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Presentation title goes here, using Segoe Regular, in sentence case. A Customer Perspective Growth through satisfaction – Happy Customers Buy More Phil.

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Presentation on theme: "Presentation title goes here, using Segoe Regular, in sentence case. A Customer Perspective Growth through satisfaction – Happy Customers Buy More Phil."— Presentation transcript:

1 Presentation title goes here, using Segoe Regular, in sentence case. A Customer Perspective Growth through satisfaction – Happy Customers Buy More Phil Carrier – Licensing Sales Director

2 Agenda Purpose & Intent – Role of The Licensing GroupPurpose & Intent – Role of The Licensing Group Building on a firm foundationBuilding on a firm foundation –Key focus areas for FY06 and beyond What customers have to say!What customers have to say! Q&AQ&A

3 (US$641m) = A$915m

4 Purpose & Intent 2 big Bets for MS in FY06 =2 big Bets for MS in FY06 = –Make Licensing a positive experience –Make Security a positive experience Grow the Licensing Business.Grow the Licensing Business. –Annuity is Key for all segments & verticals –Not move business from partner to partner Be a Licensing Channel advocate inside & out MS.Be a Licensing Channel advocate inside & out MS. Understand the Customer & Partner pain & address.Understand the Customer & Partner pain & address. Focus on all customers (by segment & vertical).Focus on all customers (by segment & vertical). Ensure a competitive focus is front and centre.Ensure a competitive focus is front and centre. Less Process & More Selling!Less Process & More Selling! Licensing Brains Trust.Licensing Brains Trust. Ensure positive market perceptions.Ensure positive market perceptions.

5 Building on a firm foundation 1.Channel Strategy Closer Business Relationships with Customers and Partners Build the channel for growth 2.Communications – Internal and External: To increase satisfaction within Customer and Partners Integration with the Corporation & Regional Teams 3.Skills Training Internal within MS External with Partners 4.Sales Process Forums to allow deal discussions Effective escalation processes & quick decisions 5.Customer Strategy By Segment/vertical Customer information forums with Partners Compliance 6.New Product Licensing Strategy Work with Corporation, Partners & Customers to address areas of concern

6 Customer Study Feedback A Customer Perspective Growth through satisfaction – Happy Customers Buy More

7 Study Background Global customer satisfaction surveyGlobal customer satisfaction survey Conducted 2004/5Conducted 2004/5 –Account View –Community View Global scorecards/country reportsGlobal scorecards/country reports Process built to optimise insight and action locallyProcess built to optimise insight and action locally

8 2005 Australian Sample Profile ACCOUNT VIEW RAWWEIGHTED Strategic10670 Major 5934 Corporate FSI2314 Public Sector14192 Commercial7752 ISV 1919 Managed Partners11667 Telemanaged 89146

9 2005 Australian Sample Profile COMMUNITY VIEW RAWWEIGHTED IT Professional - Total Core Dual Extra Industry Developer Affiliates Small Business Medium Business Information Worker Consumer105 60

10 2005 Australian Sample Profile COMMUNITY VIEW ACTNSWNTQLDSATASVICWA Strategic Major Corporate Enterprise ISV Managed Partners TeleManaged ACCOUNT VIEW IT Pro (from NMC file) IT Pro (from NMIT file) Developer Affiliates Small Business Medium Business Information Worker Consumer

11 Understanding the Issues 1.What one specific improvement could Microsoft make that would have the greatest impact on your satisfaction with them? 2.For each low rating factor: Specifically, what kind of experiences have you had with Microsoft that made you rate them as you did? To gain greater clarity and understanding of the key issues driving satisfaction we looked at two open-ended response questions: Results have been split these into 4 groups: 1.Hierarchy of Pain – Common Pain 2.Customer Verbatim 3.Positive Comments 4.Areas for Improvements

12 Licensing Customer Hierarchy of Pain Basic Pain Advanced Pain SORG Specific Common to All Complex Pain (Integrating Systems with Vendor ) (Microsoft’s Knowledge of End-Customer Environment, Integrating Systems with Microsoft) (Flexibility of Licensing Program, Level of Trust in Vendor, Fairness of Contract Terms, Keeping up with Changes ) MORG Specific LORG Specific Universal Pain (Overall Value, SA, Financial Terms, Comparing Licensing Options, Receiving Assistance from MS ) The type of pain organizations experience around licensing becomes more complex with the size of the company –Small and mid-size companies are concerned with fundamental issues of integration, while larger organizations are concerned with more complex issues such as licensing flexibility and contract terms –Companies of all sizes are concerned with larger issues around value, financial terms, comparing licensing programs and receiving assistance from Microsoft

