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Dynamics EC Convergence - Copenhagen 2008
- 2. Morgan Wheaton Senior MarketingManager Microsoft Corporation
- 4. FARCUS® is reprintedwith permission from LaughingStock Licensing Inc., Ottawa, Canada. All RightsReserved
- 5. Measure partner businessperformance What does great performance look like? What are some contributing factors? Detailed survey Feb 28 to May 14, 2007 218 respondents worldwide In depth interviews Conducted by IDC & MSI International
- 6. n = 218Source: IDC, 2007 Canada 8% Western Europe 20% Eastern Europe 11% Asia Pacific 8% Latin America 8% Middle East and Africa 6% USA 39% Geographic Region 1 to 9 emp. 16% 10 to 49 emp. 53% 50 or more emp. 21% no response 10% Company Size Services 14%ISV 9% Logistics 3% Hardware 1% VAR 73% Business Model 2 years or less 25% 3 to 5 years 23% More than 5 years 52% Dynamics Practice Age Dynamics Products 18% 38% 11% 39% 38% 7% 10% AX GP SL NAV CRM Retail Other
- 7. n: 51 5152 52 Source: IDC, 2007 -20% -10% 0% 10% 20% 30% 40% 40% 17% 7% -15% 1st 2nd 3rd 4th OperatingProfit%ofRevenue Profit Margin Quartile
- 8. New customers alwaysimportant 1st Quartile: Existing customers are as important Even sales and marketing staff focus more on existing customers Service employees spend more time with existing customers 65.2% 68.9% 69.5% 70.2% 34.8% 31.1% 30.5% 29.8% % Time Spent - Sales 68.1% 72.9% 71.3% 73.0% 31.9% 27.1% 28.7% 27.0% % Time Spent - Marketing 44.5% 53.6% 51.8% 47.9% 55.5% 46.4% 48.2% 52.1% % Time Spent - Service 1st 2nd 3rd 4th 51.0% 57.6% 57.0% 60.6% 49.0% 42.4% 43.0% 39.4% 1st 2nd 3rd 4th % Dynamics Revenue Existing customers New customers Source:IDC,2007
- 9. 1st Quartile/existing customers: Averagedeal sizes much higher Yet sales cycles no different Consulting engagements longer, but billable $115.9 $114.4 $105.8 $109.4 $93.0 $24.8 $74.1 $25.2 1st 2nd 3rd 4th Average Deal Size (US $'000) Existing customersNew customers 3.4 4.1 3.5 3.6 1.3 1.2 1.6 1.4 1st 2nd 3rd 4th Average Sales Cycle (months) 3.7 4.2 4.5 4.4 2.7 1.4 1.8 2.2 1st 2nd 3rd 4th Avg Implementation Time (months) Source: IDC, 2007
- 11. Assign an ExistingCustomer Champion Analyze your business & develop a plan • Prioritize your customers & communications • Execute using the customer lifecycle • Measure and revise
- 12. If everybody “owns”existing customers then nobody does Doesn’t have to be a full-time job but. . . Consider a full-time EC Champ at 50 active customers FY07 analysis shows that partner organizations that have a resource dedicated to their existing customers drove an average of three to four times more EC revenue than those partners that did not. They also achieved 88% renewals vs. 78% renewals. Source: US Partner Analysis FY07
- 13. Sell SupportDrive the Lifecycle Planthe Business Prioritize & Execute Communications Coordinate the Virtual Team Focus Priorities Maintain Momentum
- 14. Understand where yourrevenue comes from Establish a baseline & goals Engage the v-team 51% 27% 4% 18% EC Revenue Services Renewals Up-sell Add-ons
- 15. Lisa Keller Client StrategyManager InterDyn - Artis
- 16. Annual Existing ClientMarketing Retreat Analyze what worked last year Get creative with ideas for next year Build out the annual EC marketing plan Review with your Microsoft PAM and tPAM Get executive buy-in Plan campaigns that end with a CLOSE
- 17. Existing Customer BusinessDevelopment Communications Calendar Jan Feb Mar April May June Events Microsoft Convergence Year-end User Group Customer Appreciation Event Executive Breakfast Communications Classroom Training Postcard Reminder Mailing Email newsletter Call-down Other Client gifts Web site promotion Customers Communications Activities that close
- 18. Begin planning 3-6months in advance Develop deep understanding of value Identify target clients Create multi-touch approach InterDyn Lumpy Mailer (25% response rate) 30 minute Webinar Individual follow-up
