CUSTOMER SERVICE Overview The overall objective of this presentation is to convey the power, flexibility and usability of our Customer Service capabilities. The assumption is that this deck would be used after an all-up Microsoft Dynamics CRM Deck. On account of that, this presentation is really focused on content specific to Customer Service. This deck has the same overall structure and flow of the SFA and Marketing Automation decks so that presenters who are familiar with one deck can easily grasp the content and structure of the other decks. Ralph R. Zerbonia President Universe Central Corporation

Better Customer Service Drives Company Value “…companies with high customer satisfaction scores have blown the S&P 500 out of the water, especially over the last few years. Not only have they produced higher stock returns, but their stock values and cash flows have been less volatile.” Harvard Business Review March 2007 Executive Quote: “We also do a bunch of things to keep people directly in touch with customer needs. Every new employee, no matter how senior or junior, has to go spend time in our fulfillment centers within the first year of employment. Every two years they do two days of customer service. Everyone has to work in a call center…I just got recertified about six months ago.” -- Jeff Bezos, CEO, Amazon.com Quote from Jeff Bezos – “The Institutional Yes”, Harvard Business Review, October 2007, pg .79-80. What is the ultimate result of higher Customer Satisfaction? increased Company Value as measured by ACSI analytically demonstrates a positive correlation of stock price to customer satisfaction. This means that firms with higher customer sat ratings vastly outperformed their peers (competitors) in the stock market. While the study was performed in the United States and based on US markets, the results are absolutely applicable to developed markets in Europe and Asia. For additional information, another more qualitative treatment of customer service defining market champions, please go and read March 5, 2007 edition of BusinessWeek. The Cover Page article entitled “Customer Service Champions” goes into great detail about successful companies leveraging customer service for competitive advantage. APPENDIX (DO NOT PRESENT – BACKUP PURPOSES ONLY) ACSI = American Customer Satisfaction Index In a groundbreaking 2006 study, University of Michigan business professor Claes Fornell and colleagues showed the relationship between customer satisfaction and financial success by creating a hedge portfolio in which stocks are bought long and sold short in response to changes in the American Customer Satisfaction Index (ACSI). Christopher Hart, “Beating the Market with Customer Satisfaction”. Harvard Business Review, March 2007. Document#F0703H

Typical Business Challenges in Customer Service On-board and train new Customer Service Representatives (CSRs) quickly Increase CSR utilization and retain quality CSRs Provide a consistent, effective experience across all contact touchpoints Convert cross-sell and up-sell opportunities into revenue Increase First Call Resolution and decrease Average Handle Time How are companies using the Contact Center today to drive Competitive Advantage? In general, firms are trying to build higher Customer Satisfaction.– this is a Strategic goal. Customer Satisfaction leads to: Loyalty Word of mouth advertising Price Premiums Reduced Operating Expenses Higher Customer Close Rates Even in closed industries (i.e. healthcare), high customer satisfaction can remove pressure from regulatory oversight or government intervention. There are multiple, typical challenges in Contact Centers today. Some of the challenges are: On-board and train new Customer Service Representatives quickly Increase CSR Utilization and retain quality CSRs Provide a consistent, effective experience across all contact touchpoints Convert cross-sell and up-sell opportunities into revenue Increase First Call Resolution and decrease Average Handle Time. The challenges all map to a few strategic objectives in a contact center: Customer Satisfaction Offer better and more simple customer support. First Call Resolution is the #1 goal of every Contact Center. This is more important than Average Handle Time or other metrics. All of these things lead to loyalty. A simple 5% increase in Customer Loyalty can yield a 25% increase in profitability (source: Fred Reichheld, The Loyalty Effect) JD Powers study: +52% median improvement in shareholder value for those companies that improved customer satisfaction rankings. -28% decline for those whose customer sat rankings decreased Revenue Generation For the most part, revenue generation refers to using the contact center for a) campaign responses b) inbound sales and c) cross-sell and upsell. The first two are very typical scenarios and will persist. Cross-sell and upsell have received a lot of attention. When deployed correctly, this is very powerful. MS CRM can support this through a combination of MS CRM, Analytics Foundation, SQL Server (Reporting & Analytic Services), and some custom code. Cost Reduction As much as we talk to Loyalty Mgmt and Revenue Generation, the name of the game for many Contact Centers is Cost Containment. It is the foundation for nearly every contact center in the world. Core to this strategy is “deflecting” calls to IVRs, self-service and email. In addition, it can be thought of as anything from basic knowledge transfer to customers (from agents) to higher valued things like avoiding product returns or managing warranty claims

