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View Full Version : 3 Connections fall but 60% now connect direct



3GScottishUser
8th May 2007, 03:29 PM
3 now connects 60% of its contract customers direct – three times more than it did at the end of 2006.

3 has shifted its customer acquisition from a reliance on third-party dealers and retailers to acquiring the majority of its new connections itself. However, the shift has come at the cost of fewer connections.

Sales director Marc Allera told Mobile: 'The retail bit is key. We've gone from hardly any to 160 standalone stores. We've focused on increased productivity at Superdrug and increased our web and telesales. There's been increased resources driving traffic to the stores and our website.' Allera said one third of 3's retail contract connections now come from its presence in Superdrug stores.

3's direct push has been aided by the acquisition of 90 sites from The Link. 'Things have started to click into place; getting 90 new stores at once helped,' said Allera.

Retailers and dealers will argue that, given 3's retreat from third-party connections and limited promotional activity, it is not surprising that proportionately its direct connections have rocketed. While Allera acknowledges that 3 has made fewer overall connections this year compared with the same period last year, he said there is far less bad debt, fraud and 14-day returns, meaning proportionately more quality business.

'We are achieving our targets. We're hitting similar numbers; on a net basis there's not a significant difference. Our net return is improved contract business.'

There are no signs of 3's direct drive stopping, given the operator's ambition to open 100 new stores this year. 'We may go out to 70/30 – we're going to roll out 100 new stores. We're doing new things in Superdrug and in direct web sales.'

http://www.mobiletoday.co.uk/content/16192.asp?men=0&sub=1

Ben
8th May 2007, 06:27 PM
I think this is very good news for the customer. 3's own stores finally give the somewhat untrusted network, held in suspicion by many, a public face. There's no way they can gain the same volume of new connections by their own channels, but they can help ensure a better quality as they have far more control over each sale.

In the end, Three will still need to put out new promotions to third parties in order to get volume back up again. It'll be a mixture of direct and indirect sales that'll win out, this is just addressing a long-held imbalance.