700-805 Questions and Answers

Two factors that drive subscription value for customers are up to date security protection and continuous access to innovation. These factors reflect the benefits that customers can gain from subscribing to Cisco products and services, such as:

• Up to date security protection: Customers can enjoy the peace of mind that their networks, devices, and data are always protected from the latest threats and vulnerabilities. Cisco provides regular security updates, patches, and enhancements to its products and services, as well as proactive threat intelligence and prevention. Customers can also leverage Cisco’s security portfolio, which covers the entire network from edge to cloud, and provides integrated solutions for identity, endpoint, cloud, email, web, and network security.
• Continuous access to innovation: Customers can access the latest features and functionalities that Cisco delivers through its products and services, without having to purchase new hardware or software licenses. Cisco provides frequent software updates, upgrades, and releases that introduce new capabilities, improve performance, and optimize user experience. Customers can also take advantage of Cisco’s innovation ecosystem, which includes partners, developers, researchers, and customers who collaborate to create cutting-edge solutions for various industries and use cases.

An action that a Renewals Manager can take to drive value in the account is to manage and mitigate renewal risk. Renewal risk is the possibility that a customer will not renew their contract with Cisco at the end of their term, resulting in revenue loss and customer churn. Renewal risk can be caused by various factors, such as low adoption, poor satisfaction, lack of value realization, competitive pressure, budget constraints, or organizational changes. A Renewals Manager can manage and mitigate renewal risk by:

• Identifying and prioritizing the accounts that have the highest risk of non-renewal, using data and tools such as ATR (Annualized Total Revenue), ARR (Annual Recurring Revenue), iARR (Incremental Annual Recurring Revenue), TPV (Total Partner Value), icebreaker (a tool that provides insights into new and unique business prospects), and Adopt on Scores (a tool that provides insight into how well customers are utilizing service and software they purchase from Cisco).
• Developing and executing a risk mitigation plan for each high-risk account, involving actions such as engaging with the customer, understanding their needs and challenges, demonstrating value and ROI, addressing any issues or concerns, proposing improvements or enhancements, offering incentives or discounts, or leveraging partners or references.
• Monitoring and tracking the progress and results of the risk mitigation plan, using data and tools such as CCW-R (Cisco Commerce Software Subscriptions and Services), which is a tool that allows customers and partners to quote, order, and manage their service contracts and software subscriptions from one place; and Customer Success Plan, which is a document that captures the account team’s strategy and actions to achieve customer success.
• Collaborating with other account team members, such as Customer Success Managers, Account Executives, or Sales Engineers, to align on the renewal strategy, share information and insights, coordinate activities and touchpoints, and deliver a consistent and positive customer experience.

By managing and mitigating renewal risk, a Renewals Manager can drive value in the account by increasing the chances of a successful renewal, retaining customers and revenue, enhancing customer satisfaction and loyalty, and creating opportunities for upsell or cross-sell.

According to the Cisco website1, advisory services from Cisco and their partners provide expert guidance and data-driven insights to help customers architect and optimize their IT environment. Advisory services can help customers with:

• IT strategy and planning
• Business and technology alignment
• IT governance and operating models
• IT transformation and innovation
• IT performance and optimization

References: 1: Services - Cisco

An Accelerator is a one-on-one coaching engagement covering specific use cases that Cisco offers to its customers and partners to help them implement new technology faster and more easily. An Accelerator is a remote session with a fixed scope and a demonstrable benefit at completion. An Accelerator can cover topics such as design, configuration, migration, integration, optimization, or troubleshooting of Cisco products and solutions. An Accelerator is different from an on-call service, a deep dive on network issues, or a hosted webinar, which are not part of the Cisco Accelerator program

• Communicate value and the impact of Cisco solutions to the customer
• Help the customer achieve their desired outcomes and realize the full potential of their investment
• Provide feedback and insights on customer health, satisfaction, and adoption

This case represents a risk of renewal where a mitigation analysis will help obtain a more desired outcome. A low adoption rate indicates that the customer is not fully utilizing the solution or deriving the expected value from it. This can lead to dissatisfaction, reduced engagement, and increased likelihood of churn. A mitigation analysis can help identify the root causes of the low adoption rate, such as lack of training, technical issues, poor fit, or misalignment of expectations. Based on the analysis, a mitigation plan can be developed and implemented to address the issues and increase the adoption rate. For example, the plan could include providing more support, education, or guidance to the customer, resolving any bugs or glitches, customizing or adjusting the solution to better suit their needs, or redefining the success criteria and metrics. A mitigation analysis and plan can help improve the customer’s satisfaction, retention, and loyalty, as well as increase the chances of a successful renewal.

When renewing a contract with a customer, it is important to validate their business needs and ensure that the current solution is still meeting their expectations and goals. By validating their business needs, you can demonstrate your understanding of their situation, identify any gaps or challenges they are facing, and propose any improvements or enhancements that can add value to their experience. Validating their business needs can also help you build trust and loyalty with the customer, as well as uncover any opportunities for upselling or cross-selling additional products or services that can benefit them.

a solutions-led sales approach is:

• A sales methodology that focuses on understanding the customer’s business needs, challenges, and objectives
• A consultative process that involves discovering, proposing, validating, and closing solutions that deliver value and outcomes for the customer
• A way of differentiating Cisco and partners from competitors by offering integrated solutions that leverage Cisco’s portfolio and expertise
• The first step in a solutions-led sales approach is to understand the customer’s objectives, which includes:

References: 2: Solutions-Led Sales Approach - Cisco