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www.CE.org
WINNING AT WIRELESS RETAIL: THE WIRELESS RETAILER’S SURVIVAL GUIDE, VERSION II
WINNING AT
www.CE.org
(866) 858-1555
WIRELESS RETAIL
THE WIRELESS RETAILER’S SURVIVAL GUIDE: VERSION II
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www.CE.org
The CEA Winning at Wireless Retail: Wireless Survival Guide,
Version 2 is based on carefully documented material and research. This book,
which can be used as an on-the-job resource, is designed to help wireless retailers succeed and thrive. Every attempt has been made to relay accurate and current
information. The Wireless Communications Division (WCD) and the Consumer
Electronics Association® (CEA) cannot be held responsible for discrepancies or
inconsistencies in this publication.
About the Wireless Communications Division
The mission of the WCD is to promote the growth and development of mobile
wireless voice and data communication products and services throughout the wireless industry. The WCD goals and objectives are facilitated through committees
including Research, Promotions, Membership and Education & Training.
Copyright © 2007 by the Consumer Electronics Association
All rights reserved. No part of this work covered by the copyright hereon may be
reproduced or used in any form or by any means—graphic, electronic or mechanical, including photocopying, recording, taping or information storage and retrieval
systems—without the written permission of the publisher.
www.CE.org
2
CEA WINNING AT WIRELESS RETAIL: WIRELESS SURVIVAL GUIDE, VERSION 2
CEA would like to thank the following people and companies:
CONTRIBUTORS:
Daniel Abramson, president, Staff Dynamics
Heather Anderson*, director, Sales & New Business Development, BDS Marketing
Brett Beveridge*, owner, Connectus
Nicole Creel*, marketing director, Motorola
Paul D’Arcy*, executive vice president, Sanyo Fisher Company
Tripp Donnelly*, vice president, InPhonic
Denise Gibson*, CEO and president, Brightstar U.S., Inc.
Rick Goricki*, senior director of sales, Plantronics
Tom Graziano, CFO, Celluphone
David Hagan*, CEO, Boingo Wireless
Bruce Hallinan, vice president, Prepaid Services, American Wireless
Maria Hernandez, vice president, US sales and marketing, CellStar
Jeff Infusino*, president and CEO, USA Wireless Solutions
Tom Labadie*, director of training and development, CompUSA
Rob Link, president, WiGo Wireless
David Lorsch, president and CEO, DBL Distributing
Alex Mentes, wholesale manager, Celluphone
Rami Merheb, CEO, Phones Plus
Michael Misuraca*, president, American Wireless
Mike Mohr*, president, Celluphone
Marlo Perlas-Anderson*, owner, Station Wireless
Andrew Pierce*, CEO, Flagship Retail Services
Jimmy Ralph*, president, Retail Business Development Inc.
Dennis Reagan, owner, North Pacific Cellular
Eric Fitzgerald Reed, director, Market Issues and Policy, Verizon
Rami Rostami*, CEO, Technocel
John Shalam*, chairman and CEO, Audiovox Corporation
Kevin Sinclair*, president & COO, Wireless Zone
Adam Waugh*, director of marketing, Celluphone
Kristen Williams, national training manager, Celluphone
Daniel Wittner, president, Satisfaction Services
Howard Woolley, senior vice president, Public Policy and Government Relations, Verizon Wireless
Kari Yeh*, strategic marketing manager, Samsung
and The CEA Wireless Communications Division Training and Education Committee
CONTENT DEVELOPMENT:
* Denotes a CEA Wireless Communications Division Board Member
CONTRIBUTORS
3
REVIEWS
“Nearly 75 percent of the U.S. population now owns at least one wireless device.
Because of this deep penetration, wireless customers have become quite sophisticated in their requirements and expectations for the mobile technology
experience. New voice and data features and functionalities as well as network
capabilities are emerging every day, making wireless communications more
personalized for each customer than ever before.
Long gone are the days when mediocre retailers could show a new cell phone and
make a sale based merely on mobilized voice communications. Today’s customers know if you are on top of your game. Winning at Wireless Retail is a terrific
resource and a must-read for any salesperson who wants to raise the bar in his or
her retail environment and win over customers who keep coming back.”
