How to Launch a Cloud PBX Business as a Fixed-Line Operator?

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February 22, 2024 · 7 min to read

For increasing profits, fixed-line operators are beginning to offer various B2B services, the most in-demand being a cloud PBX. In this guide, we will delve into how to launch the cloud PBX business correctly.

Step 1: Calculate a Financial Model

First and foremost, develop a financial model to ensure that the cloud PBX will meet the operator’s profit margin standards, typically no less than 35%. Pay attention to the following aspects:

Pricing plans depend on market willingness to pay, competitor prices, and vendor service costs.
The revenue side is influenced by the number of subscribers, average revenue per user (ARPU), ARPU growth dynamics, and subscriber churn rate.
The cost side depends on customer acquisition costs (CAC), platform maintenance costs, and technical support.
Threats and scenarios should also be considered in the model, as various factors (e.g., technical issues) can impact financial results.

Step 2: Choose a Platform for the Cloud PBX Service

To launch the service, you need a platform that:

Easily scales. A high-quality platform allows for the expansion of the number of connected subscribers.
Enables the launch of an up-to-date service. A vendor should regularly update a platform every 2−3 weeks to ensure its functionality meets market requirements.
Requires minimal initial investment. An operator should choose a platform with a subscription-based payment model, as this will save costs when launching a new business.

After selecting a platform, set up the installation, connect the telephony, and thoroughly test everything. Create the service in the billing system and add new pricing plans.

Step 3: Prepare the Product

To ensure that subscribers find the cloud PBX convenient and increase your brand’s recognition, localize and customize the service. This task can be undertaken by your developers, vendor engineers, or an integration company implementing the product.

It’s advisable to initially choose a vendor who will handle both localization and customization. This partnership will save you time and money.

Step 4: Prepare a High-Quality Product Page

Create a dedicated product page on your website with a detailed presentation of the service. Include screenshots of a cloud PBX interface, a link to documentation, and a contact form.

This solution offers significant advantages. Existing and potential customers will have access to comprehensive information about the cloud PBX, and sales representatives can visit the website to refresh their knowledge about the product.

Step 5: Organize the Cloud PBX Sales System

To establish an effective sales system for the cloud PBX service, follow these steps:

1

Choose a cloud PBX sales strategy.
Determine whether your focus will be on existing or potential subscribers, small or large businesses. Your marketing strategy will also depend on these factors.
2

Define short-term and long-term sales goals.
For instance, a short-term plan could be to acquire 100 new clients in the first year after launching the cloud PBX, and a long-term goal could be to become a market leader within your country within three years.
3

Develop a sales plan for the first, second, and third years.
handle voice streams, transforming formats and merging data from multiple subscribers to facilitate voice communication through the platform.
4

Set personal sales targets.
A reasonable sales target for sales representatives and customer service specialists should be a minimum of 2 cloud PBX sales per month.
5

Integrate cloud PBX sales with core services.
For example, if you provide business internet services, ensure that your sales representatives offer the cloud PBX to every fifth new customer subscribing to internet services within a month.
6

Establish penetration metrics into the existing customer base.
Generally, the service penetration rate into the entire subscriber base increases to about 35%, but not beyond.
7

Describe the customer onboarding process.
Detail the process from when a client agrees to activate the cloud PBX to when they confirm that everything is working. Test this system with a couple of trial customers, after which you can automate the process by integrating the cloud PBX and billing platforms.
8

Decide how to sell the cloud PBX.
Determine whether you will offer it without equipment or bundled with it. In the former case, subscribers may use only softphones for calls, and if they require desk phones, they’ll need to purchase and set them up themselves, which may only suit some businesses.
9

Decide on device connectivity.
In most cases, subscriber devices are connected through the internet. However, you can also provide a dedicated channel to ensure enhanced security and reliability for the customer.

Become a partner

Digital Tide will create a sales plan, customize the product, train employees, and handle other essential aspects, leaving an operator to focus solely on sales.

Step 6: Develop an Employee Incentive Program

Employee motivation is essential because selling a new service can be highly challenging without it. For example, you can motivate employees as follows:

During the first 3–6 months after the service launch, if a representative sells the cloud PBX service to a subscriber, they receive 200% of the customer's first subscription fee.
After the initial launch period, if a representative sells the cloud PBX service to a subscriber, they receive 100% of the customer’s first subscription fee.
Always pay sales managers 20% of each sale the representatives make.

With this system, sales representatives and managers will quickly gain experience in successful sales, which will help them work more confidently, even without additional motivation.

Step 7: Develop a Marketing Strategy

Practice shows that wired operators achieve excellent results with online advertising, connecting hundreds or even thousands of subscribers per month.

To create an effective promotion strategy, pay attention to the ads displayed by Google when searching for "Cloud PBX" in your country. If there is little or no advertising in the search results, chances are that promotion will be inexpensive and effective. If Google displays many competing companies, that’s okay, too; it means there is demand for the service in your country.

The advantage of digital advertising is that it’s a controlled channel: lead generation directly depends on how much money you invest. In other words, you can always pause your marketing efforts or invest more funds as needed.

Advertising is especially crucial at the service launch stage: it will be easier for your sales representatives to learn about sales with customers who come by themselves. Thanks to this successful experience, your sales representatives will boldly sell the product through other channels.

Step 8: Train Your Employees

Your engineers must know how to operate the platform, configure cloud PBX for subscribers, and provide technical support. Typically, vendor engineers help with this, but sometimes, the operator’s employees may need to understand the platform’s operation themselves.

Training your sales representatives is a mandatory requirement for successful sales. Prepare video presentations, training courses, cheat sheets, call scripts, and templates. Explain how your service differs from solutions offered by other operators.

Select one person from the team to be the go-to contact for assistance. Initially, this could be a product manager responsible for launching the service and, later, a sales representative who can quickly and thoroughly understand the product.

Step 9: Highlight the Product Launch

The final step is creating a press release about your cloud PBX service for existing and potential customers. Write a news article about the new service on your website and distribute it through various channels, such as social media, newsletters, and SMS.

It is essential to inform not only your customers but also your employees about the new product. They should clearly understand the cloud PBX and why this business is necessary for your company.

Conclusion

Let’s review each stage of launching the cloud PBX service to ensure nothing is forgotten:

1

Financial modeling.
When creating the financial plan, pay attention to plans, the expense side, the income side, and various scenarios.
2

Platform selection.
Choosing an easily scalable solution allows for launching an up-to-date service and doesn’t require substantial initial investments.
3

Product preparation.
Decide who will customize and localize the product — the vendor, your developers, or an integrating company.
4

Product presentation.
Prepare a dedicated landing page with detailed information about the product, interface screenshots, documentation, and a feedback form.
5

Sales system.
Set performance indicators you will require from your employees, decide whether you’ll sell cloud PBX with or without equipment, and provide a detailed description of the customer onboarding process.
6

Employee motivation.
Implement a system where your sales representatives and managers receive additional rewards for each cloud PBX service sale to subscribers.
7

Marketing.
Plan how you’ll promote the new service. Advertising will help your sales representatives gain the necessary experience working with leads.
8

Employee training.
Your engineers must understand how to operate the platform, and your sales representatives must be well-versed in sales techniques. For the latter, you can assign someone from your team with an in-depth understanding of the product.
9

Press release and distribution.
Write a news article about the new service and distribute it through various channels, such as social media and newsletters.

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Alexey Belyakov

CEO