Industry Views “The role of the contact center in the organization is shifting and growing. Contact centers are increasingly strategic business units, and not just cost center departments.” Michael Maoz, Vice President and Distinguished Analyst, Gartner Inc. “CEOs cited New Technology (63%) and Customer Loyalty (54%) as two of the top revenue drivers for their business.” New York Stock Exchange (NYSE) 2007 CEO Report Quote #1 Michael Maoz is considered the most influential and respected technology analyst in the field of customer service and CRM. His feeling is that the Contact Center is the “hub” of customer activity in a corporation and is growing even more important in its role. Investment by companies will follow. Quote #2 The second quote really shows what is one the minds of the top CEOs throughout the world. As many of you know, the NYSE is the premier global stock exchange. Although it is American, many global companies trade through NYSE via ADRs (American Depository Receipts). As such, this quote represents the opinion of CEO of top companies from from all over the world. Quote #3 The last quote comes from a prominent international business journal – the Harvard Business Review. Essentially, this study substantiates the link between customer satisfaction and a tangible ROI. So, what does customer sat lead? – higher spending, increased cash flow and better business performance. “If you’re looking to boost customer satisfaction, one of the most promising places to start is customer service. …increased satisfaction has a positive impact on consumer spending, cash flow, and business performance.” Harvard Business Review, 2007

Change the Game in Customer Service Transform Customer Service into a Strategic Asset Empower all employees to be part of Customer Service The Vision of Microsoft Dynamics CRM in Customer Service revolves around three key goals: Transform Customer Service into a Strategic Asset Empower all employees to be a part of Customer Service Achieve a true 360 degree view of the customer Many CxOs have identified the Contact Center as a vehicle to improve their business. As businesses have identified Customer Service as a Strategy to improve their business, they need a robust technology platform to enable the strategy. Microsoft Dynamics CRM can provide that platform to help make Customer Service into a Strategic Asset. To build true customer satisfaction, customer service cannot just be the jobs a few employees in a contact center or the customer service department. All employees from the CEO to the front-line retail salesperson (or equivalent) must have critical customer information at their fingertips and be able to assist customers. Microsoft Dynamics CRM is the only CRM system that is familiar to all users via Outlook interface or agent desktop. If Customer Service is a “silo” in a business, it is impossible to evaluate service in the context of the entire customer experience. Similarly, it is difficult to present offers to customers if Customer Service is in a silo. It is important to gain a 360 degree of a customer, enabled by Microsoft Dynamics CRM. With the powerful platform approach and pervasive use by all employees, firms (or governments) can capture all interactions across multiple channels and then use the history and insights to view the customer holistically. Facts 21% of contact center TDMs ranked acquiring or introducing new technology as their #1 issue 27% of contact center BDMs ranked identifying or increasing sales opportunities as their #1 issue 60% of B2B contact centers do not have a CRM application 75% of B2C contact center do not use a CRM application Source: Gartner Achieve a true 360° View of the customer

SOLUTION

Microsoft Dynamics CRM Customer Service Solution Service Capabilities Full feature set Service Workflow Designed for Users Managers Executives The capabilities outlined in the diagram above showcase the breadth of capabilities within Microsoft Dynamics CRM that help organizations provide consistent, effective service that improves the customer experience. The following slides illustrate the major capabilities of Microsoft Dynamics CRM in a customer service and/or contact center environment. The slides do not discuss major platform capabilities or technical architecture advantages – please supplement this ppt deck with slides from TDM deck or architecture deck.

Account and Contact Management Complete set of features that empower customer service representatives to better manage interactions. Account and Contact Management Components Acct, Contact & Case History Contact Management Discovery & Search Data Import & Quality Complex Relationships Microsoft Advantage Familiar user experience via Microsoft Outlook, agent desktop or web client Powerful productivity features like Auto Complete and Smart Search Import and de-duplication of records is seamless and easy to perform Fundamental technical agility to support core service interactions Account & Contact Management Refers to the baseline activity of finding current customers, adding new accounts/contacts or editing the profiles (i.e. attributes) of current accounts or customers. Microsoft Dynamics CRM makes it very easy and effective for informal customer service personnel or formal Customer Service Representatives (CSRs) [e.g. call center agents] alike to quickly find, add, edit or delete accounts and contacts in the system. This includes productivity-enhancing features like Auto Complete (automatically populates field once user has typed identifying information) and Smart Search (provides pick-list of closest matching data based on user input – such as names of accounts). Also, Microsoft Dynamics supports two key technical capabilities: Complex relationship modeling (in database) including Many to Many (N:N), One to Many (1:N); and Many to One (N:1) relationships Robust import of data (such as account lists) including full de-duplication control at User or Administrator level

