Hunter becomes the hunted

I had my financial advisor round this week. Trying to make the most of the Sweetlove pension millions (I wish) with a base rate of 0.5% is not easy. But we got talking about our respective industries, as you do, and it occurs to me that there are quite a few parallels that we could look to.

The Financial Services industry has had its fair share of mis-selling and customer complaints in the past and the dodgy Independent Financial Advisors (IFAs) who used to move from punter to punter selling what made them the most money with scant regard to what was actually right for the customer have largely been eliminated. All IFAs now need to pass about three certificates and go through a very thorough and open sales process with every customer. The customer knows exactly how much of their cash actually gets invested and how much the IFA keeps as margin etc. Everything is weighted in the customers favour. Sound familiar? There are some definite echoes of the mobile cash-back redemption schemes that never paid out and then Ofcom’s reaction introducing the voluntary code and then GC23 regulation. Dealer culls and all that painful stuff.

The similarities continue. Whereas the FS industry was almost 100% commission based in the past with some claw-back terms by 2012 it will be 100% revenue share. So my advisor has had to turn his business upside down. He now spends his time building up and managing a ‘pot’ of customer money that he moves around in lumps of cash, bonds, property and shares dependant on market conditions and customer risk profile. I will now get an email every 90 days telling me what the value of my investment is and asked whether I accept their proposals for where it will be for the next three months. How good a service is that? I’m in control but they are the specialists working the market and advising me. Three years ago he employed 14 self-employed ‘hunters’ who signed up new business and took a cut of the commission and then on to the next kill. They are all gone. Now he has two investment managers (or ‘farmers’) who manage the pot. He slowly adds new investors money to the pot while the pot grows for all and his business survives on the small percentage (of a big lump) that we all agree is his for managing it. His business has real demonstrable value.

A mobile dealership has a similar shift to make as the networks are now rewarding you in line with how much your customers spend and how long they stay connected. How well are you adjusting your business accordingly?

“We make mobile easy”

Got it? That’s us. We, HSC, make mobile easy. And that is exactly what we will be telling the attendees at Convergence Summit North next week in Manchester. Because despite the fact that mobiles are eating into desktop voice revenues like there is no tomorrow, let alone the various new mobile voice and data technologies and applications, comms channel resellers still seem reluctant to embrace mobile.

The crazy thing is that reselling mobile is not actually that hard. Yes there is some administration at point of connection but there is with most landline transactions too. Yes there are upfront commissions and revenue share to factor into the deal but again it is not rocket science and hardly foreign to a comms dealer. Yes there are some new products, suppliers, bills and customer support processes to become familiar with but this has been well refined over 25 years of the mobile channel and runs pretty smoothly these days. Surely now is the time. The time for action.

The barrier seems to be one of breaking the comfort zone which is perfectly understandable. It is human nature to stick to what you know and are comfortable with. What we offer anyone who already resells mobile or anyone who is considering adding mobile to their portfolio is an introduction to and the ongoing support required to happily sell mobile to all of your existing customers and many new ones to. The forward-thinking resellers are already positioning themselves as “Total Communications Providers” and they are proactively hunting new business in just this way.

Join our growing customer base of mobile dealers today!

Network Consolidation

Sorry for the delay in updating this. You blink and two months have passed by without you noticing. I must try harder. I will try harder. It’s not like there is nothing to talk about. This busy industry of ours continues to keep us on our toes.

So what does this Orange and T-Mobile merger mean then? Now it has been given the green light by Europe we should start to see some real action over the next few weeks and months. As we are starting to see analysed and reported there has to be some cost reduction to make the whole plan work and unfortunately this will inevitably include good mobile people losing their jobs. Which is really sad, and good luck to anyone affected, but this whole transaction has come about due to necessary consolidation. There was just not enough money coming in from UK mobile subscribers to feed five networks and all their associated infrastructures.

