Microsoft CRM 101: Krista Kuehnbaum, CRM Product Manager

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


1% of Customers1% 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


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


1% of Customers24% 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


+ 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


oror

Sales Users

Standard Professional

oror

Service Users


oror

Suite Users


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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


Suite Module


oror

Sales Users


oror

Service Users


oror

Suite Users


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Administration & OperationsVOLUME LICENSING OVERVIEW

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Administration & OperationsSOFTWARE ASSURANCE

www.microsoftcustomercare.com

Documents

Microsoft CRM 101: Krista Kuehnbaum, CRM Product Manager