Don't Limit Yourself To Document Management

Bauernfeind Business Technologies (BBT) opened its doors as an office equipment dealer in 1955. Throughout the decades, the dealer adapted its business model to follow the natural progression of the hardware it sold. The evolution of digital copiers and MFP (multifunction peripheral) devices, with the new ability to scan documents to e-mail, file, or archive, opened the company's eyes to an entirely new opportunity — document management.

For BBT, document management solutions are still a fresh, new offering on the company's line card, having been offered for just over two years. In that short time frame, BBT has made great strides in its transition from copier dealer to document management reseller. In fact, the company's document management software sales are already up 50% over last year. And that's not all. The reseller also has expanded its business to offer professional services, which includes selling and servicing the technologies most often encountered during a typical content management installation — networking and storage. But make no mistake, the transition was not easy for this dealer turned VAR. To accomplish it successfully, BBT needed to completely change its business model, incorporating new technologies, staff, and marketing strategies. 

Combine Document Management And Networking
If BBT was to become a document management VAR, it first needed to select a document management software vendor. "It was important to us to find a vendor that would offer a level of training and support that would allow us to operate with as little assistance as possible, meaning very thorough up-front training and guidance, rather than a basic product introduction and a sales manual," says Joel Cieslinski, IT director at BBT. But the VAR also wanted a vendor that would be instantly available and responsive to answer questions or offer advice whenever needed. In addition, the VAR wanted a document management software platform that was as close to 'all-inclusive' as possible, not wanting to take a modular approach. "After evaluating several vendors and software options, BBT selected Computhink and the ViewWise content management system," continues Cieslinski. (See sidebar)

Next, the VAR took a step that is uncharacteristic of most traditional copier dealers and also many content management resellers. Rather than limiting itself to the development of a document management solution strategy, the VAR recognized an even bigger opportunity to provide value to its customers and add revenue to its bottom line. "In our experience, we had seen three major markets colliding — copier dealer, software provider, and networking specialist," says Scott Knodle, VP of BBT. "It is at this intersection where we saw the most potential to capture additional revenue, and that is why we made the move to become an all-in-one solutions provider."

With customer confidence and growing revenue in mind, BBT made the decision to add network installation and network administration to its list of services, and the decision is really paying off. Cieslinski recalls one recent sale where the customer had no existing network at all but really wanted a content management solution. After BBT was finished, the customer not only had its content management system, but new workstations, network servers and cabling, and NAS (network attached storage) — a complete network implementation from the ground up.

Add Document And Network Specialists To Your Team
In order to change the direction of the company, the executive team at BBT had to first make sure it had the right staff on board. Along the way, BBT would have some difficult decisions to make, including the elimination of staff that was either too resistant to change or those that simply couldn't comprehend the document management strategies the company was looking to promote.

To fill the gaps, BBT developed a hiring strategy to target individuals who already possessed some knowledge of document management processes and document workflows. For example, BBT now looks to hire sales reps that are CDIA (certified document imaging architect)-certified, citing this as a method to not only make it easier for company reps to sell document management, but to instill confidence in customers looking for document management solutions. For reps hired without CDIA certification, as well as those reps who remained on board during the reseller's transition, BBT offers to pay for the training internally. Depending on the student's level of existing knowledge and the training materials needed, these costs could equate to $1,000 or more.

Along with its new job requirements, BBT found it necessary to make revisions to its compensation plans in order to attract more qualified candidates. BBT's compensation plan also was restructured to make it compelling for reps to sell everything the VAR wanted to offer. The early success of the new compensation program is leading BBT toward the possibility of restructuring its compensation program again. For example, the company is considering incorporating complementary technology sales, which the VAR labels as professional services, into a sales quota and bonus structure. However, it is important to note that BBT felt it was important to not make selling professional services a part of the quota structure during the initial compensation restructuring. "We wanted our reps to be confident in our ability to provide these solutions before making it a part of their sales quotas," says Knodle. "By experiencing some success with the new services first [through the initial sales and installations], reps will see firsthand that we can support new technologies and will be more receptive to having professional services included in their sales quotas."

In addition to impacts on the sales staff, BBT had to increase its level of IT expertise to meet the expanded demands of offering networking technologies. What used to be an IT staff of one has now grown to four, and among the team there is more than 30 years of combined network experience. "Expanding IT meant investing in more equipment, training, and additional personnel," says Tom Bauernfeind, president of BBT. "Though we were able to transfer and train some of our copier technicians to the IT department, we did hire extra individuals specifically for IT." Even with the added staff, Bauernfeind relates that most of the investment was in the equipment and training, not the actual wages paid to additional staff.

Change Your Business Offering, Change Your Marketing
Being well known in the region for many decades as a copier dealer initially presented a challenge to BBT. The company was faced with changing the perception of both current customers and future prospects as to all the company had to offer. Part of this was accomplished by promoting early successes in both document management and networking through published case studies, product demonstrations, and word of mouth. But the most successful methods to date seem to be a combination of BBT's Lunch and Learn program and the reseller's own magazine.

BBT's Lunch and Learn program is a series of small-group sessions, generally limited to 5 or 10 participants each, where consumer education — not a firm sales pitch — is the focus. The reseller attracts attendees through a variety of methods including targeted e-mail blasts, direct mail, and even hand-delivered invitations. "Our goal is to get them in the door to show them through examples what a product can mean to their business," says Bauernfeind. The presentation occurs in a casual lunch setting where a variety of document management topics are discussed, along with a product demonstration and interactive Q&A session.

Read more about complementary technology sales by visiting BSMinfo.com/jp/3613.

To reach customers and prospects who don't attend a Lunch and Learn session, the reseller direct markets through biz-tech, a quarterly periodical focused on market education and BBT solutions. BBT uses Imagingnetwork, an independent printing firm, to produce between 2,500 and 3,000 copies of biz-tech. Most copies are sent directly to current customers and prospects gathered from targeted mail lists, with the remainder being used by sales reps as leave-behind marketing material. Inside the magazine is a reply card offering a free BBT coffee mug and a personal consultation and demo. "Everyone likes to get a free gift, but the coffee mug is not a compelling enough reward for someone who doesn't really want to learn more about our solutions," says Knodle. "As a result, the response card has been great for generating qualified leads." On average, reply card response rates fluctuate between 1% and 3%.  However, the response rate from cards in the hand-delivered copies of biz-tech have reached as high as 15%.

For BBT, the decision to make the transition from dealer to reseller couldn't have come at a better time. Declining hardware margins and a stagnant economy had the company's sales in a holding pattern, hovering around the $3 million mark. The addition of document management solutions has put this company back on the road to an increase in sales, with software sales already up 50% over last year and continuing to rise. "Our increased software sales are driving the need for professional services, particularly in network setup and administration," says Cieslinski. "Sales in that division of the company were already up by more than 20% within the first six months of this year and are also continuing to climb." BBT has found rapid sales growth to be the best validation that the hard decisions and challenges that coincide with a company transition, while not easy, were well worth it.