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Zscaler Sales

To accelerate secure digital transformation for enterprises by delivering cloud-native security solutions that establish us as the dominant cloud security platform

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To accelerate secure digital transformation for enterprises by delivering cloud-native security solutions that establish us as the dominant cloud security platform

Strengths

  • PRODUCT: Leading Zero Trust Exchange platform with integrated solutions
  • MARKET: First-mover advantage in cloud security with 15+ years
  • CUSTOMERS: Elite enterprise client base including 40% of Fortune 500
  • FINANCIALS: Consistent 30%+ YoY revenue growth for 8+ quarters
  • INNOVATION: Strong R&D investment at 25% of revenue annually

Weaknesses

  • COMPETITION: Increasing pressure from legacy vendors entering space
  • SALES: Long enterprise sales cycles averaging 6-9 months
  • PROFITABILITY: Continued investment prioritized over margins
  • PRICING: Premium pricing creates barriers with mid-market firms
  • AWARENESS: Brand recognition outside security community limited

Opportunities

  • EXPANSION: Cross-sell additional modules to existing customers
  • MARKET: SASE/SSE market growing at estimated 36% CAGR until 2028
  • CONSOLIDATION: Enterprises reducing security vendor count by 15%
  • REGULATION: Increasing compliance requirements driving adoption
  • INNOVATION: AI-powered security capabilities creating differentiation

Threats

  • COMPETITION: Legacy vendors bundling zero trust into existing suites
  • ECONOMIC: IT budget constraints slowing purchase decisions
  • TALENT: Industry-wide cybersecurity talent shortage limiting growth
  • MARKET: Consolidation creating larger competitive platforms
  • TECHNOLOGY: Emerging security paradigms potentially disrupting model

Key Priorities

  • GROWTH: Accelerate cross-sell motion to existing enterprise base
  • DIFFERENTIATION: Further develop AI capabilities as key advantage
  • EXPANSION: Refine mid-market offerings to capture broader audience
  • EFFICIENCY: Optimize sales process to shorten enterprise cycles
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To accelerate secure digital transformation for enterprises by delivering cloud-native security solutions that establish us as the dominant cloud security platform

GROW ENTERPRISE

Maximize expansion in our core enterprise business

  • CROSS-SELL: Increase platform module adoption to 3.5+ avg per customer from current 2.8 by quarter end
  • RETENTION: Achieve 125%+ net retention rate through systematic expansion and renewal processes
  • DEALS: Close 65+ deals valued over $1M in annual contract value, a 10% increase from previous quarter
  • VELOCITY: Reduce average enterprise sales cycle length by 15 days through process optimization
LEAD WITH AI

Establish clear AI security leadership position

  • CAPABILITY: Launch AI Advisor 2.0 with predictive threat detection capabilities to 100+ beta customers
  • ENABLEMENT: Train 100% of customer-facing teams on AI security value proposition and demo skills
  • ADOPTION: Drive AI security feature usage to 25% of customers through targeted activation campaigns
  • INTELLIGENCE: Deliver 5 AI-powered executive security dashboards with actionable business insights
WIN MIDMARKET

Capture larger share of the growing midmarket segment

  • PACKAGES: Launch 3 simplified midmarket bundles with fixed pricing and accelerated implementation
  • PARTNERS: Increase channel-sourced midmarket deals by 30% through improved enablement programs
  • MARKETING: Generate 40% more midmarket MQLs through targeted campaigns and success stories
  • VELOCITY: Reduce midmarket sales cycle by 20% through streamlined evaluation and implementation
STREAMLINE SALES

