What's Next? How to Charge More by Reinventing VoIP Services

What's Next? How to Charge More by Reinventing VoIP Services

Not that long ago, VoIP companies could make serious money by charging 10 cents a minute for long distance or $30 a month for local phone service. But with a low barrier to entry, the market very quickly became crowded, and prices fell to the basement. Now anyone off the street can get sub-1-cent per-minute US LD with no minimums. That business model is dead. For many companies, salvation came in the form of moving upstream to offering virtual PBX, or the more buzz-wordy "Cloud PBX". But once again, the field is full of competitors and with very little to differentiate. Why should any customer choose you? If you answered "price", you're going to lose.

This presentation is all about solving that problem: how to create differentiated real-time communication services that allow you to charge your customers for the value you create, rather than for the minutes they use.

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Ben Klang

May 11, 2013
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Transcript

  1. What’s Next? How to Charge More by Reinventing VoIP Services

    Thursday, August 8, 13
  2. CAN YOU SPEAK MAGIC? 2 Thursday, August 8, 13

  3. CAN YOU SPEAK MAGIC? 2 Ben Klang Thursday, August 8,

    13
  4. CAN YOU SPEAK MAGIC? 2 Ben Klang Thursday, August 8,

    13
  5. CAN YOU SPEAK MAGIC? 2 Ben Klang Thursday, August 8,

    13
  6. CAN YOU SPEAK MAGIC? 2 Ben Klang Thursday, August 8,

    13
  7. CAN YOU SPEAK MAGIC? 3 How to Charge More by

    Reinventing VoIP Services Thursday, August 8, 13
  8. CAN YOU SPEAK MAGIC? 4 Making a buck in VoIP

    and Cloud PBX is Hard Thursday, August 8, 13
  9. CAN YOU SPEAK MAGIC? 4 Making a buck in VoIP

    and Cloud PBX is Hard ...and Getting Harder Thursday, August 8, 13
  10. CAN YOU SPEAK MAGIC? THE PROBLEMS 5 Thursday, August 8,

    13
  11. CAN YOU SPEAK MAGIC? THE PROBLEMS Price Minimization 5 Thursday,

    August 8, 13
  12. CAN YOU SPEAK MAGIC? THE PROBLEMS Price Minimization Service Homogenization

    5 Thursday, August 8, 13
  13. CAN YOU SPEAK MAGIC? THE PROBLEMS Price Minimization Service Homogenization

    Sexiness Boringization 5 Thursday, August 8, 13
  14. CAN YOU SPEAK MAGIC? 6 PRICE MINIMIZATION Thursday, August 8,

    13
  15. CAN YOU SPEAK MAGIC? 1995 PRICE-PER-MINUTE 7 Thursday, August 8,

    13
  16. CAN YOU SPEAK MAGIC? 2005 PRICE-PER-MINUTE 8 Thursday, August 8,

    13
  17. CAN YOU SPEAK MAGIC? 2005 PRICE-PER-MINUTE 8 Thursday, August 8,

    13
  18. CAN YOU SPEAK MAGIC? 2015 PRICE-PER-MINUTE 9 0 Thursday, August

    8, 13
  19. CAN YOU SPEAK MAGIC? 2015 PRICE-PER-MINUTE 9 0* Thursday, August

    8, 13
  20. CAN YOU SPEAK MAGIC? TODAY’S PRICE-PER-MINUTE 10 Thursday, August 8,

    13
  21. CAN YOU SPEAK MAGIC? TODAY’S PRICE-PER-MINUTE 10 Thursday, August 8,

    13
  22. CAN YOU SPEAK MAGIC? 11 Thursday, August 8, 13

  23. CAN YOU SPEAK MAGIC? SERVICE HOMOGENIZATION 12 Thursday, August 8,

    13
  24. CAN YOU SPEAK MAGIC? 13 Thursday, August 8, 13

  25. CAN YOU SPEAK MAGIC? 14 Thursday, August 8, 13 12,000

    vertical pixels of text Covers North American providers The full list is 3 times longer than this I tried showing you the full list in this presentation but it kept crashing the software
  26. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP 15

    Thursday, August 8, 13 27% of checked sites are dead
  27. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP •78

    Companies Checked 15 Thursday, August 8, 13 27% of checked sites are dead
  28. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP •78

    Companies Checked •21 Websites Down/Gone 15 Thursday, August 8, 13 27% of checked sites are dead
  29. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP •78

