Salesforce, known for its cloud software, is set to buy Spiff, a company specializing in sales commission tools. This move strengthens Salesforce’s sales offerings, giving users a more robust platform. Established in 2017, Spiff has been a game-changer in automating sales commissions. Spiff offers a user-friendly interface that simplifies the process for businesses to set up automated sales compensation plans. Salesforce acquires Spiff with a focus on expanding its SPM offering in the market.
These plans adjust automatically when team members meet their agreed-upon goals. With built-in compatibility for popular enterprise ERP and CRM systems, Spiff can manage complex commission setups. This includes various conditions that might activate payments. Sales reps also benefit from real-time visibility into their potential earnings.
They’ve helped businesses set up fair and clear commission plans that boost sales team morale and performance. Now, joining forces with Salesforce, Spiff aims to grow even more, bringing added value to Salesforce’s customers. However, The financial terms of the agreement were not publicly disclosed.
Key Takeaways
- Strategic Enhancement of Sales Performance Management (SPM): Salesforce’s acquisition of Spiff is a deliberate move to strengthen its Sales Performance Management offerings. By integrating Spiff’s specialized tools for automating sales commissions, Salesforce aims to provide users with a more comprehensive and efficient platform for managing sales strategies and enhancing business growth.
- Simplified Compensation Planning: Spiff’s user-friendly interface and capabilities in automated commission calculations offer businesses a simplified approach to setting up and managing complex sales compensation plans. This acquisition promises to bring this ease of use to Salesforce’s Sales Cloud users, enabling them to design fair and transparent commission structures with minimal hassle.
- Collaboration and Insights for Revenue Growth: The acquisition aligns with Salesforce’s goal to foster better collaboration between sales, finance, and other departments. With Spiff’s integration, Chief Revenue Officers and teams can expect improved insights into revenue drivers and more effective management of incentive plans, ultimately driving sales performance and growth.
- Continuation of Innovation and Flexibility: Spiff’s ongoing commitment to innovation, highlighted by its recent funding rounds and introduction of new features like Spiff Designer, indicates a forward-thinking approach. As part of Salesforce, Spiff’s adaptable and low-code solutions are expected to further enhance Salesforce’s offerings, allowing businesses to tailor the platform to their unique needs more effectively.
Image source: Spiff
Salesforce Acquires Spiff In An Undisclosed Deal To Boost ICM And SPM Solutions
Salesforce, a leading enterprise software company, has revealed its intention to purchase Spiff, a company specializing in innovative ICM software. The financial details of the deal have not been made public.
After the acquisition is finalized, Spiff’s team will become part of Sales Cloud. Their expertise will strengthen Salesforce’s SPM (Sales Performance Management) offerings. This move aims to give Salesforce customers a reliable platform for better visibility, enhanced sales strategies, and accelerated business growth. By integrating Spiff into Salesforce, will also enable Chief Revenue Officers (CROs) to collaborate more effectively with finance and sales teams. This collaboration allows for easier management of intricate incentive plans and provides insights into the key drivers of revenue growth.
Ketan Karkanis, GM at Salesforce, commented that the Spiff bridges the gap between what salespeople desire—clear compensation—and what sales managers seek—integrating compensation planning within CRM to align actions with business goals.
With Spiff, sales reps can see their commission details in real-time, helping them grasp their earnings better. The platform also handles intricate user roles, team setups, approval processes, and document management. Key features include its ability to grow with a business, easy integration options, and detailed analytics, making it straightforward for companies to set up compensation plans.
Image source: Sales Cloud
Both Salesforce and Spiff have a longstanding relationship, with over 70% of Spiff’s customers already using Salesforce’s Sales Cloud. When the acquisition is finalized in the starting months of 2025, Spiff’s team will officially become part of Salesforce.
Jeron Paul, CEO of Spiff, expressed enthusiasm about the company’s future and its role in ICM and SPM. He highlighted Spiff’s ongoing commitment to innovation and looks forward to contributing even more within the Salesforce environment.
Spiff is a flexible platform that lets businesses design their ideal pay structures with minimal coding. By adding Spiff to its portfolio, Salesforce enhances Sales Cloud with this adaptable feature. This flexibility makes it easier for users to tailor the platform to their specific needs, unlike older systems that can be rigid and complex.