—Rhonda Wickham, editor-in-chief, Wireless Week
“With our global presence, we are witnessing the rapid evolution of wireless
technology. Wireless is not only a technology that makes people more productive,
it literally is the only form of telecommunications in many emerging countries
around the world. We closely monitor how wireless is transforming communities,
but we also keep a close watch on what the industry is doing to support it. Our
participation in major organizations like the Consumer Electronics Association
allows us to be closely involved in, and educated on, the advent of new technologies that will lead the industry in the future. Winning at Wireless Retail is an
example of CEA’s efforts to extend great training and educational materials in
support of independent wireless retailers everywhere.”
—Denise Gibson, CEO and president, Brightstar U.S. Inc.
“You must take advantage of this new tool created by the folks at the Consumer
Electronics Association specifically for the independent wireless retailer. Having
been in the business for more than 20 years, it’s rare to find materials that are a
quick read and give you real tips to keep you focused on your business, while
giving you clarity about how to create a successful future in wireless. I recommend
everyone from the owner to the part-time new hire read Winning at Wireless Retail
immediately.”
—Jeff Infusino, president and CEO, USA Wireless Solutions
4
REVIEWS
TABLE OF CONTENTS
Introduction ................................................................................7
Chapter 1
Creating a Great Consumer Experience ........................9
Chapter 2
Hiring and Retaining Great Staff ................................17
Chapter 3
Managing Your Sales Staff ........................................31
Chapter 4
Training Every Day ...................................................39
Chapter 5
Creating a Comfortable Buying Environment ...............45
Chapter 6
Marketing for Success...............................................49
Chapter 7
Forecasting and Business Planning .............................61
Chapter 8
Managing Inventory .................................................67
Chapter 9
Commission Accounting ............................................71
Chapter 10 Understanding Your Industry ......................................75
Chapter 11 Selling Data, Selling What’s Hot ................................79
Glossary
Must-Know Wireless Terms ........................................85
Appendix
A ...........................................................................98
Appendix
B ..........................................................................103
TABLE OF CONTENTS
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INTRODUCTION
Dear Wireless Retailer,
The Consumer Electronics Association (CEA®) is pleased to present Winning at
Wireless Retail, an advanced guide for successful retail strategies for independent
wireless retailers nationwide.
CEA helps the industry educate customers about the wonders and possibilities of
consumer electronics products, tracks and promotes emerging technologies, and
connects retailers, manufacturers, customers and other key audiences to help shape
the future of technology. The CEA mission is to grow the CE industry. We hope
that by providing resources such as Winning at Wireless Retail, we will help your
business grow and thrive.
The wireless segment within the consumer electronics category is still growing
strong, and new wireless products are being introduced to the marketplace every
day. Presenting and selling them at retail is critical, and as an independent retailer
you are helping this business continue to grow. The environment of selling services
and products together in the wireless channels is also changing at a fast clip.
Winning at Wireless Retail sheds new light on the best retail strategies for
maintaining a competitive edge and selling successfully.
We hope you find this publication, as well as other resources offered at
www.CE.org, to be valuable tools for your business. We invite you to visit our
website often. We also offer a comprehensive online wireless certification program
at www.CEknowhow.com that you can use to help train your staff.
Please enjoy this publication, along with all of the resources offered by CEA.
Good selling,
Gary Shapiro
CEA President and CEO
INTRODUCTION
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CREATING A GREAT
CONSUMER EXPERIENCE
YOUR GUIDE TO:
■ ENVIRONMENT
■ SALES EXPERIENCE
CHAPTER 2
Margin Notes
THE WIRELESS RETAIL ENVIRONMENT
In every industry there are leaders and entrepreneurs who think outside the box,
the ones who see opportunities and capitalize on them. The wireless retail model
is a great example of how a few key entrepreneurs have helped to shape an entire
industry.
WIRELESS RETAIL GROWTH
Collectively, wireless retailers make up the largest group of retailers in the United
States, with more than 16,000 locations. With the explosive growth of the industry, wireless retailers are now poised to move to a managed growth business model.
■ Revenue opportunities in the wireless
industry are expected to continue to grow.
■ Services like data and mobile content will
play a greater role in future revenues.
■ New mobile content capabilities will likely
drive sales of replacement handsets.
According to CEA research:
■ An estimated 125 million wireless handsets
will be sold in the United States in 2007.
