2/14/2008 10:28:00 AM
Carphone commission splits staff
Carphone Warehouse staff opinion is divided on a new commission structure focusing on customer retention.
The new system, which was introduced at the beginning of this week, has seen commission rates for sales cut, while rewards for upgrades have risen steeply.
The move comes after Phones 4u this month introduced a more aggressive commission structure, rewarding gross profit instead of sales in a bid to weed out some of its less productive staff.
However, the new Carphone structure appears to place paramount importance on retaining the retail giant’s existing customer base.
In his Mobile 2008 prediction, Carphone CEO Andrew Harrison (pictured) said that upgrades now have the same value as new connections. He said customer retention has become more important than ever in what is now a saturated market with new customers difficult to come by.
His company’s new commission approach reflects his views, with sales commission dropping from £12 to £10, but the amount staff receive for an upgrade rising from £4 to £10.
The retailer has also ditched the opportunity for staff to receive £22 commission on selling ‘banded handsets’ – stock that Carphone wants to clear quickly.
Mobile spoke to Carphone staff and found that opinion is split over how the change would affect their overall earnings. One worker said: ‘Dropping from £12 to £10 doesn’t sound like much but it mounts up.’
Another said: ‘I’m considering leaving because I’m going to be down by about £200 per month.’ However, other sales staff disagreed that they would lose out from the new deal: One said: ‘They haven’t taken anything away from us yet, they are just spreading the money around.’
One store manager said: ‘The new structure will help secure better quality customers. It will keep them happy and simplify things for everyone.’
A Carphone spokesman confirmed that the changes are to be implemented but refused to comment on the new figures.