Microsoft CRM 101: Krista Kuehnbaum, CRM Product Manager
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Agenda
CRM – why?
Understanding the Market Market opportunity Microsoft’s position in the market Identifying opportunities Messaging to decision makers
Keys to Building a Practice Profile of Successful CRM Partner
Partner Program & Product Packaging
Question and Answer
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Every company manages relationships with their customers
Sales relationshipsMarketing relationshipsService relationshipsFinancial relationships
However, these relationships are often poorly However, these relationships are often poorly managed, unstructured and uncoordinatedmanaged, unstructured and uncoordinated
Outside SalesOutside SalesSales SupportSales Support
OrderOrderProcessingProcessing
ManagementManagement MarketingMarketing
CustomerCustomerServiceService
InsideInsideSalesSales
TheCustomer
TheCustomer
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Example: “CANTech” a customer case
Copyright © 2004 Customer Marketing International
Situation:2,126 active customers$ 9,956,000 Revenues$ 850,000 ProfitGoal: 50% more Profit
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Segment customers in a Customer Pyramid
“Top”
“Big”
“Medium”
“Small”
“Inactives”
Prospects
Suspects
“Top”
“Big”
“Medium”
“Small”
“Inactives”
Prospects
Suspects
Copyright © 2004 Customer Marketing International
1% of Customers1% of Customers
15% of Customers15% of Customers
4% of Customers4% of Customers
80% of Customers80% of Customers
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10% Revenues 10% Revenues
Observation – I
90% Revenues 90% Revenues
21Top
85Big
319Medium
1,701Small
154 Inactive
250 Prospects
1,000 Suspects
Copyright © 2004 Customer Marketing International
Existing customers deliver
± 90% of revenues
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21Top
>58,900
85Big
19,000-58,900319
Medium4,820-19,000
1,701Small
1-4,820
154 Inactive
250 Prospects
1,000 Suspects
Observation – II 20% of the customers deliver 80% of revenue
Copyright © 2004 Customer Marketing International
1% of Customers24% Revenues
1% of Customers24% Revenues
15% of Customers29% Revenues
15% of Customers29% Revenues
4% of Customers27% Revenues4% of Customers27% Revenues
80% of Customers20% Revenues80% of Customers20% Revenues
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21Top
>58,900
85Big
19,000-58,900319
Medium4,820-19,000
1,701Small
1-4,820
154 Inactive
250 Prospects
1,000 Suspects
Copyright © 2004 Customer Marketing International
+ 10+ 10
What if focusing on Customers led to 2% upwards migration…
- 36- 36
2,126 CustomersNo Change2,126 CustomersNo Change
+ 8+ 8
+ 18+ 18
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Why Do Businesses Need CRM?
Increase customer retention Disparate systems for tracking customer which lost important
information The technician that made three calls to the same site The sales call you’d like to forget
Productivity Gains Napkin forecasts The support call that cost you an employee The marketing campaign results you can’t quantify
Increasing Profits Increase customer profitability Lengthen customer lifetime Increase share of customer
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Understanding the Market
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500+ PCs500+ PCs1,000 +1,000 +
employeesemployees
1.2k
CorporateCorporate
25-500 PCs25-500 PCs50-1,000 50-1,000
employeesemployees
54.1k
MidmarketMidmarket
<25 PCs<25 PCs1-49 1-49
employees employees
991k
Small BusinessSmall Business
CharacteristicsCharacteristics
# CAN Entities# CAN Entities
Understanding the Canadian CRM MarketMARKET POTENTIAL
437M212M25MCRM Projected Spending CRM Projected Spending Next 3 yearsNext 3 years
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• 3500+ customers• 70,000+ users• 27+ months in Market• 93% YOY growth, fastest in market• 1700+ partners• 500+ Global ISVs• Deal Size 5 to 2,500 users• Key customers: Early adopters and
