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View Full Version : Cashback attracting low spenders - Orange



3GScottishUser
27th May 2005, 12:04 PM
From Mobile Today (26/05/2005):

Orange’s sudden and dramatic commission cut last week was blamed on dealers exploiting big commissions to pile on low-spending customers through cashback deals.

Orange head of independent retail Chris Hough said: ‘There were certain things happening that we didn’t like. Certain dealers were being creative with commissions. Instead of paying themselves, they used the margins to drive the volume.’

Hough revealed a sudden surge in connections on high tariffs. Orange’s dealer managers and distribution partners fed reports back to him that the activity was fuelled by low-spending customers connected on expensive tariffs. ‘You had people wanting Your Plan 120 who were being connected to Your Plan 600.’

Orange is thought to have been angry about reports of some dealers engineering cheap cashback-rich deals on big tariffs. ‘It’s frustrating when you hear people saying margins are being squeezed,’ said Hough. ‘When we allow dealers to make a decent margin, they give it back to the customer.’

Full Article: http://www.mobiletoday.co.uk/artman-test/publish/article_406.shtml