This past Halloween was by no means scary for Xactly Corporation, a cloud sales compensation and sales performance management (SPM) provider. In fact, the day ended up being quite a treat—not only did the company close out an exceptionally strong quarter on October 31, 2012, but it also signed its 500th customer.
There has been a simultaneous surge of activity at the high end with customers that have more than 1,000 incentive-based payees, and also with smaller businesses that have fewer than 100. The lower-end Xactly Express customer base alone grew more than 30 percent in Q3, and saw greater than 75 percent business growth relative to the same period last year.
A few of the new Xactly Incent large customers added in this quarter include Angie’s List, Rosetta Stone, Berry, Aerohive, Zendesk, TRUSTe, Aclara, ATMI, International Game Technology, ON24, Forsee, and LiveOps (and a few other households brand names the company hopes to be able to share soon). The company also signed the largest new customer contract in its history.
This was on top of expanding its presence with longtime customers such as Equinix, Draeger Medical, Informatica, CooperSurgical, and Compugen. Xactly also opened the doors to its new London (U.K.) office, was noted as a Great Place to Work in the U.S., and was named to the Wall Street Journal’s “Next Big Thing” list of the top 50 start-ups in the U.S. for the second consecutive year. And that’s just a few of the highlights.
But for how long does Xactly think that the SPM market will be fertile ground for this stellar growth? Is archrival CallidusCloud has had to expand into coaching, marketing automation, configure, price, quote (CPQ), gamification, etc., as it could no longer grow by SPM/incentive compensation management (ICM) alone.
Today, Xactly solutions have broadened to offer an extensive suite of related SPM solutions, including modeling, analytics, territory management, gamification, and more. The vendor will continue to add new elements that support these core competencies. However, I don’t see Xactly going outside to offer tangential things like marketing automation. The vendor will leave that to its best-of-breed (BoB) partners like Marketo, and ensure easy integration between those software-as-a-service (SaaS) platforms and its own solutions.
Xactly does see a huge opportunity, however, to leverage incentives outside the sales function, as a new generation of workers emerges that has motivations beyond the dollar. Compensation has long been known to be one of the best levers to motivate and align employee behaviors, and we will see more and more departments within companies adopt this proven solution that sales has leveraged for so long. This will open the door to a much broader set of opportunities across virtually any department or business function. You can look for more news from Xactly in this area in the coming year.
TEC article and interview (May 2012): Talking to an Unrelenting Cloud Enthusiast