Empower Your Customer Service Team with Sales Contract Management for Customer Service

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hello everyone and welcome to this course on contract management for services I am Anusha Prasad and I have been with business by design for nearly 8 years I have handled topics in project management and customer relationship management we had a look at Contract management for products in week two but today we will see how one could leverage contract capability in business by Design to achieve renewal and upsell from the perspective of services and entitlements customer contracts are Central to every business and boost a company's Revenue hence we have built a contract management system that empowers sales professionals to generate renew and upsell contracts that are both compliant and easy to use contract Management in business by Design offers a robust set of configurable options that allow managing contracts in a secure and fast to deployment manner it offers contract creation from contract templates with predefined Clauses it provides a continued relationship with customers by offering automatic notifications of contract milestones and renewal way before they occur moreover it allows you to plug into any Erp CRM system to create a seamless Commerce platform in a nutshell contract management can be used as a comprehensive solution to manage all aspects of a contract right from its creation service provisioning renewal and cancellation upsell creation of service confirmations and invoicing all the while maintaining Financial consistency today I'd like to talk about three vital aspects of a contract the use of service and entitlements in a contract contract renewal and upsell service contract is an agreement between the company and the customer for Support Services it contains an entitlement feature that helps ract the customer support agreement and guarantees access to benefits that are described as services or expenses that can be used later the process flow of a service contract consists of a contract creation either from a contract template or as a standalone document the covered products functionality allows one to choose whether the contract is valid only for a select few registered products or on all the products sold to the customer once the contract is released it is active for usage when a customer calls to report a problem a service request can then be created with reference to this contract if the problem requires a field technician's expertise a follow-up service order is created once the service performer completes the assigned task the confirmations can be created directly with reference to this contract the confirmations are finally used to invoice the customer renewals of an existing contract is the most profitable component of a thriving business model this is because unlike the initial sale renewal revenue does not incur pre-sales or commission costs however if the task of renewing agreements is not done on time it significantly brings down the revenue and can disrupt Services provided to the customer these problems are solved by letting the business by Design system handle renewals effectively by automating the renewal agreements with customers the contract administrator is notified of contracts that are due for Renewal before the expire and can be configured to give the administrator enough time to check and renegotiate using contract code before final renewal the system offers a rich renewal experience with its flexible config configuration options based on unique customer needs once renewal rules have been configured in the system they can be be used in the contracts to stipulate when and under what conditions a contract with a customer can be renewed what you see on the slide is a screenshot of what the rule configurations look like in the system I shall walk you through the various options available during my demo companies unsurprisingly think of acquiring new customers whenever they think of growing their market share what is easier to achieve and with reduced cost is to use the existing pool of customer customers that the business caters to these customers would have been using the company's Services over time and should be allowed to unlock further value from the business offering business by design has built a solution that allows sales Executives to spend more time upselling than maintaining their software let us look at an example in which an upsell can occur a business can have a long running and successful contract with a customer for software licenses the sales executive learns of the expansion plans of the customer's business this could be a potential opportunity to sell more licenses at as it helps the customer to proactively think about the extra licenses needed and the sales rep to make a selling bid the sales executive can immediately create an opportunity from the existing contract and add in the extra number of licenses required the quation process can then be started to agree on the price of the license along with any request for new ad on packs once the code has been accepted by the customer the existing contract can be updated with the new new upsell or even a new contract be created now let's get into the system for a quick demo I'm logged in as a sales executive now let me create a new contract with our customer luxury heating let me get into the item step and add an entitlement type of a product since the entitlement is of time and material type I can now add entitled products under them as well as maintain price agreements let me add gas boiler and maintain a price for it since I do a lot of uh business with this customer maybe I will give the priz is 150 in addition I could also add another service perhaps a repair service you will notice that you can U change the item type to any that you feel is most suitable here uh there is something called as a covered products in the contract in which you can mention if this contract is valid for all the products that were sold already to the customer or a select few registered products let me now release this contract the contract is 110 now when the customer um calls in um saying there is a product uh there is a problem with his product we can quickly create a service request since we have a