    Companies Checked •21 Websites Down/Gone •How many more silently failed? 15 Thursday, August 8, 13 27% of checked sites are dead
  30. CAN YOU SPEAK MAGIC? SEXINESS BORINGIZATION 16 Thursday, August 8,

    13 Boringization: Was sexy for a minute when VoIP disrupted the remnants of Ma Bell. Then got exciting again when cheap PBXes moved to the cloud. But now what? This is evidence that all the interesting problems have been solved. At this point you are not going to enter this market selling generic voice minutes or Cloud PBX services and expect to surprise anyone - they’ve gone mainstream. We have to reach further.
  31. CAN YOU SPEAK MAGIC? SERVICE COMMODITIZATION 17 http://mspmentor.net/acquisitions/hosted-voip-acquisition-warwick-valley-telephone-buys-alteva Thursday, August

    8, 13
  32. CAN YOU SPEAK MAGIC? SERVICE COMMODITIZATION 18 http://www.zacks.com/stock/news/97333/jcom-on-acquisition-spree “Last year,

    the company made six acquisitions related to cloud-based services.” “The company executed three more buyouts early this year. The aggressive buyout strategy of the company will consolidate its global leading position in the virtual PBX market.” Thursday, August 8, 13
  33. CAN YOU SPEAK MAGIC? GIVING UP 19 Thursday, August 8,

    13
  34. CAN YOU SPEAK MAGIC? THREE OUTCOMES 20 Thursday, August 8,

    13 Unless you’re the one doing the buying... If you are in this market and you’re not changing something, these are the outcomes
  35. CAN YOU SPEAK MAGIC? THREE OUTCOMES Be Bought 20 Thursday,

    August 8, 13 Unless you’re the one doing the buying... If you are in this market and you’re not changing something, these are the outcomes
  36. CAN YOU SPEAK MAGIC? THREE OUTCOMES Be Bought Tread Water

    20 Thursday, August 8, 13 Unless you’re the one doing the buying... If you are in this market and you’re not changing something, these are the outcomes
  37. CAN YOU SPEAK MAGIC? THREE OUTCOMES Be Bought Tread Water

    Give Up 20 Thursday, August 8, 13 Unless you’re the one doing the buying... If you are in this market and you’re not changing something, these are the outcomes
  38. CAN YOU SPEAK MAGIC? FOURTH OPTION: 21 Thursday, August 8,

    13 Such an overused word. So let’s look at what it means
  39. CAN YOU SPEAK MAGIC? FOURTH OPTION: 21 INNOVATE Thursday, August

    8, 13 Such an overused word. So let’s look at what it means
  40. CAN YOU SPEAK MAGIC? INNOVATION 22 Thursday, August 8, 13

    Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  41. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model 22 Thursday,

    August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  42. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  43. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  44. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones •Focus on Being Different 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  45. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  46. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  47. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  48. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization •Highly targeted products and services 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  49. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization •Highly targeted products and services •Vertical Integration 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  50. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from

    selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization •Highly targeted products and services •Vertical Integration •Deliver things that others can’t 22 Thursday, August 8, 13 Go against the mainstream. Don’t just do what everyone else is doing Not just lipservice
  51. CAN YOU SPEAK MAGIC? INNOVATION THROUGH SPECIALIZATION 23 Thursday, August

    8, 13 Let’s solve real problems
  52. CAN YOU SPEAK MAGIC? 24 Thursday, August 8, 13

  53. CAN YOU SPEAK MAGIC? HOW DOES THIS WORK? 25 Thursday,

    August 8, 13
  54. CAN YOU SPEAK MAGIC? HOW DOES THIS WORK? 1.Identify a

    market to serve The more specific the better! Pick one you know or have connections to 25 Thursday, August 8, 13
  55. CAN YOU SPEAK MAGIC? HOW DOES THIS WORK? 1.Identify a

    market to serve The more specific the better! Pick one you know or have connections to 2.Learn what makes them tick What pains do they suffer? Where are opportunities to solve problems? 25 Thursday, August 8, 13
  56. CAN YOU SPEAK MAGIC? HOW DOES THIS WORK? 1.Identify a

    market to serve The more specific the better! Pick one you know or have connections to 2.Learn what makes them tick What pains do they suffer? Where are opportunities to solve problems? 3.Solve problems, sell solutions 25 Thursday, August 8, 13
  57. CAN YOU SPEAK MAGIC? HOW DOES THIS WORK? 1.Identify a

