Cisco Technical Service Marketing Program: Supporting Your Technical Service Practice in the Midmarket

Learning Objectives This module is designed to help you:   The module should take approximately 20 minutes to complete. Be able to easily articulate the value Cisco Technical Services provides to your midmarket customers Be familiar with the Cisco Technical Services Marketing Program that supports your midmarket technical service practice Be aware of and have access to additional Cisco Technical Services resources to enable your services practice Build/synch to audio: Audio: This module is designed to help you: Be able to easily articulate the value Cisco Technical Services provides to your midmarket customers Be familiar with the Cisco Technical Services Marketing Program that supports your midmarket technical service practice Be aware of and have access to additional Cisco Technical Services resources to enable your services practice. This module should take approximately twenty minutes to complete.

Background: Why Sell Technical Services? Audio: Let’s begin by reviewing the benefits of selling Cisco Services.

A Demanding Business Environment For Today’s Partners… Rising customer expectations and accelerated business processes: Today’s channel partners are doing more than ever Rising Expectations New competition, evolving business models, and technological shifts: Successful partners know they need to evolve Market Velocity and Volatility Decreasing margins on traditional sales; steep operational costs for high-volume, low-dollar transactions: But maintaining existing lines of business is important Financial Pressures Challenge: Customer retention in the face of increased competition: Retain and optimize existing annuity business to underpin growth Competitive Pressure Build/synch with audio: Voice-over: It’s a demanding business environment today for our partners. Rising Expectations. Customer expect more, even though the pace of change has accelerated. Channel partners are doing more than ever. Market Velocity. Markets have shifted into a higher gear. Product development cycles have shrunk dramatically. And market uncertainties obscure decisions. Organizations are pressured to deliver new ideas –faster than ever before. Distributors and partners alike know they need to evolve and be agile. Financial Pressures. And, of course, everyone is being tasked to do more with less. Distributors and partners are faced with decreasing margins on traditional sales. Yet, maintaining existing foundational lines of business is important. Competitive Pressures. Customer retention is important in our competitive business environment. Retaining your annuity business streams is key to underpin growth.

Cisco Services Is Evolving with You Your Concerns How Cisco Can Help You Driving Growth Enter new markets and add emerging technologies Addressing Competitive Pressures Drive innovation in your services practice to build market differentiation Increasing Profitability Use automation to reduce costs and increase margins Build/synch with audio Audio: Driving Growth: Amazon Consulting has found that over 40% of the partners they interviewed said that entering new markets and adding emerging technologies to their portfolio were key strategies in fostering growth and stability in today’s market. Addressing Competitive Pressures: In the area of addressing competitive pressures, recent partner interviews performed by Mindwave Research found that driving innovative service capabilities was key for partners when it comes to differentiating themselves from competitors. Increasing Profitability: And finally, by leveraging automated tools and processes, we at Cisco have found many of our partners substantially reduce costs and maximize productivity. When administrative tasks can be automated, employees can be refocused on high value tasks, increasing margins and productivity.

Typical Services Gross Margin Services Growth Opportunities Reasons to Believe 18% - 25%* Typical Services Gross Margin Compared to product margins as low as 1% Services-led engagements provide a platform for a recurring revenue model—annuity business Services-led/supported engagements extend beyond the scope and reach of product-led engagements Audio: A typical service gross margin for a Cisco partner running a successful services business is 18 to 25 percent—an attractive alternative compared to product margins that can be as low as 1 percent. The services business offers even more than immediate high margins—it extends the scope and reach of your product-led engagements. Services offer a recurring revenue stream and the opportunity to provide complete and innovative solutions that offer greater business value and increase while increasing customer loyalty. Providing services can lead to improved customer loyalty and greater opportunities to sell total solutions (more hardware when selling services) Services Growth Opportunities * Source: National Association of Computer Consultant Businesses (NACCB) Operating Practices Report

Cisco Technical Services Supported with Sales Enablement, Marketing Backed by Cisco Brand Resources, Purchasing Assistance and Incentives Technical Services Marketing Program Aligned with your service delivery preferences Automated Quoting & Ordering Competitive because of automated, smart service capabilities Build/Synch with Audio Audio: Cisco Technical Services form the powerful backbone to your services practice. Backed by the Cisco Brand: . Cisco’s market leadership and reputation give you the confidence to invest. Aligned with your service delivery preferences: Brand Resale and Collaborative services provide a predictable roadmap for the evolution of your practice. Competitive because of automated, smart service capabilities: Smart, proactive features drive your services growth and margins Technical Services Marketing Program for your midmarket customers steps in to provide you with an extensive array of marketing support to optimize the potential of your technical services practice, from lead generation to partner enablement to tools and resources. The rest of this training session will cover the Technical l Services Marketing Program in more detail. Tools & Resources

