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Federal Services Best Practices April 20 th , 2005 Allen McGee – Cisco Services AM PowerPoint Presentation
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Federal Services Best Practices April 20 th , 2005 Allen McGee – Cisco Services AM

Federal Services Best Practices April 20 th , 2005 Allen McGee – Cisco Services AM

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Federal Services Best Practices April 20 th , 2005 Allen McGee – Cisco Services AM

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  1. Federal Services Best PracticesApril 20th, 2005Allen McGee – Cisco Services AM Cisco Confidential

  2. Cisco Services & Partner Best Practices If you are looking to grow your: • Profitability? • Return on Investment? • Value of your Business? $elling Cisco $ervices is the answer!

  3. Benefits of Selling Service • Increase product margins (more sales opportunities) • Retain / Increase account control • Increase services revenue • Ensure customers of Cisco’s industry-leading support • Minimize internal support infrastructure

  4. Cisco Services & Partner Profitability Increased Profit - ROI - Value! • Attach Rate - Attach Services at Point of Sale • Renewal Rates – Renew Service Contracts • Execute Multiple Year Contracts – Typically 3 year service contracts

  5. Top 10 Attach Rate “Best Practices” • Executive approval process – No deal without SmartNet • Quote SmartNet on every deal • Sr. Manager monitors and reviews Attach Rate performance, metrics and “uncovered” equipment reports • Sales commission accelerator for service sales • Cisco CSAM/TSAM/SAM hasopen access to partner executive • Outside and inside sales compensated for SmartNet • Sales commissions are paid on gross margins • Formalized discount process for selling SmartNet • Avoid RFP’s without SmartNet • Regular(twice per year) Sales training on SmartNet

  6. Top 10 Renewal “Best Practices” • Maintain a dedicated and focused renewal sales team • Have a 120 day renewal process • Outside and inside sales compensated on SmartNet • Invested in and maintained service contract specialist i.e. Certified Cisco Expert • Sales managers are commissioned or MBO’d on SmartNet • Manage customers contracts and asset base i.e. adds, moves & changes • Cisco CSAM/TSAM/SAM has open access to partner executive • Co-Terminate service contracts for ease of renewals and management • System (software) that tracks service contract renewals and process • Sr. Manager regularly (monthly) reviews renewals list, rates and expired contracts

  7. Top 10 Multi-Year “Best Practices” • Sales managers are commissioned or MBO’d on Smartnet • Sales teams knowledge and use of “Services” financing options & quoting tools • Sr. Managers regularly reviews Multi-Year metrics and performance • Cisco CSAM/TSAM/SAM has open access to partner executive • Both outside and inside sales compensated on SmartNet • Regular (twice per year) sales team trained on customer benefits and objection handling i.e. Financial Selling • Multi-Year Contracts pay commission just like multiple, individual, 1 year contracts i.e. No penalty • Dedicated & commissioned, inside overlay SmartNet sales expert • Level of Sales Teams “soft” selling skills i.e. closing, relationship, objection handling • Sales Commission are paid on Gross Margins

  8. Value of Multi-Year Contracts • Increased profits – obtained upfront • Combats yearly price increases (customer locked in) • Increased renewal rates • Financing options save you more $$$