Cisco 700-805 Cisco Renewals Manager (700-805 CRM) Exam Practice Test

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 thesolution 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.

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.

 CCW-R stands for 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. CCW-R enables users to create new or renew technical services and software subscription quotes, submit approved orders, and manage their contracts. CCW-R also provides features such as co-terming, contract alignment, service level changes, and deal discounts. CCW-R is designed to simplify the renewal process and enhance the customer experience

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.

 the first action that a Renewals Manager should take is to download contract data and develop a renewals strategy, which involves:

Using tools such as TPV, icebreaker, or CCW-R to access and analyze contract data

Segmenting contracts based on their size, complexity, expiration date, product coverage, etc.

Defining objectives, actions, timelines, and resources for each segment

Aligning with the account team on the renewals strategy and value proposition

According to a practice exam question from TestPrep2, the correct answer is C. proposal build. During this activity, an RM would:

Provide an appropriate co-termination timeframe and gain required internal approvals

Align with the account team on the renewal strategy and value proposition

Create a renewal proposal that meets customer needs and expectations

Enterprise Agreements (EAs) represent the highest value for customers who want to simplify their software licensing and management across their organization. EAs provide customers with:

Unlimited access to a suite of Cisco software products within a defined technology domain for a fixed term and price

The ability to deploy software anytime, anywhere, without additional costs or approvals

The flexibility to grow and adjust their software usage without overage fees or penalties

The convenience of co-terminating all their subscriptions at the end of the EA term

The option to include Cisco services and support in their EA2

References: 2: Cisco Enterprise Agreement - Cisco

A solutions led approach should be applied when renewing a quote. A solutions led approach focuses on understanding the customer’s pain points, challenges, goals, and desired outcomes, and then proposing a solution that can address them effectively. A solutions led approach is different from a product led approach, which focuses on highlighting the features and benefits of a product or service without considering the customer’s specific needs or situation. A solutions led approach can help create more value for the customer, as well as differentiate your offering from competitors. A solutions led approach can also help build trust and rapport with the customer, as well as increase their satisfaction and loyalty. By applying a solutions led approach when renewing a quote, you can demonstrate your commitment to helping the customer achieve their objectives, as well as showcase your expertise and credibility in providing the best solution for them

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.

 According to the Cisco website1, RMs work with account managers to drive ongoing revenue risk assessments and plays, which include:

Identifying and prioritizing renewal opportunities

Developing and executing renewal strategies

Negotiating and closing renewal deals

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

References: 1: Cisco Renewals Manager - Cisco

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

The architecture that addresses customer needs for voice, video, and data is C. Collaboration. Collaboration is one of the four main architectures that Cisco offers to its customers and partners, along with Security, Data Center, and Enterprise Networking. Collaboration is the architecture that enables people to communicate and work together effectively across different locations, devices, and applications. It includes solutions for voice over IP (VoIP), video conferencing, unified communications, contact center, webex meetings, and more. Collaboration helps customers and partners improve productivity, efficiency, innovation, and customer satisfaction.

The statement that is invalid regarding which tools can be added as value to customer and partners is B. help manage Discounts for Quoting. This is because discounts are not a tool, but a pricing strategy that can be used to attract or retain customers, increase sales volume, or clear inventory. Discounts are not something that can be added as value to customer and partners, but rather something that can reduce the value or profit margin of the seller. Tools that can be added as value to customer and partners are those that can help them solve their problems, improve their performance, or enhance their experience. For example, some of the tools that Cisco offers to its customers and partners are:

Adopt on Scores: This tool provides insight into how well customers are utilizing service and software they purchase from Cisco. It helps customers measure their adoption progress, identify gaps and opportunities, and optimize their outcomes.

Trusted Data Source: This tool provides hardware refresh and software renewal insights for customers and partners. It helps them plan ahead, stay current, and reduce risks.

Business Insights: This tool provides data-driven insights into new and unique business prospects for customers and partners. It helps them discover new markets, segments, or opportunities, and expand their sales potential.