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Every VAR Model Looks For Additional Margin Right? Why Selling Services is No-Brainer

June 23, 2017

Every VAR Model Looks For Additional Margin Right? Why Selling Services is No-Brainer

For your business to continue to succeed, you must constantly look for ways to increase margin while continuing to exceed your customers’ expectations. The best way to do that is with a robust services practice in which organizations such as yours can maximize profit over the life of the customer instead of only the initial point of sale.

Cisco Services provides a robust services option that will allow your company to find extra margin while increasing customer satisfaction and loyalty.  

Finding Profit

The key to benefiting from services practices such as this is what Forrester calls customer success management, or CSM. In a nutshell, it explains the process of being a good partner to your customers throughout the life of a product, not just at the point of sale.

The benefit comes for you not only with the chance to always be working with your customers, but also finding smaller service offerings that add up over time. These contracts can provide a predictable revenue stream and a strong source of margin, as well as keeping close to your customers and, hopefully, keeping competitors at bay.

Selling Cisco Services also provides you with visibility into the devices your customer is actually operating, which helps you plan for technology refreshes and other expansion sales down the road. This constant connection leads to better service that can be renewed over time, thus allowing for other resources to be spent finding new customers and growing your business.

More Benefits for You

If you can effectively serve customers and increase the amount of service contract renewals, there are a number of additional benefits to realize. Achieving higher renewal rates can help you earn higher rebates under the Cisco Service Partner Program, which can reach up to 6 percent on performance alone.

If you have questions about how you are doing, make sure to check out Cisco’s powerful business intelligence platform, E-Consulting.

Forrester estimates that for every $1 a company invests in services, it gets $2.82 in value in return. Companies that can tie adoption of their solutions to business value can increase upsells by 10 percent of existing revenue, Forrester says.

As you can see, selling Cisco Services provides your business with a multitude of opportunities. Not only are you a better partner providing a valuable business tool, but you also can increase your margins and learn more about your customers.