3CLogic, a provider of contact center software, announced an incentivized brand switching program called Cloud Switch today. The campaign is aimed at customers of competitor Five9. The promotion has three primary components: software trade in, half price CRM integration, and discounted training. The campaign will be running until September 30th.

Three Point Program

The Cloud Switch program has three different incentives:

1. Trade in pricing – 3CLogic will offer qualified Five9 customers a one time offer to switch to 3CLogic and receive a 50% discount on their current Five9 software fees.
2. Half price CRM integration – The company will offer new customers a 50% discount for integration services that will allow their CRM software to work with 3CLogic’s contact center solutions.
3. Free and discounted training – The company is offering switchers a 50% discount on agent and supervisor training conducted live by 3CLogic Certified Personnel. Customers will also have complimentary access to e-training modules.’

Ramana Reddy, 3CLogic’s Director of Client Services, was adamant about the company’s benefits to potential switchers:

“Even before today’s announcement, 3CLogic believed that it offered a range of features and functions that out-performed other products in its class – including being the only call center platform deployed on Amazon Cloud – at a price point far less than competing systems. With these incentives in place, it would be hard to justify sticking with Five9 now that something this powerful – coupled with extraordinary support and service – is available.”

Shots Fired

I wonder if the call center software market is really so small that 3CLogic feels the need to directly target a competitor. Acquiring any customers from Five9 will likely be an expensive proposition with all the espoused discounting. The hosted call center market is growing dramatically, with more and more businesses choosing to go with a cloud based contact center solution. Could 3CLogic really be so focused on customer growth that it is willing to directly call for customers to switch from Five9?

I’m not so sure about the intelligence of this move. It could lead to a fierce retaliatory response from Five9. It could lead to a pricing war. However, the discounts do put some pressure on Five9 to offer more competitive prices for their contact center software. In the end, the customers of the companies win out because they get cheaper prices for their software.

Still, the offer is impressive. Offering a huge 50% discount will definitely catch eyes and speak to the inherent greed of men. If 3CLogic sees intense interest in the offer, the company could end up killing two birds with stone–a weakened competitor and greater revenues.

What do you think about 3C Logic’s attempt to take FIve9’s customers? Is it a smart move or dumb business? Will the initiative succeed? Let me know in the comments below.