Build frictionless customer acquisition engine

  • AUTOMATION: Implement AI-powered lead scoring and routing reducing qualification time by 30%
  • ENABLEMENT: Launch modular sales playbooks resulting in 15% improvement in new rep productivity
  • INSIGHTS: Deploy deal intelligence platform providing real-time coaching for 90% of active deals
  • PRICING: Simplify quote-to-cash process reducing contract approval time by 40% for standard deals
METRICS
  • ARR Growth Rate: 35%
  • Net Retention Rate: 125%
  • Expansion Module Adoption: 3.5
VALUES
  • Trust
  • Innovation
  • Customer Obsession
  • Teamwork
  • Operational Excellence
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Align the learnings

Zscaler Sales Retrospective

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To accelerate secure digital transformation for enterprises by delivering cloud-native security solutions that establish us as the dominant cloud security platform

What Went Well

  • REVENUE: Exceeded guidance with $525M quarterly revenue, up 32% YoY
  • ENTERPRISE: Closed 59 deals over $1M ACV, up 23% from previous year
  • EXPANSION: Net retention rate remained strong at 121% for quarter
  • ADOPTION: ZDX and ZPA module attach rates increased to 40% and 61%
  • PARTNERSHIPS: AWS/Microsoft go-to-market initiatives exceeded goals

Not So Well

  • MIDMARKET: Growth below expectations at 26% YoY, missing 32% target
  • INTERNATIONAL: EMEA expansion pace slowed to 28% from previous 35%
  • MARGINS: Gross margin decreased 1.5 points due to infrastructure costs
  • CYCLES: Sales cycle length extended avg 12 days longer than last quarter
  • CHURN: SMB segment saw slight increase in customer churn to 2.7%

Learnings

  • SEGMENTATION: Enterprise success validates premium feature positioning
  • COMPLEXITY: Multi-module sales require specialized enablement support
  • COMPETITION: Legacy vendors increasing competitive win rate in midmarket
  • ECONOMICS: Current environment requires stronger ROI narrative emphasis
  • PARTNERS: Channel contribution growing faster in properly enabled segments

Action Items

  • SIMPLIFY: Create packaged midmarket offerings with streamlined pricing
  • INVEST: Increase sales specialist headcount in high-growth regions by 15%
  • MEASURE: Implement deal velocity metrics and optimize for faster cycles
  • ENABLE: Launch advanced AI security certification program for all sellers
  • PARTNER: Expand managed service provider program with turnkey offerings
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To accelerate secure digital transformation for enterprises by delivering cloud-native security solutions that establish us as the dominant cloud security platform

Strengths

  • PLATFORM: Massive security data lake ideal for AI model training
  • INNOVATION: Early AI security capabilities with Zscaler AI Advisor
  • TALENT: Strong AI/ML engineering team with security expertise
  • POSITIONING: Well-placed to leverage AI for security automation
  • INTEGRATION: Cloud architecture enables seamless AI deployment

Weaknesses

  • MATURITY: AI capabilities still emerging compared to core offerings
  • EDUCATION: Sales team AI expertise varies significantly across org
  • MESSAGING: AI value proposition not clearly differentiated yet
  • RESOURCES: AI investment competing with other growth priorities
  • ADOPTION: Customer AI security implementation skills often lacking

Opportunities

  • AUTOMATION: AI-driven threat detection reducing false positives
  • EFFICIENCY: Machine learning optimizing security policy creation
  • INSIGHT: AI analytics providing actionable security intelligence
  • PREDICTION: Proactive threat hunting capabilities with AI models
  • INTEGRATION: AI assistants streamlining security operations

Threats

  • COMPETITION: Major cloud providers investing heavily in AI security
  • DIFFERENTIATION: AI becoming table stakes rather than advantage
  • TALENT: Fierce competition for AI/security specialized talent
  • INNOVATION: Rapid AI advancement requiring continuous investment
  • TRUST: Customer concerns about AI reliability in security context

Key Priorities

  • INNOVATION: Develop AI-driven predictive security capabilities
  • TALENT: Accelerate AI specialization across revenue organization
  • MESSAGING: Refine AI security value prop with clear ROI metrics
  • INTEGRATION: Embed AI assistants throughout customer journey