Microsoft Dynamics CRM

5 Strategies in a Down Economy

What Technology Analysts Are Saying

“Business Process & Application pros must get serious about:

• Prioritizing lower-risk projects focused on efficiency and performance

• Financially justifying process and application investments

• Understanding how to negotiate better application deals”

Business Process & Applications Professionals:

Must-Read Research In An Economic Downturn

October 2008

What Technology Analysts Are Saying

“If there’s one technology area where you should increase your investment

today, it’s customer relationship management (CRM), particularly on the

customer service and support side. As wallets shrink, customers will continue to

do business with companies that treat them well. Continuing to invest in

streamlining contact with your customers — through multichannel service and

support, Web self-service, and greater customer community interaction — can

reduce your overall costs while keeping customers happy.”

Managing IT In An Economic Downturn

October 2008

Why Invest in CRM in a Tough Economy?

• Maximize your return on

your company’s investments in

sales, service, and marketing

• Maximize the value of every

existing customer relationship

• Drive real-time visibility of

all customer-facing processes

FIVE KEYS

TO LEVERAGING CRM

IN A CHALLENGING

ECONOMY

#1: Focus on Existing Customers

• Get a single view

of the relationship

• Understand what each

customer needs next

• Establish processes for

retention and growth

• Get a consolidated view across

touchpoints and transactions

• Analyze downside risk and upside

potential in each relationship

• Drive programmatic engagement

• Improved branch and advisor efficiency

• Customer service and satisfaction greatly improved

• Customer retention and profitability were impacted positively

• 4,600 advisors used their own contact management system

• Interactions not tracked across advisors and other groups

• Customer satisfaction and LTV negatively impacted

Results

Solution

Situation“Knowledge sharing is

extremely important for

retaining customers.

When a client calls the

Retirement Planning

Department, the

independent Financial

Advisor will be able to

view the notes from the

home office to better

assist their needs.”

- Vice President of Business

Technology Management,

Raymond James Financial

Case Study: Raymond James

• Started by focusing on branch offices and advisors

• Deployed familiar user interface via Microsoft Outlook

• Easy access to notes, sales reports, and forecasts

#2: Prioritize Sales Investments

• Know your sweet spot

(target deal size/type)

• Balance mainstream

deal mix against

“elephant hunting”

• Embrace technology

to streamline processes

• Analyze deal mix and profitability

• Allocate resources for sustained

growth, not just quick wins

• Connect people and processes

with enabling technology

• High user adoption rates

• More accurate forecast on demand

• Less manual analysis and more face-to-face selling

• Achieved ROI in six months

• Needed to increase field and operational efficiencies

• 400 salespeople in ProCurve Networking by HP

• Global sales operations

Results

Solution

Situation

“We have much better visibility into our sales pipeline with Microsoft

Dynamics CRM.

That information has helped us inform our

supply-chain operations and allocate sufficient

resources without producing excess

capacity.

We can free up more of our working capital for

other areas of the business.”

- Worldwide IT Director, ProCurve Networking by HP

Case Study: HP ProCurve

• Deployed Microsoft Dynamics CRM within Outlook

• Put sales forecast views within CRM in Outlook

• Automated special order processes

#3: Simplify the Service Experience

• Simplify the

agent experience

• Simplify the

customer experience

• Reassess your

escalation and

approval paths

• Simplify the agent desktop

• Improve speed and consistency,

and reduce the learning curve

• Minimize service handoffs

to improve satisfaction

• 95% first call resolution rate

• 20% increase in sales amounting to $21 million

• Customer statements pulled in <1 minute vs. 8+ hours

• #1 in nationwide customer satisfaction index

• 2006 losses approximately $140M

• No complete view of customer

• Customers routinely needed to call back to resolve issues

Results

Solution

Situation

“Employees simply

access fewer systems

when a customer calls.

Microsoft Dynamics CRM

ensures that they can see

a single, consolidated view

of data, from contract

information to billing.

We estimate that we have

saved around $520,000

since deploying Microsoft

Dynamics CRM.”

- Head of Business Support Systems, Vodafone Iceland

Case Study: Vodafone Scandinavia

• Integrated 18 back-office and 14 customer systems

• Deployed Dynamics CRM in call centers & stores

• 450 users nationwide, incl. 150 in the contact center

#4: Rightsize Your Service Costs

• Analyze patterns in

service history

• Move simple and

low risk transactions

to self-service

• Provide opt-outs

for assisted support

• Know satisfaction levels

and drivers by customer type

• Put knowledge lookup and

basic transaction status online

• Tier opt-outs by customer type

• Reduced abandoned calls to under 12%

• Eliminated duplicate trouble ticket issue

• Measuring performance and efficiencies using analytics

• Adding more self-service capabilities to continue improvement

• Customer data contained in many back-end systems

• Customers burdened to place calls to different services

• Severe call abandonment and duplicate trouble ticket issues

Results

Solution

Situation

“We needed a solution

that would allow our

customer service

advisers to propagate

customer changes in a

faster fashion.

We also needed a

system that would be

scalable and flexible so

that other components

could be added in the

future.”

