Jola Cloud Solutions' Blog

I recently read an article about marketing in the channel. Interesting points were raised about strategic planning and consistency. Aligning marketing plans with business plans and playing the long game were cited as being key. Agencies and suppliers were offering marketing support to help resellers make the most out of funding and materials available, but how effective can they be in isolation?

On the vendor/supplier side you want to create scalable programmes that are easy to manage with measurable ROI. Resellers want hot leads, new customers and increased revenue.

The challenges

The two biggest challenges for marketing are setting expectations from the outset and gaining collaborative commitment throughout the business. MDs are often attracted by the prospect of receiving new leads without committing time or resources. They hope for quick results and disappointment can turn to dis-interest.

Integration

Marketing doesn’t stand alone. It needs to be integrated into core business strategy. Companies that have grown well in the channel with recognisable brands have not only integrated marketing plans with the core business plan but also understood the needs of the market. They have packaged, priced, promoted and supported solutions profitably to meet these needs, often investing heavily to do so. The senior management team are as focused on leads as they are on opportunities and marketing statistics are measured in the same way.

Be the bearer

10 years ago we saw demand for white label managed broadband. Traditional telecommunications providers decided to sell own-branded internet connectivity. Their objective was often to win future hosted telephony business running over their data connection. They were billing and supporting new revenue streams, increasing ARPU and the potential value of their companies.

Today we are seeing the same trend with managed mobile data. IT companies are adding fixed and mobile data connectivity to their portfolios to act as a conduit for the sale of hosted services. Their objective is to support devices and applications connected to the internet.

Demand

4G routers are being used as primary connections where broadband service is poor but also for pre-Ethernet connectivity and Ethernet back-up. Mobile data SIMs are being fitted in many gaming machines, vending machines, monitoring devices, sensors and ATMs as standard. Every day manufacturers and service companies are finding new uses for mobile data and as we accelerate towards 5G this is unlikely to slow down.

SMEs are demanding faster, more competitive access to the internet, whether that be wired, wireless or 4G. Services are viewed as a commodity so businesses want to know what is available at what speed and who has the best deal. Partnering with companies who have multi-carrier quoting tools and experience working with the carriers, is essential to winning the business.

Mobile data

Mobile data has its own unique set of challenges. Managing usage is essential to avoid bill shock. Partnering with companies that have portals to allow you to manage vast estates of data SIMs at a touch of a button, will help to grow this revenue stream.

According to a recent report by IDC the implementation of Internet of Things (IoT) is growing exponentially due to several simultaneous new developments: leaps in innovation around computing, storage and analytics; falling technology costs; and a sharp jump in mobile device use. They predict that by 2020, there will be 28 billion connected units globally and the market for IoT solutions will top £5.6 trillion. They see growth from the business market outstripping that of the consumer market.

In the channel we are seeing an exponential rise in demand for mobile data SIMs and not only for use in 3G/4G routers, pre-Ethernet connectivity and Ethernet back-up. Mobile data SIMs are being fitted in many gaming machines, vending machines, monitoring devices, sensors and ATMs as standard. Every day manufacturers and service companies are finding new uses for mobile data and as we accelerate towards 5G this is unlikely to slow down.

The challenges

The issue for many is one of management. Unlike FTTC, which is largely unlimited (usually with a fair use policy), mobile broadband is sold with monthly usage allowances and financial penalties for over usage. Pricing is high and there has been no easy management portal until now.

Companies that possess detailed knowledge about their customers and use it to their profitable advantage are successful. Knowing specifically what buyers want, savvy leaders can build and deliver the precise solutions to meet their needs. They have the knowledge to offer the right products at the right price with the appropriate service wrap. They mirror problems and propose appropriate solutions to create positive buying experiences.

In marketing we look to better understand the needs of our customers to tailor offers to meet these requirements. When our partners look to marketing for help, they are often looking for new prospects to sell new services to. By first analysing their existing base, for what sales like to call ‘low hanging fruit’, partners gain a clearer picture of the required price point and service wrap needed to win the business. It is much easier to sell to an existing customer and once the first deal has gone through, confidence and commitment to the new revenue stream grows. With the right reference sites, partners start to build a pipeline of opportunities from their target profile.

By understanding the changing needs of an existing customer base and evolving to meet future requirements, companies not only protect future revenues, but also increase ARPU and have the knowledge they need to win new business.

As many of you are aware the staff at Jola have all worked together before at Griffin. Griffin was a channel ISP that won multiple awards and was regarded by many as the UK’s leading white label broadband supplier to the channel.

Griffin predicted early on that when internet connectivity became fast enough and reliable enough, that there would be a market for cloud-hosted applications. Griffin invented managed broadband and enabled hundreds of resellers to become virtual ISPs.

