Loving Your Customers Equally But Differently

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Loving Your Customers Equally But Differently

• Janet Petersen
• Worldwide Senior Manager
• IC Layout Verification
• Customer Support Division

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About Electronic Design Automation (EDA)

• The Electronic Design Automation industry
  provides the design software used to create all
  of the worlds 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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About Mentor Graphics Corporation

• 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

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About Customer Support Division

• 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 

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Customer Support The Beginning.
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5 STAR Support

• 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
  customers definition of support which is much
  more than excellent remedial telephone support.

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GOAL P.O.S.T.

• GOAL Address the needs of each customer segment
  profitably
• P 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 segments
  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 (contd)
• 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
High Level Focus Strengthen CSDs 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.
Mission Eliminating the barriers between our
customers and our technology.
Vision To remain the services leader in solving
our customers design problems from anywhere to
anywhere.
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Expand Mentors Return with Differentiated
Support

• Provide Proactive,
• Scalable,
• Differentiated Added-Value Services for our
• Largest Customers

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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

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Example of Proactive Support Deliverables
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Sample Custom Web Site
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Overall Customer Satisfaction 2005/Q1Globals
vs. NA Strategics vs. Focus Mass Market
Globals
Focus Mass Market
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.

Revenue Impact
Higher of revenue
Lower of revenue
Customer Size / Revenue Impact Continuum
Several very large customers
Thousands of small companies with mass market
products
Customer Size
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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 FutureTomorrows 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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