Professional Services• Designed for small and mid-size
deployments, across all segments • Sold in 53 countries, 9 language
Stats
Microsoft CRM centralizes customer information
Microsoft CRM standardizes sales and service processes
Microsoft CRM integrates with Outlook and other Office applications
Why Customer Buy
MicrosoftMicrosoftBusiness Business SolutionsSolutions
CRMCRM• Sales • Customer Service• Reporting Analytics• Automation & RepeatabilityRelease Feature Pack
•IBF•Mobility 1.2•Reporting Pack
Microsoft CRM 1.2
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Just of few Canadian Customers
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Understanding the MarketPOTENTIAL TARGET CUSTOMERS
Top IndustriesTop Industries (Priority Order)• Professional services
• Financial• Technology services• Insurance
• Wholesale/Distribution• Non-profit/charitable• Manufacturing• High-end retail• Local/State government• Emerging Industries
Good Fit - PsychographicsGood Fit - Psychographics• Early adopters• Technology savvy• Microsoft fans• Have customer focused
goals/strategy• Strongly desire cross-
business system integration
Good Fit – Based on MS TechnologiesGood Fit – Based on MS Technologies• Organizations with up to date networks• Organizations with Exchange 2000/2003 deployed • Existing Active Directory deployments • Microsoft Office Lovers – Heavy Outlook Users • Small Business Server (SBS) owners • Have SQL Server 2000 deployed•.Net Evangelists
MicrosoftCRM
CORPORATE >500 PCs >1000 Emp
Upper 250-500 PCs, 500-1000 EmpMIDMARKET Core 50-250 PCs, 100-500 Emp
Lower 25-49 PCs, 50-99 Emp
SMALL Core 5-24 PCs, 11-49 EmpBUSINESS Lower <5 PCs, 1-10 Emp
Target MarketTarget Market
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Understanding the MarketTARGET SEGMENTS
Small and medium-sized business; and regional divisions, satellite offices, or subs of larger companies
Organizations with growing sales and/or customer service departments
Organizations reliant on relationship-oriented sales and service
Organizations with multiple branches or groups interacting with the same end-customer
Applications associated with target segment Current users of ACT! and GoldMine Existing users of SQL Server and the .Net framework Existing customers of Microsoft Business Solutions
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Understanding the MarketTARGET AUDIENCESBusiness Decision Makers (BDMs)
C-Level Executive – i.e. CEO or CFO Vice president of sales, marketing, or customer service Controller or VP of finance, among others
Messages that resonate with BDMs Centralize customer information Standardize CRM processes Ensure adoption by integrating with Outlook
Technical Decision Makers (TDMs) Director of technology or IT infrastructure, technology
specialist, Chief security officer, among others
Messages that resonate with TDMs Integration with Outlook, back-office, etc. Microsoft CRM workflow, configuration & customization
capabilities Microsoft’s commitment to CRM Security
Business Decision Makers
Technical Decision Makers
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Understanding the MarketQUALIFYING OPPORTUNITIES
Focus on IT infrastructure earlyUnderstand the total opportunity sizeDiscover the specific pain pointsKnow the budgetUnderstand who makes the decisionUnderstand the decision-making processIdentify the competition
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Keys to Building Success
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Profile of a Successful CRM Partner TYPES OF CRM PARTNERS
MBSGreat Plains, Solomon, GP/FO
CompetitiveSalesLogix, ACT!, GoldMine, Siebel
Infrastructure/PlatformSQL, BizTalk, IW, Windows, Exchange
Application DevelopmentSmall Business Server
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Profile of a Successful CRM Partner CRITICAL SUCCESS FACTORSIn-house CRM Champion Built strong Microsoft CRM practices & developed their