Prior to the launch of MOPS (Griffin’s Managed Online Provisioning System), telecoms providers selling internet connectivity did so on a commission basis. As the market converged, they saw suppliers more as competition and needed to take back control of the customer experience. To eliminate the risk and maximise the value of their businesses, they wanted to provide broadband under their own brand. The prospect of becoming an ISP in 5 days was appealing.

Griffin developed MOPS to meet this need and helped the telecommunications channel grow new revenue streams from ADSL, SDSL, ADSL2+, FTTC and leased lines.

Could the same thing be happening with mobile broadband?

4G is widely available in the UK with typical download speeds of around 20Mb/s and theoretical speeds of up to 150Mb/s. We have seen a surge in demand for data-only SIMs in devices other than smart phones. Business users are keen to use 4G to connect devices to the internet, especially in areas where broadband connectivity is slow. The issue for many is one of management. Unlike FTTC, which is largely unlimited (usually with a fair use policy), mobile broadband is sold with monthly usage allowances with financial penalties for overusage. Pricing is high and there has been no easy management portal until now.

At Jola our most successful telephony partners install JolaPhone as their in-house telephony. These partners use the system regularly and are comfortable demonstrating solutions on-site and creating compelling proposals. The team are all familiar with the key benefits of the solution and have no issue sharing their thoughts or even recommending the system to others, whatever their role.

They have a regular stream of opportunities they bid for, with an excellent close rate. Customers get a great deal of comfort from knowing the supplier they trust also uses the system in-house and is well-versed on how to order, install and support it moving forwards.

Common drivers for change are a new location, an internet connectivity upgrade, a need for additional users, a need for new functionality or to save money.

By being a supplier who uses the products they sell, they are already demonstrating the benefits of auto attendant, call handing, music on hold etc. to every client that calls in.

Jola has grown over 24 months to be one of the largest suppliers of mobile SIMs through channel, in the UK. This is primarily due to the growth in demand for mobile data and our unique ability to provide the means for resellers to manage their mobile broadband estates.

Reliability

A mobile signal is usually only unreliable when it is moving. A 3G/4G broadband signal when stationary often delivers a faster and more stable service. In fact, most resellers and their customers would probably prefer to use mobile broadband for everything if it weren’t for two things; cost and risk.

Management

Once a SIM is installed in a device (handset, laptop or vending machine) the user is often blind to usage until they get a warning or a bill. They usually don’t want a device to stop working once the SIM has reached its allowance, equally they don’t want the shock of enormous out of bundle charges. Jola is successful because we offer great rates and a management portal that allows resellers and their end users to activate, SIM-swop, monitor usage, cease or bar SIMs. We also have a unique overage protection facility to protect customers from bill shock.

Demand

Research shows that when companies are thinking about upgrading their internal communications, 48% seek advice from their local suppliers and 55% research the internet. Some suppliers are happy to give advice but then either leave it at that or simply refer a company they know. By also supplying the telephony, they have an additional monthly revenue stream and a new service to support.

Simplicity

Around 10% of SMEs are using VoIP (Voice over IP) but it is the fastest growing communications product in the UK. There is no equipment on-site except the handsets, which are often included in the rental. 

Recurring revenue

Hosted telephony seats are pay per month and offer a lucrative recurring revenue stream especially when bundled with additional IT services.

According to McKinsey, revenues from mobile data are set to increase dramatically in the next 7 years to over £11bn.

Factors driving growth are the availability, speed and reliability of 4G (39.5 million subscribers in 2015), the trend of embedding data SIM cards into devices and the availability of cost-effective SIM-only packages on 30-day contracts.

UK SMEs are turning to their trusted IT and telecommunications suppliers for help sourcing mobile data SIMs. Their suppliers need good management portals to control their burgeoning estates.

Jola offers a range of 4G UK, EU and Global tariffs on 30-day contracts starting from around £7 per month. The company has recently launched Mobile Manager, an online management portal for ordering and managing estates of mobile data SIMs. The portal communicates with the Vodafone 4G network, enabling Jola partners to create customers, manage activations and instantly control SIM swaps, bars, ceases, tariff changes and bolt-ons.

Jola is one of the channel’s largest mobile data providers managing thousands of SIMs all over the world. The company is experienced in developing and managing portals for the channel and has just launched Mobile Manager.

Mobile Manager is an online management portal for ordering and managing estates of mobile data SIMs. The portal communicates with the Vodafone 4G network, enabling Jola partners to create customers, manage activations and instantly control SIM swaps, bars, ceases, tariff changes and bolt-ons.

Mobile Manager gives partners complete control over their mobile data assets. In most cases end users don’t want their mobile data SIMs to switch off when they reach capacity, but they also don’t want to pay much higher out-of-bundle charges. With Mobile Manager, Jola partners can set up alerts to monitor usage limits per customer. They can then automatically pause the SIM or use the overage protection facility. Mobile Manager is a white label portal with parent-child functionality, so partners can extend functionality to their own customers as if the software was their own.