9/3/2009 11:52:00 AM
Prepay churn risk at T-Mobile
T-Mobile retail staff have claimed their commission criteria has changed, after they were told pay as you go migrations to contracts would no longer count as a new connection.
The move was explained by the network as an attempt to ‘make the business look better from the outside’.
Prepay customers upgrading to a contract will only count as a new connection if they take a new phone number.
It is understood that the retailer will stop advertising its Solo price plan, which promotes the benefit of customers keeping their number.
Staff have a target of around 120 connections per month, and around 30-40 of those are made up of pay as you go customers switching to contract, according to one store manager.
Store managers were informed of the changes via conference call.
Staff will now earn just 50p commission on connections that come from prepay deals where the number is ported, Mobile understands. One T-Mobile staffer said: ‘They are encouraging us to churn customers.’
Another staff member said: ‘Anyone who does a port will only get 50p instead of the normal £2.50 or £5 offered on other connections.’
Store staff have been told they must hit targets by the end of the month. One staffer added: ‘I think people will be going if they don’t. They are now looking at performance on a weekly basis rather than monthly.’
Staff also claimed the change in performance monitoring has pushed more people to join unions as they fear for their jobs.
A T-Mobile spokesman said: ‘It is correct to say that we have amended our policy with regards to pre and postpay migrations from 1 August. The reason for this is to align our store/retail and corporate financial reporting systems.’