Jan. 28, 2008 – Part Two of our interview with Janet Schijns, President of The JS Group, leading consultants to the technology channel partner business. We look forward to regular contributions by Janet’s group in the new RFID Trade Mart launching next month.

Have you seen any commonality in the way the sellers approach marketing their now new RFID services?
 
Schijns: Yes. They didn’t look to sell isolated “Pieces of RFID solutions,” or just what they were already proficient at installing. They sold a full solution. So, the commonality was they partnered with one or two other firms to bring that full solution to market.
 
Did they partner with manufacturing firms or with other solution providers?
 
Schijns: With other providers. Maybe with an ASP or other software manufacturer. Perhaps they are providing the hardware and a nationwide services firm helps do the installation (in other geographic areas). RFID does take a certain amount of care and feeding. And so solution providers partnered together and then they went after a specific huge market – asset tracking the hospitals, for example. Some money maker!
 
Were the sellers approaching the potential client and saying ‘Here is something we can do for you,’ rather than ‘Hey, we’ve got some nifty RFID’?
 
Schijns: They asked ‘what do you need from RFID? What can we do to help?’

They went in and said, ‘We can save you 18 percent, because you won't lose expensive medical equipment. Through asset tracking, we can save you 18 percent and here is the package and here is the cost. And if you would like it customized, we can customize it the following ways.’ And that is how they have had some early wins. So, it really comes down to understanding the customer needs and keeping it very narrow, very focused.
 
In cases where you have seen your VAR clients be successful with RFID, have they been able to get long term contracts and servicing?
 
Schijns: That is a great question. They have been able to get service level agreement engagements that span from three to five years.

Generally, 18 month is longer than they were able to get for a standard solution. So, let's say, for example, they did supply team mobility in the past, they might have gotten a two year contract for that. Now they can get a four or five year contract for RFID because of the fear factor that they can't do it themselves. The firms cannot do it themselves.
 
More importantly, the brand ‘to win (the deal) comes with me.’ Meaning that they can promote their services, if they are there through ongoing service agreements, because they may be counted as a reliable source. And that can lead to further implementation, for them as well as their manufacturing partners, the installed brand.

Recently there was a marketing survey that said that 80 percent of the customers said they found their advanced technology supplier on their website. When they really dug down, what they found was that it came from a peer referral. So, those firms who have narrowed in and dug that niche marketing, are getting a substantial amount of referrals from their installed account base because of those services.
 
It sounds like you are saying, by getting started, they were able to actually have a little bit of a snowball effect.
 
Schijns: And now they are getting proficient. So, for example, after successfully creating asset tracking solutions in health care, now all those health care companies work together, doing HMOs, doing compliance groups, and they say, ‘Oh, we did our RFID with this integrator’ and they can help you; and maybe that service will stand out and become nationwide in that niche of the reseller.’ That is what is we see working today.