Selling Service on Uncovered Equipment · Duration Hardware1: 90 Days/ 1 Year/ Limited Lifetime Software: 90 days Renewable contracts Renewable4 contracts Renewable contracts Renewable

Service Guide

Selling Service on Uncovered EquipmentAccelerating Partner Success with Cisco Technical Services

Contents

Uncovering Service Sales Opportunities 3

Selling Services: Addressing Needs Created by Uncovered Equipment 3

Timing Your Sales Approach to Seize the Uncovered Opportunity 4

Best Practices for Selling Service on Uncovered Equipment 6

Handling Objections 9

Portfolio of Cisco Technical Services 10

More Information 10

Appendix: Cisco Technical Services Portfolio Features Comparison 11

Selling Service on Uncovered Equipment

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Uncovering Service Sales Opportunities

The information in this guide can help distributors, resellers, and channel account managers boost revenues, increase margins, and build long-term customer loyalty through sales of Cisco® Technical Services to customers with Cisco hardware or software that is not covered under an existing Cisco service agreement.

This service guide focuses on increasing your sales effectiveness by helping you sell Cisco services to secure additional revenue through targeting Uncovered Equipment. It also covers objection handling tailored to the specific requirements of customers within small to medium-sized businesses and provides information about the portfolio of Cisco Technical Services.

Selling Services: Addressing Needs Created by Uncovered Equipment

Today, very few businesses can compete effectively without some form of network, which means that nearly every business will need networking service and support. And yet service is often positioned as a kind of insurance policy rather than an opportunity to increase a customer’s return on investment. Customers will buy service more readily if you show them the value it can deliver as part of a complete solution.

For a variety of reasons, your customer may have purchased a Cisco networking solution without the added benefit of Cisco Technical Services. Or the customer might have chosen to cover only a portion of the network solution. That means that your customer is inadequately protected and that you have an opportunity to help your customer see the additional value created by having service contracts on all of the customer’s Cisco equipment.

The most effective way for you to help your customer see the value of a Cisco Technical Services contract is by showing how Cisco Technical Services can help solve business problems and by timing your sales approach to coincide with critical moments in your customer’s decision-making process.

Focus on the Business Need

There are a number of important business factors that can influence your customer’s need for Cisco Technical Services.

Customers need their networks up and running: Today, businesses of every size are highly dependent on their networks, and these networks need to stay up and running to enhance productivity, revenue, and business credibility. The cost of downtime can be substantial. By including service when they invest in Cisco technology, customers can protect their investments and increase the contribution that their networks make to their businesses.

Customers need to increase return on investment: Technology evolves at a phenomenal rate. When the solution is maintained and updated on a regular basis, it continues to support the business by operating at its full potential for the duration of its working life.

Customers need to manage total cost of ownership: Planned and budgeted service and maintenance costs are considerably less expensive and less difficult to manage than emergency repairs or impromptu service calls. The cost of a service contract is rapidly outweighed by the costs to the business of any downtime, not only in terms of cash, but also in terms of credibility and lost business.

Uncovered Equipment is Cisco hardware or software sold without the added benefit of Cisco service.

Selling Cisco Technical Services can help you:• Enhance cash flow and margins• Penetrate new markets• Improve your competitive

advantage• Increase customer retention• Increase customer satisfaction• Expand your relationship with

your customer

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Customers need to maintain a competitive advantage: Keeping network elements current with the latest features and enhancements enables a business to quickly and efficiently implement new applications that can lower costs, improve customer service, reduce delivery times, or expand into new markets.

Customers need to maintain business credibility and continuity: A Cisco Technical Services contract can help customers ensure availability of company websites and access to e-mail services that are critical to day-to-day operations and successful customer and partner relationships.

Timing Your Sales Approach to Seize the Uncovered Opportunity

After you have made a sale, it is vital to make a follow-up call to help ensure the customer is satisfied with the purchase. This is a great opportunity to learn about how the customer’s business continues to evolve and to discuss how Cisco Technical Services can help the customer continue to achieve its goals. If your customer did not purchase a service contract at the outset or chose to cover only part of the solution, this is an optimal time to get the customer thinking about expanding service coverage to include all Cisco hardware and software.

