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A Customer Perspective Growth through satisfaction – Happy Customers Buy More

A Customer Perspective Growth through satisfaction – Happy Customers Buy More. Presentation title goes here, using Segoe Regular, in sentence case. Phil Carrier – Licensing Sales Director. Purpose & Intent – Role of The Licensing Group Building on a firm foundation

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A Customer Perspective Growth through satisfaction – Happy Customers Buy More

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  1. A Customer PerspectiveGrowth through satisfaction – Happy Customers Buy More Presentation title goes here, usingSegoe Regular, in sentence case. Phil Carrier – Licensing Sales Director

  2. Purpose & Intent – Role of The Licensing Group Building on a firm foundation Key focus areas for FY06 and beyond What customers have to say! Q&A Agenda

  3. 2 big Bets for MS in FY06 = Make Licensing a positive experience Make Security a positive experience Grow the Licensing Business. Annuity is Key for all segments & verticals Not move business from partner to partner Be a Licensing Channel advocate inside & out MS. Understand the Customer & Partner pain & address. Focus on all customers (by segment & vertical). Ensure a competitive focus is front and centre. Less Process & More Selling! Licensing Brains Trust. Ensure positive market perceptions. Purpose & Intent

  4. Channel Strategy Closer Business Relationships with Customers and Partners Build the channel for growth Communications – Internal and External: To increase satisfaction within Customer and Partners Integration with the Corporation & Regional Teams Skills Training Internal within MS External with Partners Sales Process Forums to allow deal discussions Effective escalation processes & quick decisions Customer Strategy By Segment/vertical Customer information forums with Partners Compliance New Product Licensing Strategy Work with Corporation, Partners & Customers to address areas of concern Building on a firm foundation

  5. Customer Study Feedback A Customer PerspectiveGrowth through satisfaction – Happy Customers Buy More

  6. Global customer satisfaction survey Conducted 2004/5 Account View Community View Global scorecards/country reports Process built to optimise insight and action locally Study Background

  7. ACCOUNT VIEW RAW WEIGHTED Strategic 106 70 Major 59 34 Corporate 242 164 FSI 23 14 Public Sector 141 92 Commercial 77 52 ISV 19 19 Managed Partners 116 67 Telemanaged 89 146 2005 Australian Sample Profile

  8. COMMUNITY VIEWRAW WEIGHTED IT Professional - Total 774 300 Core 91 66 Dual 229 104 Extra Industry 454 130 Developer 236 78 Affiliates 594 406 Small Business 99 118 Medium Business 68 120 Information Worker 101 87 Consumer 105 60 2005 Australian Sample Profile

  9. COMMUNITY VIEWACT NSW NT QLD SA TAS VIC WA Strategic 6 49 0 28 0 0 23 0 Major 14 11 0 0 6 0 10 18 Corporate 23 52 4 41 25 8 75 13 Enterprise 43 112 4 69 31 8 108 31 ISV 1 15 1 1 0 0 1 0 Managed Partners 10 49 0 15 8 0 20 13 TeleManaged - - - - - - - - ACCOUNT VIEW IT Pro (from NMC file) 0 10 0 4 5 0 12 2 IT Pro (from NMIT file) 10 76 3 41 18 6 60 19 Developer - - - - - - - - Affiliates - - - - - - - - Small Business - - - - - - - - Medium Business 0 23 0 9 3 1 25 7 Information Worker - - - - - - - - Consumer - - - - - - - - 2005 Australian Sample Profile

  10. What one specific improvement could Microsoft make that would have the greatest impact on your satisfaction with them? For each low rating factor: Specifically, what kind of experiences have you had with Microsoft that made you rate them as you did? Understanding the Issues To gain greater clarity and understanding of the key issues driving satisfaction we looked at two open-ended response questions: • Results have been split these into 4 groups: • Hierarchy of Pain – Common Pain • Customer Verbatim • Positive Comments • Areas for Improvements

  11. Licensing Customer Hierarchy of Pain • The type of pain organizations experience around licensing becomes more complex with the size of the company • Small and mid-size companies are concerned with fundamental issues of integration, while larger organizations are concerned with more complex issues such as licensing flexibility and contract terms • Companies of all sizes are concerned with larger issues around value, financial terms, comparing licensing programs and receiving assistance from Microsoft Universal Pain Common to All (Overall Value, SA, Financial Terms, Comparing Licensing Options, Receiving Assistance from MS ) Complex Pain LORG Specific (Flexibility of Licensing Program, Level of Trust in Vendor, Fairness of Contract Terms, Keeping up with Changes ) Advanced Pain MORG Specific (Integrating Systems with Vendor ) Basic Pain SORG Specific (Microsoft’s Knowledge of End-Customer Environment, Integrating Systems with Microsoft)

