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Start 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 1 of 22 End Previous Next Welcome to the Selling Cisco Services Contract Renewals learning module. This learning module is part of the Cisco Services Accelerate Program, an ongoing Cisco effort designed to help partners accelerate their service practice profitability. The Cisco Services Accelerate Program includes: Training resources Sales tools Incentives More Info Cisco Services Accelerate Program For more information about the Cisco Services Accelerate Program, visit www.cisco.com/go/accelerate Selling Cisco Services Contract Renewals

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Page 1: Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 1 of 22 EndPreviousNext Welcome to the Selling

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Welcome to the Selling Cisco Services Contract Renewals learning module.

This learning module is part of the Cisco Services Accelerate Program, an ongoing Cisco effort designed to help partners accelerate their service practice profitability. The Cisco Services Accelerate Program includes:

Training resources

Sales tools

Incentives

More Info

Cisco Services Accelerate Program

For more information about the Cisco Services Accelerate Program, visit

www.cisco.com/go/accelerate

Selling Cisco Services Contract Renewals

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Selling Cisco Services Contract Renewals

The Selling Cisco Services Contract Renewals module is designed to help Partners understand the benefits of selling renewals.

At the completion of this module, you will have a greater understanding of:

Why pursue renewal opportunies

Leveraging solution-led selling in the renewals process

Getting the timing right

Next steps for accelerating partner success in the renewals process

Selling strategies

It should take you about fifteen minutes to complete this module. At the conclusion of this module you will be directed to a quiz to test your knowledge and earn points to increase your eligibility to win prizes.

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Selling Services: Pursuing Service Contract Renewals

Renewal time is a critical contact point in the customer lifecycle

Opportunity to capitalize on the initial investment in time and effort

Potential to expand, upsell, and cross-sell services and replace existing hardware

Can help develop the customer relationship, manage the customer base and keep the customer loyal

Opportunity to emphasize the value that services can provide to the customer’s business by addressing their business challenges

Pursuing service renewals can create more sales opportunities.

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Selling Services: Using Solution-led Selling to Capture Renewals

Partners who build an effective renewals process into their Cisco Services practice are in a better position to gain opportunities to:

Increase profitability

Improve productivity

Improve customer satisfaction and loyalty

Reduce risk in deploying and supporting new and complex technologies

Selling service contract renewals is a process that requires organization and planning, but can provide great rewards

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Positioning the Case for Services

Cisco Services can play a vital role in helping customers to get value and return on investment from their network by helping to:

Lower the total cost of network ownership

Improve operational agility

Speed access to applications and services

Increase network availability, reliability and security

The renewals process is an important time to emphasize the value that services can provide to a customer’s business by addressing their business challenges.

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Applying a Solutions-led Approach to Selling Services

A solution-led selling approach can help partners demonstrate the value the customer has received when the time comes to renew.

A solution-led sales approach:

Starts with a discovery or assessment

Provides an opportunity to understand the customer’s objectives and current state of the network

Provides the opportunity to agree on next steps to progress toward the desired future state of the customer’s network

Partners should use a solution-led sales approach to explore opportunities for technical services, multiyear service agreements, and financing early in the sales process.

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Prepare quote and proposal for new services, renewal services, uncovered services, and hardware and software

Check contract accuracy, working with Cisco and the customer to clean the contract if necessary

Identify contracts due to expire 2 to 3 quarters in advance

Review customer’s business situation and service coverage 90 to 120 days before contract expiration

Provide recommendations for financing options

Close the sale on new and renewed contracts

Manage objections and adjust proposal as required

The End-to-End Process for Securing Service Contract Renewals

1.

2.

3.

4.

5.

6.

7.

