Giving Your Channel the Tools for Success

Most providers turned inward in 2009, believing that only their direct sales forces could drive revenue in the downturn. There was upheaval in the carrier channel ranks all year. When faced with shrinking margins, poor cash flow and limited access to capital, you look inward. Navel gazing.

With more than 1,000 providers of VoIP in the U.S., it is a crowded space without much brand recognition. It requires solution selling from a trusted advisor. Your direct sales rep is not that guy (in most cases). But the channel is (in most cases). The channel is the feet on the street. They have the pulse of their marketplace. Also, as entrepreneurs, they are flexible and innovative, especially when faced with the fight to survive.

A recent survey showed that only 3 percent of prospects understood the sales presentation. It underlines my point that you need a relationship to sell something like hosted PBX (News - Alert). Why? Because it is outside-the-box thinking. Remember the RBOC's couldn't sell Centrex, which is a close cousin. They could barely explain Centrex. That explains the recent survey that found only 3 percent of the prospects surveyed said they fully understood most of the terms used in the sales presentations. Prospects said the confusion convinced them that the products or services involved would be difficult to install and maintain.

Carriers need to get engaged with the channel to offer proactive support including training, case studies, ROI sheets, target markets, value statements, and guidance on how to differentiate from all others. Without those kinds of tools, the channel will pick the lowest-cost provider because that's all that's left without a clear value proposition.

Why do you think that CLECs wage the price war? It’s because there’s no differentiation in integrated T1 services other than bucket of minutes. The same is happening with SIP trunking. I watch panel after panel of carriers that cannot give an answer as to why you and not them.

Here's the other thing about having all that support: it means we know you have your act together. That gives us peace of mind. IT

Peter Radizeski is head of telecom consulting agency RAD-INFO (News - Alert) Inc. (http://rad-info.net/).

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