Interaction and Knowledge Management Complete interaction management capabilities including Knowledge Management and Service Level Agreements. Interaction and Knowledge Management Components Flexible Interaction Framework Contextual User Experience Knowledge Base KB Article Authoring, Review and Publishing SLA and Support Contracts Microsoft Advantage Customizable agent desktop surfacing Microsoft Dynamics CRM through browser, Microsoft Office Outlook, Sharepoint or custom UI Fully integrated Knowledge Base including authoring and publishing capabilities. Robust email support including auto-response and auto promotion of emails to cases. Interaction and Knowledge Management Many B2C and B2B companies conduct a majority of their customer service operations through formal Contact (Call) Centers. Microsoft Dynamics CRM provides a great platform for businesses or governments that operate Contact Centers. Microsoft Dynamics CRM can be surfaced through a variety of interfaces including: Microsoft Outlook Web Client through Microsoft Internet Information Server (IIS) Web Client through Microsoft Office Sharepoint (MOSS) Customer Agent Desktop powered through Microsoft CCF, MOSS or IIS At its core, Microsoft Dynamics CRM provides out-of-box functionality for Interactions – companies can utilize common fields or build customized forms and screens to expose service history, bills, or other information Knowledge Base – full repository including authoring, review and publishing of KB articles. Recommended solutions from Knowledge Base can be published internally or externally. Service Level Agreements (SLA) – with Contracts module, establish SLA tracking or bill customers for support incidents, support time used, etc… Email Response Management – system will automatically respond to emails sent to specified inboxes with KB articles, receipt notice or other information. Also, emails can either be automatically or manually converted into a Case.

Case Management and Scheduling Case Management and Scheduling Components Multi-channel Incident Mngmt. Communications & Activities Management Routing & Escalation Sophisticated set of features to create, manage and resolve cases via multiple channels as well as schedule field service. Services & Resources Management Global Scheduling & Optimization Microsoft Advantage Easy-to-use case management functionality including creation, editing, dispatch, tracking and resolution. Optimize usage of field personnel, fleet, tools, parts and resources Case Management and Service Scheduling Case Management Managing and tracking support “cases” (also known as incidents) is a core capability of any CRM customer service solution. Microsoft Dynamics CRM provides great functionality to create, manage and resolve support cases via multiple touchpoints including: Web Email In-Person Telephone and other channels… Routing and Escalation In addition to core Case Management, Microsoft Dynamics CRM fully supports creation and management of Queues. Cases can be automatically or manually dispatched to Queues. Also, workflow rules can be easily created and executed to escalate cases to a manager or supervisors when a case is neglected or exceed san established SLA. Service Scheduling Microsoft Dynamics CRM provides Service Scheduling modules as a core part of application. Often, Service Scheduling is referred to as Field Service. Microsoft Dynamics CRM provides the tools to create resource groups of field personnel, tools, fleet, parts and other critical resources to complete a job (i.e. fixing a copier). CSRs can use the Service Calendar to easily schedule service at a particular customer site. Importantly, the Service Schedule module includes an optimization engine that automatically chooses the best date/time for service based on customer parameters and resource group availability.

Real-Time Insight, Reporting and Analytics Full spectrum of business intelligence capabilities ranging from historical reporting predictive behavior insight to basic reporting to OLAP and performance dashboards. Real-Time Insight, Reporting and Analytics Components Customer Analytics Standard Service Reports Custom Reports OLAP & Data Mining Dashboards & Scorecards Microsoft Advantage Predictive behavior analytics, like cross-sell/upsell, and historical analytics Critical service reports are provided standard with fully customized reports available easily to any user Seamlessly integrated to SQL Server Analytic Services & SQL Server Reporting Service for robust OLAP, data mining and reporting. Real-Time Insight, Reporting and Analytics Essentially, this set of functionality in MS CRM provides capabilities to do: See Historical activities Build and deploy Predictive analytics Perform OLAP (Online Analytical Processing) and data mining Populate Executive, service and contact center dashboards Build totally custom reports Microsoft Dynamics CRM comes with seven standard service reports right out of the box including: Account Distribution Account Overview Account Summary Case Summary Table Neglected Cases Service Activity Volume Top Knowledge Base Articles However, we don’t stop at the standard reports and can offer the full ranges of BI and analytics capabilities using Report Wizard embedded in CRM or using a combination of Excel 2007, PerformancePoint and SQL Analysis Services. MS CRM can also import information from other systems like an ACD to produce consolidated Contact Center reports. Also, companies can also utilize SQL Analysis Services in combination with workflow and custom code to provide real-time actionable intelligence. Providing upsell or cross-sell information (an offer) to an agent on the phone would be an example.