■ Seventy-eight percent of U.S. households
own at least one wireless handset.
In the United States in 2005:
■ Sales of wireless handsets topped $13.5 billion in revenues.
■ Total consumer electronics shipments
exceeded $128 billion in revenues.
HIGHLIGHTS OF THE
WIRELESS RETAIL INDUSTRY
■ Independent wireless retailing
began in the mid-1980s.
■ The same entrepreneurial spirit
that fueled its beginning is still
alive.
■ The landscape continues to
change, due to wireless carrier
consolidation and the introduction of new and enhanced
technologies.
■ Today, wireless retail has
become more advanced, selling services and products that
fit specific customer profiles.
■ Business practices continue to
advance wireless retail in many
areas.
■ Wireless handset sales accounted for 11 percent of all consumer electronics sold.
■ There is still potential growth for your business.
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BE PREPARED TO GROW WITH THE INDUSTRY
To maintain a growing wireless retail business today requires an in-depth
understanding of and responsiveness to local business opportunities, carrier
relationships, inventory management and marketing strategies, as well as successful management of the back-office operations.
As a leader in this constantly changing marketplace, you face some critical market
forces stemming from carrier acquisitions that resulted in name brand changes, as
well as the convergence of technologies and
disrupted carrier/dealer distribution partnerWHAT TO LOOK FOR AT
ships and relationships. The pressure is on
MANUFACTURER STORES
to sell more new activations, more upgrades,
more data, more technology, more enhance■ Branding and overall store
ments, more products and more accessories.
layout—look and feel
■ How sales staff approach
customers
■ Product demonstration ideas
■ Command and use of
knowledge base
■ Literature and other point-of-sale
(POS) materials
Given increased upgrades but lower commissions, the sale becomes more complex.
The more prepared you are with your own
training processes and internal operations,
the more you will sell and the greater your
profit potential.
Margin Notes
“The pressure is on to sell
more new activations, more
upgrades, more data, more
technology, more enhancements, more products and
more accessories.”
A few manufacturers such as Motorola and
Nokia are establishing marquee stores to
■ After-sales care procedures
showcase the breadth and scope of products, as well as special products not picked
up by mainstream carriers. Visit these flagship stores to gain a better perspective
of the manufacturers’ priorities in selling the products they have created. These
flagship stores should not be seen as true competition, but much can be gained in
understanding how the manufacturer intended the product to be experienced by
consumers.
HOW DO MANUFACTURERS
HANDLE CUSTOMER FLOW?
■ Staff members greet every
customer who walks in the
store.
■ Each salesperson only serves
one customer at a time.
■ Staff members acknowledge all
browsing customers.
■ Staff members stack customers
who seem willing to wait for
service.
■ The sales team thanks customers
for visiting their store.
■ Salespeople encourage
customers to come back again.
Nothing can replace a good retail experience. Customers always appreciate a friendly,
inviting and comfortable place where they
can learn more about the product or service
before making their purchase. Customers
like being able to actually touch and pick
up the product, to see how it feels and how
it works. By creating a pleasant experience,
you encourage customers to remember the
purchase they made, and recommend and/or
return to your store. After all, companies like
Starbucks have taken a purely commodity
item—coffee—and created an entire in-store
experience around a $3.59 purchase. Consider what kind of in-store experience you
should create for an average sales ticket price
of more than $200!
CHAPTER 1
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Establishing Rapport with Your Customers
Introduce yourself by name and learn the customer’s name.
Margin Notes
Capture information about customers by having them sign a guest book.
Understand each customer’s individual needs.
Gain permission for ongoing communication with them. Send them updates and
tips, sign them up for newsletters or notify them about future specials at the counter.
Encourage customers to give you feedback about their store experience by using a
simple postcard survey at the point-of-sale.
Some customers may prefer your store because they can evaluate more than one
carrier’s offering along with more product options. Customers clearly prefer shopping in person almost every time they make a wireless purchase. This is why the
store experience is so critical.
THE WIRELESS CUSTOMER, THE INDIVIDUAL
Customers are often confused by the many wireless equipment options and service
plans. You are in a position to help make this world an easier place to navigate.
Wireless retailers need to become more adept in selling technology, but also in
relating to their customers. Developing a personal relationship with the customer
is critical to developing a successful business and a satisfied customer.