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Critical Factors for Securing Service Contract Renewals

Securing service contract renewals is dependent on:

1. Starting early (2 to 3 quarters in advance)

2. Preparation and management

3. Understanding the customer’s business

4. Starting communications early

5. Handling objections

6. Exploring renewal needs and opportunities to upsell

7. Proposing a solution to meet customer needs, including financing

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Timing is everything

Starting early: a minumum of 90 to 120 days in advance allows time to:

Ensure the accuracy of the contract in the Cisco databases

Clean the contract as necessary before quotation

Forewarn the customer that a contract is coming up for renewal

Engage the customer fully to understand their requirements, handle objections and propose a valid solution

Leverage Know the Network (KTN) to provide network collections, a detailed inventory report and the installed base intelligence needed to achive greater customer relevance

Customers with a variety of equipment and many types of service contract witll require more complex negotiations and therefore more time – but they also

represent greater opportunities for upgrades, extensions and new sales

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Preparing for and Managing the Renewals Process

Cisco Service Contract Center provides contract management capabilities such as managing contracts and identifying renewal opportunities. www.cisco.com/web/partners/services/resources/CSCC/index.html

SCC for Indirect Resellers and Distributors (SMS3) provides a globally consistent method to order, manage and register new and renewal service contracts.www.cisco.com/public/scc

Cisco provides 2 tools that work together to help partners improve their means of managing their Cisco Services Business:

•Cisco Service Contract Center

•SCC for Indirect Resellers and Disctributors (SMS3)

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Understand the Customer’s Business Needs

Success lies in getting the details right - leverage the Cisco Service Contract Center and support it with additional research.

A basic understanding of the customer’s business and any changes can help to identify issues that increase the criticality of the network and support the business case.

Renewals time is an important opportunity to:

Re-engage with the customer

Understand the customer’s business needs

Revalidate the customer’s business challenges, networking requirements and service coverage models

Partners that have a better understanding of their customer’s situation will be in an excellent position to retain them as customers

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Starting the Communications

Larger customers

Customers with a variety of equipment and different types of service contract will require more complex negtotiations and face-to-face meetings to secure renewals.

First contact: No later than 60 days before contract expiry

Reminder: 15 days before expiry

Follow up: 15 days after contract expiry for any remaining non-renewals

Smaller customers

For customers with few devices, the renewals sales process will typically revolve aound letters, emails and telesales scripts rather than face-to-face.

First contact: No later than 30 days before contract expiry

Second contact: Upon contract expiry

Follow-up: 30 days after contract expiry

Tailor the approach to the customer

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Handling Objections

By effectively promoting the value of Cisco Services as part of a whole solution upfront, many common objections can be preempted.

Useful strategies include

Quantifying the customer’s use of service to date

Emphasizing the potential business cost and impact of network downtime.

For a comprehensive survey of objections and responses, refer to Appendix A, “Handling Objections” in Accelerate Topic “Selling Cisco Services in Turbulent Times”

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Exploring Customer Renewal Needs

In discussions with the customer, explore their current renewal needs.

Is this a straight renewal of an opportunity to upsell?

Have any changes taken place in the customer’s business that might affect the way they are using the technology? eg

If they have taken on more staff, is the existing service level adequate?

Does their contract reflect the urgency of any replacement needs? Eg NBD, 4-hour or even 2-hour replacment

Have they added or replaced equipment that might need coverage?

Is there any uncovered equipment in the network?

Partners that have a thorough understanding of their customers’ business issues and how they are evolving will be in the best position to propose a complete solution that helps the customer meet their business objectives.

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Proposing a Solution

Where appropriate, the final proposals will include

Renewal of any existing service agreements,

New hardware and software based on the customer’s evolving situation

New service agreements for any uncovered equipement discovered

Financing solutions

Don’t forget to tell customers about the benefits of co-termination and multi-year service agreements and include them in the proposal

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Knowledge Check

Click on the correct choice.

True or False: A critical step in the process of securing renewals includes reviewing the customer’s business situation and associated service coverage a minimum of 2 weeks before the contract expiration date.

Click the Next button to continue.

True

False

Incorrect. This statement is false. A critical step in the process of securing renewals includes reviewing the customer’s business situation and associated service coverage model a minimum of 120 to 90 days before the contract expiration date.