    market to serve The more specific the better! Pick one you know or have connections to 2.Learn what makes them tick What pains do they suffer? Where are opportunities to solve problems? 3.Solve problems, sell solutions 4.Repeat Step 3 25 Thursday, August 8, 13
  58. CAN YOU SPEAK MAGIC? HOW DOES THIS WORK? 1.Identify a

    market to serve The more specific the better! Pick one you know or have connections to 2.Learn what makes them tick What pains do they suffer? Where are opportunities to solve problems? 3.Solve problems, sell solutions 4.Repeat Step 3 5.Profit! 25 Thursday, August 8, 13
  59. CAN YOU SPEAK MAGIC? WHY DOES THIS WORK? 26 Thursday,

    August 8, 13 As long as you keep the price competitive, or the price/value balance
  60. CAN YOU SPEAK MAGIC? WHY DOES THIS WORK? •Niche markets

    often underserved 26 Thursday, August 8, 13 As long as you keep the price competitive, or the price/value balance
  61. CAN YOU SPEAK MAGIC? WHY DOES THIS WORK? •Niche markets

    often underserved •Solutions create high value! 26 Thursday, August 8, 13 As long as you keep the price competitive, or the price/value balance
  62. CAN YOU SPEAK MAGIC? WHY DOES THIS WORK? •Niche markets

    often underserved •Solutions create high value! •Tailored beats Generic every time 26 Thursday, August 8, 13 As long as you keep the price competitive, or the price/value balance
  63. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS! 27

    Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  64. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS! 27

    Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  65. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS! 27

    Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  66. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS! 27

    Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  67. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS! 27

    Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  68. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS! 27

    Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  69. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS! 27

    Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  70. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 28 Thursday,

    August 8, 13
  71. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Thursday,

    August 8, 13
  72. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Thursday,

    August 8, 13
  73. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Thursday,

    August 8, 13
  74. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Thursday,

    August 8, 13
  75. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? 30 Thursday,

    August 8, 13
  76. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? 31 Thursday,

    August 8, 13
  77. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims 31 Thursday, August 8, 13
  78. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims •Secure Caller Authentication 31 Thursday, August 8, 13
  79. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims •Secure Caller Authentication •Reuse primary auth via website 31 Thursday, August 8, 13
  80. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics 31 Thursday, August 8, 13
  81. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location 31 Thursday, August 8, 13
  82. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location •Call recording/transcription 31 Thursday, August 8, 13
  83. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location •Call recording/transcription •Medical advice given to patient automatically added to patient file 31 Thursday, August 8, 13
  84. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Automate Medical

    Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location •Call recording/transcription •Medical advice given to patient automatically added to patient file •Auditing/Service Quality Assurance 31 Thursday, August 8, 13
  85. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? 32 Thursday,

    August 8, 13 The key to ROI in these markets is identifying commonalities, like Tessitura, and building solutions that integrate with existing, widely deployed packages
  86. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Arts Management

    32 Thursday, August 8, 13 The key to ROI in these markets is identifying commonalities, like Tessitura, and building solutions that integrate with existing, widely deployed packages
  87. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Arts Management

    •Enable perfect memory 32 Thursday, August 8, 13 The key to ROI in these markets is identifying commonalities, like Tessitura, and building solutions that integrate with existing, widely deployed packages
  88. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Arts Management

    •Enable perfect memory •Anticipate caller’s needs 32 Thursday, August 8, 13 The key to ROI in these markets is identifying commonalities, like Tessitura, and building solutions that integrate with existing, widely deployed packages
  89. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Arts Management

    •Enable perfect memory •Anticipate caller’s needs •Concierge receives caller info via Instant Message: Caller Photo, Last Ticket Purchase, Seating Preference, Lifetime Donation Amount 32 Thursday, August 8, 13 The key to ROI in these markets is identifying commonalities, like Tessitura, and building solutions that integrate with existing, widely deployed packages
  90. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Arts Management

    •Enable perfect memory •Anticipate caller’s needs •Concierge receives caller info via Instant Message: Caller Photo, Last Ticket Purchase, Seating Preference, Lifetime Donation Amount •Click-to-Call options for purchasing tickets integrated with popular backend software 32 Thursday, August 8, 13 The key to ROI in these markets is identifying commonalities, like Tessitura, and building solutions that integrate with existing, widely deployed packages
  91. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? •Arts Management