13 Security “In general, third-party products are required to try to prevent infestations from viruses, worms, trojans, key- loggers, browser hijackers, and other malware.” Strategic “Microsoft is renowned for poor security however, I believe that this is a consequence of being one of the world’s largest software providers and security breaches are specifically targeted at Microsoft products. My experience is that whilst Microsoft react quickly to new vulnerabilities, they are not always able to provide complete solutions.” Strategic “I guess because of their popularity they seem to be targeted more and therefore we seem to have to do more patch updates etc.” Strategic “Numerous incompatible patch methodologies within product sets cause maximum confusion.” Corporate  “Patching is one reason. Their philosophy of having things open until you shut them, rather than competitors who have things closed until you open them.” Strategic “Known holes/bugs take time to get fixes rolled out across our network.” Strategic “Trick question right? How about having to continually patch the OS and Office products. Trying to keep on top of this in a 2700 seat organisation is 'fun'.” Corporate

14 Licensing “It is over-priced. It costs a lot of money and is hard to understand licensing and obligations of licenses. Get flexibility in licensing models. Mostly it is about the cost and complexity of licensing. It is too hard to understand and is too extensive.” Corporate “Still too complex. The seemingly constant change to the Usage Rights and the effect this has on licensing. The requirement to re-purchase technology (search facility in Site Server reappears in SPPS at additional cost).” Major “Totally inflexible if you only want to use a small part of a large product bundle eg. SQL Report Services would still cost us $35k per processor.” Strategic “The flexibility of options are pretty good. Also, the way it's presented is reasonably clear with what you're provided.” Corporate  “The licensing programs seems to change every three or so years; and the options available are not easily understood.” Strategic “Too expensive, unattractive terms, too frequent product upgrades with little value to the customer, no license upgrade as per old scheme just means that we are less likely to move to a newer product.” Corporate “Price aside, Willingness to work through issues, adapt to needs, flexible and product managers advice on how to purchase & upgrade products. Minimal fuss where we have had difficultly tracking PCs and software. Corporate

15 Pricing Issues 'Why would I pay ~$1000 for Office XP when I can get 70-80% of the same features for free in OpenOffice? Most people don't use anywhere near the full feature set of Office, and so are paying a lot for features they never use 'Inflexible licensing programs. Licensing is built to suit MS and not the customer  'Microsoft is generally cheaper than most of the competition but we have to do a lot of work to stabilise some of the products 'when you compare product pricing with other products on the market, they are very competitive

16 Power to the Licensing Partner… “A recurring theme is that the licensing partner relationship is a significant driver of overall Customer Satisfaction”. What can we do in our business relationship together to maximise these thoughts?

17 The Positives from Customers: Customers are over licensing 6 changes.Customers are over licensing 6 changes. They like the SA Benefits (if they are made aware of them!).They like the SA Benefits (if they are made aware of them!). Customers with EA’s are usually happier than transactional customers.Customers with EA’s are usually happier than transactional customers. Those customers who have bought into the MS Stack get the most value and can do things quickly.Those customers who have bought into the MS Stack get the most value and can do things quickly. Customers like our position on hyper threading and Multi-core CPUs.Customers like our position on hyper threading and Multi-core CPUs. Customers like the MVLS website.Customers like the MVLS website. Microsoft is becoming more flexible and is willing to listen and respond.Microsoft is becoming more flexible and is willing to listen and respond. Customers with Support agreements are happier than non-Supported customers.Customers with Support agreements are happier than non-Supported customers. MM customers like having the ability to spread the payments under OLVMM customers like having the ability to spread the payments under OLV Customers in general feel we are cost effective.Customers in general feel we are cost effective.

18 Large agreements with lots of pages = lots of signatures.Large agreements with lots of pages = lots of signatures. Few Competitive Upgrades.Few Competitive Upgrades. Transparency around international agreements.Transparency around international agreements. We need to show flexibility without it appearing complex.We need to show flexibility without it appearing complex. Software licensing is still too confusing to some.Software licensing is still too confusing to some. Terminating Pools under a Select Agreement is hard/complex.Terminating Pools under a Select Agreement is hard/complex. Still question the need for a Channel Partner.Still question the need for a Channel Partner. Feel few people can articulate the holistic licensing picture.Feel few people can articulate the holistic licensing picture. Pricing an issue sometimes (But we are more flexible now).Pricing an issue sometimes (But we are more flexible now). More regular informed contact needed from MS/Partners.More regular informed contact needed from MS/Partners. Little joint engagement from MS & partner once agreement is signed.Little joint engagement from MS & partner once agreement is signed. Areas for improvement are:

19 Call to Action: If you want a session to discuss: Your customers Licensing Satisfaction Your customers Licensing Satisfaction How we can work together to improve it… How we can work together to improve it… Please me: (copy your Acc. Mgr.) Please remember…..

20 Building on a firm foundation 1.Channel Strategy Closer Business Relationships with Customers and Partners Build the channel for growth 2.Communications – Internal and External: To increase satisfaction within Customer and Partners Integration with the Corporation & Regional Teams 3.Skills Training Internal within MS External with Partners 4.Sales Process Forums to allow deal discussions Effective escalation processes & quick decisions 5.Customer Strategy By Segment/vertical Customer information forums with Partners Compliance 6.New Product Licensing Strategy Work with Corporation, Partners & Customers to address areas of concern

21 Thank You Q&A


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