Salesforce $CRM is the pioneer of SaaS.
I spent the last few weeks studying its founder, Marc Benioff.
Was expecting to learn about building a cloud software business...
Instead, I received a masterclass in:
• Guerilla Marketing
• Category Creation
• Sun Tzu's Art of War
I spent the last few weeks studying its founder, Marc Benioff.
Was expecting to learn about building a cloud software business...
Instead, I received a masterclass in:
• Guerilla Marketing
• Category Creation
• Sun Tzu's Art of War
Here's 5 lessons I learnt from Marc Benioff
1. Don't let competitors make you angry
2. Create your own category
3. Play the visionary card
4. Leverage on competitors' brand
5. Use the power of PR
Let's get started:
1. Don't let competitors make you angry
2. Create your own category
3. Play the visionary card
4. Leverage on competitors' brand
5. Use the power of PR
Let's get started:
1. Don't let competitors make you angry
“He who is quick tempered can be insulted”
Marc Benioff is a big fan of Sun Tzu.
In the early days of Salesforce...
He deployed Guerilla tactics to "throw dirt" at Siebel Systems, their #1 competitor then.
He gave them silly labels.
“He who is quick tempered can be insulted”
Marc Benioff is a big fan of Sun Tzu.
In the early days of Salesforce...
He deployed Guerilla tactics to "throw dirt" at Siebel Systems, their #1 competitor then.
He gave them silly labels.
That angered Siebel.
Hence, they got defensive and started attacking Salesforce in public.
This gave Marc more limelight. They played right into his hand.
Lesson:
You must have clarity of mind to make your own decisions. Not the ones your competitors want you to make
Hence, they got defensive and started attacking Salesforce in public.
This gave Marc more limelight. They played right into his hand.
Lesson:
You must have clarity of mind to make your own decisions. Not the ones your competitors want you to make
"As I was hitting balls over the net, they should be hitting balls back at me.
Instead, when we pulled off some guerilla PR tactic or beat Siebel to an account, people at the company took it personally.
That emotional reaction put them at a disadvantage"
Marc Benioff
Instead, when we pulled off some guerilla PR tactic or beat Siebel to an account, people at the company took it personally.
That emotional reaction put them at a disadvantage"
Marc Benioff
2. Create your own category
Here's Marc's strategy: It’s better to be first than it is to be better.
If you can’t be #1, set up a new category of your own.
Seeing that traditional software was already saturated, Mark created a new space for himself:
"Software as a Service"
Here's Marc's strategy: It’s better to be first than it is to be better.
If you can’t be #1, set up a new category of your own.
Seeing that traditional software was already saturated, Mark created a new space for himself:
"Software as a Service"
Why make your own category?
Because of human bias:
Everyone is interested in what’s new.
Few people are interested in what’s better.
It’s much easier to be the pioneer...
Than trying to convince someone you have a better product than the pioneer.
Because of human bias:
Everyone is interested in what’s new.
Few people are interested in what’s better.
It’s much easier to be the pioneer...
Than trying to convince someone you have a better product than the pioneer.
3. Play the visionary card
If there is no Goliath in your industry, go after the status quo.
People love to support the underdog.
Salesforce used this to its advantage.
They created a story about waging war against traditional and ineffective software.
If there is no Goliath in your industry, go after the status quo.
People love to support the underdog.
Salesforce used this to its advantage.
They created a story about waging war against traditional and ineffective software.
Too many businesses try to emulate the leader. Wrong!
Don’t be better. Instead, be different.
You must discover the essence of the leader and then present customers with the opposite.
Position yourself as the alternative.
Here's a picture of young Marc doing this:
Don’t be better. Instead, be different.
You must discover the essence of the leader and then present customers with the opposite.
Position yourself as the alternative.
Here's a picture of young Marc doing this:
4. Leverage on competitors' brand
Marc was a master at Guerilla Marketing.
He would leverage on Siebel's events...
Find ways to "attack" them openly...
So the media would weave Salesforce's name into stories and articles he knew would garner a lot of attention.
Marc was a master at Guerilla Marketing.
He would leverage on Siebel's events...
Find ways to "attack" them openly...
So the media would weave Salesforce's name into stories and articles he knew would garner a lot of attention.
He even hired fake protestors and a fake news team, to crash Siebel's conference in 1999.
These protestors were "rallying against" Siebel's expensive software.
The press began to see this fight as an increasingly interesting story.
And that gave Salesforce limelight.
These protestors were "rallying against" Siebel's expensive software.
The press began to see this fight as an increasingly interesting story.
And that gave Salesforce limelight.
"Siebel did not see what was obvious (that we were trying to rattle them).
As the company began defending itself and acknowledging us, we chipped into its airtime.
We were still the gnat on the back of an elephant.
But our unusual tactics were making that elephant dance."
As the company began defending itself and acknowledging us, we chipped into its airtime.
We were still the gnat on the back of an elephant.
But our unusual tactics were making that elephant dance."
5. Use the power of PR
Reporters love drama.
Marc used this to his advantage.
Instead of spending $$ to run an ad on the wall street journal...
He used bold marketing tactics to court the press.
It worked.
They featured Salesforce on the cover of many of their stories.
Reporters love drama.
Marc used this to his advantage.
Instead of spending $$ to run an ad on the wall street journal...
He used bold marketing tactics to court the press.
It worked.
They featured Salesforce on the cover of many of their stories.
Here's an example from Marc:
"When Microsoft announced that it was planning to buy Great Plains, a competitor of Salesforce...
I sent a memo to our staff.
And also forwarded my comments to journalists.
"When Microsoft announced that it was planning to buy Great Plains, a competitor of Salesforce...
I sent a memo to our staff.
And also forwarded my comments to journalists.
I explained that:
Microsoft Great Plains will cause ‘Great Pains’ to the software CRM players who built their products in Microsoft’s path.
Not only was this quote reiterated in many industry articles...
Some even used the “Great Pains” pun in the headline.
Home run!"
Microsoft Great Plains will cause ‘Great Pains’ to the software CRM players who built their products in Microsoft’s path.
Not only was this quote reiterated in many industry articles...
Some even used the “Great Pains” pun in the headline.
Home run!"
These examples above are taken from Marc's book:
Behind the Cloud
Inside, he documented how he built Salesforce from scratch...
Including all the marketing and growth strategies he used to create the SaaS category.
Do read it.
Behind the Cloud
Inside, he documented how he built Salesforce from scratch...
Including all the marketing and growth strategies he used to create the SaaS category.
Do read it.
I hope you enjoyed this.
Here's 5 lessons I learnt from Marc Benioff:
1. Don't let competitors make you angry
2. Create your own category
3. Play the visionary card
4. Leverage on competitors' brand
5. Use the power of PR
Here's 5 lessons I learnt from Marc Benioff:
1. Don't let competitors make you angry
2. Create your own category
3. Play the visionary card
4. Leverage on competitors' brand
5. Use the power of PR
If you found this useful, then follow me at @heymaxkoh
I share my journey of how I attained financial freedom before age 30, by investing in great businesses.
Also if you enjoy such case studies...
Check out this thread on Constellation Software:
I share my journey of how I attained financial freedom before age 30, by investing in great businesses.
Also if you enjoy such case studies...
Check out this thread on Constellation Software:
https://twitter.com/heymaxkoh/status/1450096752443416576?s=20
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