WHO IS YOUR CUSTOMER?
It is critical to gather information about your customers so that you can continue
to mine for new business beyond the simple walk-in. National research indicates
wireless customers are generally profiled by six categories (see chart below). Take
a look at your local market and profile your customers to better understand your
core target audience. That makes it easier to do inventory planning and create
marketing programs that best fit their needs.
GENERAL WIRELESS USER PROFILES
Young at Heart 11%
Style-Conscious 12%
Family-Oriented 24%
Budget-Conscious 19%
Tech Savvy 16%
Early Adopter:
Must Have Latest 18%
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WIRELESS USERS IN THE UNITED STATES
Demographics
Gender
Age
Total Country Population
Total Country
Male
49%
Female
51%
Under 16
22%
16–24
13%
25-–34
13%
35–44
15%
45–54
14%
55–75
17%
75+
6%
Margin Notes
Source: Motorola
MORE INTERESTING FACTS ABOUT WIRELESS USERS
■ 300 million population with approximately
170 million unique mobile phone users
■ Network driven market
■ Repeat owners represent 85% of the market while there are 15% first time owners
■ Contract subscribers account for 86% of
users
“The majority of wireless
customers are loyal to the store
they purchased from.”
Wireless Purchasing Study:
Measuring Satisfaction and Loyalty,
conducted by CEA, December 2005
Other 7%
Online 27%
■ LG, Motorola, Nokia, and Samsung are
the leading mobile phone brands in the
market
Source: Motorola
“Some 93 percent of
consumers who shopped
primarily in person for their
new handset ultimately
bought in-person at a store.”
In-Person 66%
Wireless Purchasing Study: Measuring Satisfaction and Loyalty,
December 2005, Consumer Electronics Association
Wireless device users are similar in many
ways to Internet users in terms of overall
market penetration and customer profiles. Internet penetration demographics
(see table on page 14) are important statistics to keep an eye on in your own
market. They help you understand exactly who your customer is and how you
would categorize your core audiences.
FACTORS THAT CAN SET
YOU APART FROM YOUR
CUSTOMER LOYALTY
COMPETITORS INCLUDE:
More than 70 percent of the U.S. popula■ You and your Friendly Staff
tion own at least one wireless device. The
majority of today’s wireless sales are replace■ Product Assortment
ment sales, not new mobile phone sales. That
■ Accessories
means creating customer loyalty is essential
■ Carrier Focus
to secure long-term and repeat customers.
There’s an added bonus, too. Customers are
■ Customer Experience at
more likely to refer a friend to your store
the Store
because they feel it is a friendly place where
■ The Convenience of your
salespeople will help them.
Store Location
CHAPTER 1
13
The total in-store experience is what can set you apart from your competition.
Differentiating your store from the competition can be your single most important
business opportunity.
Margin Notes
Wireless stores that position accessories as a true value-added product offering
tend to be more successful with repeat customers. As you know, the right accessory can enhance a product’s performance and
customer satisfaction tremendously. In addiINTERNET PENETRATION
tion, accessories typically carry higher profit
63 percent of U.S. adults use
margins.
“Phones Plus is the largest complete retail
accessory outlet in Colorado, with products
from more than 30 different manufacturers.
As a retailer you must be in the accessory
business. I have a high traffic store with a
monthly rent of close to $16K, and it grosses
over $45K in accessory sales alone! Offering
customers accessories to customize their wireless phones—everything from car chargers to
the latest flashing antennas and over 600
different faceplates—has been the secret to
many of my most successful stores.”
—Rami Merheb, CEO, Corporate Plus Inc.
and principal operator of Phones Plus Inc.
In terms of the physical environment, you
can make some simple changes that will affect
how your customers feel about their experience in your store:
■ Offer customers a small candy while they
browse.
■ Have a seating area with magazines for
waiting customers.
■ Designate an area for product
demonstrations.
■ Provide a children’s play area.
■ Have product spec sheets available for
customers to read.
■ Create a professional area to complete
activation approvals.
■ Allow your restrooms to be used by the
public in high foot traffic areas.
the Internet. That amounts to 128
million people. There has been
some modest growth in the Internet population since the end of
2003, when roughly 60 percent
of adults said they were Internet
users.
