9/8/2008 12:09:00 PM
Catterson: the secret to an effective commission scheme
Anthony Catterson, the former MD at Phones 4u and Carphone Warehouse, has said mobile companies still struggle to come up with effective retail staff incentive schemes.
Writing exclusively for Mobile, Catterson outlined five key questions mobile retailers should ask in order to achieve an effective commission/bonus scheme.
In light of the emphasis on customer service, upgrades and new products, both of Catterson’s former employers have just unveiled new commission schemes, and network stores are also introducing new commission models.
He warns against complicated commission structures, arguing: ‘If your employees cannot describe the majority of the reward scheme and understand in one minute how it affects them, the scheme is too complex, it will just confuse them and discourage them.’
He also underlines the importance of good management, the need to understand the motivations of staff, better customer feedback and potential risks when moving to a team-based bonus scheme.
Catterson was at the helm when Phones 4u was growing at an exceptionally fast rate between 2001 and 2004 as former owner John Caudwell pursued an aggressive growth strategy. More recently, he was retail MD at Carphone when the leading mobile retailer wanted to improve its ‘footfall conversion rate’, and attempted to pull Carphone’s staff from behind the counter, onto the shop floor and approach customers.
Click here to read Anthony Catterson’s article in full.