Morgan WheatonSenior Marketing ManagerMicrosoft Corporation

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Measure partner business performance

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

n = 218 Source: IDC, 2007

Canada8%

Western Europe20%

Eastern Europe11%

Asia Pacific8%

Latin America8%

Middle East and Africa

6%

USA39%

Geographic Region

1 to 9 emp.16%

10 to 49 emp.53%

50 or more emp.21%

no response10%

Company Size

Services14%ISV

9%Logistics

3%

Hardware1%

VAR73%

Business Model2 years or less

25%

3 to 5 years23%

More than 5 years52%

Dynamics Practice Age

Dynamics Products

18%

38%

11%

39%38%

7%10%

AX GP SL NAV CRM Retail Other

n: 51 51 52 52Source: IDC, 2007

-20%

-10%

0%

10%

20%

30%

40%40%

17%

7%

-15%

1st 2nd 3rd

4th

Opera

ting P

rofit %

of R

evenue

Profit Margin Quartile

New customers always important

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

Sourc

e:

IDC

, 2007

1st Quartile/existing customers:

Average deal 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

3.44.1

3.5 3.6

1.3 1.21.6 1.4

1st 2nd 3rd 4th

Average Sales Cycle(months)

3.74.2 4.5 4.4

2.7

1.41.8

2.2

1st 2nd 3rd 4th

Avg Implementation Time (months)

Source: IDC, 2007

Assign an Existing Customer Champion

Analyze your business & develop a plan

• Prioritize your customers & communications

• Execute using the customer lifecycle

• Measure and revise

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

Sell

SupportDrive the Lifecycle

Plan the Business

Prioritize & Execute

Communications

Coordinate the Virtual TeamFocus Priorities

Maintain Momentum

Understand where your revenue comes from

Establish a baseline & goals

Engage the v-team

51%

27%

4%

18%

EC Revenue

Services

Renewals

Up-sell

Add-ons

Lisa KellerClient Strategy ManagerInterDyn - Artis

Annual Existing Client Marketing 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

Existing Customer Business Development

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

Begin planning 3-6 months 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

Customer

LifeCycleRenew

Envision

Welcome

Benefit

Usage

Create a regular rhythm of communications

5 hints to improve response

9 ideas for content

Rebecca BunasVice PresidentRose Business Systems

Welcome – initial kickoff meetingIntroduce the Client Sales Manager

Review Business Ready Enhancement Plan in detail

Benefit UsageCustomerSource demo & hands-on

Set expectation of quote/invoice 60-30days prior to renewal date

EnvisionDevelop Business Capabilities plan with “A” customers

Key tool for add-on sales

Basic Business Capabilities

IntermediateBusiness Capabilities

Advanced Business Capabilities

Core Financials “Keeping track”

Financial information tracking AP/AR and fixed assets

“Streamline” Optimize reporting Consolidate Payroll with 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 Collaboration and remote capabilities

RenewalBecomes a natural step in the process

Email with quote 60 days in advance

Assign an Existing Customer Champion

Analyze your business & develop a plan

• Prioritize your customers & communications

• Execute using the customer lifecycle

• Measure and revise

Partner Account Managers

Competency program

Partner Marketing Center

Events to attend/Events you can run

Case studies

Resource Directory PBPs/PSPs

Business Ready Enhancement Plan marketing

Marketing and Sales professional communities (US focus)

Local Partnersource

Local offers & promotions

Local access to renewal information

Marketing to your Existing Customers guide

Download the Marketing Guide (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.)

Help your customers activate 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 wonTrade 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 inboxNext 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 bagYou will find a

CustomerSource

registration form

Look for THE

SOURCE TeamAsk a team member

for a registration

form or for more

information on

CustomerSource

OR

SER202: Business Ready Licensing and Enhancement Plan: the Maximum Value for Your SolutionWed Oct 24 16:00 - 17:00 B3.5

SER204: Help Improve Your Employee Productivity with CustomerSourceWednesday, 24 October 12:00 - 13:00, Aud 12andThursday, 25 October 9:00 - 10:00, B3.5