Jon3G
26th May 2005, 06:03 PM
T-Mobile has doubled the proportion of connections it does through its direct channels in the space of a year, according to the man drafted in to catch up with rivals share of direct business. Mobile has learned that T-Mobile now makes as much as 60% of connections direct.
Gordon Ballantyne (pictured), director of T-Mobile Direct, told Mobile the operator reacted 12 months ago after recognising it was significantly weaker than rivals in its direct business.
Despite its direct ambitions, T-Mobiles retail portfolio of 128 outlets lags way behind rivals. Vodafone (347 stores), O2 (270) and Orange (272) have a far larger presence. T-Mobile is boosted by a further 59 solus outlets: ACE Contact, Fonehouse and Chitter Chatter.
Ballantyne said the retail stores were measured as very profitable businesses, rather than merely tools to warm consumers up to the operators brand. If any part of the business isnt profitable, its not worth it. Im only interested in running a profitable business. Theres a lot of shareholder expectation, he said.
He added: If you look at the cost of acquiring and serving our customers, clearly we need to look at the cost model to service those customers to drive greater efficiency so we can remain competitive in the market.
However, critics said T-Mobiles impressive direct surge was as much down to alienating indirect partners as improving its direct sales, reflecting an overall decline in T-Mobile sales.
Ballantyne stressed that the operator hasnt deserted indie dealers: Were still one of the most indirect-friendly channel partners out there. In fact, [the direct drive] has developed a deeper relationship with our key indirect partners. You begin to focus on the value-add of indirect.
Stakes raised in store
As if to emphasise Ballantynes profit push in the operators own stores, a new high stakes pay scheme was introduced to T-Mobile store staff earlier this month. Staff who miss targets are set for major cuts in pay, while those who excel stand to make considerably more.
One staffer said: Theyre penalising underachievers. They actively knock points off if you dont hit your target.
Ballantyne said: The key thing weve changed is transparency to our staff in what we expect in terms of service and profitability. Were probably in excess of the specialist multiple retailers in how we pay and reward our staff.
© Copyright 2005 : Noble House Media Ltd
http://www.mobiletoday.co.uk/artman-test/publish/article_405.shtml
Gordon Ballantyne (pictured), director of T-Mobile Direct, told Mobile the operator reacted 12 months ago after recognising it was significantly weaker than rivals in its direct business.
Despite its direct ambitions, T-Mobiles retail portfolio of 128 outlets lags way behind rivals. Vodafone (347 stores), O2 (270) and Orange (272) have a far larger presence. T-Mobile is boosted by a further 59 solus outlets: ACE Contact, Fonehouse and Chitter Chatter.
Ballantyne said the retail stores were measured as very profitable businesses, rather than merely tools to warm consumers up to the operators brand. If any part of the business isnt profitable, its not worth it. Im only interested in running a profitable business. Theres a lot of shareholder expectation, he said.
He added: If you look at the cost of acquiring and serving our customers, clearly we need to look at the cost model to service those customers to drive greater efficiency so we can remain competitive in the market.
However, critics said T-Mobiles impressive direct surge was as much down to alienating indirect partners as improving its direct sales, reflecting an overall decline in T-Mobile sales.
Ballantyne stressed that the operator hasnt deserted indie dealers: Were still one of the most indirect-friendly channel partners out there. In fact, [the direct drive] has developed a deeper relationship with our key indirect partners. You begin to focus on the value-add of indirect.
Stakes raised in store
As if to emphasise Ballantynes profit push in the operators own stores, a new high stakes pay scheme was introduced to T-Mobile store staff earlier this month. Staff who miss targets are set for major cuts in pay, while those who excel stand to make considerably more.
One staffer said: Theyre penalising underachievers. They actively knock points off if you dont hit your target.
Ballantyne said: The key thing weve changed is transparency to our staff in what we expect in terms of service and profitability. Were probably in excess of the specialist multiple retailers in how we pay and reward our staff.
© Copyright 2005 : Noble House Media Ltd
http://www.mobiletoday.co.uk/artman-test/publish/article_405.shtml