Have you ever been shopping somewhere only to find out at the checkout the retailer’s payment system was down, and it couldn’t accept credit or debit card payments? As frustrating as that experience can be, consider the negative repercussions from the retailer’s perspective.
“With retail organizations generating revenue on an hourly and sometimes minute-by-minute basis, downtime can be much higher than with other organizations that have less frequent transactions.”
Dave Sobel, director of partner community at GFI Software
“For example, a typical storefront, such as a retail shoe store, can bring in revenue in the thousands of dollars an hour, and when the system is down, this revenue is halted at best, but more often it’s lost to a competitor.”
One of the reasons retail VARs struggle to sell backup and disaster recovery (BDR) solutions to their retail customers stems from a fear of price objections. Let’s face it, storage is cheap, the price is dropping, and with all the free offers out there, it’s impossible to make decent margins if you’re BDR discussions are focused too heavily on cost per gigabyte.
Subo Guha, vice president of product management and marketing at Unitrends, advises IT service providers to: “Focus instead on the business SLA [service level agreement] and recovery times a business can tolerate and look at the customer’s future growth needs.”
Keep this fact in mind the next time a customer or prospect balks at the idea of paying a monthly fee for a managed BDR offering: They probably haven’t done their homework on their RTO (recovery time objective) and RPO (recovery point objective) needs, and they’re likely assuming their cheaper backup system will work the way they need it to when the time comes.
“If an MSP can clearly articulate the financial impact to a retailer’s operations when even a couple of hours of downtime occur, the MSP can sell a business continuity solution,” says Rob Rae, VP of business development at Datto. “To make that happen, it’s imperative MSPs present easy to understand metrics to their retail prospects.” Some BDR vendors and value-added distributors offer online RTO/RPO calculators that MSPs can use when engaged in these discussions. Try it out and see if you can more effectively teach customers and prospects that just like the fact that you wouldn’t buy cut-rate auto, home, or life insurance to protect your personal assets, the same principle applies to your business assets.
For an additional tip about selling BDR in retail, be sure to check out “No Time For POS Downtime.”