- Information and Business Solutions Manager, Derby City

Council

Case Study: Derby City Council

• Integrated public web site and internal systems

• Uses workflow to guide agents & streamline interactions

• Added phone-based order capture capabilities

#5: Rethink Your Marketing Strategy

• Know your ROMI

(return on marketing

investments)

• Know your ROC

(return on customer)

• Link demand generation

to sales execution

• Get lead-to-revenue visibility

• Know your share goals/strategy

• Cancel any marketing activities that

are not aligned to sales capacity

• Customer information easily accessible in one application

• Reduced direct marketing costs by 80-90%

• Drove enrollment from 200,000 members to 1.5M+

• Rewards program focused only on children under 13

• Reward program was expensive to manage and execute

• Customer information dispersed among many databases

Results

Solution

Situation“Our implementation of

Microsoft Dynamics

CRM will result in

multimillion dollar

savings for Cold Stone

Creamery over the next

two to three years.”

- Senior Manager of Marketing

Information Systems, Cold

Stone Creamery

Case Study: Cold Stone Creamery

• Created single view of customers and all stakeholders

• Expanded rewards program with more target segments

• Automated reward program using email and the Web

MARKET LEADERSHIP

• Over 15,500 customers

from small to enterprise

• Over 750,000 users in more

than 80 countries

• Global network of software

and services partners

• Fast. Flexible. Affordable

• Full CRM suite of marketing,

sales, and service

• Native Office experience

for rapid adoption

• Multi-language with more

than 40 languages

• Advanced SOA / Web

services architecture

Microsoft Dynamics CRM at a Glance

Microsoft Dynamics CRM: Global Customer Base

Professional ServicesFinancial Services Manufacturing

Retail & Hospitality

Health & Life Sciences

Public SectorTravel &

Entertainment

Enterprise Momentum Around the World

Government customer: 16,000+ seats

High Technology customer: 6,000 seats

Financial Services customer: 7,000 seats

Hospitality customer: 5,000 seats

Manufacturing customer: 5,000 seats

Oil and Gas customer: 4,000 seats

And many more • 24,000 Concurrent Users with

Sub-Second Response Times

• 169,000 Business Transactions with

Over 1 Million Web Requests per Hour

Customer Awards

Gartner 1:1 Excellence Award 2008

Sales Optimization: Gold Winner

Gartner 1:1 Excellence Award 2008

Sales Optimization: Silver Winner

CRM Magazine Elite Awards, 2008

Outstanding CRM Implementation

CRM Magazine Elite Awards, 2008

Outstanding CRM Implementation

• Increased revenue by 115%

• Maintained a 97.8% customer renewal rate

• Reduced backlog of installation tickets by 51%

• Increased same-day closing of trouble tickets by 14%

• Saved staff 2,050 hours by eliminating manual

processes and duplicate records

• Increased sales productivity and

drove additional revenue

• Streamlined handling of 20,000 student accounts

• Centralized sales data and processes

• Improved forecast speed and accuracy

• Gained better insight and improved cross-sell

effectiveness

• Improved sales productivity and efficiency

• Multi-currency, multi-language capabilities facilitate

global expansion

• Integrated processes fully with corporate systems

Perspectives on Dynamics CRM

Record-Centric Customer Service Solutions, Q4, 2008

The Forrester Wave™: Enterprise CRM Suites, Q3 2008by William Band

The Forrester Wave™: Midmarket CRM Suites, Q3 2008by Pete Marston

Multichannel Sales Force Management Software, Q4 2008

Direct Sales Force Management Software, Q4 2008

“Microsoft Dynamics CRM is a Leader

in SFA. ... An added bonus is that the

solution deploys quickly, giving buyers a

fast time-to-value. Its low license and

subscription costs make it an attractive

sales application for enterprise and

midmarket firms that are highly cost-

sensitive.”

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The Forrester Wave™: Sales Force Management, Q4 2008by Pete Marston

“Microsoft Dynamics CRM shines by

offering flexibility to enterprise buyers.

Its strategy for growth is to offer buyers a

choice of both on-premise and SaaS

service deployment, a flexible user

interface, a choice of payment options,

and a strong partner community.”

“Buyer interest in Microsoft Dynamics

CRM is high in the SMB market and is

growing in the enterprise segment.

Deployment options include on-premise,

SaaS, hosted, or hybrid.”

The Forrester Wave™: Customer Service Software

Solutions, Q4 2008by Natalie L. Petouhoff, Ph.D.

TECHNOLOGY ROADMAP

Software + Services

Investments Across the Product Line

Going Beyond CRM to “xRM”

• Microsoft Dynamics CRM offers a flexible business

management platform that can be used to build

applications far beyond “CRM”

• Examples:

– The US Air Force uses Microsoft Dynamics CRM as a platform

to automate tasks across their organization

– A leading US financial services firm is building out

their HR staffing system on Microsoft Dynamics CRM

• We call this “xRM” – using Dynamics CRM’s strengths

in managing entities, relationships, and activities

to build a wide range of applications

Continued Innovation: CRM Accelerators

Analytics

eService

Event Management

Enterprise Search

Business Productivity

Extended Sales Forecasting

CRM Notifications

Sales Methodology Support

Microsoft Dynamics CRM “V.Next”

• Customer-driven innovation

• End user productivity and efficiency

• Application platform flexibility

Microsoft Dynamics CRM 4.0

• Multi-tenant/lingual/currency

• Windows Workflow Foundation

• Platform/architecture

• Extensive capabilities

Microsoft Dynamics CRM: The Road Ahead

What’s the Biggest Risk in this Economy?

Failure to execute

against your

long-term goals

for market share,

business growth, and

profitability.

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market

conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.