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3GScottishUser
3rd November 2005, 05:58 PM
From Mobile Today 03/11/2005:

The Carphone Warehouse is piloting a radical overhaul of its cashback system in four of its stores that doesn’t require redemption on the part of the customer.

If it works, it could spell the end for cashback customers having to pay the full amount up front and only being given the cashback after sending in their monthly bills.

Carphone has been able to adjust the line rental for Vodafone and O2 customers, who it bills directly. For the other major networks (Virgin, 3, T-Mobile and Orange), Carphone will automatically send cashback cheques to the customers every month.

A Carphone source said: ‘A lot of customers don’t like it when they sign up for something that is £4.99 a month line rental and they later find out they still have £30 a month going out of their account.’

The trial has been running for two weeks on some of Carphone’s cashback deals.

Retailers use the redemption method of cashback both to protect themselves against clawbacks and to benefit from customers who forget to redeem cheques during their contract.

Carphone was not available to comment as Mobile went to press.

Walker rings the changes
Carphone’s much-heralded new commission structure kicked into action this week.

Contract clawback on staff has dropped from £50 to £10 as a result of confidence that fraud will fall with the introduction of Chip and PIN transactions.

Other changes include a boost in commissions on prepay sales as well as one on new contract connections that is more closely linked to margin. Richard Walker, new COO, told Mobile last month: ‘90% of the changes we’ve made since I’ve come in [a month ago] have been from the feedback from the shop floor.’

http://www.mobiletoday.co.uk/artman-test/publish/article_889.shtml

Ben
3rd November 2005, 08:55 PM
Hurrah for CPW! Well I'll say, levelling off commissions and doing away with redemption. They actually seem to have good intentions! O_o Should I be so suprised? ;)

3GScottishUser
3rd November 2005, 09:55 PM
This looks like a big advantage for Vodafone and 02 customers due to CPW billing. No need to send in bills etc, customers will get exactly the deal adverrtised and their bills will relate exactly. A huge move forward that CPW staff will doubtless be keen to promote.

Hands0n
4th November 2005, 12:08 AM
CPW has got to be a marketing channel to watch. This announcement of theirs will probably wipe the floor with the competition unless it can come to the party. I normally deal with the mobops directly where I can. CPW's initiative is making me reconsider that approach, if the price is right.

Ben
4th November 2005, 10:58 AM
Mhmm it's curious isn't it, makes me want to dip my toe in the CPW water again also. The last time I bought from CPW they a) fecked up and ran the credit check 3 times, b) spelt my name wrong and c) I ended up getting advertising crap from third parties despite saying no.

It takes a while to forgive stupid mistakes, but it'd be ignorant of me to overextend that one experience to CPW as a whole and to the present day. Cashback being applied directly to bills just sounds fairytale-like, it's got to be worth a look.