    •Enable perfect memory •Anticipate caller’s needs •Concierge receives caller info via Instant Message: Caller Photo, Last Ticket Purchase, Seating Preference, Lifetime Donation Amount •Click-to-Call options for purchasing tickets integrated with popular backend software •Automate weather contingency notification 32 Thursday, August 8, 13 The key to ROI in these markets is identifying commonalities, like Tessitura, and building solutions that integrate with existing, widely deployed packages
  92. CAN YOU SPEAK MAGIC? CASE STUDY 33 Thursday, August 8,

    13
  93. CAN YOU SPEAK MAGIC? CASE STUDY •Commoditized Market: Home Remodeling

    33 Thursday, August 8, 13
  94. CAN YOU SPEAK MAGIC? CASE STUDY •Commoditized Market: Home Remodeling

    •No players in market with more than a single-digit share 33 Thursday, August 8, 13
  95. CAN YOU SPEAK MAGIC? CASE STUDY •Commoditized Market: Home Remodeling

    •No players in market with more than a single-digit share •Industry reputation for low quality, poor service, unhappy customers 33 Thursday, August 8, 13
  96. CAN YOU SPEAK MAGIC? CASE STUDY 34 Thursday, August 8,

    13 Professionalized the industry Click-to-call small feature to implement, BIG impact on productivity All calls recorded for training
  97. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP

    package 34 Thursday, August 8, 13 Professionalized the industry Click-to-call small feature to implement, BIG impact on productivity All calls recorded for training
  98. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP

    package •Automates processes for sales, financing, product installation, ongoing customer service 34 Thursday, August 8, 13 Professionalized the industry Click-to-call small feature to implement, BIG impact on productivity All calls recorded for training
  99. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP

    package •Automates processes for sales, financing, product installation, ongoing customer service •Call center automation 34 Thursday, August 8, 13 Professionalized the industry Click-to-call small feature to implement, BIG impact on productivity All calls recorded for training
  100. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP

    package •Automates processes for sales, financing, product installation, ongoing customer service •Call center automation •Confirm appointments with consumer 34 Thursday, August 8, 13 Professionalized the industry Click-to-call small feature to implement, BIG impact on productivity All calls recorded for training
  101. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP

    package •Automates processes for sales, financing, product installation, ongoing customer service •Call center automation •Confirm appointments with consumer •Match qualified reps with leads 34 Thursday, August 8, 13 Professionalized the industry Click-to-call small feature to implement, BIG impact on productivity All calls recorded for training
  102. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP

    package •Automates processes for sales, financing, product installation, ongoing customer service •Call center automation •Confirm appointments with consumer •Match qualified reps with leads •Click-to-call for agents 34 Thursday, August 8, 13 Professionalized the industry Click-to-call small feature to implement, BIG impact on productivity All calls recorded for training
  103. CAN YOU SPEAK MAGIC? CASE STUDY 35 Thursday, August 8,

    13
  104. CAN YOU SPEAK MAGIC? CASE STUDY •$172MM in 2012 35

    Thursday, August 8, 13
  105. CAN YOU SPEAK MAGIC? CASE STUDY •$172MM in 2012 •Est.

    $365 in 2013 35 Thursday, August 8, 13
  106. CAN YOU SPEAK MAGIC? CASE STUDY •$172MM in 2012 •Est.

    $365 in 2013 •New offices around the country 35 Thursday, August 8, 13
  107. CAN YOU SPEAK MAGIC? CASE STUDY •$172MM in 2012 •Est.

    $365 in 2013 •New offices around the country 35 Thursday, August 8, 13
  108. CAN YOU SPEAK MAGIC? CASE STUDY •$172MM in 2012 •Est.

    $365 in 2013 •New offices around the country 35 Thursday, August 8, 13
  109. CAN YOU SPEAK MAGIC? WE HAVE THE BEST TOYS TOOLS

    36 Thursday, August 8, 13 VoIP Minutes and Cloud PBX are solved problems. Let’s solve new problems
  110. CAN YOU SPEAK MAGIC? 37 adhearsion.com @Adhearsion http://mojolingo.com @MojoLingo @bklang

    bklang@mojolingo.com http://slidesha.re/10iEMOJ Thursday, August 8, 13
  111. CAN YOU SPEAK MAGIC? 37 adhearsion.com @Adhearsion http://mojolingo.com @MojoLingo @bklang

    bklang@mojolingo.com http://slidesha.re/10iEMOJ Thursday, August 8, 13