partner presenation the smarter way to sell it
TRANSCRIPT
Microsoft Financing – The Smarter Way to Sell IT
Annuitize Customer Base
Increase Deal Size
Close Deals Faster
GrowCash Flow
Win More Deals!
Why Offer Financing?
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Captive Financing
3 |
The Partner Value
*FY09 billed revenue; 12 products versus 9 products
• Extend relationship beyond CIO• Become a business partner at the executive level
versus a technology partner at the IT level• Offer your customers more options
Be the Trusted Advisor
• Accelerate and shorten the sales cycle• Preserve price points and reduce discounting• Annuitize customer base
Close Deals Sooner
• Sell more of the stack – 33% more add on products*• Remove the focus from price during negotiationsIncrease Deal Size
• Get paid for the full amount of the deal up front• Grow cash flowGet Paid Faster
• Maximize their cash flow with predictable payments over time
• Meet all their IT needs within budget and plan for long-term investments
• Flexible payment options • Maximize ROI and conserve capital• Low minimum loan amounts; no maximum
In the Voice of the Customer“When we approached Microsoft Financing, we were impressed by the
flexible payment options it offers. We were able to come to an arrangement that made excellent financial sense for IMG Group. Financing our EA was quick and easy.”
Ian Carter, IT Director, IMG Worldwide
Why Customers Choose Microsoft Financing
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Financing Made Easy
Software License Financing
Total Solution Financing
Flexible Solutions
5 |
Simple
• Easy online application and tools
• Simple lending process
• Low minimum loan size; no maximum
Easy
• Quick turnaround• Terms from
24-60 monthsAffordable
• Total cost of ownership known up front
• Competitive fixed rates
• Customized payment options
Match Benefits to Payments
6 |
Years
$1,000,000
$800,000
$600,000
$400,000
$200,000
U.S.
Do
llars
Opportunity to add or upgrade products and services$1,000,000
Total IT Needs
$30,650Per Month($367,800 Per
Year)
$30,650Per Month($367,800 Per
Year)
$30,650Per Month($367,800 Per
Year)
$500,000 Annual IT Budget
Over Budget: $500,000
One-time cash-based transaction
Under Budget: $132,200Using Microsoft Financing 3-year term
Microsoft Financing helps qualified customers• Get the IT they need to
achieve business goals• Manage software,
services, and hardware as one investment
• Align IT benefits with economic outlay
• Enjoy a fast, easy, and responsive lending process
Year 1 Year 2 Year 3
$850,000 Total Investment
Example
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A Customer Challenge
New Microsoft CRM solution
New e-commerce solution using Microsoft GP
Multiple systems slowed
productivity
Rapid growth• Strained older,
disconnected systems
Employees juggled between systems• Contact
management• Custom order
entry• Custom service
request
Due to these growing pains, the customer needed to…• Simplify and
become more efficient in the sales process
• Handle more leads and turn sales faster
• Update contact management system
They also desired to…• Expand service
internationally • Become more
approachable• Handle multiple
currencies
Customer profile• Largest real
estate training and coaching company in North America
• 180 employees at HQ
• Steady growth over past 10 years
“Both projects were critically important to the company, but it looked like we would either have to put off the CRM project for a year or two or finance both systems.”
~ CFO
The Customer Choice
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• Significant financial investment• Tough economic times
• No down payment required• Customized payment options• Payment terms range from 24-60 months
Partner introduced Microsoft Financing
• Ability to conserve capital and line of credit• Competitive rate• Easy to work with• Quick turnaround
Chose Microsoft Financing due to…
Planned a traditional bank
loan
The Results
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“We anticipate saving between $250,000 and $500,000 in the first year of utilizing the CRM solution... Microsoft Financing enabled us to do more and do it sooner.”
~CFO
“We were able to reduce the financing of two very large, complex projects to a few sheets of paper… the whole process was very straightforward.”
~CFO
Fast, simple, and easy process• Minimized the customer’s time• Propelled the projects into
development
By leveraging Microsoft Financing, they.…• Implemented two business-critical systems
in seven months• Developed CRM and e-commerce systems
in tandem to speed time-to-business value• Realized significant benefits immediately• Preserved its credit line and capital for other
core business needs
Customers• Receive one invoice from Microsoft• Own their solution upfront • Have flexible payment options• Preserve financial resources
Sample Transaction
Microsoft software $50,000
Partner services$35,000
Training$15,000
Microsoft invoice$100,000
Paid directly to the Partner(s)
How Does it Work?
Partners• Provide more options to customers• Overcome IT spending objections• Receive funds upfront• Get paid faster
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0% 10% 20% 40% 60% 80% 100%Determine best customer fit
Qualify lead/ opportunityAsk questions to prescreen for Microsoft Financing
Know why your customer is buying and establish relationship with powerPresent payment options to CFO
Develop a solution aligned with business painSubmit credit application
Define the business changePresent monthly payment quote
Conduct negotiations and finalize contract
Finalize deployment plan and execute
Ideal Microsoft Financing
Introduction
Late Microsoft Financing
Introduction
Maximize the impact of Microsoft Financing!
Introduce Early in Sales Process
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Prospect Qualify Develop Solution Proof Close Deploy
• Close the deal and submit invoice
to Microsoft Financing
• When your customer signs and returns final loan documents, you get paid
Step 4
Return Documents –
Get Paid
Step 3
• Submit your customer’s credit application online
• You, the Partner, typically receive a decision within 24 hours
Step 2
Prepare Your Financing Proposal
• Size the deal and use the payment calculator
to determine your customer’s estimated monthly payment
Step 1
Calculate Estimated Payments
Complete a partner application at www.microsoftfinancing.com to begin submitting transactions
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Submit Customer
Credit Application
• Deliver your financing proposal – Microsoft Financing sales professionals are available to assist you in crafting a tailored structure
Complete a Deal in Four Easy Steps
Credit Guidelines
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• 2 years+ time in business• Profitable as a business• No bankruptcies, tax liens, or
judgments
Ask questions to prescreen for Microsoft Financing!1. Have you been in business more than
two years?2. Do you show a profit from operations? 3. Do you have any bankruptcies, liens,
or judgments?
Probe early to ensure financing is an option
Easy to Use Partner Website
• Online payment calculator
• Online proposal tool• Credit application • Sales and marketing
collateral• Training materials• Promotions
“One-stop-shop” onlinefinancing destination
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All tools available at www.MicrosoftFinancing.com
Easy to Use Online Calculator
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Online calculator provides a quick and easy method for estimating loan payments for software, services, and hardware.
• Standard option – calculates payments on loans where all funds are billed upfront
• Advanced option – calculates loans with spread payments or annual billings, such as Software Assurance
• Promotional offers – if applicable to your loan term, the calculator will factor in promotional rates
• Estimated rates for terms that range from 24-60 months
Resources
• Microsoft Partner site for Microsoft Financing: www.microsoftfinancing.com
• Microsoft Financing Customer site: www.microsoft.com/financing
• Microsoft Partner Network site: http://partner.microsoft.com/financing
• E-mail: [email protected]
Get Started Today!
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Get Started
• Register to use Microsoft Financing at www.microsoftfinancing.com
• Use the online tools to quote a financing offer on every deal
Annuitize Customer
Base
Get PaidFaster
Become a Trusted Advisor
Grow Reven
ue
Offer Financing with Every Proposal
Benefits
• Be the trusted advisor• Shorten the sales cycle• Preserve price points• Increase deal size• Offer your customers
more options
© 2009 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 presentations. 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.