own methodologyFocus on Solution/Business Processes, not the software
Goals, success criteria, key business needs, implement prioritized features
Product ExpertiseMust be certified on Microsoft CRMKnowledge of Microsoft Technology Stack
NOT relying on Microsoft for demand generation
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Profile of a Successful CRM PartnerTOP 10 FOR SUCCESS
Business plan Dedicate resources to practice Install Microsoft CRM internallyBusiness application experienceDevelopment resourceMicrosoft technology experienceInvest in training/certification upfrontMarketing to ensure full pipeline References, References, References
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Partner Program & Packaging
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CRM Software Advisor Fee ProgramBenefits of Success
Fee to compensate partners who: Invest in certification Involved in the pre-sales process Implement the solution to the customerApply for the fee testifying to their involvement
Partners do not have to place license order to claim the fee. Work with uncertified partners to sell Microsoft CRM
licenses Support customers with Select and EA license
agreements Provide implementation Services Still eligible for the fee
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CRM Certified Software Advisor Fees
n%*n%*
Transaction related opportunity
20% 20%
+10%+10%
+
Tier 1: 20% of Reference Price
Tier 2: Additional 10% for meeting quarterly volume
goals
CRM Certified SoftwareAdvisor Fee
Tier 1Tier 1
Tier 2Tier 2
Software ordered through a channel distributor or Authorized License Provider on behalf of your customer
Up to 30% partner Opportunity on Initial License & Service
CSA Fee Eligibility Criteria: Microsoft CRM certified End-to-End services engagement with
the customer Involved in the presale software assessment
process Primary post-sale CRM implementation partner
=Total revenue opportunities
available
30%+n30%+n
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Technical Training and SupportTECHNICAL TRAINING REQUIREMENTS
At minimum, 2 certified individuals per company combined must complete and pass a total of 5 unique exams as detailed below:Required exams:Microsoft CRM Customization (MS-30-020)Microsoft CRM Installation and Configuration (MS-30-010)Microsoft CRM Applications (MS-30-030)
Plus 2 of the Partner’s choice from the following exams:Microsoft Exam 70-216 Implementing and Administering a Microsoft Windows 2000 Network InfrastructureMicrosoft Exam 70-290 Managing and Maintaining a Microsoft Windows Server 2003 Environment *Microsoft Exam 70-210 Installing, Configuring, and Administering Microsoft Windows 2000 Professional*Microsoft Exam 70-290 Managing and Maintaining a Microsoft Windows Server 2003 Environment *Microsoft Exam 70-220 Designing Security for a Microsoft Windows 2000 NetworkMicrosoft Exam 70-298 Installing, Configuring and Administering Microsoft Windows XP Professional*Microsoft Exam 70-217 Implementing and Administering a Microsoft Windows 2000 Directory Services InfrastructureMicrosoft Exam 70-297 Designing a Microsoft Windows Server 2003 Active Directory and Network Infrastructure*Microsoft Exam 70-228 Installing, Configuring, and Administering Microsoft SQL Server 2000 Enterprise Edition. *Microsoft Exam 70-224: Installing, Configuring, and Administering Microsoft Exchange 2000 ServerMicrosoft Exam 70-284: Implementing and Managing Microsoft Exchange Server 2003Microsoft Exam 70–305: Developing and Implementing Web Applications with Microsoft Visual Basic® .NET and Microsoft Visual Studio® .NETMicrosoft Exam 70–315: Developing and Implementing Web Applications with Microsoft Visual C#™ .NET and Microsoft Visual Studio .NET*The 2003 versions of these exams will be considered towards the MBS Competency requirements as equivalents.
