Maximize Your VoIP Revenue

Economic slowdowns present opportunities for VARs that know how to react. If you’re a VoIP VAR and you recognize that companies of all types and sizes, in all vertical markets, are looking for ways to cut costs and improve their ability to compete, you can position yourself and your company to provide solutions that meet those needs. Buck Baker, president of ScanSource Communications — a distributor of videoconferencing, telephony, and VoIP products — says that VoIP VARs can actually prosper in these difficult economic times by showing end users how VoIP can help them to save substantially on communications and travel costs and to streamline their business processes.

“VoIP is one area in which we expect to see an increase in implementations as VARs and end users continue to realize the value and cost savings associated with the technology,” says Baker. The key is to make sure your customers understand your value proposition. Now, more than ever, it’s essential to be able to show potential customers how they can save money and enhance their businesses with VoIP. “VARs need to continue to talk to their end user customers about the total cost of ownership [TCO] of moving to VoIP instead of having separate systems,” he adds. “They need to continuously be in front of the end user so that they can put together a road map for creating a successful VoIP solution.” And don’t forget to stay in touch with customers for whom you’ve already installed a solution. Upgrades, add-ons, and modifications – as long as you can demonstrate viable ROI – are all ripe sales prospects. “VARs are starting to look at offering wireless to support voice solutions, as it’s a good opportunity to offer your customers a more robust VoIP system,” says Buck. “In addition to wireless, other pairings we are seeing VARs and end users show an interest in are video conferencing and video streaming.”

At the same time, VARs should take advantage of everything their vendors and distributors have to offer to help close sales and to cut their own operating costs. “First and foremost, VARs need to be looking at who the viable vendors and distributors are – those who are leaders in the industry,” Baker notes. “They need to look for partners that can provide them with pre- and postsale technical support, as well as other value-added services. Overall, VARs need to ensure they are working with market leaders that understand the technology and can provide the best solutions that will fit their end users’ needs.”

Make Every Implementation A Success
It may seem obvious, but it’s important to make sure you don’t cost yourself money, which is easy to do in the VoIP world. “It is critical for VARs to lay out every step of the conversion process to the end user – what is going to happen, when, and how,” Baker explains. “In short, they need to overcommunicate. Voice systems are complex, and VARs need to deliver consultative selling. You can’t just spout speeds and feeds; you have to provide continuous updates outlining what the end user needs and how you’re going to work hand-in-hand with them to reach their goals.”

Another costly mistake Baker has seen VoIP VARs make is falling short on voice quality or security. “When adding voice on a customer’s IP networks, you need to ensure it is secure,” Baker points out. “You also need to make certain that the Quality of Service [QOS] is appropriate. If not, both of these issues will lead to disappointed end users. Not only will you have to go back to the end user to reconcile the situation, but it will cost you margin dollars.”

You already know that making sales – in any market, any technology, any vertical – is harder than it was a couple of years ago. But if you build a solid case for the switch to VoIP, backed up with quantifiable results demonstrating irrefutable ROI, you’ll be able to convince end users to make the investment. “Now is the time for consultative selling that demonstrates how VoIP solutions can save end users money,” Baker says. “But be prepared for a long sales cycle, as budgets tighten and companies grow increasingly conservative in their spending decisions. Keep talking to your end users, and assure them that you are there whenever the end user is ready to move forward.”