Timing your approach correctly can re-initiate the service discussion and open the door to securing expanded service agreements. There are a number of milestones to note for you to seize this important opportunity.

Ninety days after the first sale: At this point, the Cisco solution is fully implemented, and the customer has begun to experience the benefits to its business. Remind the customer that the warranty coverage has ended and they should consider protecting their investment with a service agreement. For those customers who decided to rely on in-house support, this is an ideal time to check that everything is operational and to discuss how to maintain the successful installation. This is a perfect opportunity to approach the customer again regarding the value of a service contract.

When there has been a problem: This is probably the next best time to approach your customer. Your customer has experienced the real effect of what happens when something goes wrong. The customer might even enquire about service without additional prompting. If not, however, never try to sell service until the problem has been resolved. The ideal time to follow up is about 30 days after resolution. Take the time to look at what happened and conduct a “lessons learned” evaluation. Use the evaluation results to see how a service contract would have avoided, or helped to avoid, the problem. In all likelihood this will also be an opportunity to sell professional services.

At the time you renew other contracts: When renewing existing service contracts, it’s a good time to look for other equipment that the customer might have that is not covered under a service agreement. Showing the value that the customer has received on the existing contract will help demonstrate the value the customer can receive from covering the other equipment in the network. This is usually a discussion with the customer strictly about services and the benefit received from a service contract, so it is a time when the customer can specifically focus on service issues. You might discover other equipment that the customer has purchased from other sources that does not have service contracts. This is a good opportunity to get an entrance into other areas of the customer’s network.

When adding to an existing network: When equipment is being added to or replaced on an existing network, it’s a good time to look for other equipment that does not have a service contract. When the complete network is covered, the customer receives the full value of the installation.

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Best Practices for Selling Service on Uncovered Equipment

Understand the Cisco WarrantyYou need to know exactly what the Cisco warranty covers on each piece of hardware and software and when it expires. Remember that customers often refuse service because they think that the warranty will provide protection, so it is essential you have the knowledge that will help you counter this argument when the time comes. Cisco products come with one of the warranties summarised in Table 1.

Table 1. Understanding Cisco Warranties

Warranty Description

Cisco Standard 90-dayHardware & SoftwareWarranty

Advance Replacement of hardware, shipping within 10 business days from Return Materials Authorisation (RMA) Request Date within 90 days of original shipment from Cisco or from Cisco Reseller

90-day warranty that the software media is defect-free and the software substantially conforms to its published specifications

90-Day Limited Hardware Warranty

Advance Replacement of hardware, shipping within 10 business days from RMA Request Date within 90 days of original shipment from Cisco or from Cisco Reseller

One-Year Limited Hardware Warranty

Advance Replacement of hardware, shipping within 10 business days from RMA Request Date within one year of original shipment from Cisco or from Cisco Reseller

Five-Year Limited Hardware Warranty & One-Year Software Warranty (applies to Optical products only)

Advance Replacement of hardware, shipping within 15 business days from RMA Request Date within five years of original shipment from Cisco or from Cisco Reseller

One year warranty that the software media is defect-free and the software substantially conforms to its published specifications

Limited Lifetime Warranty Advance Replacement of hardware, shipping within 10 business days from RMA Request Date during supported life of the product, starting on original ship-date from Cisco or Cisco reseller. (Fan and power supply warranty limited to 5 years from ship-date). In the event of discontinuance of product manufacture.

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Warranty Cisco SMARTnet®/ SMARTnet Onsite

Cisco SP Base Support

Cisco SMB Support Assistant

Cisco Unified Communications Essential Operate Service

Cisco Software Application Support Services

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

Renewable contracts

Renewable4 contracts

Renewable contracts

Renewable contracts

Renewable contracts

Cisco Technical Assistance Centre Support

No Yes Yes During Normal Business Hours.Response within 1 business day from SMB TAC

Yes Yes

Cisco Operating System Updates

No Yes Yes No, Bug Fixes or Patches only

Yes No

Software Application Updates

No 2 No No No Yes SAS with Upgrades only

Software Application Upgrades

No No No No No 5 No

Registered Access to Cisco.com

No Yes Yes SMB Support Assistant Portal

Yes Yes

Hardware Replacement Advance Replacement1 (10 Days)

Next Business Day

Next Business Day or Return to Factory Options

Next Business Day as available, otherwise Same Day Ship

Next business day delivery, as available.

