Loving Your Customers Equally But Differently

Loving Your Customers Equally But Differently

Janet PetersenWorldwide Senior Manager IC Layout & VerificationCustomer Support Division

JP, SSC BP Acct Mgt, November 2005 Confidental

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About Electronic Design Automation (EDA)

The Electronic Design Automation industry provides the design software used to create all of the world’s electronic systems.

It is time-critical technology used to design the most complex system-on-chip (SoC) semiconductors & printed circuit boards.

Mentor Graphics has been an EDA industry leader for two decades with annual revenues over $700 million.


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Founded in 1981, headquartered in Wilsonville, Oregon

World-class reach and development – 28 engineering sites worldwide

3,850 employees worldwide

High-touch, global distribution channel – 48 sales offices around the world

Strategic partnerships with leading electronics manufacturers, semiconductor and electronic design suppliers for development of new design solutions and methodologies

About Mentor Graphics Corporation


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$250M+ in support revenue

450+ support professionals worldwide

One unified global support tracking and knowledge management system

14 support centers in 4 global regions - ALL SCP Certified

About Customer Support Division


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Customer Support: The Beginning….


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1981 – 2000

— Remove all barriers between our customers and our technology

— All customers receive the same excellent, reactive support regardless of need or how much business they do with us

September 1999 – Strategic Planning

— Differentiated Services Segmentation Project

— Make our Global Accounts willingly dependent on MGC product and services

— Improve customer satisfaction by addressing our customer’s definition of “support” which is much more than excellent remedial telephone support.

5 STAR Support


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GOAL P.O.S.T.GOAL: Address the needs of each customer segment

profitablyP: With the exception of “Global” customers, we supply the

same level of service to all customers regardless of their needs or how much business they do with us.

O: Develop offerings that meet each segment’s needs while achieving overall gross margin targets.

S1: Invest heavily in the Global accounts, but keep the number of accounts small to contain overall impact to margin.

— Example Tactic: Allow more consistent treatment of Global Accounts by leveraging our call tracking and entitlements systems

S2: Increase self-service capabilities for Mass Market accounts.

— Example Tactic: Invest in SupportNet


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GOAL P.O.S.T.

GOAL: Address the needs of each customer segment profitably (cont’d)

S3: Reduce the need for support by influencing Product Divisions’ quality development processes,

not just inspection.

S4: Productize what we learn from Global accounts and offer to next tier accounts.

S5: Project Focus: Develop a synchronized strategy for delivering differentiated support levels by

customer segment. Define proactive support deliverables segment by segment and build into value

statement


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Customer Support: Today


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CSD Foundation

Vision:To remain the services leader in solving our customers’ design

problems from anywhere to anywhere.

Vision:To remain the services leader in solving our customers’ design

problems from anywhere to anywhere.

Mission:Eliminating the barriers between our customers

and our technology.

Mission:Eliminating the barriers between our customers

and our technology.

High Level Focus:Strengthen CSD’s role as a sales differentiator. We want Sales to feel they can lead with Support.

Grow overall Mentor Graphics revenue and profitability. We must help Sales sell by driving adoption to optimize

CSD revenue.

High Level Focus:Strengthen CSD’s role as a sales differentiator. We want Sales to feel they can lead with Support.

Grow overall Mentor Graphics revenue and profitability. We must help Sales sell by driving adoption to optimize

CSD revenue.


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Provide Proactive,

Scalable,

Differentiated Added-Value Services for our

Largest Customers

Expand Mentor’s Return with Differentiated Support


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Top Account Support

Globals:— High relationship support

Global Support CAEs— Customized

infrastructure

Strategic / Keys:— Aligned with region— Designated Accounts

Support Managers

Regional / Focus:— Aligned with Support

Sales— Proactive communication

Focus Accounts

Key AccountsStrategic Accounts

GlobalAccounts

Mass Market Accounts

Focus Accounts

Key AccountsStrategic Accounts

GlobalAccounts

Mass Market Accounts


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Example of Proactive Support Deliverables

SupportPro Newsletter

SupportNet

Five STAR Support

Email ‘Renewal Thanks’; remind them what they get for support

Email release information from point of contact

Open Periodic WebEx - Tips & Tricks / Lunch’n Learns

Proactive contact (2-3 times per quarter)

Partner with field on site-specific tactics

Beta Software Rollout (coordinate beta engagement, if desired)

On-site visits as needed from appropriate personnel

Private WebEx - Tips & Tricks / Lunch’n Learns, as needed

KSM (Single Point of Contact) for Escalations – External or Internal Customers (ASM, AEM, AM, CSM, CAE)

Premium Support to all sites within parent

Global Support CAEs (named CAEs)

Custom Web Site Custom 1-800 Number

Dedicated Global Support Manager (GSM)

Mass MarketFocus AcctsKey AcctsGlobal AcctsCSD Offering


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Sample Custom Web Site


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Overall Customer Satisfaction – 2005/Q1Globals vs. NA Strategics vs. Focus & Mass Market

Focus & Mass Market

Globals

North America Strategics


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Loyalty Measures – Globals vs. Non-Globals

All measures for Globals higher than other account categories, significantly higher than Mass Market.


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Customer Distribution & Revenue Impact

Thousands of small customers represent only 3% of support revenue. A few dozen massive customers demand & deserve special attention. Hundreds of companies in between.

Thousands of small companies with mass

market products

Lower % of revenue Higher % of revenue

Several very large customers

Customer Size / Revenue Impact ContinuumRev

enu

e Im

pac

tC

ust

om

er S

ize


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The Journey

Educate first Earn trust, gain credibility Build by delivering on time – the

right answer Deliver in small increments

— Reports— Training— Lunch-n-learns— Webinars

Get them hooked

Source: Are in Arial. 8 Point, Italic. Place in this location.


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The Future…Tomorrow’s Challenges & Questions

Measure ROI Customer satisfaction significantly higher than

general customer base Become 6-STAR Make a North American operation truly global Grow technical skills beyond the customers Meet diverse needs of customers

Know their flows Be on-site – everywhere (scalable?) Work while geographically dispersed as customers

acquire and merge


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“In the Information age, much of the wealth will be created by those who add layers of intangible capital on top of commoditized goods and services.”

--William Davidow, Intel Corp.


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Customer Support: Tomorrow….


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Loving Your Customers Equally But Differently

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