Good choice.

A critical step in the process of securing renewals includes reviewing the customer’s business situation and associated service coverage model a minimum of 120 to 90 days before the contract expiration date.

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Next Steps for Accelerating Partner Success in the Renewals Process

Designate a service renewals specialist.

Identify someone within the organization who can become expert at understanding how to effectively manage Cisco Services contracts.

Train staff in using the tools.

Cisco Service Contract Center and SMS3 are crucial tools in the renewals process. Online training is available to all partners at no charge and contains vital information for effectively managing Cisco Services contracts correctly.

Use the tools to manage the renewals process.

Cisco Service Contract Center and SMS3 help partners manage contract renewals and create renewal quotes.

Formalize and document the renewals process.

Identify the steps necessary to manage the renewal process and document the actions required at up to 12 months prior to expiration, as well as cancellation notices upon expiration.

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Strategies for Selling Service Contract Renewals

An effective sales strategy will help partners increase opportunities to renew Cisco service agreements.

Click on each topic to view the description:

1.

2.

3.

Use a solutions-led selling approach

4.

Quote Cisco Services on every solution

Lock in revenue streams through cotermination

Sell the advantage of multiyear options

The Cisco Smart Business Roadmap provides tools to help guide solution sales discussions with customers.

Make it a practice to attach services to every quotation.

Cotermination means arranging for all service contracts to be renewed at the same time.

Multiyear service agreements are yet another way of adding value early in the renewals process.

5. Sell the benefits of Cisco CapitalSM financing

Offering customers a financing solution that spreads the capital outlay over a number of years can enable customers to deploy state-of-the-art network solutions.

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Correct!

Correct!

Knowledge Check

Click on the activities that are considered effective strategies for selling Cisco Services contract renewals.

1.

2.

3. Correct!

Use a solution-led selling approach

Quote Cisco Services on every solution

Lock in revenue streams through cotermination

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Resources

Cisco Services Accelerate Program: www.cisco.com/go/accelerate

SCC for Indirect Resellers and Distributors (SMS3): www.cisco.com/web/partners/services/resources/scc/index.html

Cisco Service Contract Center: www.cisco.com/web/partners/services/resources/cscc/index.html

Cisco Smart Business Roadmap:www.cisco.com/web/partners/sell/smb/smart_business_roadmap.html

Cisco Partner Education Connection: www.cisco.com/go/pec

SMB Partner Practice Builder: www.cisco.com/web/partners/sell/enablement/smbpracticebuilder.html

Steps to Success: www.cisco.com/go/stepstosuccess

Cisco Services Community for Partners:www.myciscocommunity.com/community/partner/

Cisco Services for Small and Medium Business:www.cisco.com/en/US/partner/products/ps6888/serv_category_home.html

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Resources (continued)

Cisco Services:www.cisco.com/en/US/partner/products/svcs/services_area_root.html

Cisco E-Consulting for Partners: www.cisco.com/go/e-consulting

Navigate to Accelerate:www.cisco.com/web/partners/pr46/other_nav.html

Cisco Capital: www.cisco.com/go/ciscocapital

Services for Partners: www.cisco.com/web/partners/services/index.html

Cisco Product Warranties: www.cisco.com/en/US/products/prod_warranties_listing.html#~comparison

Cisco Partner Central: www.cisco.com/web/partners/index.html

Service Finder: www.cisco-servicefinder.com

Service Availability Matrix: www.cisco.com/techsupport/sam

Legal Contract Service Descriptions: www.cisco.com/legal/services.html

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Congratulations, you have completed the Selling Cisco Services Contract Renewals learning module.

At this point you have the option of reviewing this module, taking the quiz or searching for another topic.

Cisco Services Accelerate Program

For more information about the Cisco Services Accelerate Program and to gain access to comprehensive training resources on this topic and other Cisco Services topics, visit www.cisco.com/go/accelerate.

Conclusion