No

Onsite options: 8X5X4, 24X7X4, 24X7X2

Onsite options: 8X5X4, 24X7X4, 24X7X2

Onsite Options: 8X5X4, 24X7X4

Equipment Covered All All 3 All 3 Limited Unified Communications products

No

Help your customer see the benefits of Cisco Technical Services over the standard warranty by reviewing the information in Table 2.

Table 2. Benefits Delivered by Cisco Services versus Warranty Coverage

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.

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Create a Database to Manage the ProcessThe most successful Cisco service resellers are those that have a system in place to help them track service opportunities, which they use to promote selling activities. You might already have something in place, but if not, investing the time up front to create a simple system to help you manage your opportunities will make the process of selling services for Uncovered Equipment more effective.

Consider including the following fields in your database tracking system for each individual sale of Cisco equipment:

• Date of sale

• Equipment sold

• Warranty details for each type of hardware or software solution

• Whether or not service was sold with the solution

- If yes, details of service program sold: Cisco SMARTnet services, SMB Support Assistant, SAS/SASU

- If no, reasons why customer declined: relying on warranty, in-house resources, budget

• Follow-up strategy

- 90 days after sale

- When there has a been a problem

- At the time you renew other contracts

- When adding to an existing network

Your follow-up strategy might consist of a face-to-face meeting or a phone call. You might also choose to use marketing materials such as e-mailers or direct mailers to help you sell services on Uncovered Equipment.

Your database might end up looking something like Table 3.

Table �. Sample Customer Database Report

Customer Date Sold

Equipment Sold

Warranty Details

Service Coverage

Service Program

Reason for Decline

Follow Up Action

ACME Legal 1/02/05 Cisco PIX® 501 Security Appliance

Standard 90 day

No – Relying on warranty

90 days after sale

Send e-mailer

Davies Consulting 2/23/05 Cisco Catalyst® 2950 Series Switches

Limited lifetime hardware

No – In-house support

When adding to an existing network

Telesales call

Rowland Travel 2/25/05 Cisco 1700 Series Modular Access Routers

One-year limited hardware

No – Budget At the time you renew other contracts

Direct mailer

Rowland Travel 2/25/05 Cisco PIX 501 Security Appliance

Standard 90 day

No – Budget When there has been a problem

Telesales call

The primary takeaway is that you need some sort of system to help you:

• Identify the critical moments when your customer will be most receptive to purchasing service coverage

• Build an action plan

• Track your performance

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Lead with the Right OfferingDoing your research is important, so you can lead with the right service package. You can use Figure 1 to help you determine which program to propose.

AdvanceReplacementResponse

OperatingSystem

SoftwareApplicationsOn-Line

Support

SMARTnet 8 x 5 x 4SMARTnet 8 x 5 x NBD

SMBTools

SMBClass

Minor SoftwareUpdates

RegularBusiness

Hours

Cisco SMBSupport Assistant

Enterprise Tools

Complex Upgrades 24/7 Faster

NBD

SMARTnet 24 x 7 x 4

SMARTnet 24 x 7 x 2

Figure 1. Service Program Decision Guide

Selling Cisco Multiyear ServiceAgreements can help you:• Increase customer loyalty• Reduce administration costs• Improve cash flow• Increase revenue opportunities• Enhance margins

The Advantage of Multiyear OptionsAs you review a customer’s Uncovered Equipment, it is timely to look at multiyear options. Multiyear options are contracts that customers sign for multiple years, often to take advantage of discount incentives that apply to some Cisco service contracts. They can also lock in prices, match service to lease terms, and, with financing, improve cash flow. You can make a strong case for multiyear options, because multiyear options also remove administrative and management burdens for the customer. Instead of having to renew every year, they have the peace of mind of knowing that they have uninterrupted service. Selling multiyear agreements can also lower your sales administration costs and boost your renewal rates, with all the associated benefits for your gross margins and return on working capital. With multiyear contracts you can secure the budget for the longer term contract, instead of having to pitch for it every year.

