700-805 Cisco Renewals Manager (700-805 CRM) Question and Answers

one of the tasks that is the responsibility of the Renewals Manager is to manage recurring revenue risk, which includes:

Identifying and prioritizing renewal opportunities and challenges

Developing and executing renewal strategies and plans

Collaborating with other Cisco teams and partners to ensure customer satisfaction and retention

Negotiating and closing renewal deals

References: 2: Cisco Renewals Manager - Cisco

the Success Plan is:

A document that outlines the customer’s goals, challenges, desired outcomes, and success metrics

A collaborative effort between Cisco, partners, and customers to align on the customer’s vision and strategy

A roadmap that guides the customer through the lifecycle stages of plan, build, adopt, and renew

A development of a customer-centric view for achieving value from their portfolio

References: 1: Success Plan - Cisco

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

one of the strategies for successful renewal of service contracts is to explore up sell opportunities, which means:

Discussing changes in the network and identifying any uncovered additions to the network

Recommending new or upgraded products or services that can enhance customer value and outcomes

Aligning with the account team on the up sell value proposition and proposal

References: 2: Cisco Renewals Manager (700-805 CRM) Practice Exam - TestPrep

On-time renewals on Cisco products and services can provide various business benefits to customers, such as ensuring continuous support, access to the latest software updates, and improved security and performance. One of the benefits that is valid according to the Cisco Renewals Manager exam is rebates and discounts from Cisco. This means that customers who renew their contracts on time can enjoy lower prices and incentives from Cisco, which can help them reduce their total cost of ownership and increase their return on investment.

Smart License is the future state goal of licensing at Cisco, which aims to:

Simplify and streamline license management across Cisco products and solutions

Provide customers with a flexible and transparent way to consume Cisco software

Enable customers to view and manage their licenses through a single portal (Cisco Smart Software Manager)

Reduce operational costs and complexity for customers and partners

References: 3: Cisco Smart Licensing - Cisco

According to the CCW-R User Guide5, some of the actions that a partner or customer can perform within CCW-R are:

Change Customer Address: This allows the user to update the customer address information for a quote or an order.

View and Manage their Contracts: This allows the user to view their contract details, status, expiration date, product coverage, etc., as well as request a quote or renew their contracts.

References: 5: CCW-R User Guide - Cisco

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 andchallenges, 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.

the Health Index is:

An ongoing measurement of several key customer health indicators, such as adoption, satisfaction, retention, and expansion

A tool that helps Cisco and partners monitor and improve customer outcomes and experiences

A score that ranges from 0 to 100, where higher scores indicate better health

References: 1: Customer Health Index - Cisco

The area of the Success Plan that the Renewal Manager is responsible for is Solution Renewal. The Success Plan is a document that captures the account team’s strategy and actions to achieve customer success. It defines the customer’s desired outcomes, identifies the potential barriers and risks, outlines the key milestones and deliverables, and assigns roles and responsibilities to the account team members. The Solution Renewal area of the Success Plan covers the activities related to renewing the customer’s contract, such as reviewing the current solution, assessing the customer’s satisfaction and value realization, proposing any improvements or enhancements, negotiating the terms and conditions, and executing the renewal agreement. The Renewal Manager is in charge of leading and managing the Solution Renewal area of the Success Plan, as well as collaborating with other account team members, such as Customer Success Managers, Account Executives, or Sales Engineers.

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

The annual recurring revenue (ARR) for each customer is $1000 and $1000. ARR is the total amount of money the company expects to receive from its subscribers over a year. It is calculated by summing up customers’ monthly or quarterly subscription fees and multiplying them by 12 (for an annual period). It excludes one-time fees, transactional charges, and other non-recurring revenue sources. In this case, both Customer A and Customer B pay $10 per seat per month for 100 seats of WebEx. Therefore, their monthly recurring revenue (MRR) is $10 x 100 = $1000. To calculate their ARR, we multiply their MRR by 12: $1000 x 12 = $1000. Thelength of the contract does not affect the ARR calculation, as it only considers the revenue generated within one year.

A success indicator for a Renewals Manager that is valid is on-time renewal. On-time renewal measures the percentage of customers who renew their contracts with Cisco before or on the expiration date. On-time renewal reflects the Renewals Manager’s ability to retain customers and revenue, as well as to increase customer satisfaction and loyalty. On-time renewal also reduces the risk of losing customers to competitors or alternative solutions. On-time renewal is calculated by dividing the number of customers who renew on time by the number of customers who are eligible to renew in a given period. On-time renewal is different from other metrics such as increased deployment of licenses, stabilized customer satisfaction scores, or new product introductions, which are not directly related to the Renewals Manager’s role or performance.

The primary measurement of success for a Renewals Manager is the renewal success rate, which is the percentage of customers who renew their contracts with Cisco at the end of their term. The renewal success rate reflects the Renewals Manager’s ability to retain customers and revenue, as well as to increase customer satisfaction and loyalty. The renewal success rate is calculated by dividing the number of customers who renew by the number of customers who are eligible to renew in a given period. The renewal success rate is different from other metrics such as upsell percentage, percentage of contracts closed, or iARR rate, which are not directly related to the Renewals Manager’s role or performance.