Operational Margins Case

Segmentation, targeting marketing and product positioning are critical in customer value creation. Ideally, sales executives should be working from a positioning statement that contains one benefit that addresses the target audience globally.

Being industry or geographic focus is key to success here.

Repeat Customers

Repeat customers can also be a company's most profitable customers. One strategy of our sales and marketing team is to increase the number of sales made to existing customers compared to first-time buyers. Customer-relationship management strategies are used achieve this objective, strengthening relationships with customers and turning repeat customers into champions for the brand. Social proof in full effect.

Finance

This in turn helps us understand why investors see Salesforce as such an attractive investment (even though they have never turned a profit). Top of mind with investors looking for a return is;

• Sustained Growth

• Operational Margin

• Cashflow ( Salesforce look for annual payment in advance, have kept attrition in single digit % to drive recurring revenue )

Is Salesforce Financially strong?

A company must be adequately liquid, introducing enough cashflow from day on day business. Salesforce is proving to be liquid as it generated full year net operating cash flow of $1.17 Billion in the year ending Jan 31st 2015 , currently at $1.61Bn for 2016 thus a new operating cash flow growth at 37.39% up from the previous years 34.07%.

2015 depreciation was at $448.3 million, 12 months ending Jan 31, 2015, which suggests that Salesforce are in a good position to support substantial growth with it currently standing at $844.82M in 2016. (Fig.1)