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Cisco Services Early Sales SG
Cisco Services Early Sales SG
Cisco Services Early Sales SG
This document is Cisco Confidential. For Channel Partner use only. Do not distribute.
Topic Snapshot
This topic is for: Business owners/managers Sales staff
Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 What You Need to Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 What You Can Sell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 How to Get Started. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Strategies for Successful Selling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Further Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Important Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
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Executive Summary
Driven by market opportunities and customer requirements to improve performance in todays business environment, the need for services has increased. Services have become the primary differentiator and profitability engine for Cisco partners and represent a substantial opportunity for you to grow your business. By including services as a fundamental component of a complete solution that aligns with your customers business and IT needs early in the sales process, you can position yourself to compete and thrive by aligning solutions to help address your customers challenges and priorities throughout the network lifecycle. Positioning services early in sales engagements can help your customer identify not only what technology they need to achieve their business goals, but also how to operationally address the adoption of that technology within their organization. By always positioning services for both hardware and software, and introducing the value of services early in the sales cycle, you can set clear budget expectations before your customer determines their spend, and make sure that you are in the best position to secure the sale for the complete solution: hardware, software, service, and financing. By not including services at the beginning of the sales process, it might be difficult to introduce the value of service at a later point. Using a solutions-led sales approach to uncover customer challenges and the role the network plays, will help to build a case for services throughout the network lifecycle. These early engagements provide the framework for exploring opportunities for initial and ongoing consulting services, technical services, multiyear agreements, financing, Cisco professional services or your own consulting services. As part of your initial discussions, introduce the implementation of a network discovery. Exploring a customer network with a network inventory discovery as part of the consultation can open up many service opportunities. End-to-end knowledge of your customers network devices enables you to up-sell, cross-sell, or explore advanced technologies and services opportunities, and will help you propose coverage and technology migration solutions to your customers to make sure that they get the full value out of their technology investment. Selling services can help you extend, grow, and transform your business, providing you with the opportunity for higher gross and net margin dollars as well as predictable recurring revenue. To make sure you are in the best position to gain opportunities to increase your profitability and productivity, improve your customer satisfaction and loyalty, and reduce your risk in deploying and supporting new and complex technologies, the most effective approach is to promote Cisco Services and the benefit of service coverage, as part of a complete solution at the very beginning of a salesopportunity.
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Four major market transitionscollaboration, video, virtualization and cloudare redefining the IT industry and creating significant services opportunities for Cisco partners. These transitions, coupled with expanding customer requirements and increased competitive pressures to reduce costs and promote greater innovation by our customers, are requiring a new service-led approach. Services can help your customers address many important technology challenges and are integral to getting the most out of their network investment.
If you do not include services as part of the original solution, or give in to price pressures, you lose much more than just the margin on the services. Experience shows that after the equipment is installed, you are unlikely to get an opportunity to sell services. As a result, you will lose the opportunity for a recurring stream of revenue that could last five to seven years. In addition, you risk losing your customers because of lower satisfaction and loyalty. Attempting to sell services after taking the product order makes it difficult to introduce the value of services at a later point. It also inaccurately sets customers budget expectations and adds administrative and logistics overhead to your operations. Equally as important, you might lose the opportunity to stay regularly involved in your customers business during times of renewal, additions, moves, and other changes. Positioning services early can help youto: Provide value-added solutions Strengthen your customer relationship in the role of trusted advisor Create new revenue and profit opportunities Increase attach rates and recurring revenue streams Rise above the competition and differentiate Reduce administrative and operational costs associated with selling services later Furthermore, if your customers do not have protection for theirnetwork from day one, they will not have access to the benefits of technical support services during the deployment oftheir equipment.
As a Cisco partner, you are in an excellent position to support your customers business issues and help solve their challenges. With more than 80% of Ciscos annual product and services revenue flowing through our partners, services represent a significant growth opportunity. Additionally, of this $41B services market opportunity, Cisco Services currently participates in less than 20% of the marketcreating an enormous opportunity for you. We expect partners to generate 5-10 times the services revenue of Cisco.
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Run Optimize
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Cisco offers you a range of options from resale to jointly delivered collaborative services (Figure 2) that address the requirements of all phases of the network lifecycle services: Cisco branded services are sold by partners and delivered by Cisco experts who have extensive networking, business and technology experience in large networks. They enable you to provide your customers with support services without having to make significant investments in developing and operating your own support infrastructures. Collaborative services are sold and delivered by partners working collaboratively with Cisco. Designed exclusively for qualified partners, these services enable you to capitalize on Cisco intellectual assets by combining Ciscos extensive knowledge base, smart service capabilities and global support infrastructure with your unique capabilities to develop differentiated high-value service solutions that respond to yourcustomers most challenging needs. The result is increased profitability, shortened time to market and improved customer satisfaction.