DEMOGRAPHICS OF
INTERNET USERS
Below is the percentage of each group
who use the Internet, according to a February–April 2006 survey. As an example, 71
percent of adult women use the Internet.
Category
Total Adults
Women
Men
Use the Internet
73%
71
74
Age
18-29
30-49
50-64
65+
88%
84
71
32
Race/Ethnicity
White, non-Hispanic
73%
Black, non-Hispanic
61
English-Speaking
76
Hispanic
Community Type
Urban
75%
Suburban
75
Rural
63
Household Income
Less than $30,000/yr 53%
$30,000 - $49,999
80
$50,000 - $74,999
86
$75,000 +
91
Educational Attainment
Less than High School
40%
High School
64
Some College
84
College +
91
Here is the percentage of home Internet
users who have dial-up vs. high-speed
connections at home. As an example,
34 percent of home Internet users have
dial-up connections.
Method
Home Internet Users
Dial-Up
34%
High
Speed
62%
Source: Pew Internet & American Life Project, April
2006 Tracking Survey. N=4,001 adults, 18 and older.
Margin of error is ±2% for results based on the full
sample and ±2% for results based on internet users.
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CHAPTER 1
Sign-in sheets can inform the customer about possible wait times or peak selling
times. Customers often will be prepared to wait longer if they know how long the
wait is, and if some form of entertainment (TV or magazines) is provided. Since
wireless shopping is often a family affair, it’s a good idea to provide distractions
(books, toys or TV) for the children while the parents shop.
Margin Notes
SOURCES AND ADDITIONAL READING:
Pew Internet & American Life Project, April 2006 Tracking Survey
Wireless Purchasing Study: Measuring Satisfaction and Loyalty, Consumer
Electronics Association®, December 2005
www.CE.org
www.emarketer.com
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HIRING AND RETAINING
GREAT STAFF
YOUR GUIDE TO:
■ RECRUITING
■ INTERVIEWING
■ MOTIVATING
Margin Notes
ATTRACTING TALENTED STAFF
The wireless industry is dynamic, with new and ever-changing technologies; it
offers a bright future for talented, ambitious people. When you recruit new sales
staff, communicate the benefits of being part of such an industry. The growth of
the industry, the benefits of working at your store location and the excitement of
constantly changing technology are all selling points for recruiting new talent.
People are the most important asset at any organization. When people love what
they do, they are more likely to be successful. Salespeople who feel successful tend
to work harder and achieve goals.
Salespeople are the “face” of your organization, so prepare them well. Provide your
salespeople with the tools to be successful and then compensate them well for
meeting their goals. Strong, motivated salespeople will help advance your business.
You can also groom them to become effective store managers.
When recruiting salespeople, look for these qualities:
■ Outgoing by nature. Good eye contact,
confident handshake and ready smiles will
impress your customers.
■ Friendly and approachable. Look for
problem-solving ability, relevant story-telling,
positive body-language and an open mind.
Daniel Abramson, author of
Secrets of Hiring Top Talent,
notes in his book that “85
percent of job postings are
focused on technical skills and
experience whereas only 15 percent are focused on personality.”
As a result most employers hire
for skill and fire for personality.
■ Great communication skills. Salespeople
should be comfortable explaining multiple
features and benefits of product and service
plans. They should know when to talk, and when to listen to the customer.
■ Confident in identifying customer’s needs and closing a sale. Good salespeople
can identify the needs of the customer by asking qualifying questions and connecting with the customer.
■ Wireless experience. Effective salespeople understand how to sell quality products and services while meeting the goals of the business retail location.
■ Well-groomed. Your customers will get only one first impression, so make sure
your salespeople look professional.
Additional Tips for Hiring Successful Sales Staff:
■ Balance your hiring for both skills and personality.
■ You can train on the latest technology, but you cannot train on personality traits.
■ Recruiting should be ongoing to keep the talent funnel full.
WALK THE TALK
To develop the talented staff you attract, continue to lead by example. Set clear
goals and expectations and guide your staff by instilling good people management
skills. Show them specific examples of best-in-class customer service. We all know
when we have had a satisfying retail experience, perhaps at an Apple store, Nordstrom or your local hardware store. Take note of these experiences and recreate
them in your store.
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CHAPTER 2
Salespeople and managers will imitate the actions of the retail management team.