How will our life in the dealer channel change? Ever the optimist I ‘think’ it is going to be a good thing for independent dealers and therefore HSC, as long as we get a bit of luck and a following wind. I fully appreciate that we need competition in the market to keep everyone honest and make sure that the customer gets the best product at a fair price. That makes sense. What doesn’t make sense is the sheer volume of tariffs arrayed in front of anyone trying to pick the right one for them. Hopefully this merge will lead to less unnecessary tariffs. If they consolidate the two brands we will only have to work through four sets and not five so we’re 20% better off on the confusion factor straightaway. Unless of course the networks respond by increasing their tariff ranges! Fortunately the opposite seems to be happening and nearly all operators are now introducing cleaner tariff options.

In a four-network market (I’m not going to dig up the “Who is going to buy Three?” debate again) the new battleground seems to be on providing a cost-efficient, high-capacity network and selling in a broader range of communications services for use on ever more capable devices. Independent dealers have to be better off in that world IF they are given a fair crack of the whip. What we need to see happening is all products and services being offered through all sales channels. IF that happens I think the average local independent dealer and their proactive nature, consultative sales style, superior product knowledge and great local service has a big role to play. Still too many IF's though...

Changing rooms?

I’m not saying that some of the networks are right to restrict their consumer products and services to only certain channels, but they do. And on the one hand we need to fight to change this. But on the other, independent mobile retailers need a strategy that can allow them to grow their business despite this. Too many have been closing their doors for good as they see the industry turn against them and no path for the future.

[pause for dramatic effect and ideally some really sad music]

Here at HSC towers we’ve been scratching our heads on this one for a while. What is a realistic step to make, that customers would buy into, that can open up new retail sales opportunities? What could go in the window to make people pop in next time they are passing rather than walk on by? We think we may have finally identified a little gap in the market which may suit some dealers. Maybe not all, but some mobile dealers with certain skills.

We’re talking about the home of the future.

Well when is the future and why can’t it be now? With many homes now happily using wi-fi for their home computing requirements the potential exists to expand this ‘home network’ to enhance communication and access to music and video amongst other home content. With a small investment in digital storage and routing equipment we could very quickly transform our homes into modern media centres all managed by central remote controls. It can be done lavishly to meet a premier league footballer’s every whim or it could be done in a controlled and cost-effective manner. The technology is all out there but where do you go to learn more about it and make it happen?

If your local retail parks and high streets are anything like ours there is no obvious starting point for this. You could while away some hours on Google and probably make a reasonable stab on your own but wouldn’t it be great to get a local specialist to pop round to your house and show you what could be done and how? I reckon I could spend some money on this if the right salesman got me. I’m even thinking of getting @hsctechsupport (using their Twitter name) to come round and give me some pointers. I’ll keep you informed.

Could this be an option for some independent mobile retailers feeling frustrated that they can’t get competitive mobile pricing? Or is this a leap too far? Who will emerge to fill this gap? CPW are certainly looking at it with their wireless world roll-out so there is a template to work towards.

HSC Annual Conference/Awards

It's the day after the night before and my head is still recovering but I've only got great memories of yesterday's event. Destination Bournemouth Marriott Hotel right up on the cliff overlooking the surf. The day started a bit nervy as the unpredictable british weather threw us a curve ball with half of the UK covered in quite a few inches of overnight snow. Fortunately no-shows ended up being pretty minimal and other than a couple of late arrivals most of our intrepid dealers and suppliers made it in time.

We kicked off at 11am sharp with the O2 Approved event. Colin and Steve did a great double act with the main thrust being Joined Up Communications and how it provides the stockists with a great opportunity to sell mobile, mobile landline, landline and soon broadband all on the O2 bill backed up by O2 Techies. 2010 will be an EXTRAordinary year we were told.

A nice buffet lunch and we welcomed all the other VIP members of The Mobile Club. Basically HSC's top dealers. I was then joined by Carlos, Theresa and Antony who all presented the HSC pitch excellently over the next 90 minutes or so. We emphasised our ongoing strategy to focus on standing up for and supporting local independent dealers with a wide choice of mobile products and services. We're clearly making a difference with our sales promotions, marketing support, technical support and training. Our customer base and business has grown strongly in tough conditions in 2009 and 2010 is looking promising.

We then opened up the Airtime, Hardware and Software rooms for all our key suppliers to highlight their 2010 key shouts and answer any questions coming from the dealers. All the stands looked great and while business was done I took this opportunity to sneak off and do some media interviews. We'll see if I sounded intelligent or not when and if they publish.

