Cisco 700-805 Exam Dumps & Practice Test Questions

Question 1:

Which action best describes how a Renewals Manager can add value to an account?

A. Removing adoption barriers.
B. Manage and mitigate renewal risk.
C. Define the account forecast.
D. Align partners on training.

Correct answer: B

Explanation:

The core responsibility of a Renewals Manager centers on managing and mitigating renewal risk, which is critical for driving value within an account. This role ensures that customer contracts are successfully renewed, maintaining consistent recurring revenue and fostering long-term customer relationships.

Renewal risk mitigation involves monitoring contract expiration dates, assessing customer satisfaction and engagement, and proactively identifying issues that might prevent renewal. By working closely with customer success teams, account managers, and other stakeholders, the Renewals Manager can address potential challenges before they jeopardize renewal, enabling a smoother continuation of the business relationship.

This function is vital because it directly impacts the organization's retention goals and financial stability. Preventing churn and ensuring steady renewals contribute more immediately and effectively to account value than other related activities.

Other options, while important in their own right, do not directly reflect the Renewals Manager’s primary impact:

• Option A (Removing adoption barriers) is typically a Customer Success Manager’s role. Although adoption influences renewals, Renewals Managers focus on the contract lifecycle and renewal risks rather than driving product adoption directly.

• Option C (Define the account forecast) generally falls under the Account Manager or Sales Lead, who handle broader business planning and revenue forecasting, beyond the specific scope of renewals.

• Option D (Align partners on training) is usually the responsibility of Enablement or Customer Success teams, tasked with ensuring customers and partners are properly trained, which indirectly supports renewals but is not the Renewals Manager’s main duty.

In summary, managing and mitigating renewal risk best aligns with a Renewals Manager’s role and is the most impactful way for them to add value to an account by securing future revenue and strengthening customer relationships.

Question 2:

Which of the following statements about tools that add value to customers and partners is invalid?

A. Trusted Data Source for Hardware Refresh and Software renewal insights
B. Adoption Scores which provide insight into how well customers are utilizing service and software they purchase
C. help manage Discounts for Quoting
D. gain insight into new and unique business prospects for your customers and expand sales potential

Correct answer: C

Explanation:

The question is asking to identify the statement that does not correctly describe a value-adding tool for customers and partners.

• Option A is valid because Cisco offers trusted data sources that provide essential insights into hardware refresh cycles and software renewal opportunities. These tools help customers and partners plan upgrades, avoid end-of-life issues, and maintain optimal system performance.

• Option B is valid as well. Adoption Scores and similar analytics tools are part of Cisco’s Customer Experience portfolio, helping partners and customers understand how effectively services and software are being used, which can inform better engagement and retention strategies.

• Option D is also valid because Cisco provides tools and analytics to identify new business opportunities, enabling partners to expand their sales footprint by uncovering unmet customer needs and growth areas.

• Option C is the invalid statement. While Cisco does provide quoting tools (like Cisco Commerce Workspace) that handle discounts, managing discounts for quoting is considered more of an administrative or transactional task rather than a strategic, value-adding capability that drives customer success or partner enablement. It doesn’t fit in the same category as lifecycle insights, adoption analytics, or business opportunity identification, which provide direct strategic value.

Hence, Option C is the only choice that incorrectly describes a tool adding strategic value to customers and partners.

Question 3:

Customer A buys a one-year WebEx contract for 100 seats at $10 per seat. Customer B buys a three-year WebEx contract for 100 seats at $10 per seat. What is the Annual Recurring Revenue (ARR) for each customer?

A. $3000 and $3000
B. $1000 and $1000
C. $1000 and $3000
D. $1100 and $3300

Correct answer: B

Explanation:

Annual Recurring Revenue (ARR) measures the predictable, recurring revenue generated in a year from subscription contracts. The contract length affects total contract value but does not affect the annual revenue recognized.