FinancingAs you review Uncovered Equipment with your customer there is also opportunity to offer your customer a financing solution that spreads the financial outlay over a number of years.

Financing is one of the most important tools you have to manage a customer’s budget concerns and promote multiyear contracts. Cisco Capital™ Easy Lease financing solutions provide straightforward, flexible leasing options, competitive rates, and fast credit processing. For more information about the finance packages that Cisco can offer, visit: www.cisco.com/asiapac/easylease.

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Handling Objections

As you implement your strategy, you might encounter the same sorts of objections as were raised at the point of first sale or at the time for contract renewals. Refer to the sales tools “Making the First Sale” service guide and the “Selling Service Contract Renewals” service guide for more information about handling objections.

These are available at: www.cisco.com/go/ap/accelerateservices

ResponseThere are significant differences between the standard Cisco warranty and a Cisco Technical Services contract. The Cisco warranty covers repair and replacement of defective parts (typically 90 days), while a Cisco Technical Services contract covers both the equipment and software (for the contract period) and helps maintain network health through day-to-day operations.

Cisco service contracts cover the life and functionality of the solution after it is installed and working. 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.

ResponseAsk how the customer is handling Cisco OS® Software updates. Remind the customer that Cisco OS Software updates are only available on products with service contracts. Discuss the need and benefits of being able to update Cisco OS Software. Ask the customer if servicing equipment is really the best use of its in-house team. Emphasise that the best solution is to have coverage 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?

ResponseRevisit the cost of downtime for your customer. Ask your customer how downtime affects:• Employee productivity• Customer and partner relationships• Revenue• Financial performance

This will give you a framework for showing that the initial expense of a service contract is far less than the effect of not being adequately covered. This is also an opportunity to discuss Cisco Capital Easy Lease financing solutions with your customer.

ResponseA good topic to explore is whether the network has changed or any new applications have been put on the network since the customer originally purchased the equipment. Remind the customer that service can increase return on investment and can help reduce total cost of ownership over time. It enables customers to benefit from Cisco expertise to help them make the most of the equipment they have purchased. 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 with the leading edge of networking technology. Emphasise the value of software downloads to help ensure that the customer has the most current versions.

Objection Why do I need service?

Does the warranty not cover me?

Objection I’m sure my in-house staff can handle

anything that comes up.

Objection I still do not have budget.

Objection I paid extra to get Cisco quality.

Why should I pay for even more?

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Portfolio of Cisco Technical Services

Cisco offers a portfolio of technical services to help meet the diverse needs of customers. Please see the Appendix for a comparison table of the Cisco Technical Services portfolio.

Cisco Product-Specific Technical Services:• Cisco SMARTnet services and SMARTnet Onsite• Cisco SMB Support Assistant• Cisco Software Application Support (SAS) and Software Application Support

plus Upgrades (SASU)

Cisco Technology-Specific Technical Services: • Cisco Unified Communications Essential Operate Services• Cisco Services for Integrated Services Routers (ISRs)• Cisco Services for Intrusion Prevention Systems (IPSs)• Cisco Security IntelliShield Alert Manager Service

More Information

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

Other resources include:• Cisco Technical Services: www.cisco.com/go/supportservices• Cisco Capital Easy Lease: www.cisco.com/asiapac/easylease

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Cisco Technical Services Portfolio Features Comparison

Many of the Cisco Technical Services offerings are designed to provide service and support for all Cisco products, while some are specialised by technology and others are meant to further enhance the operation of the overall network (See Tables 4 and 5). Table �. Cisco Technical Services Portfolio Features Comparison

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 Cisco equipment* by individual product and is entitled by individual product serial numbers

Two service offerings include:1. Cisco SMARTnet2. Cisco SMARTnet OnsiteIncludes the following features: • Registered access to Cisco.

com knowledge base• Access to Cisco Technical

Assistance Centre (TAC)• Cisco OS software updates• Advance hardware

replacementCisco SMARTnet Onsite only • Access to an onsite field

engineer

CON-SNT-XXX CON-SNTE-XXXCON-SNTP-XXX CON-OS-XXXCON-OSE-XXX CON-OSP-XXX

Specifically designed for small and medium-sized businesses (SMBs), with 250 employees or fewer who require essential, easy-to-use and affordable technical support to allow for operational reliability of networks running basic applications on select Cisco products

