Five Myths About Selling VoIP
Selling VoIP to the SMB requires a different perspective.
They don’t call VoIP "disruptive technology" for nothing. It’s a new game with new rules. Below are a few examples of how so-called common wisdom falls short of the mark for VoIP resellers and their SMB clients. Don’t panic - just learn from the experiences of others.
1. “I make money just moving boxes.”
The good news is that IP-PBXs are affordable for small and medium businesses (SMBs), the market that stands to benefit the most from having them. The "not so good" news for resellers is that their affordability means you have to sell a lot of boxes to make a lot of money and each sale you make requires a certain level of service to be successful. That means you might earn a lower margin for more work compared to selling consumer electronic goods.
As a result, resellers in many countries have re-thought how they do business in this sector. Your customer needs a complete solution: hardware, software applications and an ITSP. The successful resellers have partnered with ITSPs so that everyone wins. Your client has reliable service and you have regular steady revenue. By charging a monthly fee that covers the internet service and your time for upgrades, additions and general advice, you build your business by capitalizing on a valued relationship that supports a valued technology.
2. “I tell my customers that the best reason to use VoIP is to save money on long distance.”
That’s one way to sell VoIP to your customers, and it’s true that people in European and Latin American countries have flocked to VoIP to reap big savings on their phone bills. But in all markets, and particularly in the US, which currently enjoys some pretty low long distance call rates, there is much more to say. Customers get the most benefit from their VoIP systems by understanding that it’s the applications that ultimately create the most powerful business case for adopting this technology. For example:
- Distinctive Ring Tones on certain IP phones, which identify VIP callers so your client can respond quickly.
- Directory for IP Phones. This saves time on internal calls by listing a directory of company extensions on the computer screen and uses the click-to-dial feature.
- Text Message Notification to cell phones of missed calls and voice
mails, so that your customer can respond faster to his customers.
- Call Forwarding, which enables your customer to make and receive calls from any phone and appear to be in the office.
3. “Any DSL/ISDN line will do as long as it’s fast.”
That’s like saying that flying in Economy Class is the same as Business Class because the plane gets everyone there at the same time. Speed is great, but what really affects the quality of service (QoS) is the number of users per line. In a perfect world everyone would have the best service available, but your SMB needs to know that it is Business Class DSL/ISDN that really delivers the goods. If your end user won’t buy that ticket, his VoIP experience will be a short and bumpy ride.
4. “Hosted, Centrex solution…that’s the way to go.”
Fine… until the host network goes down. Then who’s going to solve the problem and maintain your customer’s communications to the outside world? Who will be the responsible party? Also, does your customer want to give up the control and even ownership of their phone system, as is the case with Centrex? Is that host going to offer them the converging applications that enable VoIP to give them real value? That’s where you come in. Work with your client on an ongoing basis to manage their system. (With an Epygi Quadro installed this will be minimum work for you.) You can keep their QoS high and their applications business-specific while allowing them to control their own system, as they would have with a traditional PBX.
5. “A phone is a phone is a phone.”
Not if your customer’s staff have never seen anything like what’s sitting on their desk on the Monday morning after the "successful" install. People who are used to land lines expect phones to work a certain way and not all VoIP phones work in that manner. For example, keying sequences vary from one phone to the next, even within the same brand. Imagine what this could be like when your client has legacy land lines and new VoIP phones.
On top of that there are the enhanced new features (See Myth 2.) and no one’s going to be able to use them to create life-changing, client-satisfying business experiences if they don’t know how they work. Don’t make the mistake of thinking that employees will just divine this. They have not spent the best years of their lives immersed in data and telephony like you. You have to train them. Also, be available on site for the first day to be sure that all goes well - especially if it’s a big install. You probably won the contract because you are their "go-to tech-guy", so be there in body and spirit to help your customer through this transition. It’s great for the business that depends on you and it’s even better for your business, as they will depend on you more in the future.
The Value of Third Party Call Control Applications Depends on Creativity and Customization of Features.
CEO of Epygi Discusses Opportunities Presented By 3PCC at CeBIT Australia
Mario Cuello, President and CEO of Epygi Technologies, gave an informative presentation on IP-PBX and Computer Technology Integration to the audience of IT professionals and software developers who were gathered to learn about the latest in emerging business technologies. His talk focused on the possible opportunities of dynamic VoIP applications when technical collaboration is guided by an understanding of how a specific vertical market works.
“CTI can help a business improve its communications and customer service,” said Cuello. “Introducing the IP-PBX makes those efficiencies available to the SMB at a cost effective level.”
CTI allows a computer to initiate and manage phone calls in a variety of ways. Key features that can provide real value are ACD, advanced IVR and Voice Recognition. Automatic Call Distributor (ACD) is a computerized phone system that responds to the caller with a voice menu and connects them to the appropriate agent, even including information about the caller. They are an essential element for call centers and are widely used in service departments. “Smaller call centers are excellent candidates for this feature,” according to Cuello.
