7/22/2009 1:32:00 PM
Carphone managers told to raise retailer's contracts share by 10%
Carphone Warehouse staff were told last week that they must sell more contract phones following a recent lag in sales.
Staff were sent a message on the internal systems stating Carphone’s aim to improve its share of contract sales by 10% after a drop in postpay subscriptions.
Concerns were raised after a decline in contract sales, an area that generates more profit than any other segment of Carphone’s business.
The fall in postpay is at odds with the retailer’s prepay sales, which recently hit its highest market share, as revealed by Mobile last week (17 July).
Carphone has already stressed the urgency to improve contract sales to
staff. The retailer is also thought to be considering a number of new initiatives to boost postpay sales, and has started a programme called ‘Prospect Capture’.
The initiative requires Carphone staff to gather customer details onto its internal system, ‘Pie’, which then sends a reminder text to the customer on
the day they are due for an upgrade.
Carphone’s commercial team is also understood to be looking for more exclusive contract handsets at better prices to boost profit margins on contract sales.
The push comes as Sim-only sales continue to swamp the market, with some estimates claiming they represent between one third and one quarter of all contract sales, but largely for operators’ direct channels.
One Carphone staffer, based in the north west, said: ‘We are having to push contracts an awful lot harder at the moment, hopefully Prospect Capture will help us improve sales too.’