Creating Customer LoyaltyRichard BrossPartner Master Class

AP040 Build My Skills Session

Introducing Partner Master Class(Part of the UK kick-off, May 2011)

• Recognised Worldwide as the TOP PDC

• All personnel have built VAR/ISV Partners from scratch

• Live and breath your business pains

• Wide range of experience in all areas

• Proven Success in multiple countries across Europe

• Top Class Coaches

Microsoft Dynamics Partner Academy

Partner Developer/Architect

Partner MarketingSpecialist

Partner SalesSpecialist

Partner ProjectManager

Partner Application Consultant Partner

PresalesSpecialist

Partner TechnologyAcademy

Partner MarketingAcademy

Partner SalesAcademy

Partner ProjectManagementAcademy

Partner SolutionAcademy Partner

PresalesAcademy

Microsoft DynamicsPartner Academy

DEVELOPER

LEADERSHIPROLE

MARKETINGROLE

SALESROLE

PRESALES ROLE

PROJECTMANAGER

CONSULTANT

CPLS

PDC

Richard Bross• Richard worked for Dutch TV

• Richard has been specialized in the optimalisation of lead generation on the CXO level in the ICT market for the last 22 years

• He has a broad network within the Microsoft organisation and is member of the Microsoft Partner Advisory Counsel for the last 7 years. Richard is also member of Microsoft's Retail Board

• Richard is co-founder of HSO, the number 1 Dynamics AX partner of Europe

• Richard lives to network!

The IT Channel Company

• Merger between PMC and Conceptsales• 12 professionals • Ambitious to grow!• Extra delivery capacity• Roll out capabilities • Cloud experience!

Our new team….

1. BUILDING A RAPPORT WITH YOUR CUSTOMER

The First Ten Seconds

In a customer service situation you have just ten seconds to start building a relationship with your customer and to create an impression.

So make sure it is a good one!

A good greeting can lay a strong foundation for the future.

Customer Rapport in a Nutshell• The Holy Grail of customer service is making people feel they are

special to you.• Your challenge: to show that you really mean what you say.• Like so many other personal skills, this can be learned and

developed.

• People cannot read your mind - they can only see your actions and

hear your words.

Remember: it is not enough to feel positive about your customer; you must show it in your words and actions.

The Top Ten Needs of your Customer...Or the 10 Keys to Successful Rapport-Building

1. They need to feel welcome (respect, understanding).2. They need to feel comfortable (understanding).3. They need to be understood (understanding).4. They need assistance (understanding).5. They need to feel important (respect).6. They need to be recognized (respect).7. They need to be treated with respect (respect).8. They need to be listened to (understanding).9. They need prompt service (respect).10. They need to trust you (trust).

2. BECOMING A TRUSTED ADVISOR

Introduction

“It’s important to have someone who you totally trust, who is totally committed, who shares your vision, and yet who has a little bit different set of skills and who also acts as something of a check on you.”

– Bill Gates

What Is a Trusted Advisor?

A trusted advisor is someone who can put themselves in their customers’ shoes, understand their dreams and accompany them on the road to achieving them.

The Path to Becoming a Trusted Advisor

Subject Matter or Process Expert

Subject Matter

Expert Plus Affiliated

Field

ValuableResource

Trusted Advisor

Depth of Personal Relationship

Bre

adth

of

Busi

ness

Is

sues

The Trusted Advisor, David Maister

Relationship LevelsType Focus Is On Energy Spent On Customer

ReceivesIndicators of Success

Subject matter expert

Answers, expertise, input

Explaining Information Timely, high quality

Subject matter expert + business

Business problem

Problem solving Solutions Problems resolved

Valuable resource (broad)

Client organization

Providing insights

Ideas Repeat business

Trusted advisor Client as individual

Understanding the client

Safe haven for hard issues

Varied; e.g. Creative approach and involvement

Making the Difference

1.0

Your marketing, sales and implementation methodologies make all the difference to position yourself as a trusted advisor.