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

• Network management and productivity tools designed specifically for SMBs that can be downloaded to a laptop or accessed through the Web-based portal

• 24-hour access to Cisco SMB TAC

• Cisco OS minor software updates

• Next Business Day Advanced Hardware Replacement where available, otherwise same-day ship

CON-SMBS-XXX

Customers that need to increase application availability, functionality and reliability, with around-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

Two service offerings:1. Software Application

Support (SAS)2. Software Application

Support plus Upgrades (SASU)

Includes the following features for SAS and SASU:• Registered access to

Cisco.com knowledge base• Access to Cisco TAC• Application software updates SASU only

• Major application upgrades

CON-SAS-XXXCON-SAU-XXXCON-PSAU-XXX

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

Supports all Cisco equipment.SMARTnet is required before High-Touch Operations Management can be purchased.SMARTnet and High-Touch Operations are required before High-Touch Technical Support is added.SMARTnet, High-Touch Operations and High-Touch Technical Support are required before High-Touch Engineering is added.

• High-touch operations: management with weekly conference calls, quarterly data analysis

• High-touch technical support: 24-hour access to expert technical support, special phone number for reporting technical issues, technical support engineering team, quarterly operational case-trending analysis

• High-touch engineering: network-level problem resolution during business hours, problem root-cause analysis

Network-based pricing

Cisco SMARTnet and SMARTnet Onsite

Cisco SMB Support Assistant

Cisco Software Application Support Services

Cisco Focused Technical Support

Cisco Product-Specific Technical ServicesCisco Networkwide Technical Services

SK

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Cisco Technical Services Portfolio Features Comparison (Continued)

Cisco® and its partners offer a variety of services to support customers in operating Cisco technologies. This table shows an overview of the Cisco technology-specific technical services. Table �. Cisco Technical Services Portfolio Features Comparison

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Customers with Cisco Unified Communications that need ongoing technical support for both hardware replacement and software maintenance

System-level coverage on Cisco Unified Communication hardware and software:includes Cisco Unified CallManager, Cisco Unity® Connection and Cisco Unitysoftware

Assisting availability, security and operational efficiency of a Cisco unified communications network. Support and services include:• System-level approach on

technical and maintenance support

• Enhanced access to highly trained professionals

• Advanced server hardware replacement

• Optional onsite technician for hardware replacement

• Application software updates• Registered access to Cisco.

com knowledge base

CON-ECD-XXX-XXXXCON-ECE-XXX-XXXXCON-ESW-XXX-XXXX

Customers that need maintenance bundles for Cisco integrated services routers with voice applications that combine hardware support services 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

• All the components of Cisco SMARTnet

• All the components of SASU for voice applications

CON-SNT-XXXX-V3PCON-SNT-XXXXX-CCMCON-SNT-XXXX-SRST

Customers that need Cisco Intrusion Prevention 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 Products

• Alerts and e-mail messages about the latest signatures

• Access to network signature files and signature file-based network-layer protection algorithms

• Access to intrusion prevention operating system software maintenance releases

• Registered access to Cisco.com knowledge base

• Access to Cisco TAC and to specialised security engineers

• Advance hardware replacement

CON-SU1-XXXCON-SU2-XXXCON-SUO1-XXX

Customers that need a customisable, Web-based threat and vulnerability alert service that allows them to access timely and useful information about potential vulnerabilities in their environment

All Cisco equipment

• Updates of threats and vulnerabilities that may impact network-enabling devices, software, or IT infrastructure

• Built-in tools to proactively manage intelligence within organisations

• Configurable portal with flexible service packages

• Detailed information; historical coverage of approximately 10,000 alerts

CON-IAM-XX-XX

Cisco Unified Communications Essential Operate Services

Cisco Services for Integrated Routers (ISRs)

Cisco Services for Intrusion Preventions Systems (IPSs)

Cisco Security IntelliShield Alert Manager Service

Cisco Technology-Specific Technical Services

Unified Communications Voice Security

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