ADVERTISINGSTUDIO

WEBSTUDIO

AUDIENCEBUILDER

PERSONALIZATIONBUILDER

CONTENTBUILDER

ANALYTICSBUILDER

3. Automate Customer Journeys to Deliver a Consistent Customer Experience

CONTENTBUILDER

New Customer Onboarding

Customer Service & Support

Product Purchase

Product Research & Evaluation

Remarketing & Cross-Selling

Customer Journeys Span All Stages of the Customer Life Cycle

Repurchase & Renewal

Marketing has become a 24/7 Job to Engage the Customer at Every Stage of the CX Life Cycle

The Customer Experience Life Cycle

Product Purchase Journeys Product Use & Service Journeys

EMAIL

SERVICE

The Worldwide Beauty Products Market

The global Cosmetic market was 460 billion USD in 2014 and is estimated to reach 675 billion USD by 2020

L’Oreal market share:

North America - 13.7%Western Europe – 19.6%Eastern Europe – 12.5%Africa, Middle East – 11.8%Asia–Pacific – 9.3%Latin America – 8.8%Japan – 2.2%

Source: Statista (2017)

• Attract new consumers to the L’Oreal brand using social media. Drive product trial.

• Reduce dependency on retail beauty consultants to educate the consumer on the value of L’Orealproducts.

• Establish a direct 1:1 relationship with the consumer; Aid the consumer’s product evaluation and selection process.

• Increase CLTV by cross-selling L’Oreal products

L'Oreal Marketing Objectives

L’Oreal’s Makeup Genius app provides personalized beauty recommendations

and enables consumers to “test” and purchase L’Oreal products

Makeup Genius app users are invited to subscribe to L’Oreal email and mobile

push notifications; Email enables L’Oreal to maintain a direct 1:1 relationship

The L’Oreal Makeup Genius app has been a stunning consumer success, with over 20 million users and more than 65 million

product trials worldwide.

In the Era of the Connected Customer, there are two guiding truths for marketing:

CX is the Holy Grail

Digitalis King

Keys toDigital

[R]evolution

Make Customer Experience the Foundation of Your Strategy

• Customers now expect a personalized experience across online and offline channels and devices!

• Use customer data and digital technology to personalize Marketing, Sales and Customer Service interactions.

Make your Brand Website a Hub for Useful Content

• Stock your website with content that is informative and useful.

• Use Predictive Analytics to recommend content that aids the customer’s purchase decision.

• Focus on Helping, not product promotion.

Establish a Direct Relationship with Your Customer

• Capitalize on every opportunity to establish a 1:1 relationship with customers.

• Invite customers to subscribe to:

• Email

• SMS alerts

• Mobile Push communications

Use First-Party Data to Deliver Personalized Content

• Use progressive profiling to understand the customer’s needs, interests and intent.

• Use this insight to predict and deliver relevant and timely offers, invitations, and service through channels and connected devices.

Integrate Technologies

• Choose products that deliver a seamless customer experience across channels, touchpoints, devices.

• Requirements: • Speed• Scalability• Multi-Channel Agility (Online, Email, Social)• Customer Journey Automation• Data-Driven Personalization• System Security and Data Privacy

Marketing Cloud

Create 1-to-1 journeys for more engaging marketing

Sales Cloud

Better manage vendor & partner relationships

Community Cloud

Build online communities to complement commerce

App Cloud

Create custom commerce experiences

Analytics Cloud

Gain more insight into and enrich commerce data

Service Cloud

Provide service before, during and after purchases

Commerce Cloud

Unify commerce experiences across all channels

Unify the Entire Customer Experience with Salesforce

IoT Cloud

Create a more complete picture of customers

thank y u

Joel BookSr. Director, Digital Marketing Insight

@joelbook

/joelbook