Selling SIP Trunking InGate SIP Trunking and Unified Communications Summit September, 2011

Joel Maloff, Maloff NetResults

joel@maloffnetresults.comwww.maloffnetresults.com

Selling SIP Trunking

InGate SIP Trunking and Unified Communications Summit

September, 2011

IntroductionSelling SIP Trunks

Designed for the sales team in the field today looking to close business opportunities.

This presentation contains materials covered in more detail in the online program “SIP Trunking for the Sales and Marketing Professional,” available from The SIP School (www.thesipschool.com).

Secrets of Selling SIP Trunking Overview

SIP Trunks and UCIdentifying YOUR SIP Trunking

“Sweet Spot” and what to avoidInterpreting the customer’s

Status QuoUncovering areas of added value

Creating a cost justification/ROI model

Overcoming ObjectionsClosing the SaleKeeping the Sale

SIP Trunks and UCUnified communications

includes mobility, presence, web conferencing, a variety of other solutions, AND voice communications via SIP trunks.SIP trunking is therefore

a subset of the unified communications umbrella.

SIP Trunks and UCUnified Communications can be

multifaceted, complex and confusing to potential buyers.That’s bad for sales.

By focusing on specific benefits and documented ROI, your chances for a sale go up.

SIP trunking can provide the substantiation you need!

The SIP Trunking “Sweet Spot”

Each ITSP is different.What is your “sweet

spot”Number of concurrent

calls?Number of locations?Minimum current

telephone bill? Number of PRIs total

and/or per location?

The SIP Trunking “Sweet Spot”

Number of minutes per month? Incoming?Outgoing?

Local, domestic long distance, international?

Inbound Toll-free?Specific vertical

industries?Specific geographies?

The SIP Trunking “Sweet Spot”

• As a sales team, knowing who and where to target can be the difference in making your numbers or failing to perform.

Interpreting the Status Quo

Reviewing an actual customer bill for cost savings

Identifying areas of “soft” savings

Finding Added ValueConsolidation of

officesCreation of “Virtual”

presenceDomesticInternational

Cost Justification and ROIIt is easy to assert

cost savings; it takes work to prove it.

“Hard” SIP trunking cost savings come from three primary areas:Usage sensitive call

chargesFixed price services

(PRI, DSL, et al) used for voice services

Cost Justification and ROIFees and Surcharges

EUCL The End User Common

Line (EUCL) charge is a federally regulated monthly service charge applied to certain local voice service offerings. 

RCRF The Regulatory Cost

Recovery Fee (RCRF) Imposed by some

carriers on business and residential long distance customers

used to recover costs associated with Federal regulatory fees imposed upon these carriers.

Others

Cost Justification and ROICalculating potential

savingsUnderstand current costs

by examining a current bill if possible.Try to make sure that it is a

representative month and not an anomaly.

Identify usage charges and their breakdown regarding local, domestic long distance, and international.

Identify fixed monthly charges for PRIs, DSL, and surcharges.

Cost Justification and ROISome vendors do offer ROI tools for SIP

trunking.http://www.xo.com/forms/campaign/

ExternalSales/ESIPCalcLP/index.aspx?ListSource=PressRelease071510

Unfortunately, the level of detail may not be sufficient for you – unless you are a salesperson for that company!

Cost Justification and ROIWhat are the challenges with “overview”

ROI tools?Total Number of employees

Minimum of 50Number of Physical Locations

Minimum of 5Percentage of Inter-company callingAsserted savings is 38%!

What is missing from this picture?

Cost Justification and ROI

Type of Calls: # CallsDuration

in MinutesAverage

Call DurationCurrent Carrier A Current Carrier B Current Carrier C

YOUR Cost/Minute

Carrier ATotal

Carrier BTotal

Carrier CTotal

YOUR Total

Direct Dial Interstate 68,247 104,953 1.54 0.0201$ 0.0500$ 0.0180$ 0.0140$ 2,110$ 5,248$ 1,889$ 1,469$ Direct Dial Intrastate 1,419 1,693 1.19 0.0840$ 0.0490$ 0.0490$ 0.0140$ 142$ 83$ 83$ 24$ Toll-Free Interstate 2,257 4,731 2.10 0.0201$ 0.0150$ 0.0180$ 0.0140$ 95$ 71$ 85$ 66$ Toll Free Canada (call from Canada) 987 2,381 2.41 0.1950$ 0.0490$ 0.0490$ 0.0180$ 464$ 117$ 117$ 43$

