Selling Cisco Service on Uncovered Equipment · Cisco Service contracts on ... Cisco Technical Services Portfolio Features Comparison: ... Standard Cisco warranty covers repair and

1© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential10167-1106/Cisco

Selling Cisco Service on Uncovered Equipment

Learning Module

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2

Selling Cisco Service on Uncovered Equipment

Learning moduleIn this quick and easy learning module, you can learn how to effectively sell Cisco Service contracts on Uncovered Equipment, handle objections and gain insight into service selling best practice.

Then test your understanding in the 10 question quiz.

Additional resources are available under sales tools at:

www.cisco.com/go/ap/accelerateservicesCisco Services Guide: All the detail you need to successfully sell Cisco Technical Service contracts on Uncovered Equipment.

Quick Reference Guide: Easy access to content in the Service Guide.

Cisco Technical Services Portfolio Features Comparison: Quick reference features of the Cisco Services portfolio.


In this module

1. Uncovering Service Sales Opportunities

2. Addressing Needs Created by Uncovered Equipment

3. Timing your Sales Approach

4. Sales Best Practice

5. Objection Handling

6. Cisco Technical Services Portfolio

7. More Resources


Uncovering Service Sales Opportunities


Uncovering Service Sales Opportunities Uncovering Service Sales Opportunities

Uncovered Equipment is Cisco hardware or software sold without the added benefit of Cisco Service.Selling Cisco Technical Service contracts can help you:

Enhance cash flow and margins

Penetrate new markets

Improve your competitive position

Increase customer retention and long term loyalty

Increase customer satisfaction

Expand your relationship with your customer


Addressing Needs Created by Uncovered Equipment


Addressing Needs Created by Uncovered Equipment Addressing Needs

Technical Service and support is often presented as an insurance policy in case things go wrong.

Customers will buy services more readily if you show them the value it can deliver as part of a complete solution

The most effective way for you to do this is by:

Showing them how these services can help solve their business problems

Timing your sales approach to coincide with critical moments in your customer’s decision making process


Focus on the Business NeedAddressing Needs

There are several important business factors influencing your customer’s need for Cisco Technical Services.

Customers need their networks up and running:

To enhance productivity, revenue and business credibility

The cost of downtime can be substantial

Service can protect investments and increase the contribution that theirnetworks make to their business

Customers need to increase return on investment:

When the solution is maintained and updated it supports the business by operating at its full potential


Focus on the Business Need Addressing Needs

Customers need to manage total cost of ownership

Planned and budgeted costs are less expensive than emergency repairs or service calls

The cost of a service contract is outweighed by business downtime costs

Customers need to maintain a competitive advantage

Keeping current with the latest features and enhancements can help businesses lower costs, improve customer service, reduce delivery times and expand into new markets.

Customers need to maintain business credibility and continuity


PositioningPosition Services to help your customer meet the business needs you have identified.

Addressing Needs

Manage totalcost of

ownership

Manage totalcost of

ownership

Maintainbusiness credibility

and continuity

Maintainbusiness credibility

and continuity

Keep networks upand running

Keep networks upand running

Increase return on

investment

Increase return on

investment

Maintaincompetitive advantage

Maintaincompetitive advantage

Whatcustomers

need


Timing your Sales Approach

CSI3

Slide 11

CSI2 new picCisco Systems, Inc., 20/02/2007

CSI3 new picCisco Systems, Inc., 20/02/2007


Timing your Sales Approach Timing your Sales Approach

Time your Sales Approach to seize the Uncovered OpportunityAfter a sale it is vital to make a follow-up call

A great opportunity to:Learn about how your customer’s business continues to evolve

Discuss your customer’s contract coverage



90 days after the sale:Solution is implemented and the customer is experiencing the benefits

Remind customers that their warranty coverage has ended

For those with in-house support, ensure their system is operational

Discuss how they can maintain a successful installation

This is the opportunity to discuss the value of a service contract



When there has been a problem:

Customer is experiencing the impact of technical problems

Refrain from offering service until their issues have been resolved

Ideal time to follow up is 30 days after resolution

Conduct a ‘lessons learned’ evaluation to determine how a service contract could have mitigated problems

A good opportunity to sell professional services



At the time you renew other contracts:

Enquire about other equipment not covered under a service agreement

Discuss the value received on their existing contract to demonstrate the value of covering other equipment in their network

Initiate discussion focused on services and the benefits of a service contract

Be aware of equipment the customer has purchased from other sources not covered under a service contract

A great entrance into other areas of the customer’s network



When adding to an existing network:

This is a great time to look for other equipment that does not have a service contract

This will add to the ‘First Sale’ total solution

The customer receives the full value of the installation when the complete network is covered



In summary:90 days after the sale

When there has been a problem


At the time you renew other contracts

When adding to an existing network


Sales Best Practice


Sales Best Practice Sales Best Practice

Best Practices for Selling Service on Uncovered EquipmentUnderstand the Cisco warranty

Create a database to manage the process

Lead with the right offering

Sell multiyear options

Offer financing solutions



Understand the Cisco Warranty

Know what the Cisco warranty covers on each piece of your customer’s hardware and software and when it expires.

Customers often refuse service because they think the warranty will provide protection

Ensure you have the knowledge to counter this argument



Understand the Cisco WarrantyStandard Cisco warranty covers repair and replacement of defective parts (usually 90 days), before expiringA Cisco Technical Services contract covers both equipment and software for the contract periodService also helps maintain network health, covering the life and functionality of the solution

Refer to table on slide 22:Benefits delivered by Cisco Service versus Warranty Coverage.



Cisco Software Application Support Services


Cisco Unified Communications Essential Operate Service

Cisco Unified Communications Essential Operate Service

Cisco SMB Support AssistantCisco SMB Support Assistant

Cisco SP Base SupportCisco SP Base Support

Cisco SMARTnet®/ SMARTnet OnsiteCisco SMARTnet®/ SMARTnet Onsite

WarrantyWarranty

Yes

No

NoNext Business Day delivery, as available.

Onsite Options: 8X5X4, 24X7X4

NoneUnified Communications products

Next Business Day as available, otherwise Same Day Ship

Limited

Next Business Day or Return to Factory Options

All3

Onsite options: 8X5X4, 24X7X4, 24X7X2

Onsite options: 8X5X4, 24X7X4, 24X7X2

Yes

SAS with Upgrades only

Yes

Yes

Yes

Yes

No5

Yes

During Normal Business Hours. Response within 1 business day from SMB TAC

No, Bug Fixes or Patches only

No

No

Yes

Renewable4 contracts

Yes

Yes

No

No

Yes

Renewable contracts

Yes

Yes

No

No

Yes

Next Business Day

All3

Hardware1: 90 Days/ 1 Year/ Limited LifetimeSoftware: 90 days

No

No2

DurationDuration

Cisco Technical Assistance Centre Support

Cisco Technical Assistance Centre Support

Cisco Operating

Renewable contracts Renewable contracts Renewable

No

No

No

Advance Replacement1

(10 Days)

All

System Updates Cisco Operating System Updates

Software Application UpdatesSoftware Application Updates

Software Application UpgradesSoftware Application Upgrades

Registered Access to Cisco.com Registered Access to Cisco.com

HardwareReplacementHardwareReplacement

Equipment CoveredEquipment Covered

contracts

1. For Optical only: 5 year warranty; 15-day advance replacement.2. Warranty ensures only that software media is defect-free and the software substantially conforms to its published specifications.

3. Some equipment exclusions might apply; consult service sales representatives for more details.4. SP Base contracts are not for resale.5. Software application upgrades may be purchased through product sales.



Create a Database to Manage the Process

A database will help you identify the critical moments when your customer will be most receptive to purchasing service coverage.

Build an action plan and track your performance.

Sample Customer Database Report

CustomerCustomer

1/02/05

Date SoldDate Sold

Cisco PIX®501 Security Appliance

Equipment SoldEquipment Sold

Standard 90 day

WarrantyDetailsWarrantyDetails

No

Service CoverageService Coverage

–

Service ProgramService Program

Relying on warranty

Reason for DeclineReason for Decline

90 days after sale

Follow UpFollow Up

Send emailer

ActionAction

ACME LegalACME Legal

2/23/05 Cisco Catalyst®2950 Series Switches

Limited lifetime hardware

No – In-house support

When adding to an existing network

Telesales callDavies ConsultingDavies Consulting

2/25/05 Cisco 1700 Series Modular Access Routers

One-year limited hardware

No – Budget At the time you renew other contracts

Direct mailerRowland TravelRowland Travel

2/25/05 Cisco PIX 501 Security Appliance

Standard 90 day

No – Budget When there has been a problem

Telesales callRowland TravelRowland Travel



Lead with the right offering Doing your research is important so that you can lead with the right service package.