As a retailer, walk the talk. A staff that respects the management can be trusted
and will perform better. At the same time, you will be growing a crop of potential
managers for new store sites. Since you cannot be everywhere, grooming up-andcoming store managers is the only way to physically grow your business.
Margin Notes
WHERE TO FIND GOOD TALENT
1. Personal Referrals. Your personal networks are one of the best sources for
personnel referrals. Make sure people in your circle of friends and other organizations know what skills you are looking for and how quickly you are looking to
hire. Who is in your personal network? Consider your church, bingo club or civic
organization as places to look for referrals.
2. Job Fairs. Many communities, colleges and universities host job fairs. It is a
good idea to participate in local job fairs and to stay connected with organizations hosting the events. It also increases your store’s visibility and serves as a good
branding opportunity to let the community know you are supporting your local
workforce. Also, build a relationship with the local community college counselors,
who can be a scout for good talent.
Your personal networks
are one of the best sources for
personnel referrals.
3. Classified Ads and Internet Job Postings. Traditional ad methods are still effective, but they can be a more expensive option. Most newspapers post classified
ads in print as well as online. Ask about a favorable rate when bundling your ads
in both places. Posting job openings on the
Internet generally helps to attract tech-savvy
LEAD BY EXAMPLE
individuals. A great grassroots way to find
The store managers and sales
new hires is CraigsList, which serves many
team are the brand. Leading by
cities across the country. Note: Remember
example inspires productivity from
when writing online ads, the text is searchyour entire staff.
able. Keywords may make a difference in
finding the right candidate. Other places to
post on the Web include CareerBuilder.com, HotJobs.com, and Monster.com.
4. Mining from Retail. Look around the marketplace. Pay attention to salespeople around you. There could be a person in a similar environment, perhaps a
direct competitor or a similar business in the community where good sales skills
are visible. Successful salespeople in another environment may be willing to make
a change and work for your store.
SAMPLE INTERVIEW QUESTIONS
When interviewing candidates for retail sales
positions, some of these questions may help
you to identify their qualities and highlight
performance capabilities. It is critical to your
success to hire salespeople and managers who
can hit the ground running and begin to
meet sales goals.
You may want to tailor your questions for
managers, entry-level sales staff and parttime employees according to their intended
ANYTIME YOU HAVE A
GREAT RETAIL EXPERIENCE
ASK THE SALES PERSON:
■ Is this a full-time job?
■ Do you like what you are
doing?
■ Would you consider a career
change?
CHAPTER 2
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Margin Notes
responsibilities. Select questions that can give you better insight into the candidates’ work ethic and customer service ideas. It is hard to judge how ethical someone will be on the job. Asking candidates to provide examples to support their
answers to behavioral questions will give you a better understanding of how their
ethics would play out in real life.
Take notes during your interviews with all candidates. Compare your notes from
one candidate to the next. This will help you make a clear hiring decision. It also
will make you a better interviewer, because reviewing notes helps you see which
questions elicited the responses that gave you the most helpful information.
Sample Interview Questions
Probe for follow-up
1. Please describe your past sales
and/or retail experience(s)?
Inside sales, outside sales, or both? How
do you like to be greeted in a retail store
environment?
2. What is your greatest work-related
accomplishment?
What did you learn from the experience?
Give examples how you try to replicate
this experience in other situations?
3. Give an example of overcoming
your most challenging customer?
How did you overcome? What was the
outcome? Did you save the customer
relationship? What did you learn from the
experience?
4. How would you find new customers
if you were the owner of an independent wireless retail store?
What is your idea of marketing wireless
products and services?
5. How do you stay on top of new
wireless technologies?
Describe a good referral? What industry
publications do you read?
BEHAVIOR-BASED INTERVIEW QUESTIONS
(Select questions that will best prepare you for your next interview.)
Teamwork
■ Tell me about a time when you were a member of a successful team.
What specifically did you do to contribute to the team?
■ Give an example of something you have done to promote teamwork in a work
environment.
■ Give an example of a time when you raised a difficult issue to a team.
What did you say? How did you feel?
■ Give an example of a time you had to manage a team or group conflict?
What did you do?
Communication
■ Describe a time when you had to deliver an unpopular message.
■ Give an example of a failed communication for which you were responsible.
What happened?
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■ Tell me about a time when you changed your opinion after carefully listening to
someone else.