While Salesforce offers robust tools, setting them up to fit unique business needs can be time-consuming. Customizing workflows or adding specific features often requires extra effort. However, Salesforce is committed to simplifying these tasks. Acquiring Spiff and refining tools like Salesforce Flow Builder are steps in that direction, aiming to make CRM setup more straightforward for users.
Image source: Salesforce
Based in Salt Lake City, Spiff has raised over $110 million since its inception six years ago. Salesforce’s venture capital arm, Salesforce Venture, has also been an investor. Beyond just investment, Spiff has been accessible on the Salesforce AppExchange for quite some time, indicating a deeper collaboration between the two firms.
Earlier this year…
Spiff announced a successful $50 million Round C Series funding. This round was led by Salesforce Ventures, with contributions from Norwest, Lightspeed, Album, and Kickstart Fund, among others. The funding was raised to help Spiff enhance its sales commission tools and address other intricate finance and sales tasks that traditionally relied on spreadsheets.
Additionally, Spiff also revealed its latest feature, Spiff Designer at the same time. This tool aims to simplify commission automation for finance and revenue teams. By combining the user-friendly nature of spreadsheets with advanced automation capabilities, Spiff Designer allows professionals in finance and sales operations to more efficiently manage and create their commission programs.
Salesforce Strengthens Low-Code Focus with Strategic M&A Acquisitions
Salesforce’s acquisition of Spiff fits into its broader strategy of bringing compatible companies into its fold, especially those focused on low-code solutions. This strategy is clear when you look at Salesforce’s recent acquisitions and where it’s investing.
For instance, in September, Salesforce bought Airkit, a platform that uses low-code to create AI-driven customer service tools. Airkit, based in Redwood City, California, was started by Adam Evans and Stephen Ehikian, who previously sold another startup, RelateIQ, to Salesforce for $390 million. Since its launch in 2017, Airkit received funding from various sources, including Salesforce Ventures. By 2020, they had secured $28 million in initial funding and a total of $68 million over six years. Just like Spiff, Airkit was also part of Salesforce’s AppExchange platform.
About Salesforce
Salesforce offers a cloud-based platform designed to craft meaningful customer experiences. Originating as a Software-as-a-Service (SaaS), Salesforce operates on a multi-tenant architecture, offering advantages like seamless API integration, scalability, and cost-effectiveness. It stands out as a top provider of Customer Relationship Management (CRM) solutions and extends its offerings with an Artificial Intelligence (AI) platform for areas like marketing automation, finance, and human resource management.
Whether for a small business or large corporations, Salesforce streamlines operations by providing employees with a unified customer view across various departments. These capabilities enable businesses to leverage cutting-edge technologies, identify potential customers, and enhance overall customer experiences. Currently listed on the NYSE and a part of the S&P 500 index, Salesforce boasts a market capitalization of $258.69 billion, showcasing its rapid growth in the competitive Cloud Computing landscape.
About Spiff
Spiff stands out as a sales compensation platform, streamlining commission calculations and boosting team motivation for enhanced top-line growth. With its user-friendly interface, real-time insights, and seamless integrations, Spiff empowers finance and sales operations teams to manage intricate incentive compensation plans independently. It brings transparency to sales teams, automating and optimizing commission plans to drive motivation among commissioned representatives. Spiff not only alleviates the challenges of commission management for the finance team but also fosters smoother collaboration between finance and sales, ultimately boosting overall sales performance.
Choose Spiff as your sales compensation software to unlock your team’s full potential. Tailored to help you achieve your goals, whether it’s boosting productivity or refining sales processes, Spiff is the solution you need.
Image source: Spiff
Conclusion
Salesforce’s acquisition of Spiff marks a significant stride in its strategy to bolster its Sales Performance Management offerings. This strategic move enhances Salesforce’s capabilities by incorporating Spiff’s expertise in automated sales commission tools. With Spiff’s intuitive interface and robust functionalities, Salesforce customers can anticipate more streamlined processes and better visibility into their sales compensation strategies.
As Spiff’s team becomes an integral part of Salesforce’s Sales Cloud, the synergy between the two companies promises to deliver enhanced value, particularly for Chief Revenue Officers aiming for cohesive collaboration across departments. This acquisition not only signifies Salesforce’s commitment to innovation but also underscores its dedication to providing comprehensive solutions that drive business growth and optimize sales performance.