eCourse Promotion $1,000 USD worth of e-training – take course,
pass & be reimbursed!Expires end of June, 2005
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Microsoft CRM Standard Edition
Lead management Opportunity management Correspondence / mail merge Account & contact
management Notes & attachments Activity & task management Search Direct email Territory Management User & business management Calendar Set of reports Customization tools & utilities
Lead management Opportunity management Correspondence / mail merge Account & contact
management Notes & attachments Activity & task management Search Direct email Territory Management User & business management Calendar Set of reports Customization tools & utilities
Case management Service request Knowledgebase management Direct Email Search Queuing Account & contact
management Activity & task management Calendar Notes & Attachments User & Business management Set of reports Customization tools & utilities
Case management Service request Knowledgebase management Direct Email Search Queuing Account & contact
management Activity & task management Calendar Notes & Attachments User & Business management Set of reports Customization tools & utilities
Microsoft CRM CustomerService Standard
Microsoft CRM SalesMicrosoft CRM SalesStandardStandard
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Microsoft CRM Professional Edition
Lead Routing Workflow Sales process management Product catalog Quotes, orders, invoices Quotas Sales literature Competitor tracking ERM Integration PLUS ALL STANDARD FEATURES
Lead Routing Workflow Sales process management Product catalog Quotes, orders, invoices Quotas Sales literature Competitor tracking ERM Integration PLUS ALL STANDARD FEATURES
Workflow Email management Product catalog Routing Contract management
PLUS ALL STANDARD FEATURES
Workflow Email management Product catalog Routing Contract management
PLUS ALL STANDARD FEATURES
Microsoft CRM CustomerService Professional
Microsoft CRM SalesMicrosoft CRM SalesProfessionalProfessional
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Microsoft CRM Product Licensing
Standard & Professional Users may not be mixed for the same module
SalesModuleSales
ModuleServiceModuleServiceModule
Suite Module
Combines Sales & Service
Suite Module
Combines Sales & Service
oror
Sales Users
Standard Professional
oror
Service Users
Standard Professional
oror
Suite Users
Standard Professional
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Next StepsStep 1: Learn more about Microsoft CRM
Attend a Webcast on Friday May 6th –12 to 1:30 * email [email protected] or leave business card
Step 2: Propel your Business and earn up to US $5300!Part 1: PASS Assessment Test (Online)
For certification remember $1000 in training reimbursement
Part 2: ADD 1st customer (ANY 5-seat PRO)GET: FREE Copy (for resale) of Microsoft CRM Sales Professional (1 server + 5 user license = $5300 in value)
Contact for more information [email protected]
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QUESTION & ANSWERS
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Appendix
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Microsoft CRM next releaseRelease Timeline
Q3 CY05Q3 CY05BetaBeta
Q1 CY05Q1 CY05AlphaAlpha
Q4 CY 05Q4 CY 05RTMRTM
Confidential – Microsoft CorporationConfidential – Microsoft Corporation
CRM next release imperativesCRM next release imperativesDrive huge adoption across the globeDrive huge adoption across the globeRecognized as industry thought leaderRecognized as industry thought leaderDrive happy partners and customersDrive happy partners and customers
Q1 CY 06Q1 CY 06Global Global LaunchLaunch
Beta and RTMBeta and RTMCustomer and partner validationCustomer and partner validationIndustry press and analyst feedbackIndustry press and analyst feedbackTrue global launchTrue global launch
Global ISV AlphaGlobal ISV Alpha50 ISV solutions co-50 ISV solutions co-launched with CRM 2.0launched with CRM 2.0
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Windows Server System
SQL Server
Full Service and Sales and Marketing
Sales and Marketing Offline client
MicrosoftOutlook
Microsoft Internet Explorer
User interfaces
Microsoft CRM Architecture Overview
Core CRM Server
Sales &
Marketing
Customer Service
.NET / XML
.NET / XML
Custom Enterprise
Portals
Custom Enterprise
Portals
BI and AnalyticsBI and
Analytics
.NET / XML
.NET / XML
3rd Party Applications3rd Party
Applications
MBSFinancials
MBSFinancials
Web Services
Web Services
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Microsoft CRM Product Licensing
Standard & Professional Users may not be mixed for the same module
SalesModuleSales
ModuleServiceModuleServiceModule
Suite Module
Combines Sales & Service
Suite Module
Combines Sales & Service
oror
Sales Users
Standard Professional
oror
Service Users
Standard Professional
oror
Suite Users
Standard Professional
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Administration & OperationsVOLUME LICENSING OVERVIEW
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Administration & OperationsSOFTWARE ASSURANCE
www.microsoftcustomercare.com
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