  12. Security “Microsoft is renowned for poor security however, I believe that this is a consequence of being one of the world’s largest software providers and security breaches are specifically targeted at Microsoft products. My experience is that whilst Microsoft react quickly to new vulnerabilities, they are not always able to provide complete solutions.” Strategic  “Patching is one reason. Their philosophy of having things open until you shut them, rather than competitors who have things closed until you open them.” Strategic “I guess because of their popularity they seem to be targeted more and therefore we seem to have to do more patch updates etc.” Strategic “Trick question right? How about having to continually patch the OS and Office products. Trying to keep on top of this in a 2700 seat organisation is 'fun'.” Corporate “Known holes/bugs take time to get fixes rolled out across our network.” Strategic “In general, third-party products are required to try to prevent infestations from viruses, worms, trojans, key-loggers, browser hijackers, and other malware.” Strategic “Numerous incompatible patch methodologies within product sets cause maximum confusion.” Corporate

  13. Licensing “Still too complex. The seemingly constant change to the Usage Rights and the effect this has on licensing. The requirement to re-purchase technology (search facility in Site Server reappears in SPPS at additional cost).” Major  “The licensing programs seems to change every three or so years; and the options available are not easily understood.” Strategic “Totally inflexible if you only want to use a small part of a large product bundle eg. SQL Report Services would still cost us $35k per processor.” Strategic “Price aside, Willingness to work through issues, adapt to needs, flexible and product managers advice on how to purchase & upgrade products. Minimal fuss where we have had difficultly tracking PCs and software. Corporate “Too expensive, unattractive terms, too frequent product upgrades with little value to the customer, no license upgrade as per old scheme just means that we are less likely to move to a newer product.” Corporate “It is over-priced. It costs a lot of money and is hard to understand licensing and obligations of licenses. Get flexibility in licensing models. Mostly it is about the cost and complexity of licensing. It is too hard to understand and is too extensive.” Corporate “The flexibility of options are pretty good. Also, the way it's presented is reasonably clear with what you're provided.” Corporate

  14. Pricing Issues 'Inflexible licensing programs. Licensing is built to suit MS and not the customer 'when you compare product pricing with other products on the market, they are very competitive  'Why would I pay ~$1000 for Office XP when I can get 70-80% of the same features for free in OpenOffice? Most people don't use anywhere near the full feature set of Office, and so are paying a lot for features they never use 'Microsoft is generally cheaper than most of the competition but we have to do a lot of work to stabilise some of the products

  15. “A recurring theme is that the licensing partner relationship is a significant driver of overall Customer Satisfaction”. What can we do in our business relationship together to maximise these thoughts? Power to the Licensing Partner…

  16. Customers are over licensing 6 changes. They like the SA Benefits (if they are made aware of them!). Customers with EA’s are usually happier than transactional customers. Those customers who have bought into the MS Stack get the most value and can do things quickly. Customers like our position on hyper threading and Multi-core CPUs. Customers like the MVLS website. Microsoft is becoming more flexible and is willing to listen and respond. Customers with Support agreements are happier than non-Supported customers. MM customers like having the ability to spread the payments under OLV Customers in general feel we are cost effective. The Positives from Customers:

  17. Large agreements with lots of pages = lots of signatures. Few Competitive Upgrades. Transparency around international agreements. We need to show flexibility without it appearing complex. Software licensing is still too confusing to some. Terminating Pools under a Select Agreement is hard/complex. Still question the need for a Channel Partner. Feel few people can articulate the holistic licensing picture. Pricing an issue sometimes (But we are more flexible now). More regular informed contact needed from MS/Partners. Little joint engagement from MS & partner once agreement is signed. Areas for improvement are:

  18. If you want a session to discuss: Your customers Licensing Satisfaction How we can work together to improve it… Please email me: Philca@microsoft.com (copy your Acc. Mgr.) Please remember….. Call to Action:

  19. Channel Strategy Closer Business Relationships with Customers and Partners Build the channel for growth Communications – Internal and External: To increase satisfaction within Customer and Partners Integration with the Corporation & Regional Teams Skills Training Internal within MS External with Partners Sales Process Forums to allow deal discussions Effective escalation processes & quick decisions Customer Strategy By Segment/vertical Customer information forums with Partners Compliance New Product Licensing Strategy Work with Corporation, Partners & Customers to address areas of concern Building on a firm foundation

  20. Thank You Q&A

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