Multiyear OptionsSales Best Practice

Selling Multiyear Options benefits your customers by:Enabling them to take advantage of discount incentivesLocking in pricesMatching service contract to lease termsImproving cash flow with financingReducing administration and management for customer

How it gives you the edgeReduces sales administration costsIncreases gross margin and cash flow


Financing

Offering financing solutions benefits your business because it:

Sales Best Practice

Gives you an important tool to help manage customers’ budget concerns and promote multiyear contracts

Helps customers to accelerate deployment of state-of-the-art network solutions and create more productive, collaborative business environments

Cisco Capital Easy Lease: www.cisco.com/asiapac/easylease


Objection Handling


Objection Handling Objection Handling

Your ability to effectively counter customer objections is a keyfactor to successfully securing service contracts.

Let’s now look at four objections with guidelines for how to respond.


Objection 1

Why do I need service? Does the warranty not cover me?Response

There are significant differences between the standard Cisco warranty and a Cisco Technical Service contract.

Standard Cisco warranty covers repair and replacement of defective parts (usually 90 days), before expiring.

A Cisco Technical Services contract covers both equipment and software for the contract period, and helps maintain network health.

Your customer’s warranty will expire. Remind your customer of the warranty status and be sure to list any equipment for which the warranty has already expired. Then describe the additional benefits of Cisco service.

Objection Handling


Objection 2 Objection Handling

I’m sure my in-house staff can handle anything that comes up.

Response

How are they handling their Cisco OS Software updates? Remind the customer that Cisco OS Software updates are only available on products with service contracts.

Ask the customer if servicing equipment is really the best use of its in-house team. The best solution is to have services to help technicians when they need it and free their team to focus on work related to the customer’s core business.

Also discuss the expertise of the in-house staff. Do they have the necessary knowledge and experience, especially on new technologies?


Objection 3

I still do not have budget. Response

Revisit the cost of downtime for your customer. Ask your customers how downtime affects:

Employee productivity

Customer and partner relationships

Revenue

Financial performance

This helps you show that the initial expense of a service contract is far less than the effect of not being adequately covered. You can also discuss Cisco Capital Easy Lease financing solutions.

Objection Handling


Objection 4I paid extra to get Cisco quality. Why should I pay for even more?

Response

Explore whether the network has changed orsince the customer purchased the equipment.

any new applications have been added

Remind the customer that service can increase return on investment and can help reduce total cost of ownership over time.

As an industry leader, Cisco continually evolves and develops its products. With service coverage, your customer can take full advantage of the Cisco investment in innovation and keep its infrastructure current.

Emphasise the value of software downloads to help ensure the customer has the most current technology.

Objection Handling


Services Portfolio


Services Portfolio Technical Services Portfolio

Cisco offers a portfolio of technical services to help meet the diverse needs of customers.

Many of the offerings are designed to provide service and support for all Cisco products, while some are specialised by technology. Othersto further enhance the operation of the overall network.

are meant

The following two tables are designed to help you compare product and network specific technical services, plus technology specific technical services - at a glance.


Product Services Technical Services Portfolio

Cisco Product-Specific Technical ServicesCisco Product-Specific Technical Services Cisco Networkwide Technical ServicesCisco Networkwide Technical Services

Cisco SMARTnet and SMARTnet OnsiteCisco SMARTnet and SMARTnet Onsite

Cisco SMB Support AssistantCisco SMB Support Assistant



Cisco Focused Technical SupportCisco Focused Technical Support

Customers that need ongoing maintenance and technical support for both hardware replacement and Cisco OS software maintenance or that need a specialised engineer onsite to replace a part

(Cisco SMARTnet Onsite only)

Customers that need ongoing maintenance and technical support for both hardware replacement and Cisco OS software maintenance or that need a specialised engineer onsite to replace a part

(Cisco SMARTnet Onsite only)

Supports Ciscoequipment by individual product and is entitledby individual product serial numbers