Proactive Sales and Support Transform the contact center from purely reactionary service into a proactive, strategic arm of the business. Proactive Sales and Support Components Account & Contact Analysis Upsell & Cross-sell Evaluation Product Recommendation Proactive Communications Service Campaigns Microsoft Advantage Seamlessly integrated, holistic service processes that drive positive behavior Easy-to-Enable “Presence” and click-to-dial functionality through integration to Microsoft Office Communications Server 2007. Proactive Sales & Support This is a relatively new area in customer service. Basically, our vision is to use the wealth of service history and activities to build profiles of common support occurrences and then use that information to proactively service customers. As an example, the proactive sales & support could take the form of: Driving Quality initiatives based on product failure analyses Proactively scheduling maintenance on a product before there is a problem Calling a customer that meets certain criteria to offer them a new retail banking product Reducing warranty claims To realize a Proactive Sales & Support environment requires the integration of multiple different components in CRM, all orchestrated using Windows Workflow Foundation. Office Communications Server 2007 Integration One key area that we differentiate ourselves in is our integration with Office Communications Server 2007. With this integration, we can expose “Presence” information on users to others in the organization – that way various folks can collaborate to service customers more effectively. The same integration provides chat and “click to dial” functionality.

Customer Service Scenarios Follow- the-Sun Global Support World-Class Contact Center Closed-Loop Service Processes Quick Service Campaigns Total Quality Management Enable management of cases to be handed off across teams in multiple time zones Deploy world-class contact centers that support multiple shifts and remote agents Use workflow to drive consistency and real-time visibility into every stage of service processes Manage product support issues simply and easily from contact to resolution Allow all service metrics to be easily tracked and analyzed to drive process improvement Key Point: The new functionality in Microsoft Dynamics CRM 4.0 provides substantial support for common support scenarios in most businesses. Here are some detailed examples: Storyline – Follow-the-Sun Global Support Financial Services companies often run trading desks that are literally never closed. A “bourse” (market) is always open. As Tokyo, Shanghai and Singapore exchanges close, bourses in Dubai and Bombay are up and running. As the bourses close, Frankfurt and London open up and finally New York opens. Global firms often have to support their customers from a few locations that speak different languages or be trading in any currency. Microsoft Dynamics CRM provides ability for robust support in this instance. Storyline – Closed Loop Service Processes Insurance companies sell policies and process claims. When claims come in, many people touch the claim including adjusters, corporate personnel, accounts payable, underwriters, actuaries, and case managers. It’s naturally important to have a robust closed-loop service process to ensure that information finds the correct work path and there is accountability in taking action. Microsoft Dynamics CRM provides such functionality predominately enabled by workflow and tracking of emails associated with cases. In the insurance example, the case starts with a claim, goes to an adjuster, is sent to a case manager to discuss with customer and finally ends up in accounts payable to cut a check. Storyline – Complex Customer Relationships A firm wants to drive down their cost of serving customers and improve their quality management. Many firms do this via Six Sigma and other Total Quality Management process initiatives. Using CRM, a company could easily track interactions, capture critical data and then use information for analysis purposes.

Powered By Microsoft Core Enabling Capabilities Business Agility Robust Workflow Reporting & Analytics Multi-Tenancy Multi-Language User Interface Multi-Currency Comprehensive customization capabilities Composite applications Inherent flexibility to map to business processes Geared for design by anyone in the organization Underneath the covers… Microsoft has some key distinctions that set it apart from many competitors in the market today. Chief among our distinctions is our robust platform approach to CRM: Multi-tenancy provides ability for enterprises, hosting-providers, and outsourcers to cost-effectively serve different constituencies that have different needs Multi-language user interface and multi-currency functionality makes this a truly global product Microsoft Dynamics CRM offers unrivalled business agility to support a company’s service processes. The newly added Windows Workflow Foundation creates a new level of cross-application workflow capabilities that can be created and deployed by a power user, business analyst and administrators. Generate all levels of reports from standard, “canned” reports to sophisticated, custom reports Spot trends or predict behavior with OLAP and data mining

