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.
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 4
Uncovering Service Sales Opportunities
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 5
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6
Addressing Needs Created by Uncovered Equipment
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 7
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11
Timing your Sales Approach
CSI3
Slide 11
CSI2 new picCisco Systems, Inc., 20/02/2007
CSI3 new picCisco Systems, Inc., 20/02/2007
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13
Timing your Sales Approach Timing your Sales Approach
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14
Timing your Sales Approach Timing your Sales Approach
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15
Timing your Sales Approach Timing your Sales Approach
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16
Timing your Sales Approach Timing your Sales Approach
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17
Timing your Sales Approach
In summary:90 days after the sale
When there has been a problem
Timing your Sales Approach
At the time you renew other contracts
When adding to an existing network
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18
Sales Best Practice
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 19
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 20
Sales Best Practice Sales Best Practice
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 21
Sales Best Practice Sales Best Practice
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.
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 22
Sales Best Practice Sales Best Practice
Cisco Software Application Support Services
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.
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23
Sales Best Practice Sales Best Practice
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24
Sales Best Practice Sales Best Practice
Lead with the right offering Doing your research is important so that you can lead with the right service package.
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 25
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 27
Objection Handling
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 28
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.
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 29
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 30
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?
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 31
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 32
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 33
Services Portfolio
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 34
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.
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 35
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 Software Application Support Services
Cisco Software Application Support Services
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
eC
over
age
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 36
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
erag
eC
over
age
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 37
More Resources
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 38
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
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 39
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 40