Cisco Technical Services Marketing Program Details and Resources

Cisco Technical Services Marketing Program Structured by stages in contract purchasing and ownership Tactics to effectively engage customer throughout lifecycle Customer Pull: Customer Demand Creation Attach Welcome Nurture Partner Enablement: Partner Sales Tools & Marketing Resources Coming Soon! Up & Cross-sell The Cisco Technical Services Marketing Program is comprehensive, covering all the stages of contract purchasing and ownership. Marketing support is provided by stage, from Attach to Welcome to Nurture to Renew, with Upsell and Cross-sell support coming soon. Tactically, the Technical Services marketing program uses a push-pull approach: Customer Pull for demand creation, and Partner Push through partner enablement, sales tools and marketing resource packages. Renew

Customer Demand Creation Campaigns Customer Pull Renew Attach Welcome Nurture Main message: Distinct value of Cisco Technical Services compared to warranty. Outcome: Customer can justify attaching Technical Services to product Main message: Help onboard new Cisco Technical Service customers quickly Outcome: Customer realizes benefits of service immediately; improves willingness to renew Main message: Activate Smart Call Home feature to reduce time-to- resolution and save money Outcome: Customer optimizes value of contract; improves willingness to renew Main message: Upcoming Cisco Technical Service contract expiration Outcome: Expedited renewal; customer aware of renewal event, has info needed and is directed to partner At the Attach stage, the main message is the distinct value of Cisco Technical Services compared to warranty, Cisco TAC, extensive online resources and tools, software upgrades and proactive automated alerts with Smart Call Home. The intended outcome of this stage is that a customer can justify attaching Technical Services to their recent product purchase and will take steps to do so. The Welcome stage is intended to onboard new Cisco Technical Service customers quickly, providing registration and set-up instructions and guidelines, so that a new customer realizes the benefits of service from the onset, and which should improve their willingness to renew at contract expiration. The Nurture stage activity today focuses on activation of Smart Call Home, the automated support feature that is embedded in SMARTnet and provides proactive alerts and diagnostics for enabled devices. Smart Call Home is a high value feature. Cisco experience shows that customers who have activated Smart Call Home are highly likely to renew. At the time of renewal, we are creating awareness and urgency regarding the contract expiration date, providing the information the customer needs to easily complete an on-time renewal.

Partner Enablement and Resources Renew Attach Welcome Partner Enablement Call script Customer documentation Demand Generation in a box Playbook Customizable email, call scripts Banners Autoquotes Demand Generation in a box Playbook Customizable email, call scripts Banners Videos Partner enablement and resources are lined up along the same stages as in customer demand creation. For the Attach stage, there is a partner demand generation package of materials, including a sales playbook, customizable assets like email templates and banner ads, calll scripts and videos. For the Welcome stage, partner enablement materials include a call script, a Getting Started Checklist, and a User Guide. At the Renew stage, in addition to a customizable demand generation package, Cisco has created an automated quoting and ordering solution, to support partners with a cost-efficient approach for addressing their high volume/low dollar customer base. We will cover the autoquote solution in more detail later in this module.

Campaign Examples Here are some examples of the campaigns associated with these lifecycle stages.

Attach: Cisco Technical Services are more than just repair Messaging: Highlights the value received from Cisco Technical Services compared to standard product warranty Comparison guides, ROI tool to download Call to action: Contact Partner Program Delivery: Partner-branded assets (email templates, call scripts etc) available on Partner Marketing Central. As noted earlier, the main message at the Attach stage is the value-add of Cisco Technical Services compared with a standard product warranty. Customizable assets are available on Partner Marketing Central.

Welcome: Get the most out of your Cisco Technical Services Messaging: Thank you for your business. Can we help you get started? Do we have the right contact? Call to action: Request “Getting Started Checklist”; download interactive “User Guide” Program Delivery: Partner-branded assets available on Partner Marketing Central. To onboard a new Cisco Technical Services customer quickly and efficiently, we have created a Getting Started Checklist and an easy to navigate interactive User Guide.

Nurture: Activate Smart Call Home on enabled devices Messaging: Activate Smart Call Home for proactive device alerts and diagnostics Smart Call Home is a smart feature included in your SMARTnet contract Call to action: Download the deployment guide Program Delivery: Cisco. Email includes relevant contract numbers for Smart Call Home supported devices. Cisco is contacting customers with enabled devices in key product families to drive Smart Call Home activation. Smart Call Home has a self-deployment model; customers are directed to download their relevant deployment guide to get started. As a side note, there is a Smart Call Home training module on Accelerate for anyone who would like more detailed information on this high-value feature.

Renewal: Cisco Technical Services Contracts are Expiring Messaging: Your technical services contract is coming up for renewal Renew now to ensure coverage. Call to action: Contact us or your partner for assistance Lead flow: Leads go to partner Program Delivery: Cisco. Email with contract number and date. Partner-branded assets for use by Partner on Partner Marketing Central. Cisco sends email renewal notifications that include contract number and date. All leads are directed to the partner. Customizable assets are also available on Partner Marketing Central.

Automated Quoting & Ordering At this point, we are going to focus on the automated quoting and ordering solution that plays a valuable role in driving cost-efficiency and effectiveness in a partner’s Technical Services renewal processes.

