The fundamental function of mobile retail has been transformed in the past year. Retailers are now in effect selling handheld computers. Operators are increasingly putting live handsets on display, while tech experts (or ‘Gurus’) are on hand to deal with any technical issues.
But these changes don’t faze O2 head of retail Richard Baylis, who has been in charge of leading the operator into its new retail era.
The company launched its first new design store in Manchester’s Arndale shopping centre in 2008. Baylis says: ‘We looked at where retail fitted into the shopping experience. We found out that 70% of customers research online before going into store. Now we (customers) want something different in store – we want to understand about tech – we want to touch it, and feel it.’
More than 220 of O2’s 440 stores will be revamped in the same format this year. ‘This fits into the drive for new knowledge,’ Baylis adds. ‘The Gurus have to solve customer problems. We give them the challenge to tell customers three things about devices that they can’t currently do even if they are tech-savvy customers.’
In January, O2 kicked off a restructure of its retail estate that will see 40 of its 480 shops closed as it invests in larger stores.
As a result, 250 staff in smaller stores will be made redundant as 250 new O2 Guru jobs are created.
Baylis says: ‘We looked at areas where there were two stores to reinvest in and make one of them bigger and better – we have already done this in Preston and Peterborough. We have good stores but some were a bit small, so we have expanded.’
Consultation
The network will only lose ‘single figures’ of advisors, says Baylis, adding: ‘We are still going through a consultation process with our store assistant managers and managers at the moment, so we don’t know the outcome yet.’
And although the wave of assistant managers is ‘unlikely to be single figures’, Baylis estimates the net effect on staff numbers in 2011 ‘will be neutral at worst’.
He adds: ‘We are looking to see whether our existing guys want to take roles as Gurus. We need people with knowledge of tech and we will start with our own people. Assistant managers are on the same level as Gurus, so some of those can move over.’
As part of the restructure, O2 is also categorising its stores – based on footfall, demographic and size of the shop and team. ‘In the estate, we are going to recognise staff responsibility through placement at certain bands of store,’ says Baylis.
Tier three represents the operator’s small stores, tier two is medium and tier one is the ‘top stores’.
Baylis explains: ‘In tier three we might have four or five full-time staff, so if there is an assistant manager and manager where there are four employees, then one of the assistant managers will move. In big stores we have a store leader and two assistants, so some may move over.
‘We will also move people into other parts of the business. It’s a three-month consultation and we want to give everyone the right opportunity.’
Part of the challenge in terms of the recruitment of 200-plus Gurus is that O2 wants a Guru for every one of its stores, says Baylis.
He adds: ‘We know customers love Gurus and they love the live handsets. It’s meant we have to amend the way we work in store. Gurus are for the whole shopping journey. Some customers will come in with an idea of what they want but it isn’t necessarily what they need. That’s an interesting challenge.
‘Gurus are non-commission based,’ Baylis stresses. ‘They are bonused - but only on the store’s customer satisfaction levels.’
The Gurus
The Guru has three roles: in-store customers can come in and find out how to use their phones; they track all customer service issues and resolve those for the customer; and they assess training needs and train store staff.
The Gurus also film YouTube videos for Guru TV. Baylis says: ‘That came out of the Guru programme, but we found out they were doing it in their own communities. They started this out themselves by putting videos on YouTube for Gurus in other stores.’
Gurus also have their own booking system where customers can pre-book a slot to come in and get free advice.
Baylis says: ‘Customers will see us at least four times before they upgrade. Our objective is to have all stores with live devices. Clearly, we are well down the road.’
The operator has also introduced what it calls a ‘concierge’ role – responsible for helping customers understand how to use the live handsets. This is important ‘as you have Android, iPhone and lots of different interfaces’, says Baylis.
‘The concierge is about the breadth of products and services and working the queue,’ Baylis says, adding: ‘I run the concierge when I visit stores and I tell customers to play with handsets while we put them into the queue. Customers often say thanks on the way out.
‘We are not perfect but we are getting a positive customer response. We get 30% of customers responding to the text we sent after a purchase.’
So retail has come a long way – and O2 is by no means behind. But is it sustainable?
‘I think the role of retail is beginning to change and I think retail has a place,’ says Baylis. ‘Retail is a pastime and people do like to look at and feel the products.
‘Retail is the “face” of O2 and customers want to talk to us. The world isn’t getting simpler, it’s getting more complex, and that’s the most exciting challenge.’
Editor: Kate Oflaherty