Calculating ARR for both customers:

• Customer A:
  100 seats × $10/seat = $1000 for 1 year
  ARR = $1000

• Customer B:
  100 seats × $10/seat = $1000 per year
  Though the contract is for 3 years, ARR is based on annual revenue, so:
  Total contract value = $1000 × 3 = $3000 (over 3 years)
  ARR = $3000 ÷ 3 years = $1000 per year

Both customers have an ARR of $1000, even though Customer B’s total contract value over 3 years is higher.

• Option A ($3000 and $3000) incorrectly assumes ARR equals total contract value over 3 years.

• Option C ($1000 and $3000) mistakenly treats the 3-year contract total as annual revenue.

• Option D ($1100 and $3300) adds unexplained amounts and is incorrect.

Therefore, the correct understanding is that ARR remains $1000 for both customers annually, making Option B correct.

Question 4:

Which statement most accurately defines what an Accelerator is?

A. A personalized one-on-one coaching engagement focused on specific use cases
B. A customer support service available on demand
C. A broad educational webinar with live expert Q&A for many participants
D. A one-on-one detailed troubleshooting session on network problems

Correct Answer: A

Explanation:

An Accelerator in Cisco’s Customer Experience (CX) framework is best described as a highly personalized, one-on-one coaching engagement tailored to help customers achieve specific outcomes. Unlike typical support or general training sessions, an Accelerator is designed to focus on a customer's unique environment and goals, providing expert guidance to overcome obstacles and drive rapid progress with particular technologies or use cases.

This type of engagement is proactive and outcome-oriented, aiming to accelerate technology adoption and deliver tangible business results by giving direct, focused attention from a Cisco expert. The interaction is customized, making it distinct from more generic support or educational offerings.

Option B (on-call customer support) describes reactive support, which responds to problems after they arise. This differs from Accelerators, which work proactively to prevent roadblocks.

Option C refers to broad webinars or Ask the Expert sessions, which are designed for large audiences and cover general topics. While helpful, these lack the tailored one-on-one coaching and actionable advice of an Accelerator.

Option D implies a deep technical troubleshooting session focused solely on network issues, typical of TAC or consulting services. While Accelerators may address technical aspects, their main goal is to help customers adopt solutions effectively, not just fix problems.

Thus, A is the most accurate because it captures the personalized coaching and outcome-driven nature of an Accelerator.

Question 5:

What is the most important business impact for an IT provider company when renewals happen on time?

A. Incentives are paid to sales teams
B. Recurring revenue and business continuity are maintained
C. Customer satisfaction improves
D. No significant effect if new sales targets are met

Correct Answer: B

Explanation:

For IT service providers, especially those relying on subscription or service-based models, on-time renewals are critical because they ensure that recurring business and revenue streams continue uninterrupted. This is foundational for financial stability, growth forecasting, and long-term success.

Renewals typically involve contracts for software licenses, cloud subscriptions, or support services. When customers renew these agreements promptly, the IT provider maintains a steady inflow of revenue, reducing churn (customer loss) and increasing the lifetime value of each customer. This predictable revenue is essential for planning investments and sustaining operations.

Option B correctly identifies this as the key implication: preserving recurring business sustains the company’s financial health.

Option A is about sales incentives, which may happen as a result of on-time renewals but are not the core business impact. Incentives are secondary to maintaining revenue flow.

Option C (improved customer satisfaction) is a related benefit since timely renewals often mean uninterrupted service, but it is more of an outcome that supports renewals rather than the primary implication.

Option D is incorrect because even if new sales targets are met, losing revenue due to late or missed renewals negatively affects the business. Retention is generally more cost-effective and valuable than acquisition.

In conclusion, the principal implication of on-time renewals is to preserve recurring business, which underpins an IT provider’s financial success and operational continuity.

Question 6:

In which section of the Success Plan does the Renewal Manager primarily take responsibility? (Choose the best answer.)

A. Solution Renewal
B. Success Plan Hypothesis
C. Adoption Barriers Overcome
D. Barriers Predicted

Correct Answer: A

Explanation:

The Renewal Manager’s main responsibility within the Success Plan centers around the Solution Renewal area. This part of the plan deals with ensuring that customers renew their contracts or subscriptions on time, reinforcing continued value from the product or service. The goal is to secure long-term retention by managing the renewal lifecycle proactively.