Microsoft Dynamics CRM in the Contact Center Interaction Channels 360° View Composite UI Reporting & Analytics Phone CC Apps Agents Supervisors Managers Executives Wireless PSTN VPN and Internet CTI Web Self-Service Email Chat This slide depicts the common architectural approach to Contact Center technologies. This architecture is merely representative of common architectures and should not be considered prescriptive or the advice of Microsoft. It is merely for discussion purposes. Most major components found in contact centers are represented in this diagram including: ACD (Automatic Call Distributor); this could also be called a switch or PBX. This system accepts calls and routes them to the right agent. CRM System – agent desktop powered through Microsoft Dynamics CRM CTI (Computer-Telephony Integration) – this provides “screen pop” that pulls information from a database and automatically presents it to an agent when they accept a call. Microsoft maintains strategic relationships with most of the leading switch/ACD/PBX vendors so CTI is very simple. Several leading firms have built OOB connectors (see partner slide) IVR (Interactive Voice Response) – these systems provide automatic responses to prompts. CC Apps – these are often Workforce management, quality monitoring, and other administrative applications important to contact centers Integration to key back-end systems like ERP, legacy apps (i.e. billing), and Line-of-Business applications like provisioning Integration from Microsoft Dynamics CRM to back-end systems can be enabled in multiple different ways including use of Microsoft Customer Care Framework, Microsoft BizTalk, 3rd party integration tools or custom, direct integration. PBX/ACD Branches Retail Stores & Dealers Government Offices IVR ERP LOB Apps Legacy Apps

BENEFITS

Key Benefits of Microsoft Dynamics CRM Organizational Customer Service Higher Productivity Greater Service Efficiency Improved Up-sell and Cross-sell Achieve 360 ° visibility across the entire organization into service history, current cases, contracts and much more Drive collaboration and improve agent productivity, lower training costs and reduce churn. Improve first-call resolution and handling times to yield higher customer satisfaction and loyalty. Optimize upsell and cross-sell campaigns to drive better revenue and higher uptake rates.

Key Benefits for Business VP of Customer Service Reach customer satisfaction goals Drive new revenue opportunities Reliably manage service costs Achieve KPIs for service Increase agent retention Reduce agent training costs and on-boarding time Contact Center Manager In the Contact Center, the key business leaders are: VP of Customer Service (or Chief Customer Officer in some cases)’ Contact Center Manager Agents and Supervisors VP-level (BDM) employees care about the strategic business impact that CRM can bring them. They care about market share gained, stock price increase, contact center as strategic tool, revenue earned, expense items reduced. Because MS is a recognized strategic vendor to these firms, their risk is reduced. Also, we can provide them a world-class platform to build their contact center that provides them flexibility, cost savings and ability to scale the business. Contact Center Managers care about operational issues like adhering to budget, meeting KPIs, keeping employees employed and not leaving the business, ramping up new agents, etc… These will most likely be your hardest constituency to sell because they want everything to be ready to go. Consider appealing to them from the top down (i.e. use VP to coach you) and from the bottom up (i.e. using Agents/Supervisors that work with them). Agents and Supervisors care mostly about the User Experience. Usually, they will like MS CRM and become advocates. Their voice is listened to because they have to use it everyday. Leverage them in the process of making a sale. Agents and Supervisors Improve personal productivity Eliminate frustration in assisting customers Reduce errors and call closing time

Key Benefits for IT Chief Information Officer IT Project Team Business Achieve rapid time to value Realize low total cost of ownership (TCO) Leverage consistent IT architecture & standards IT Project Team Adapt to meet business user requirements Easily integrate existing applications and data Design for extensibility CIOs care about driving down their costs, providing agility to the business and generally keeping to consistent architecture. CIOs are in the business of risk mitigation and providing service. If MS is a standard in their business, building their contact center with MS CRM is a great opportunity. IT Project team can win by providing the users with ability to meet the exact specifications that users provide. Business Analysts will often report to the business-side of the house but be more IT-oriented. Focus on workflow and reporting. The key to winning them over is to focus on the fact that they can design workflows & business processes in Microsoft Dynamics CRM easily and effectively. Secondarily, with Microsoft Dynamics CRM, the business analyst can use canned reports, build sophisticated customer reports or even use advanced analytics to measure the business performance. Business Analyst Design and track key KPIs Design and run cross-team workflow Manage work loads for representatives

