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 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 Selling Cisco Services Contract Renewals

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 2 of 22 EndPreviousNext 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 3 of 22 EndPreviousNext 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 4 of 22 EndPreviousNext 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

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 5 of 22 EndPreviousNext 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 6 of 22 EndPreviousNext 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 7 of 22 EndPreviousNext  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

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 8 of 22 EndPreviousNext 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

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 9 of 22 EndPreviousNext 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

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 10 of 22 EndPreviousNext Preparing for and Managing the Renewals Process Cisco Service Contract Center provides contract management capabilities such as managing contracts and identifying renewal opportunities. SCC for Indirect Resellers and Distributors (SMS3) provides a globally consistent method to order, manage and register new and renewal service contracts. 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)

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 11 of 22 EndPreviousNext 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

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 12 of 22 EndPreviousNext 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, s 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

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 13 of 22 EndPreviousNext 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”

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 14 of 22 EndPreviousNext 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 15 of 22 EndPreviousNext 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

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 16 of 22 EndPreviousNext 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 17 of 22 EndPreviousNext 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 18 of 22 EndPreviousNext 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: 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 Capital SM 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.

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 19 of 22 EndPreviousNext Correct! Knowledge Check Click on the activities that are considered effective strategies for selling Cisco Services contract renewals Correct! Use a solution-led selling approach Quote Cisco Services on every solution Lock in revenue streams through cotermination

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 20 of 22 EndPreviousNext Resources Cisco Services Accelerate Program: SCC for Indirect Resellers and Distributors (SMS3): Cisco Service Contract Center: Cisco Smart Business Roadmap: Cisco Partner Education Connection: SMB Partner Practice Builder: Steps to Success: Cisco Services Community for Partners: Cisco Services for Small and Medium Business:

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 21 of 22 EndPreviousNext Resources (continued) Cisco Services: Cisco E-Consulting for Partners: Navigate to Accelerate: Cisco Capital: Services for Partners: Cisco Product Warranties: Cisco Partner Central: Service Finder: Service Availability Matrix: Legal Contract Service Descriptions:

Start © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential – For Cisco and Partner Use Only Page 22 of 22 EndPreviousNext 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 Conclusion