A Success Plan is a comprehensive roadmap designed to drive customer success, adoption, and ultimately renewal. Various roles contribute to different parts of the plan: Customer Success Managers (CSMs) typically manage adoption and usage challenges, while Account Managers and Solution Architects handle broader business outcomes and deployment. However, the Renewal Manager is focused specifically on the contractual and financial aspect of the customer relationship.

Their duties include tracking renewal dates, negotiating pricing or licensing adjustments, addressing any potential renewal risks, and coordinating with sales and success teams to close renewals smoothly. This ownership makes the Renewal Manager accountable for the Solution Renewal section of the Success Plan.

Looking at other options:

• B. Success Plan Hypothesis is about defining initial customer goals and expected outcomes, generally done by CSMs or Solution Architects early in the engagement.

• C. Adoption Barriers Overcome refers to identifying and addressing obstacles that prevent product adoption, mainly handled by CSMs or enablement teams.
  
  

• D. Barriers Predicted involves forecasting potential issues that might hinder success, usually a collaborative effort during planning.

Thus, the Renewal Manager’s role is distinct and vital in managing the contract renewal process, making Solution Renewal their primary focus.

Question 7:

What is the initial step in a solutions-led sales methodology? (Choose the best answer.)

A. Present quote to customer
B. Identify the latest technology release
C. Examine previous purchases
D. Understand the customer’s objectives

Correct Answer: D

Explanation:

A solutions-led sales approach prioritizes addressing the customer’s specific business needs and goals rather than merely selling a product or service. The very first step in this methodology is to understand the customer’s objectives deeply.

Understanding the customer’s goals and pain points sets the foundation for the entire sales process. This insight allows the salesperson to tailor recommendations that align with the customer’s strategic initiatives, operational challenges, or transformation ambitions. Without this understanding, any proposed solution risks being irrelevant or ineffective.

The other options are less appropriate as first steps:

• A. Present quote to customer happens only after a thorough understanding of needs and solution design. Doing this prematurely may undermine trust.

• B. Identify the latest technology release is important but secondary to knowing if that technology fits the customer’s goals. Customers care about solving problems, not just shiny new features.

• C. Examine previous purchases can offer useful background but should not substitute for current customer engagement and goal discovery.

By beginning with the customer’s objectives, sales professionals build rapport, demonstrate empathy, and ensure that the solutions they propose will deliver measurable value. This customer-centric approach is the hallmark of successful solutions-led sales.

Therefore, the correct first step is D, to understand the customer’s objectives.

Question 8:

Which discussion strategy is most effective for successfully upselling a customer?

A. Talk about your own sales priorities and why closing the deal matters to you
B. Explore recent changes in the customer’s network and identify any areas not currently covered
C. Emphasize what parts of the network are already covered by existing solutions
D. Concentrate primarily on the cost implications for the customer

Correct Answer: B

Explanation:

Upselling is a sales technique aimed at encouraging customers to purchase enhanced or additional products and services that better suit their evolving needs. The most successful upselling conversations are those that focus on uncovering gaps or new requirements within the customer’s environment, rather than simply pushing for a sale.

Option B is the best choice because it involves discussing recent or upcoming changes in the customer’s network infrastructure. Networks are dynamic and often grow in complexity with new users, devices, or services being added over time. These changes may introduce vulnerabilities or coverage gaps that the current solution does not address. By highlighting these uncovered areas, the salesperson demonstrates a deep understanding of the customer’s environment and offers targeted recommendations to strengthen their network. This consultative approach builds trust and positions the salesperson as a partner, rather than just a vendor, making the upsell feel necessary and valuable.

Option A is not customer-focused. Talking about the salesperson’s personal need to close a deal is unlikely to resonate with customers, who prioritize their own business challenges and outcomes. Such a focus can come off as self-serving and reduce the credibility of the pitch.