EVIDENCE

Global Customer Success in Customer Service 4/5/2017 8:50 AM Global Customer Success in Customer Service Small Businesses Mid-size Companies Large Enterprises As this slide indicates, Microsoft Dynamics CRM is enjoying great success in Customer Service and Contact Center across all customer segments and many industries.  Notable customers Essex Medical & Forensic (Small Business – UK; healthcare) PAML (Mid market – US; healthcare) Mitsubishi-Caterpillar (Midmarket – Netherlands; manufacturing) OC Tanner (Midmarket – US; professional services) NCCI (Midmarket – US; financial services/insurance) Wellmark (Enterprise – US; healthcare) Department of Work and Pensions (Enterprise – UK; government sector) Vodafone Czech (Enterprise – Czech Republic; telecommunications) ING (Enterprise – EMEA; financial services)

Integrated Healthcare Customers in Action Maccabi Microsoft Polaris Integrated Healthcare 1,200 users Maccabi serves 1.7M members in Israel. Microsoft Dynamics CRM is the hub of patient information and is used in hospitals, clinics, labs and in contact center. Microsoft Dynamics CRM system surfaces critical information from SAP and an AS400. High Technology Multi-thousand users Replacement of legacy Clarify application in commercial software support organization. Microsoft Dynamics CRM used in Contact Centers (located in NA, Europe, India and Asia) and in backline (2nd/3rd tier) engineering to provide follow- the-sun global support. Manufacturing 75+ users Polaris uses Microsoft Dynamics CRM to provide support to both dealers and enthusiasts (users of product). From a SharePoint interface, users access multiple applications including Microsoft Dynamics CRM, SAP, and parts/product databases. Maccabi is a thought-leader in Customer Service in Israel. This CRM applications really forms the center hub of all patient information including billing info, disease mgmt, records, health regimes, etc… Users that touch it range from front-line employees to back-office personnel Microsoft is replacing their legacy Clarify system from the mid-1990s with a totally new system built on Microsoft Dynamics CRM 4.0. This will host over 5,000 agents that are all over the world. This is just one of the many projects at Microsoft where we are deploying Microsoft Dynamics CRM. Polaris makes snowmobiles and ATVs. They utilize Microsoft Dynamics CRM for both users (consumers) as well as dealer services. Microsoft Dynamics CRM.

Customer Perspective “With Microsoft Dynamics CRM, training time is reduced, people are proficient faster, and we can get new employees out onto the floor quickly—all because the system brings them the information that they need in an easy-to-use, point-click fashion.” Jeff Beelman Contact Center Lead, Wellmark Blue Cross Blue Shield “Microsoft Dynamics CRM helps us pinpoint why people have to make phone calls and helps us systematically reduce the time spent on non-value-added activities like unnecessary calls.” David Peet General Manager, Crossmark Two quotes from leading firms using Microsoft Dynamics CRM in Customer Service.

Customer Return On Investment Substantially cut call handling time by four minutes per call Reduced training time for new employees from eight to six weeks Handling 15% more calls per year, without additional staff Saves 6,000 hours a year on case management 50% reduction in call volumes Increased first call resolution rates, leading to improved customer satisfaction Improved work productivity for over 50% of staff Lowered call volume through proactive identification of service issues

Partnering for Success Interaction Channel Infrastructure Contact Center Applications This slide represents a small cut of our partners, specifically Contact Center ISVs. Interaction Channel Infrastructure refers to core switch, PBX, ACD and routing technologies that provide CTI – essentially, linking a phone (or potentially an email) interaction with a record in CRM database and providing that to an agent desktop. All of the Interaction Channel Infrastructure partners list in this slide are building or have built connectors between Microsoft Dynamics CRM 4.0 and their switch and/or ACD. Other switches built by manufacturers can be easily integrated with Microsoft Dynamics CRM. Contact Center applications range from advanced Agent Scripting from Axonom or Team Knowledge (TK Dialogs) to Workforce Management and Quality applications from Verint Witness Actionable Systems. VoiceGate provides call recording functionality.

DISCUSSION

APPENDIX

Momentum with Analysts: Gartner Microsoft Dynamics CRM has emerged as a leader in the customer service and contact center space, driven by its ease of use for service personnel and by the flexibility of the underlying SOA platform. This is a just a single indicative slide of our momentum with leading analysts relative to Customer Service. [Note: Gartner is generally considered the leading and most prestigious IT analyst firm in the world.] This was our first attempt at placing Microsoft Dynamics CRM into the “Gartner Magic Quadrant for Customer Service Contact Centers”. We placed #2 as a Visionary. This is incredible corroboration of our strategy, technology and customer adoption. Siebel was the only leader – they have been at this for 15 years; we have been at it for less than 5 years. Other notable analysts recognize MS CRM’s strength in Customer Service and Contact Center. Another leading IT analyst firm, Forrester Research recognized us a “Leader in Record-Centric Customer Service”. (Forrester also awarded us a “Leader in Midmarket CRM Suites” in 2007 as well.) Source: Gartner Magic Quadrant for CRM Customer Service Contact Centers, 2007 [emphasis added]