Customer Service
■ Tell me about a time when you had to deal with a difficult customer. What
specifically did you do to deal with this person?
Margin Notes
■ Give an example of a time when you agreed with the customer and
represented his/her needs to your organization.
■ Tell me about a circumstance when you were required to deliver a negative
message to a customer. How did you handle it?
■ Give an example of a time when you anticipated a customer’s need and acted
on that feeling.
Learning Orientation
■ Give an example of something you have recently learned and applied to your
work.
■ Give an example of how you have helped someone else apply a new learning.
■ Describe a mistake you have made and subsequently learned from. What changes
did you make as a result of this learning?
■ Give an example when you asked someone else for help. How did you solicit
the help?
Initiative
■ Give an example of a time when you set an important goal. What did you do
to achieve that goal?
■ Think about a time when you were given a task with limited direction. How did
you go about completing the task?
■ Describe a time when you had a new or especially challenging task. How did you
approach that task?
■ Give an example of a time you went above the call of duty to achieve a goal or
objective.
Leadership
■ Describe your most significant accomplishment as a leader.
■ Provide an example of how you needed to sell to a group.
■ Give an example of a time when you felt responsible to enhance the enthusiasm
and motivation of a group. What did you do?
■ Tell me about a time you changed your preferred leadership style based on the
needs of the group.
■ Give an example when you were faced with an urgent situation as a leader.
How did you respond? What were the results?
CHAPTER 2
21
Strategic Thinking
■ Share an example of a complex decision you had to make. What process did you
use to reach a conclusion?
Margin Notes
■ Tell me about a time when you had to develop goals that were six months to one
year away. How did you proceed?
■ Give an example of a time when you had to prioritize multiple goals. How did
you choose which ones to handle first?
Job Knowledge
■ How are you currently keeping up with the industry?
■ Give an example of how you have contributed to your profession.
■ Tell me about a time when you had to learn something specific in order to
perform better. How did you go about learning and applying the information?
Developing Others
■ Have you ever managed others? If so, tell me about a specific instance where you
provided feedback to an employee whose performance was below par.
■ Give an example of how you have delegated responsibilities.
■ Give an example of when you gave someone else recognition. What did you do?
■ Describe the qualities of someone you would consider a good mentor.
Management Skills
■ Tell me about a large task you have managed. How did you organize yourself to
get it done?
■ Give an example of an occasion when your resources were restricted. What did
you do?
■ Give an example of how you have used technology to get your job done.
■ Tell me about a time you had to manage people as part of a project team.
How did you assign activities? How did you gain buy-in? How did you track
performance?
Dependability
■ Tell me about a time you were on a tight timeline.
■ Give an example of a time you had to make a choice whether to go to work or
not. How did you make your decision?
■ Tell me about a time you demonstrated your dependability to a peer.
Multi-Tasking
■ Describe a time when you had multiple activities to handle at once.
■ How do you deal with interruptions?
■ Tell me about a time you felt overwhelmed by the number of things you had to do.
■ Ask the candidate if there are any questions for you.
22
CHAPTER 2
THE POST-INTERVIEW PROCESS
Evaluate
From your interview notes, see if the examples that candidates offered specifically
supported their answers. Select candidates who can tell you stories and examples
that support their point or opinion, but who also know how to listen. Articulate
candidates make better salespeople because they can more effectively communicate
with customers on the sales floor.
As you focus on the two or three candidates in the running for your final pick, it
sometimes helps to go ahead and check the three (at least) professional references
that candidates have given in their applications. Some of the topics covered with
candidates also make good questions for the references, such as “If there were
times in [Sally’s] work at your organization when she was given a task with limited
direction, how did she go about completing the task?”
Check References
Before you have communicated your offer in writing to your chosen candidate,
let him or her know you will be checking references. It is a good idea to run a
basic background check on potential new hires, as well as talking to the three
professional references from each candidate. Always check references first, before
formally committing to hiring anyone.
Margin Notes
“Select candidates who can
tell you stories and examples
that support their point
or opinion, but who also
know how to listen.”
Make the Offer
Select the best candidate for your store based on the skills you need and the personality that will best complement your entire team. After references have proven
satisfactory, send an offer letter, usually a one-page standard document (see “The
Employment Offer” on page 24 as a guide). Keep a copy of this in your personnel
files. You can also use this document as a baseline evaluation form and refer to it
for basic six-month and annual performance reviews.