cont already with the customer so I will create a service request for him and then give the contract reference sorry yeah now that the service request has been created let me submit this in a service request 1059 has been created let me go to the service desk now it is possible that this service request was not resolved immediately and requires a technician's help thereby a follow-up service order can be created here you will notice that the contract item has been defaulted automatically now um jacking Gasol is the service performer and then let me release this to execution now if if I go into field service and repair and into the order pipeline look at all the orders that are available let's see first if I released it go back to the service order and check it once yeah it happens to be 1050 so let me do a confirm execution right here I could change the quantity if I so deem fit and you will notice that the contract item reference has also been taken over into the Service confirmation as well as the service order reference via which the confirmation is being created let me release it with order completion this is one of the ways in which contracts could be used in order to handle uh services and entitlements now let's get quickly into the second part of the demo which was about renewal I will go to business configuration and look for renewal let us get into to this activity and now we will be able to see how we can actually configure the different type of renewal rules right here you can add a row and provide some um identification for your renewal Rule and also maintain the description for it auto renew implies that when the contract item has expired if this option is set then it will automatically create the renewed item the status in preparation implies that this uh particular renewal rule will not yet be available in the contract for consumption only active rules will be available you could also potentially say what is the renewed um document like is it a contract or a quote for contract when a contract item expires you could generate a code for contract in which case you have the option to say whether the code must be submitted automatically if chosen which will be the case and you could also say just how early would you want the code to be created which means if the item is to expire 10 days from now the code will be created right here right today we could also uh create a contract instead of a code for contract in which case you could mention if if the contract the renewed contract or the renewed contract item has to be Auto relased in in there is an option to say create new contract which implies that when a a contract item is up for Renewal or when it expires basically you can choose to create a a a completely new contract for the renewed item by selecting this you also have an option saying stop renewal on header cancellation this implies that if the previous contract was already cancelled then no renewal will happen on it you have something called as a stop renewal on item cancellation this implies that if the expired item has already been cancelled then no renewal will happen for such an item Advanced creation duration again implies uh just how early in into the uh just how early do you want the renewed contract to be created there is an option called called redetermined price when I select it it implies that if the master data for a particular product used in an expired item has the price changed in it then this will then be copied into the renewed item have something called as a redetermined price date this implies that the pricing date will then be defaulted based on the start date of the valid renewed item renewal duration implies um maybe I can give it as one year if I so want so the renewed item will start on a set day and go on up to one year's duration um I have an example of a contract in the system which is using this particular Rule and we will see what has happened to that contract so what I have used here is that a contract has to be created and once the item expires A Renewed item will be created back into the same contract as well as Auto relased the duration that you will um the duration of the renewed item will be that of of 15 days I've also selected R redetermined price which implies that the most recent price for that product has to be picked let me just close this and go to the contract let me go to contract 82 in renewal and cancellation you will notice that had had already set the renewal rule to that of contract item renewal of 15 days which I showed you earlier so what do it what do I expect let's see item 20 finished on 6th June which has actually resulted in the creation of a new item out here which has picked up the latest price of this product and has been uh extended from 7th to 21st of June which is like a 15-day thing so this was about renewals let me now take you through upsell of contracts I again have already a contract with the customer luxury Heating and Cooling let's say to sell software licenses now I realize that I there is a potential to sell few more software license to to this customer then what I can do quickly is to create an upsell opportunity so let me call this upset and and let me sa400 and save the document now from here I can create a code for contract and since this is an upsell for me I might choose to give it at a lower price and then let me submit this code sales code 430 has been created let me quickly navigate to new business and go to the sales code let me look for the sales code you will see that this is a code for contract now I can choose to add this newly created item from the code and back into the contract that I already used or to create a new contract let me try to update the existing contract itself you remember I had used contract 109 now you will see that another additional item of one quantity has been added with a reduced price now this is how you can create an upsell opportunity in the system so let's now get back to the slides this concludes unit 3 of week three where we learn the use of services and entitlements in customer contracts learned about renewal rules and the various options available to configure them we finally also had a look at the upsell capabilities I I hope you enjoyed today's session and we'll be back for more thank you