• They transmit a consistent image of your professionalism.

• They make it possible to deliver quality and on time.

Your methodologies build trust by showing you understand and fulfill your customer’s needs.

3. THE COST OF NON-SATISFACTION

Your Bed-time Questions

What are my competitors doing?

How am I reacting?

Are my customers satisfied?

How do I know?

Could my customers be more satisfied?

What am I doing about this?

Customer DefectionsSix reasons to say goodbye

1. Some customers are bought.

2. Some customers move.

3. Some customers make critical staff changes.

4. Some customers are attracted to competitors because you forgot about them.

5. Some customers are attracted to competitors because their value proposition is more appealing.

6. Some customers are attracted to competitors because they feel unsatisfied and frustrated.

The Cost of Defections

What will it take (cost) to reduce defections?

Understand causes of defection and ascertain which can be managed.

Estimate profit lost when a customer defects.

The need to measure.

Measuring the Cost:

How to calculate the potential yearly losses in case of defection of some of key customers:

∑ gross profit past 5 years – cost of on going sales

5The result gives you a sense of the profits lost with the defecting customer in the coming years.

Anticipating Defections

Competition benchmark (compare with the customers of others)

• Your satisfaction metrics vs. your competitors.• SWOT analysis.• Others. You should ask and

listen to the customer’s answers.

4. DELIVERING VALUE TO ENSURE CUSTOMER LOYALTY

A Comprehensive Methodology to Create Customer Loyalty1. What to do:

Roll out the Business Ready Enhancement Customer Lifecycle methodology.

a. Welcome.

b. Activate.

c. Develop a roadmap.

d. Renew.

2. How to do it:

a. Designate a customer care champion.

b. Create a customer care outreach plan.

c. Execute & communicate.

How to Do it

Execute & Communicate.

Designate a Customer Care Champion.

Create a Customer Care Outreach Plan.

Now, let’s turn the focus to how you can make it happen.

Use the step-by-step plan for this:

Designate a Customer Care Champion Depending on business size, the Customer Care Champion may carry the title of: Customer Sales Manager, Customer Relationship Manager, or Specialized Sales Manager. Regardless of title, their common goal is to bring customers through the lifecycle.

Business Size Customer Care Champion

Companies with 50-100+ customers

Assign a dedicated Customer Sales Manager (CSM): Someone to identify opportunities within the existing customer base and close them.

Companies with less than 50 customers

Assign a non-dedicated existing Customer Champ: Someone who takes on core activities to maintain a basic level of part-time responsibility for existing customer interactions, and carries a goal or quota.

Or Take a virtual team approach: People in small businesses are accustomed to wearing many hats. But assign a Team Leader even if you choose this approach.

“Sales folks go in and sell it – they are done. But, once the project team has implemented, it‟s up to „customer care‟ to nurture the relationship and manage the recurring communications.” -Microsoft Partner .

Create a Customer Outreach Plan

Increase existing customer revenue through services

Cross-selling the Microsoft product stack

Renewals: Manage expiring Microsoft Dynamics Service Plan contracts as a leverage point.Win-Backs: Bring lapsed Microsoft Dynamics Service Plan customers back onto a plan.Up-Sell Support: Upgrade to Deluxe, Standard A/B Service Plans.

Add-on Functionality: Grow the capabilities of a customer’s technology.

Migrations to Business-Ready-Licensing

Categorise your Customers

Categorise customers to prioritise the activities you will implement:

Your top 20%.Personally managed. Action: Executive breakfast, business

reviews. A

Your middle 50%.Periodically contacted. Action: E-mail, phone, national &

local events. Your bottom 30%. Managed as a group in 1-to-many

engagements. Action: Local events, mailings,

newsletters, etc.