Option C involves emphasizing what the customer already has, which might make them feel comfortable and satisfied with their current setup. While reassurance is useful, focusing too much on existing coverage can discourage consideration of further investments, undermining upselling efforts.

Option D centers the conversation on cost, which can prematurely shift attention to price concerns and detract from the value or benefits of the proposed solution. Effective upselling first highlights the benefits and risk mitigation before discussing price.

In summary, the most strategic and effective upselling approach is to uncover recent network changes and address any uncovered needs. This makes the upsell relevant and compelling, which is why B is the correct answer.

Question 9:

Which licensing model tends to be the most difficult for customers to manage effectively? (Select the best answer.)

A. Enterprise agreement
B. Managed service agreement
C. Subscription
D. A La Carte

Correct Answer: D

Explanation:

Among the licensing options listed, the A La Carte model is generally considered the most complex and challenging for customers to manage. This model requires customers to individually select and purchase each license or feature separately rather than receiving a comprehensive package or bundle. While this approach offers maximum flexibility—allowing customers to pay only for exactly what they need—it also introduces significant administrative overhead.

Customers using the A La Carte model must carefully track each license they own, monitor compatibility across different software and hardware components, and manage renewals for each item individually. This complexity increases exponentially in environments where requirements change frequently or where multiple products from different vendors are involved. Managing licenses in this granular way also risks errors such as missed renewals, duplicate purchases, or compliance violations.

In comparison, Enterprise Agreements (A) simplify license management by bundling multiple products and features into a single contract, which reduces the administrative effort and improves tracking and renewal processes. Enterprise agreements typically provide volume discounts, centralized reporting, and streamlined compliance.

Managed Service Agreements (B) further alleviate complexity by delegating the entire license management and service delivery to a third-party provider. This shifts the burden of compliance, updates, and renewals to the managed service provider, simplifying operations for the customer.

The Subscription model (C) offers time-limited access to software or services and typically includes automatic updates and renewals. This makes budgeting and scaling easier while avoiding the pitfalls of perpetual licenses. Subscription models tend to be more user-friendly and less administratively demanding than A La Carte.

In conclusion, due to the need for detailed tracking, individual renewals, and compatibility oversight, the A La Carte licensing model presents the greatest management challenge for customers, making D the correct answer.

Question 10:

Which responsibility is primarily handled by the Renewals Manager? (Choose the best answer.)

A. Managing the Success Plan
B. Managing the risk associated with recurring revenue renewals
C. Billing customers for recurring revenue contracts
D. Promoting the adoption of specific technologies

Correct Answer: B

Explanation:

The Renewals Manager plays a critical role in maintaining predictable revenue streams by focusing on the renewal process for recurring revenue contracts. These contracts can include subscriptions, cloud services, and managed services. The core responsibility of the Renewals Manager is to manage the risk related to recurring revenue, ensuring customers renew their contracts and identifying any issues that might lead to cancellations or churn.

Managing recurring revenue risk involves proactively engaging customers well before contract expiration dates. Renewals Managers work to uncover any dissatisfaction or barriers to renewal, such as reduced usage or organizational changes. By identifying these risks early, they can initiate corrective actions or escalate concerns to appropriate teams.

Another important aspect of the role is collaborating closely with Customer Success Managers (CSMs). While CSMs focus on overall customer satisfaction and long-term success, Renewals Managers use insights from CSMs to better understand the customer's health and renewal likelihood. This collaboration allows for a more strategic approach to renewals.

Renewals Managers also handle forecasting by maintaining a pipeline of upcoming renewals and flagging contracts at risk. This helps sales and finance teams plan revenue and allocate resources effectively.

Other options are less accurate:
A (Managing the Success Plan) is primarily the Customer Success Manager’s job, focusing on achieving customer goals rather than renewals.
C (Billing recurring revenue contracts) is typically handled by finance or accounts teams, not Renewals Managers.
D (Driving technology adoption) is again a task for Customer Success or Solution Architects, not the Renewals Manager.

In summary, the Renewals Manager’s key focus is reducing churn and safeguarding recurring revenue streams, making B the best choice.