Momentum with Analysts: Forrester “Microsoft Dynamics CRM has based its user interface on the popular Microsoft Outlook email program, meaning a shorter learning curve and more intuitive navigation… Microsoft Dynamics CRM’s time to value is typically days or weeks.” This is a just a single indicative slide of our momentum with leading analysts relative to Customer Service. [Note: Gartner is generally considered the leading and most prestigious IT analyst firm in the world.] This was our first attempt at placing Microsoft Dynamics CRM into the “Gartner Magic Quadrant for Customer Service Contact Centers”. We placed #2 as a Visionary. This is incredible corroboration of our strategy, technology and customer adoption. Siebel was the only leader – they have been at this for 15 years; we have been at it for less than 5 years. Other notable analysts recognize MS CRM’s strength in Customer Service and Contact Center. Another leading IT analyst firm, Forrester Research recognized us a “Leader in Record-Centric Customer Service”. (Forrester also awarded us a “Leader in Midmarket CRM Suites” in 2007 as well.) Source: Forrester Research

Customer Service & Support Core components of a CSS application include: Account and Contact Management Case and Interaction Management Knowledge Base Management Product and Contract Management Service Scheduling Workflow across Teams and Groups Service Reporting and Analytics Commonly integrated components include: Voice Infrastructure (ACD, CTI, IVR) Workforce and Quality Management Agent Scripting  Operational  Analytical  Collaborative There are three major types of CRM: -- Operational: this is essentially the executional aspects of CRM like account mgmt, call tracking, case mgmt, etc.. -- Analytical: this is reporting, business intelligence, predictions -- Collaborative: this is a newer aspect of CRM that relates to communication between employees, enabling external communities, etc… For Customer Service, there are few core capabilities that firms need. (refer to functional components in slide). Microsoft Dynamics CRM delivers all of these foundational features that can then be customized to meet the unique needs of a company. For Contact Center, we necessarily rely upon our ISV community to bring us Contact Center Infrastructure such as Voice and Workforce Management. ACD = automatic call distributor CTI = computer telephony integration IVR = interactive voice response Workforce management is typically a software solution designed to help manage staffing, learning, etc…within a call center.

World-Class Contact Center Platform Customer Need : Transform your contact center from a traditional cost center into a strategic asset Improve the multi-channel customer experience Drive customer retention and loyalty 5% increase in customer retention = 25-100% to the bottom line Key Capabilities in Microsoft Dynamics CRM Multi-tenant architecture with advanced data privacy Full multi-language and multi-currency support Network optimization for WANs and remote agents High performance & scalability from server clustering Improved email handling in Exchange and with POP3/SMTP Storyline Large Multi-national firms, Public Sector (national governments, agencies, etc…), call center outsourcers and highly diverse product organizations all require a platform for their contact centers. Most of these firms will operate several different contact centers with each one having a different objective. With Microsoft Dynamics CRM, IT organizations can provide enterprise-provisioned hosting of contact centers. This substantially reduces their cost and improves their time to value. The main areas that firms are concerned with in a contact center platform are: Performance and scalability Core functionality that is extensible 3rd Party integrations for Contact Center infrastructure Statistics Fred Reichheld, The Loyalty Effect

Quick Sales & Service Campaigns Customer Need: Deliver an outbound contact capability to drive proactive service outreach Quickly drive communications for time sensitive issues Avoid routine calls by rapid notification of product or service issues Launch outbound surveys to collect key market information. Key Capabilities in Microsoft Dynamics CRM Automated Quick Campaign module Bulk close of campaign activities to clear many tasks at once Auto-send of campaign emails Intelligent data migration for campaign targeting One of the biggest tasks in an organization is to build a list of prospects or customers to call. There are many reasons why and where a Contact Center: Regular sales calls (to re-order products) Proactive and reactive product calldowns (like a product recall) Ongoing Marketing campaigns Envision a company, like a restaurant supply firm, that needs to call all of their customers every Monday morning for re-orders of products. Consider all of the tasks necessary to do this: 1) Assemble the list 2) distribute the list to appropriate people 3) execute the calls or emails 4) report on all the activities 5) close the campaign. There is a lot of effort to do this, especially if it’s a rapid response situation or emergency (like a product recall) In order for a company to do this, we have substantially updated the functionality in Microsoft Dynamics CRM around Campaign enablement. A couple of major features are: Automation of Quick Campaigns Bulk closing of campaign activities Automatically sending campaign emails.