B

C

Communication Plan

Prioritized existing customers (T=license expiration date) Non-renewedNew customers A customers B customers C customers Lapsing Customers

Project completion: Introduce yourself as their care provider. Offer a project post-modern assessment. Meeting or phone call

T-90 Ongoing communication e.g. summarize recent news that affects their business or invite them to an event. Include list of top areas of CustomerSource

T-90 Ongoing communication e.g. summarize recent news that affects their business or invite them to an event. Include list of top areas of CustomerSource

T-90 Ongoing communication e.g. summarize recent news that affects their business. Include list of top areas of CustomerSource

Lapsed (T+14)Include list of top reasons customers typically renew. Add list of new items on CustomerSource.

Personalized Email w/follow up call to them

Email with invitation for them to call you

Email Call-down with follow-up email

Mail a new customer welcome kit or customer appreciation gift

T-60 Ongoing Communication about recent projects you have done for clients like them. Ask for a good time to plan their "roadmap" meeting.

T-60 Ongoing Communication about recent projects you have done for clients like them. Send the roadmap template.

T-60 Ongoing Communication about recent projects you have done for clients like them. Send the roadmap template.

Lapsed (T+30) Roadmap reminder. "To achieve your goals, we need to get you on the current platform."

Phone call w/meeting request Conference call or 2-way email

Web tamplate with key "next purchase" questions

Email link to saved roadmap

T-30 10 things you could do with your "next generation" system. Mention upcoming expiration.

T-30 10 things you could do with your "next generation" system. Mention upcoming expiration.

T-30 10 things you could do with your "next generation" system. Mention upcoming expiration.

Lapsed 2 (T+90) Roadmap reminder. "Understand that you can get very busy but take time to manage your technology and it will pay off…"

Phone call w/meeting request Phone call w/meeting request

Point to web page with Email report on how technology used as a strategic advantage

Ad-hoc: Congratulations on their recent achievement. How their growth should match their systems.

T-7License expiration coming soon! Renew now to achieve your roadmap

T-7 License expiration coming soon! Renew now to achieve your roadmap

Lapsed 2 (T+120) Our last communication. When you are ready, please contact us.

Attach roadmap from your meeting

Link to saved roadmap, fallow up phone call

Email link to saved roadmap

Email link to saved roadmap

Communication PathNow, determine the best path of communication for each of your customers. Apply your communications plan by customer priority. For example: Communication by Customer Type

Suggestion: Dedicate a day to each type of customer while you’re in the same mindset and can re-use materials from one customer to another.

A Customer B Customer C CustomerClient 1:1 lunches Quarterly - -Lunch & learns Quarterly Quarterly -Phone check-in Monthly Quarterly -

Client satisfaction review Annually with follow-up Annually Web-based self

serve

Webinar Quarterly Quarterly QuarterlyE-mail/Newsletter Monthly Monthly Monthly

Annual CalendarTo stay organized, build an annual business development calendar to map out which of the above activities you’ll focus on month-by-month. (A sample 6-month calendar is below)

Existing Customer Business Development              Nov Dec Jan Feb Mar AprEvents            Microsoft Convergence            Year-end User Group            Customer Appreciation Event            Executive Breakfast            Communications            Classroom Training            Postcard Reminder Mailing            Email newsletter            Call-down            Other            Client gifts            Web site promotion            

Summary

Keys for Creating Customer Loyalty

It doesn’t take a lot to increase your impact with existing customers. If you carefully analyse your business, prioritise your existing customer base, and develop an existing customer plan, you’ll have the infrastructure in place to sustain real growth from within your base.

Using that as a springboard, you can build a regular plan with your customers to give them a vision for the future of their technology. This can help grow your recurring revenue along the customer lifecycle.

Apply the plan to years 2, 3 and beyond, to align your customer’s expectation with what’s being put in place.

Once you have secured a long-term relationship with your customers you have the opportunity to grow with them and through them from referrals.

By measuring and revising your plan, you can improve the way you develop and deliver existing customers.

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