International from U.S.:United Kingdom 3,216 4,900 1.52 0.0300$ 0.0300$ 0.0300$ 0.020$ 147$ 147$ 147$ 98$ Japan 1,068 1,777 1.66 0.1381$ 0.0556$ 0.0400$ 0.045$ 245$ 99$ 71$ 80$ Hong Kong 310 408 1.32 0.2100$ 0.0509$ 0.0600$ 0.040$ 86$ 21$ 24$ 16$ Singapore 210 287 1.37 0.1400$ 0.0675$ 0.0400$ 0.036$ 40$ 19$ 11$ 10$ Brazil 93 138 1.48 0.1380$ 0.0503$ 0.0400$ 0.050$ 19$ 7$ 6$ 7$ Australia 63 96 1.52 0.2190$ 0.1520$ 0.0700$ 0.041$ 21$ 15$ 7$ 4$ Norway 39 39 1.00 0.2190$ 0.1363$ 0.0500$ 0.040$ 9$ 5$ 2$ 2$

USAGE SUMMARY # CallsDuration

in MinutesAverage

Call DurationCarrier A

TotalCarrier B

TotalCarrier C

TotalYOUR Total

Total Direct Dial Domestic 72,910 113,758 1.56 2,347$ 5,402$ 2,057$ 1,559$ Total International 4,999 7,645 1.53 567$ 313$ 268$ 217$

Total Inbound Toll Free 3,244 7,112 2.19 464$ 117$ 117$ 43$

TOTAL MONTHLY USAGE 81,153 128,515 1.58

MONTHLY COSTS

3,378$ 5,831$ 2,442$ 1,819$

PROJECTED ANNUAL USAGE 973,836 1,542,180

ANNUAL COSTS 40,536$ 69,972$ 29,306$ 21,830$

SIP Trunking Customer Usage Analysis

Cost Justification and ROICalculating potential costs

Identify fixed monthly charges for PRIs, DSL, and surcharges.

Calculate the number of SIP trunks (concurrent calls) and Internet bandwidth required using the spreadsheet on the next slide.

Cost Justification and ROI

Dedicated Circuits Type Bandwidth NumberNumber of Voice

ChannelsMonthly $$

Total Monthly

PRI 1.5 mbps 1 23 450.00$ 450$ T-1 1.5 mbps 1 CODEC Dependant 300.00$ 300$ E-1 2.048 mbps 1 30 -$ DSL 512 kbps 0 -$

SIP Trunks CODECBW per call (kbps)

Concurrent Calls

Total BW Required (kbps)

MRC Per SIP Trunk Total MRC

G.729 50 7 330 20.00$ 132$ G.711 80 7 528 20.00$ 132$

SIP Trunking Customer Fixed Cost Analysis

Cost Justification and ROICalculating potential savings and value

Include all costs for all solutionsConsider surcharges and fees such as EUCL

(Approximately $40 per PRI or T-1 monthly) and RCRF (Approximately 3.5% of all domestic and international calling charges)Most ITSPs do not include EUCL and RCRF fees.

Show the monthly total costs, percent saved via SIP trunking, and the estimated annual savings.

Cost Justification and ROI

Carrier A Carrier B Carrier C YOUR SIP Trunking

450$ 450$ 450$ 300$ N/A N/A N/A 132$

3,378$ 5,831$ 2,442$ 1,819$ 159$ 244$ 126$ -$

TOTAL MONTHLY FEES 3,987$ 6,526$ 3,018$ 2,251$ Percent saved by SIP Trunking 44% 66% 25%ANNUAL SAVINGS VIA SIP TRUNKING 20,826$ 51,292$ 9,203$

Monthly Recurring Line ChargesMonthly Recurring SIP Trunk FeesAverage Monthly Usage ChargesAverage Monthly Surcharges and Fees

Total Cost Comparison

Cost Justification and ROISimple tools provide simplistic answers;

business is complex today!

If you want to deliver quality to your prospects, preparation is in order; they will welcome your expertise!

Overcoming ObjectionsConceptual

Internet Telephony is here to stayAT&T asks the FCC to allow shut-down of their

traditional PSTN services in favor of IP Telephony.“… the VoIP access and SIP trunking services market

will continue to build on its downturn-defying 40.1 percent growth in user base and 22.3 percent growth in revenues in 2009.” (North American VoIP Access and SIP Trunking Services Markets, Frost & Sullivan, April 2010)

Sunset of the PSTN 2018?

Overcoming ObjectionsTechnicalFinancialEmotional

Closing the SaleASK FOR THE

ORDER!!!Make it easy.Make it simple.Make it painless.

Keeping the SaleMinimize churn!

Keeping and growing existing customers is more valuable than new sales.

The salesperson’s job is NOT done when the service agreement is signed.Ensure that service is

delivered as sold and when promised.

Maintain regular contact to avoid unexpected churn, expand existing services, obtain referrals, and solicit testimonials.

ConclusionsSuccessfully selling SIP trunking services

requires a combination of good old fashioned sales skills and knowledge of the SIP trunking environment beyond just surface information and platitudes.

Customers NEED SIP Trunks – you need to be able to help them make the buying decision from you!

For More InformationJoel Maloff, Maloff NetResults

954-263-1306joel@maloffnetresults.comwww.maloffnetresults.com

The SIP Schoolwww.thesipschool.com