- 19. Customer LifeCycle Renew Envision Welcome Benefit Usage Create a regularrhythm of communications 5 hints to improve response 9 ideas for content
- 20. Rebecca Bunas Vice President RoseBusiness Systems
- 21. Welcome – initialkickoff meeting Introduce the Client Sales Manager Review Business Ready Enhancement Plan in detail Benefit Usage CustomerSource demo & hands-on Set expectation of quote/invoice 60-30 days prior to renewal date
- 22. Envision Develop Business Capabilitiesplan with “A” customers Key tool for add-on sales Basic Business Capabilities Intermediate Business Capabilities Advanced Business Capabilities Core Financials “Keeping track” Financial information tracking AP/AR and fixed assets “Streamline” Optimize reporting Consolidate Payrollwith direct deposit “Interconnect” Integrate with other systems and data sources Develop multi-company management systems Manufacturing or Project Accounting Basic workflow Quality control and converting legacy systems Scheduling Budgeting, tracking and reporting costs KPIs and Dashboards Advanced production planning “Kitting” processes or make-to-order BOMs Automating replenishment Time and expense analysis Integrated manufacturing Bringing in outsourced mfg manufacturing mode Componentization Advanced contract management Distribution Tracking “pre-built vs. on-demand” Compliance systems Advanced shipment management Sales Track your returns using RMAs, etc Report Center Customer Relationship Management Field service management Collaboration Internal team file sharing and role-based workspaces Task tracking, calendaring and specialized workspaces Web-based Collaborationand remote capabilities Renewal Becomes a natural step in the process Email with quote 60 days in advance
- 24. Assign an ExistingCustomer Champion Analyze your business & develop a plan • Prioritize your customers & communications • Execute using the customer lifecycle • Measure and revise
- 25. Partner Account Managers Competencyprogram Partner Marketing Center Events to attend/Events you can run Case studies Resource Directory PBPs/PSPs
- 26. Business Ready EnhancementPlan marketing Marketing and Sales professional communities (US focus) Local Partnersource Local offers & promotions Local access to renewal information Marketing to your Existing Customers guide
- 27. Download the MarketingGuide (see below) Assign your EC Champ Get started on an EC Business Plan Discuss your best practice (morganw@microsoft.com) Convergence Customer Source Promotion https://mbs.microsoft.com/partnersource/communities/marketing/ resources/marketingcreativeresources/MktgECGuide.htm From the PartnerSource Home Page: •Select Communities (left hand navigation) •Select Marketing •The guide is the Top Resource in the 3rd section (Marketing Tools, etc.)
- 28. Help your customersactivate CustomerSource account today and be eligible to win one of many prizes! With CustomerSource, your customers can access: • Online training • Updates • Information • Downloads Go to the kiosk to see if you won Trade a completed registration form for a USB drive Plug in the USB drive to see if you won: • An Xbox 360™ system • A copy of Microsoft® Office Professional 2007 or Windows Vista® Ultimate Check your inbox Next week, tell your customers to look for their welcome e-mail to log on to your CustomerSource account and access their resources Look in your registration bag You will find a CustomerSource registration form Look for THE SOURCE Team Ask a team member for a registration form or for more information on CustomerSource OR
- 29. SER202: Business ReadyLicensing and Enhancement Plan: the Maximum Value for Your Solution Wed Oct 24 16:00 - 17:00 B3.5 SER204: Help Improve Your Employee Productivity with CustomerSource Wednesday, 24 October 12:00 - 13:00, Aud 12 and Thursday, 25 October 9:00 - 10:00, B3.5