Understanding the Auto-Quoting Solution Empowers you to grow your business and increase your revenues; more time to sell Improves your closure rates with more actionable data Increases your operational efficiency Improves your renewal experience Makes it easier to do business with Cisco Aggregate opportunities in one spot Pre-quote validated opportunity leads Use a scalable, third- party cloud-based solution that: Automates manual tasks: auto-quoting, auto-notification Enriches data, business intelligence Supports your existing business processes Managing high volume of low- dollar* transactions comes with steep operational costs Low-dollar opportunities are costly to pursue Quote creation and reconciliation is time consuming Business Challenge Value for Partners and Distributors Cisco Action *Low-dollar = $50,000 or less

Auto Quote Portal Active Expiring Expired The portal provides views and reporting of all of the opportunities that are auto-quoted. Active Expiring Opportunities with coverage end dates from 60 days overdue to 365 days forward from entered date. Expired Opportunities with coverage end date from 61 to 90 days overdue (expired) from entered report generation date. Uncovered Opportunities for products that do not have a service contract that have shipped from Cisco to distributor within the past 180 days. Opportunity Types The autoquote portal is the user interface for partners to view and download reports about upcoming opportunities. This portal helps drive revenue growth with accurate, current data on service renewals and uncovered products, providing web-based business intelligence that assists partners with their planning and focus. Page 19

How Auto Quote Works (Sales Perspective) Opportunities identified, quoted and emailed Partner receives notification containing pre-created renewal quote via email Quote transacted via Cisco SCC for Indirect Resellers and Distributors (SMS3), phone or email contact Turning Data into Information: Auto Quotes delivered 90 days in advance of service expiration and 0-60 days expired; Auto Quotes delivered Assets sold without a contract within the last 30 days; Validated Cisco Quote # Enhanced and augmented contact information Automate Opportunities: Clear direction to transact Option to Order Now Partner Specific Pricing Branded quote emails

Auto Quote Benefits Allows you to capture more revenue with less effort 1 Simplifies quote creation and helps reduce cost of managing lower dollar opportunities 2 Delivers validated quotes that are ready to order 3

Tools & Resources

Tools and Resources Partner Practice Builder Cisco E-Consulting for Partners Cisco Performance Metrics Central As a reminder, Cisco provides important foundational programs for partner services practices: Partner Practice Builder; Cisco E-Consulting for Partners; Cisco Performance Metrics Central.

Tools and Resources A self-paced, online business planning resource PARTNER PRACTICE BUILDER A self-paced, online business planning resource Better serve existing customers Enter new markets Partner Practice Builder is a self-paced, online business planning resource. It offers a simplified approach to building a practice to address a new market, or improving a current practice. It provides repeatable business processes which will help you improve customer satisfaction and loyalty. And you get a proven, step-by-step procedure for the complete service delivery lifecycle that checks your progress as you implement your plan. Enhance productivity

Tools and Resources CISCO E-CONSULTING FOR PARTNERS An online resource that pinpoints areas for improvement across your sales & delivery functions Increase profitability and growth Drive operational excellence Cisco E-Consulting for Partners is an on-line resource that pinpoints areas for improvement across your sales and delivery functions. It identifies missed opportunities and suggests how to pursue those opportunities with targeted recommendations. Cisco E-Consulting for Partners helps you: Accelerate profitability and growth; Improve productivity; Expand business opportunities; and Add value for customers. Expand business opportunities Add value for customers

Tools and Resources Drive profitability and growth PERFORMANCE METRICS CENTRAL A centralized view of service metrics, operational indicators, discount and rebate information, and upcoming contract opportunities to effectively sell and manage Cisco Services Drive profitability and growth Improve productivity levels Performance Metrics Central gives you a centralized view of service metrics, operational indicators, discount and rebate information, and upcoming contract opportunities to help you effectively sell and manage Cisco Services. PMC helps you to…   · Drive profitability and growth by providing accurate, consolidated, objective, and up-to-date metric calculations based on your Cisco Services sales and delivery performance, so you can continually and productively adjust your business activities to drive revenue-impacting decisions. · Improve your levels of productivity through a detailed snapshot of your performance that identifies areas of improvement to help you achieve a high performance target. · Identify business opportunities through enhanced reporting capabilities that allow you to monitor sales and delivery performance, so you can identify sales opportunities in time to meet incentive thresholds. · Boost customer satisfaction through timely, accurate service monitoring and reporting functionality to help fulfill customer needs. Identify business opportunities Increase customer satisfaction

Wrap Up Let’s wrap things up.

Get Started Today Contact your Cisco or Distributor Account Manager Partner Marketing Central: www.cisco.com/partnermarketingcentral Partner Central: http://www.cisco/partnercentral.com Log into Cisco E-Consulting for Partners http://tools.cisco.com/ServiceSales/Cust Adv/lcs/home.do#~Home Learn more about Cisco Services http://www.cisco.com/web/partners/servic es/index.html Get Started Today Get Started Today! Visit Partner Marketing Central for the Cisco Technical Services marketing materials covered in this session.   And here are links to other valuable resources to help you build and grow your Cisco Technical Services practice.

Thank you for joining us.