Module 1: Cisco Service Expert Program Curriculum Overview

Do I Incur Any Risks by Not Promoting Service?

Some Cisco partners and resellers may wonder if they incur any risks by not selling service contracts to their customers. The answer to that question is yes – you do. There are risks for both you AND your customers.

Customer-oriented businesses in today’s global markets are doing what it takes to remain
competitive by:

		Entering new markets.
		Increasing revenue, profit, and margin.
		Exceeding customers' expectations.
		Achieving outstanding customer satisfaction levels.

Entering new markets brings more revenue into your company – and increases your business’ edge over your competitors. By 2004, the Yankee Group projects that the size of the operational services market will grow to approximately $10 billion dollars.

Combine that information with the following statistics:

		The average annual Cisco service contract added an additional $20,000 in revenue to an initial sale of equipment.
		Depending on the size and needs of the customer, Cisco and its resellers have sold service contracts ranging from $2,000 to $32 million.

Is that revenue that your company can afford to miss?

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