Loving Your Customers Equally But Differently

1. Loving Your Customers Equally But Differently Janet Petersen Worldwide Senior Manager IC Layout & Verification Customer Support Division

2. 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. JP, SSC BP Acct Mgt, November 2005 Confidental

3. 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 JP, SSC BP Acct Mgt, November 2005 Confidental

4. 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  JP, SSC BP Acct Mgt, November 2005 Confidental

5. Customer Support: The Beginning…. JP, SSC BP Acct Mgt, November 2005 Confidental

6. 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 customer’s definition of “support” which is much more than excellent remedial telephone support. JP, SSC BP Acct Mgt, November 2005 Confidental

7. 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 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 JP, SSC BP Acct Mgt, November 2005 Confidental

8. 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 JP, SSC BP Acct Mgt, November 2005 Confidental

9. Customer Support: Today JP, SSC BP Acct Mgt, November 2005 Confidental

10. CSD Foundation 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. 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. JP, SSC BP Acct Mgt, November 2005 Confidental

11. Expand Mentor’s Return with Differentiated Support Provide Proactive, Scalable, DifferentiatedAdded-ValueServices for our Largest Customers JP, SSC BP Acct Mgt, November 2005 Confidental

12. 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 Top Account Support JP, SSC BP Acct Mgt, November 2005 Confidental

13. CSD Offering Global Accts Key Accts Focus Accts Mass Market Dedicated Global Support Manager (GSM) Custom 1-800 Number Custom Web Site Global Support CAEs (named CAEs) Premium Support to all sites within parent KSM (Single Point of Contact) for Escalations – External or Internal Customers (ASM, AEM, AM, CSM, CAE) Private WebEx - Tips & Tricks / Lunch’n Learns, as needed On-site visits as needed from appropriate personnel Beta Software Rollout (coordinate beta engagement, if desired) Partner with field on site-specific tactics Proactive contact (2-3 times per quarter) Open Periodic WebEx - Tips & Tricks / Lunch’n Learns Email release information from point of contact Email ‘Renewal Thanks’; remind them what they get for support Five STAR Support SupportNet SupportPro Newsletter Example of Proactive Support Deliverables JP, SSC BP Acct Mgt, November 2005 Confidental

14. Sample Custom Web Site JP, SSC BP Acct Mgt, November 2005 Confidental

15. Overall Customer Satisfaction – 2005/Q1Globals vs. NA Strategics vs. Focus & Mass Market Globals Focus & Mass Market North America Strategics JP, SSC BP Acct Mgt, November 2005 Confidental

16. Loyalty Measures – Globals vs. Non-Globals • All measures for Globals higher than other account categories, significantly higher than Mass Market. JP, SSC BP Acct Mgt, November 2005 Confidental

17. 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 JP, SSC BP Acct Mgt, November 2005 Confidental

18. 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. JP, SSC BP Acct Mgt, November 2005 Confidental

19. 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 JP, SSC BP Acct Mgt, November 2005 Confidental

20. “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. JP, SSC BP Acct Mgt, November 2005 Confidental

21. Customer Support: Tomorrow…. JP, SSC BP Acct Mgt, November 2005 Confidental

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