Drive Agent Productivity Improvement Customer Need: Deploy familiar and flexible technology to get more for your customer service personnel Reduce agent click counts and input errors Manage more customers and deliver better service with same or less headcount Key Capabilities in Microsoft Dynamics CRM Smart Navigation navigation streamlines the agent user interface Auto-resolution of cases Individual and group workflow to improve productivity Real-time duplication detection and conflict resolution In Contact Centers, productivity is key. Contact center agents are structured task workers, generally not knowledge workers. As such, they are strictly monitored and managed by metrics. Smart Navigation and SmartFind features With Microsoft Dynamics CRM 4.0, we have vastly improved our click counts and ability to enter information quickly and accurately. Smart Navigation provides friendlier user interface. SmartFind provides auto-resolution of user entered information. For instance, when an agent types in a contact, account, case title, etc… the system will automatically recognize and auto-resolve the remainder of the name. This saves precious time for the agent, reduces wait time for the customer and saves the contact center a lot of money. While these improvements may look small, when multiplied by 100’s of cases per day handled by 100’s (hundreds) or 1000’s (thousands) of agents, the costs savings are staggering. Additional Notable Features -- Workflow -- Real-time de-duplication

Real-Time “Expert” and “Managers” on Call Customer Need: Increase first-call resolution (FCR) rates by reaching the right expertise in real-time Poor first call resolution rates typically add 30% in additional costs to contact center budgets Use presence integration and workflow to connect expert resources to issues in real-time Key Capabilities in Microsoft Dynamics CRM Presence integration via Office Communications Server 2007 Intra-team and cross-team workflow via Windows Workflow Real-time “Expert on Call” is just one example of the many uses of “Presence” within a CRM environment. In a contact center, Presence can really help to increase customer satisfaction through First Call Resolution (one the top 3 most tracked metrics in a contact center). Basically, when you show the Presence of: Experts Supervisors (escalations) Managers (approvals) Different queues or desks The result is that you can easily send a caller to the appropriate person that is ready to take a call. Agent “status” is nothing new in a contact center. The difference is that with “Presence”: Presence enabled through Microsoft is software-only solution as opposed to hybrid between hardware/software or at least switch vendor/CRM vendor at best Presence can be extended outside of Contact Centers to knowledge workers, executives, salespeople, mobile employees, etc… Statistics See various JD Powers & Associates studies and http://callcentres.com.au/first_call_resolution.htm

Improved Email Channel Management Customer Need: Effectively use the email channel to reduce service costs while maintaining satisfaction Deflect incident handling from telephone to email or web Deliver consistent and differentiated service via web or email Email channel is 44% cheaper than live agent conversations Key Capabilities in Microsoft Dynamics CRM Easily promote emails into cases Advanced email routing architecture Intra-team and cross-team workflow for emails Email sending, routing, and management enhancements Email is an exceptionally popular modality for customers to receive service. It is growing in its use and ROI. CRM 3.0 CRM 3.0 only allowed for Email to Lead functionality out of the box. Non-Exchange email stores, spam monitoring and sent items display was not available in 3.0 Microsoft Dynamics CRM 4.0 Email Routing Architecture is vastly improved with Email Router. Email Router is piece of component software that connect CRM with the email system. With Microsoft Dynamics CRM 4.0, the following is achieved: 1) Email to Case is an out of box feature (presented to CRM user, like a CSR, in dialogue box). 2) CRM-related email items sent from Outlook are now displayed in the “Sent Items” folder in Outlook 3) POP3 email stores are supported out of box. 4) Extensibility is easily achieved by creating plug-ins for Email Router. For instance, a native Notes connector is easily created to enable sending/receiving email from Notes. 5) New architecture provides for greater Spam blocking 6) Customer business logic can be written and deployed with Email Router and coupled with Workflow to create seamless email-oriented service processes. For instance, a case could be automatically opened from email and placed within a specific queue with limited or zero user involvement. Email to case functionality could be easily deployed on a website or customer portal. Statistics 44% cheaper. Derived from Gartner/Avaya study (2005). Live agent service averages USD4.50 vs. email USD2.50.

Action! Ralph R. Zerbonia Universe Central Corporation 330-720-4525 ralph@universecentral.com