Figure 2. Cisco Services Options for Partners
Note: The availability of Cisco Services for resale is dependent on your geographic region, the terms of your contract with Cisco, and whether you purchase directly from Cisco or through a Cisco Authorized Distributor. By taking full advantage of the Cisco Lifecycle Services framework, you can add more value-added services to your portfolio mix, resulting in comprehensive, innovative bundled solutions that do not require significant investments to develop, and which allow you to operate your own support systems. Our collaborative partner-led approach helps strengthen your trusted business advisor role as you enable your customers to successfully plan, build, and run their networks as a powerful business platform.
Cisco Services
Collaborative Services Service offerings sold only to partners ombines Cisco intellectual capital, smart service C innovation, and service infrastructure with your services Cisco Branded Services Service offerings sold through partners R eady-for-resale offers that speed time to market, increase technology and geographic reach
Differentiation
Profitability
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The most compelling moment to make a case for services is at the beginning of discussions with your customer to determine their overall needs. By exploring your customers challenges and the role the network plays in helping address those challenges, you will gain important information that will help you to build a case for services throughout the network lifecycle. From the onset, proactively promote the value of Cisco Services and highlight the benefits a services contract provides compared to cost of providing network support internally or through the purchase of time and materials. Endorse the benefits of Cisco Services with smart service capabilities. Describe how smart services use intelligent, automated capabilities to regularly collect operational data on deployed network devices and compare it against an extensive knowledge base to provide insight into a networks behavior and status and proactively address potential issues. Explain to your customers that with the personalized analysis and recommendations delivered by smart services, on which they can act directly or with guidance from Cisco or our partners, they can improve their operational efficiency and make sure of predictable network and IT infrastructure performance. For your customers with limited skilled in-house IT staff, or those who depend on a managed and/or cloud services partner, point out how Cisco smart services can help improve their productivity, reduce risk, and simplify and manage their IT complexity and work load. If you help your customer understand the value of Cisco Services and the benefit service coverage brings to their business, then selling a services contract will be easier.
For more information, refer to the Accelerate Program topics: The Value of Selling Cisco Technical Services; and Smart Services Strategy. Cisco Services: Cisco offers the widest range of services-supported network technologies in the industry. Cisco sets the gold standard for service and support, with numerous industry recognitions and awards in recognition of excellence in technology service and support. Cisco consistently rates high in customer satisfaction, which has been proven to lead to building trusted adviser relationships with greater profit potential and greater customer loyalty, resulting in long term customer relationships.
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This document is Cisco Confidential. For Channel Partner use only. Do not distribute.
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IDC, Telebriefing Presentation, The Future of IT Leasing and Financing: How Capital Markets Will Continue to Shape IT Strategies September 24, 2009. ,
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Further Resources
Invest in Additional Training to Increase Your Knowledge and Your Ability to Sell
The following Accelerate Program topics help you expand on the knowledge you have gained during this learning topic: Network Lifecycle Services Approach The Value of Selling Cisco Technical Services Smart Services Strategy Selling Multiyear Cisco Service Agreements Positioning Services over Warranty Selling Professional Services Selling Cisco Capital Finance Services Objection Handling Using Steps to Success Visit the Cisco Services Accelerate Program website to access additional training material that can enhance your knowledge related to this topic.
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Important Links
Cisco Services Accelerate Program www.cisco.com/go/accelerate Cisco Partner Central www.cisco.com/web/partners/index.html Cisco Partner Marketing Central www.cisco.com/go/partnermarketing Cisco Services for Partners www.cisco.com/web/partners/services/index.html Cisco Services www.cisco.com/go/services Cisco Technical Services www.cisco.com/go/ts Cisco Advanced Services www.cisco.com/en/US/products/svcs/ps2961/serv_category_home.html Cisco Capital www.cisco.com/go/ciscocapital Steps to Success www.cisco.com/go/stepstosuccess E-Consulting for Partners www.cisco.com/web/partners/services/enablement/econsulting/index.html Services Programs and Promotions www.cisco.com/web/partners/services/promos/index.html Partner Practice Builder www.cisco.com/web/partners/sell/enablement/partnerpracticebuilder/index.html Legal Contract Service Descriptions www.cisco.com/go/servicedescriptions
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Cisco has more than 200 offices worldwide. Addresses, phone numbers, and fax numbers are listed on the Cisco Website at www.cisco.com/go/offices. 2012 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to this URL: www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any C07-428092-03 01/12 other company. (1110R)