Supports Ciscoequipment by individual product and is entitledby individual product serial numbers

Specifically designed for small and medium-sized businesses (SMBs)

Specifically designed for small and medium-sized businesses (SMBs)

Supports select SMB class products.This service and support coverage is entitled by individual product serial numbers

Supports select SMB class products.This service and support coverage is entitled by individual product serial numbers

Customers that need to increase application availability, functionality and reliability witharound-the-clock access to technical support, software updates and, with SASU, major upgrades

Customers that need to increase application availability, functionality and reliability witharound-the-clock access to technical support, software updates and, with SASU, major upgrades

All Cisco software applications except voice products that are included in the Cisco Unified Communications solution. SAS and SASU are purchased by individual Cisco software application

All Cisco software applications except voice products that are included in the Cisco Unified Communications solution. SAS and SASU are purchased by individual Cisco software application

Customers that need to improve operational efficiency and shorten problem resolution time through high-touch operations management, technical support and engineering services

Customers that need to improve operational efficiency and shorten problem resolution time through high-touch operations management, technical support and engineering servicesFo

r who

mFo

r who

m

Supports all Cisco equipmentSupports all Cisco equipment

Cov

erag

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over

age


Cisco Technology-Specific Technical ServicesCisco Technology-Specific Technical Services

Technology Services

Cisco EssentialOperate ServicesCisco EssentialOperate Services

Cisco Services for Integrated Routers (ISRs)

Cisco Services for Integrated Routers (ISRs)

Cisco Services for Intrusion Preventions Systems (IPSs)

Cisco Services for Intrusion Preventions Systems (IPSs)

Cisco Security Intellishield Alert Manager Service

Cisco Security Intellishield Alert Manager Service

Unified CommunicationsUnified Communications VoiceVoice SecuritySecurity

Technical Services Portfolio

Customers with Cisco Unified Communications that need ongoing technical support forboth hardware replacement andsoftware maintenanceand softwaremaintenance

Customers with Cisco Unified Communications that need ongoing technical support forboth hardware replacement andsoftware maintenanceand softwaremaintenance

System-level coverageon Cisco Unified Communication hardware and software: includes Cisco Unified CallManager, CiscoUnity® Connection and Cisco Unity software

System-level coverageon Cisco Unified Communication hardware and software: includes Cisco Unified CallManager, CiscoUnity® Connection and Cisco Unity software

Customers that need maintenance bundles for Cisco integrated services routers with voice applications that combine hardware supportservices such as Cisco SMARTnet and SPBase with Software Application Support plus Upgrades (SASU) in a single bundle

Customers that need maintenance bundles for Cisco integrated services routers with voice applications that combine hardware supportservices such as Cisco SMARTnet and SPBase with Software Application Support plus Upgrades (SASU) in a single bundle

Available for the Cisco 2800 and 3800 Series with voice applications

Available for the Cisco 2800 and 3800 Series with voice applications

Customers that need Cisco IntrusionPrevention Systems (IPS) signature updates and alerts about availability of signatures, OS software updates, technical support, hardware replacement options and access to online security knowledge base

Customers that need Cisco IntrusionPrevention Systems (IPS) signature updates and alerts about availability of signatures, OS software updates, technical support, hardware replacement options and access to online security knowledge base

All Cisco IPS productsAll Cisco IPS products

Customers that need a customisable, web-based threat and vulnerability alert service that allows them to easily access timely, accurate and credible informationabout potential vulnerabilities in their environment

Customers that need a customisable, web-based threat and vulnerability alert service that allows them to easily access timely, accurate and credible informationabout potential vulnerabilities in their environment

All Cisco equipmentAll Cisco equipment

For w

hom

For w

hom

Cov

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eC

over

age


More Resources


More Resources

For more information about selling Cisco Service contracts for Uncovered Equipment, selling services at the very first sales opportunity and selling contract renewals, please refer to the series of sales tools at:www.cisco.com/go/ap/accelerateservices

Other resources include:

Cisco Technical Services:

More Resources

www.cisco.com/go/supportservices

Cisco Capital Easy Lease: www.cisco.com/asiapac/easylease



Documents

Selling Cisco Service on Uncovered Equipment · Cisco Service contracts on ... Cisco Technical Services Portfolio Features Comparison: ... Standard Cisco warranty covers repair and