Advanced Interactive Voice Response allows a caller to access a database or enter information by means of a touch tone phone. No human interface is required since the IVR system predetermines what a user can do. Voice recognition allows a program to recognize and carry out voice commands. More sophisticated software has allowed the recognition of natural speech for greater opportunities. The SMB can now offer answers to FAQ’s, order status, and client specific information when these applications are customized for their business.
"Law offices and medical practices are potential verticals for these features that a reseller would do well to target," advised Cuello. "After hours patient care is greatly enhanced. A physician’s returned call to his patient can be recorded, the doctor’s phone number can be hidden and there is the ability for the doctor to leave an administrative message for his staff for next day follow-up."
Law offices can also benefit from a call accounting feature. Their phones can interact with third party accounting software to code client calls for billable hours. Linking to CRM software allows attorneys and their staff to link to the client profile when that client calls in.
Cuello noted that resellers, like the SMBs they serve, are looking for ways to differentiate themselves competitively. The SMB end-user can now access the same tools that give an edge to the enterprise niche.
"Resellers can differentiate themselves by understanding how these applications can help a company do business in a revolutionary way." He recommended these tips for success:
• Help your customer understand that IP-PBX’s make these applications easier for them to access and improve their overall communication activities.
• Keep it affordable for the SMB.
• Make it easier on yourself by relying on third party alliances to offer a service that you don’t. It makes for greater efficiencies.
• Be alert for vertical markets. It’s a way to brand your company and it is another way to avoid reinventing the wheel.
• Great opportunities abound for dealers and software developers. Good partnerships are even more valuable than before.
IP-PBX Sales 
MZA Reports Strong Growth in IP-PBX Sales
9 March 2007
Almost 100% of "PBXs with more than 100 extensions" shipped in the UK in Q4 2006 were either IP-enabled or IP-capable, according to the latest research from MZA.
MZA’s figures further showed that more than half of all phone extensions shipped in this "PBXs with more than 100 extensions" category were IP – a massive 48% increase over Q4 2005.
Other Q4 2006 data released by MZA has shown:
• IP extensions on "pure IP" phone systems accounted for 15% of all telephony system phone extensions shipped (up from 13% in Q4 2005).
• ALL IP extensions shipped (i.e. on IP capable/enabled and pure IP phone systems) represented 32% of all phone extensions shipped (compared to 23% in Q4 2005).
• ALL IP extension volumes were up 47% compared to the previous year.
Cisco Systems was the clear market leader in the IP extensions market overall in Q4 2006, with Mitel continuing to lead the "below 100 extensions" market. IP accounted for 15% of all phone extensions shipped in the SMB market, compared to 10% in Q4 2005.
The Total Telephony Systems Market
Total PBX/ IP-PBX extensions sales in Q4 2006 grew 4% to 650,000 extensions compared to the same period in 2005, according to MZA.
Within these overall figures,the "30-100 extensions" market displayed 4% annual growth and the 31-50 size segment recorded its best quarter in 2006. The "above 100 extensions" market grew year-on-year by 17% (although to a much lesser extent in segments above 500 extensions compared to preceding successful quarters).
BT continued to lead the supplier market with 24% of total extensions (a slight decline of 1% on its Q4 2005 market share) followed by Nortel, Cisco Systems, Avaya, Mitel Networks, Panasonic and Siemens.
MZA also produces a UK Quarterly Report providing continued coverage of the UK PBX/IP PBX Market throughout 2006. For information, please contact Duncan Clark, MZA Limited, Marsh House, 25 The Parade, Marlborough, Wiltshire SN8 1NE UK, dclark@mzaconsultants.com Tel: 00 44 1672 516144
Strategic Addition of Sales Agents and Distributor Add to Epygi’s Global Presence
New sales agents in the UK and Israel have been added to the Epygi Team, creating an even better reach for Epygi’s VoIP products that serve the dynamic SMB market. Contact them about the opportunities for Business VoIP and Epygi’s value in this market.
UK
Roger Halliday
Ramsley Farm
South Zeal
Okehampton, EX20 2PD
UK
Mobile: +44- (0) 777 597 3678
Fax: +44 (0) 1837 840882
Email: roger.halliday@epygi.com
Israel
Aylon Regev
PO Box 1623
Shoham 60850
Israel
Phone and Fax: +972-3-973-2142 x11
Mobile: +972-54-455-8591
SIP Phone: 30611111@sip.epygi.com
Yahoo: aylonr
Skype: addvant
AIM: aylonaddvant
Email: aylon.regev@epygi.com
New Epygi Distributor in Spain
Avanzada 7
c/ María Curie 20, 1a Planta
Parque Tecnológico de Andalucía
29590 Campanillas
Malaga
Spain
Tel: +34- 90 202 4577
Fax: +34- 951 010 922
www.avanzada7.com
Contact: Juan Ignacio Cabrera-Ramos
e-mail: gerencia@avanzada7.com
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