July 1998

Partnerships Create Profit, Success For CTI Resellers

BY LAURA SKINNER

The two previously separate worlds of data and telecommunications are converging, and the resulting upheaval is a boon to resellers. This tectonic shift is reshaping the landscape of our industry and creating enormous benefits for anyone that uses or sells technology. The opportunities afforded by computer-telephony integration (CTI) convergence are nothing less than stupendous. It is one of the fastest-growing segments of the information technology (IT) industry.

SELLING SOLUTIONS, SERVICES
Unlike other IT products, the benefits of convergence are not easily used or sold in isolation. CTI products are developed and sold in the context of solutions, rather than as individual products. Likewise, the process of selling CTI is best accomplished through another sort of solution - partnerships. The most profitable players in this dynamic market take advantage of relationships in the value chain - partnerships between manufacturers, distributors, resellers, and customers. These alliances can offer solutions, education, and support - all essential elements in becoming a profitable CTI reseller.

This "solution sales" model enables resellers to add services to their offerings. Adding value in this way is critical, because becoming a successful CTI reseller demands that you become true, value-added resellers. According to reseller Bob McDonald of Telecommunications Concepts, Inc., based in Springfield, Virginia, the foundation of profitability is selling enough of these services, which can include application development and support, to cover overhead. This approach ensures profitable product sales. The secret is finding and working with manufacturers and distributors that will support your growth.

Fortunately, distributors such as Ingram Micro (and some manufacturers) are enthusiastic - even passionate - about helping resellers prosper in this arena. These companies are providing resellers complete packages that make CTI applications easier to sell. They also are educating resellers about the CTI industry by introducing them to smaller, more manageable solution sets. IBM Corp., working with Ingram Micro, has created bundled solutions directed at small and midsize business customers. Fred Yentz, the "CTI evangelist" of IBM, says these solution bundles were designed to help resellers make the end user feel confident and secure about the solutions because they carry the IBM brand.

MANAGING MULTIPLE MANUFACTURERS
Integrating a solution from multiple manufacturers can be tough. Manufacturer/distributor relationships can make it less complicated for resellers to buy and sell these solutions. Some partnerships also offer joint marketing and implementation arrangements. Taking advantage of the value chain makes it easier for the reseller to win customers: It allows for the transfer of knowledge from manufacturer to reseller. In other words, the partnership allows you to understand the technology more clearly, and therefore, better satisfy your customers' needs.

A key aspect of the knowledge transfer that occurs through partnership is front-line technical support. Ingram Micro, for example, offers accessible, reliable pre- and post-sale technical support for resellers, as well as a CTI help desk. This support can include helping you recommend appropriate solutions for your customers.

EDUCATION IS ELEMENTARY
Education is critical to profitability. Gary Hart, president of Beyond Reality, a CTI reseller in Scottsdale, Arizona, agrees that education is key and says it is the most difficult hurdle to becoming profitable in the CTI market.

The most successful CTI resellers make a commitment to learning to support the solutions they sell. Hart was introduced to CTI through with the Telecom Integration Division at Ingram Micro. By attending a Ingram Micro-sponsored CTI Road Show, a traveling educational program for new resellers, Hart and his team were educated about the technology and introduced to manufacturers offering total solutions. Working with Ingram Micro, he became acquainted with VocalTec's Telephony Gateway product and got his feet wet in CTI by installing it on his own Web site.

I believe the best way to educate resellers about CTI is to do so in manageable pieces. In our road shows, we break down the technology into pieces - focusing on specific applications. Attacking these one at a time allows the reseller to concentrate on the applications that are of most interest.

Donna Epps, telecommunications manager at Provident Bank of Maryland, recently installed a CTI application because of the accessibility and convenience the technology offered. The company started out in search of a voice mail product for its 1,000 employees, but decided on CallWare, a complete messaging solution. The solution is a universal mailbox that brings voice mail, e-mail, and faxes to the desktop.

What prompted her to buy the CTI solution? Reliability, cost-effectiveness, and the expandable features and functionality provided by universal messaging were important factors. Another reason for her decision was the close relationship she had with the reseller, whom she selected primarily on the basis of a proven track record in implementing universal messaging. Perhaps more importantly, she looked for and selected a reseller that could be a project manager, engineer, and trainer - a partner that would offer continued support.

MINING YOUR CUSTOMER BASE
Another step in becoming a successful CTI reseller is educating and selling to your existing customer base. Hart started by talking to his long-term customers about the benefits of CTI. Hart found it easy to sell his clients on the CTI concept because it's an application that creates profits, drives sales, and puts them ahead of the competition. Plus, Hart practices what he preaches - he uses the technology in his own business. Sales at Beyond Reality have skyrocketed. According to Hart, his sales have increased 80 percent since he began using and selling CTI solutions.

Because you know your customers' business and understand their goals, you can offer solutions that will meet their individual business needs. After assessing the customer's situation, begin by developing a proposal. Again, working with a distributor partner will ensure your success. A distributor will enable you to get the best configuration advice, and, by providing price and availability information, it will allow you to give your customers reliable estimates on delivery and costs of the project.

Hart recommends staging the configuration in-house, testing it, and making any necessary adjustments before installation. Then, follow up with your customer to ensure that the solution is operational, that the customer is educated and comfortable with it, and that the customer is satisfied with the solution. Satisfied customers become your best sales people.

Because CTI sales are complex, the sales cycle is longer - anywhere from four weeks to six months. This makes financing another critical element in the success equation. Working in partnership with a comprehensive technology distributor, you can often obtain end user leasing or other financial services to help you more easily make the transition to CTI.

PARTNERING EQUALS PROFIT
Working with manufacturers and distributors that are dedicated to your success is the first step in achieving success. This relationship makes it easier for you to participate in the burgeoning CTI market by enabling you to learn about the technology, support the solutions, and solve your customers' problems.

Don't wait to get involved. Start by asking your best customers some simple questions. Educate them about how CTI solutions can improve the performance of their business. Talk to fellow resellers about their successes and failures, and share yours with others, as well. You don't have to be an expert, if you have good partners.

Laura Skinner is the vice president and general manager of the Telecom Integration Division at Ingram Micro, one of the world's largest distributors of technology products and services. The company was one of the sponsors of CTI™ EXPO in Baltimore, Maryland. Ms. Skinner moderated a session titled "How To Be The Most Profitable CTI Reseller," on which she comments herein.