The Q&A passed painlessly. Not ONE question was raised proving beyond doubt that we are faultless (I wish). I think the hotel bar was calling...

And then there was the evening. The entire HSC team arrived to share the festive spirit with our VIP dealers. A red carpet greeted our guests as they arrived for the champagne reception and then we opened up the oscars themed dining room which looked just awesome. Our comedian struggled a little bit with a tough crowd but bravely battled on to present the inaugural HSC annual awards. We also raised nearly £600 from the tables for cancer research reminding all of us how brave and composed our very own Matt Gates is being throughout his treatment. We'll publish all the award winners in due course but the headliners went to Zoe Mole (HSC Employee of the Year) and Connect U (HSC Dealer of the Year). Well done and well deserved to you two and all our other winners. Clints Jazz Band then swung into action and eventually filled the dance floor. Details become a little sketchy after this point...

The power of the independent mobile dealer

Hidden in the back streets and business parks of the UK is a powerful beast that if fed correctly could do an even better job in the mobile industry than it already does. Who am I referring to? The independent dealer of course. This much maligned community have taken quite a bashing over the last few years but they still come back fighting. Blamed for all the mis-selling complaints and unpaid cash-backs there are some within the networks and manufacturers who would be glad to see the back of them all for good, which would be the worst mistake a mobile policy-maker could make. Yes there has been a rogue element in the past and there are still a few colourful characters but the huge majority of surviving independent dealers run extremely efficient businesses built on impeccable service, spot-on knowledge and solid customer relationships. Who knows their local community better than the local independent dealer? Who has the best relationships with all the local business leaders? It is certainly not the networks direct sales teams. It’s not the big guns on the high street either. There are at last count around 1k independent mobile dealers left surviving in the UK and they are in danger of becoming an endangered species. The networks seem to be intent on marginalising them all to the point of extinction but don’t have the coverage to replace them. This is fundamentally wrong and we need to stand up and fight for the rights of the small local dealer. Yes I am being a bit dramatic but there is a real issue here. What does a customer think when he goes to his local specialist accredited with a network badge only to be told that the dealer can only sell a sub-set of that network’s products due to ‘channel strategy’? What does a customer think when he is in a dealer’s premises arranging his upgrade and the network operator on the phone is offering him a deal that the dealer can’t match? I spend a good chunk of my time travelling the length and breadth of the UK visiting mobile dealers and although every single one of them is unique in their approach they all have some really strong common talents. They are all totally enthusiastic about servicing their customers. They are committed to being the most knowledgeable mobile specialist in their area. They all seek out new customers in the most innovative ways imaginable. They are the front line to the lucrative SME community and the sooner we as an industry start trusting and equipping them as such the better. Ofcom GC23 and other network schemes have provided the much-needed regulation let’s now work on providing a fair and proper reward.

November 2009 Update

Despite O2’s stronghold on the business market we’ve seen some pretty strong price books from Three, Orange and T-Mobile for November. The proposed merger aside it is pretty clear that the latter pair are still fighting for business independently for the foreseeable future. We don’t currently hold Vodafone but I understand that they too are open for SME business at the moment. The net effect is that as a dealer focused on good spending business customers there is money to be made at the moment. Please contact your HSC account manager to make sure you are tuned in to all the latest promotions.

Our recent customer service survey was encouraging. Thanks for your honest feedback. We seem to be performing well in all the core functions. We have a bit of work to do on POS material supply which we are busy working on. It’s pretty clear that we haven’t promoted our excellent technical support service well enough. It’s available to all our dealers either by phone or online through this portal. Our specialist engineers on hand to answer all those questions that arise when putting together or supporting a solution for your customers. They don’t speak in geek and will answer simple and very complex queries. They’ve not been stumped yet! We can also remotely log on and resolve issues with your customer’s devices saving you hours of travel and onsite time.

Lastly if you are one of our lucky VIP members of The Mobile Club remember to RSVP for our Xmas Conference and Awards Party down here in Bournemouth on 18th December. It’s going to be a cracking day/night that you won’t want to miss. If you are not yet one of our VIPs remember you only need a mix of pay monthly connections and SIM-free handset purchases of 150+ in a quarter to access all the extra benefits.