Smoke & Mirrors Alert: What is Salesforce Trying to Say?

May 21, 2007 by Sinclair Schuller

Although most people don’t realize it, plenty of advertising and announcement techniques use “sleight of hand” style approaches to exploit your first glance and focus your attention on the content of the ad and an intended message rather than seeing the truth. This technique is common among propagandists and corporations alike. Let’s look at some examples:

• Undoubtedly, you have seen the phrase “Made with All Natural Ingredients” on food packaging. Many consumers see that and think – Wow, it’s an all natural product! Well, no. The phrase is simply stating that at least one ingredient in the food product is natural – all the rest can be artificial, and the label would not be telling a lie. This statement creates a large gap between understanding and meaning, giving the advertiser plenty of “wiggle room.”
  
• “No soap cleans better” or “No detergent kills more bacteria than X” is another one of my favorites. To a casual reader, this is generally understood as a claim that a specific cleaning product is better than the rest – it defines a less than clause. The true meaning, however, allows for the case that all other detergents clean equally as well as the subject product, meaning that it in fact cleans no better. This creates a situation where “No detergent kills more bacteria than X” and “All detergents kill the same amount of bacteria”
  can in fact be synonymous.
  

Generally, using these tactics help out a ton when trying to position a product or service. So what does this have to do with Salesforce.com? Well, they’ve become quite keen on using this approach (aka smoke & mirrors). A couple of weeks ago, Phil Wainewright asked the question “How is AppExchange really doing?” where he highlights that they’ve played “fast-and-loose” (what a great phrase!) with their numbers in touting the “popularity” of Apex & the AppExchange. Salesforce.com has conveniently made sure that all of its CRM customers are considered Apex customers. According to this page, Apex as a platform is used by 32,300 customers. That makes it seem like the Apex platform has been privy to massive adoption. Just like all natural ingredients or killer soap, however, their assertions lack the necessary clarification. Salesforce.com, the CRM product, is counted in those figures. So as Mr. Wainewright asked, how well is AppExchange really doing? In October of last year, Josh Greenbaum called analyzing AppExchange a “guessing game” and I wrote an article on some of the applications found in the AppExchange.

Well, looks like Salesforce.com is at it again.

A press release issued today announced the AppExchange Venture Network and states that “More than $225 million has been invested in two dozen companies on the AppExchange.” At first glance, you think – Wow, venture money is really flowing to software companies building apps on the AppExchange. What did we learn about first glances? You guessed it – this has some artificial ingredients! The statement is intended to give off the message that money is pouring into the AppExchange. This is nothing but marketing at its best. $225 million most likely has been invested – but it went to building the companies and their primary SaaS offerings, and not their Salesforce.com integration do-hickeys. Salesforce.com is using the companies and their funding as a proxy marketing message, almost like mathematical syllogism: since A>B>C then A>C. Better yet, let’s look at the possible roots of the message: Since $225 million has been invested in two dozen companies, and those companies each built integrations between Salesforce.com and their application and published it on AppExchange, then “…$225 million has been invested in two dozen companies on the AppExchange.”! I can see how building these messages can be addicting! Now, spin that into the general purpose platform message of Apex, and you have a platform with hundreds of ‘applications’ – right.

What do you think? Do you see these marketing tactics used frequently? Have any good examples that you’d care to share?