Communicate
Make sure to inform all interviewees of your decision, whether they are being
offered the job or not. For those who did not get the job offer, let them know you
will be pursuing other candidates at this time and thank them for their interest in
joining your store. If you would entertain interviewing them again in the future,
let them know; otherwise wish them luck in their job search.
KEEP YOUR STAFF MOTIVATED
Once you have a great team in place, now what? A foundation for keeping your
staff motivated should always include three building blocks for success: reward,
recognition and opportunity.
Reward
Everyone wants to be a winner and to feel like they are valued for reaching their
goals. Rewards can be monetary or not. One way to reward star performers who
are exceeding your expectations is to give them the newest cool product, which is
also defined as a product you wish to sell more of in your store. Owning the latest
product helps employees know and demonstrate the product to their customers.
CHAPTER 2
23
THE EMPLOYMENT OFFER:
Name: ____________________________________________ SS# _______________________________________
Date of Birth: ______________________________________ Date of Hire: _______________________________
Position Title: _______________________________________ Department: ________________________________
Supervisor: ________________________________________ Salary/Commission: _________________________
Full-Time __________________________________________ Part-Time __________________________________
List of Specific Duties and Responsibilities:
(list all expectations of new-hire)
Education and Training:
(list of certification training or other training, ex: online, on-the-job, for success in position)
Skills/Capabilities/Technical:
Additional Information:
24
CHAPTER 2
You should reward employees not only for who sells the most, but for those who
exceed personal goals, save a customer or post the highest accessories attachment
rate.
Margin Notes
Identify the benefits of working in your retail store:
■ Salespeople are rewarded with cool new technology products.
■ Salespeople are rewarded with complimentary cellular service.
■ Top salespeople are rewarded with incentive trips.
Recognize
Everyone wants their efforts to be noticed. By recognizing your staff, both formally and informally, you set the tone for the store and demonstrate respect for
the individual’s contribution and for meeting shared goals at your store.
A simple “thank you” goes a long way. Recognize a job well done, an extra hour
worked or an extra mile taken with a challenging customer. Formal recognition
programs can take that a step forward:
■ Gift certificates
■ “Best performer” or “Most Valuable Employee” program with plaque displayed in
the store
■ Point systems for meeting goals throughout the year, redeemable for merchandise
or cash
Opportunity
Some retail stores only have a few people running the day-to-day operations.
Understandably, your organization may be relatively flat with few opportunities
for promotions or advancement. However, you can establish different roles and
responsibilities within the store. You can assign more responsibility—such as
supervising one evening or training new staff—to an employee who has demonstrated trustworthiness and ability. Proven experience paves the way for new
opportunity.
Ideas for career path planning:
■ Training tracks
■ Specific responsibilities for staff positions
■ Mid-year review process
■ Extended/advanced training
■ Tradeshow exposure
■ Continuing education
CHAPTER 2
25
Margin Notes
FORMAL AND INFORMAL EVALUATION
Check in with each employee at least annually to measure individual performance
in sales, fulfillment of other job responsibilities, employee’s own satisfaction and
outlook for the future. These formal performance appraisal meetings at a set time
each year give you one opportunity to evaluate, but it’s important to give employees feedback on a day-to-day basis, too. What you say at a six-month or annual
performance evaluation shouldn’t come as a surprise to employees if you have had
conversations along the way about:
■ Using creative customer service skills
■ Improving technology skills
■ Identifying new responsibilities
■ Pinpointing areas for improvement that you and the employee can work on
together
The basic appraisal form on page 27 may be useful in your next performance
review.
SOURCES AND ADDITIONAL READING
Abramson, Daniel. Secrets of Hiring Top Talent, 2002.
26
CHAPTER 2
THE PERFORMANCE REVIEW, PT 1
NAME ____________________________________ POSITION __________________ DATE___________
PERFORMANCE APPRAISAL PROGRAM
INTRODUCTION
One major function of management is never totally achieved; that is, we are constantly striving toward improved
performance. We cannot do enough in this endeavor. A critical element of this undertaking is the Performance
Appraisal Program; it can be the key toward increasing our effective use of our human re sources. Through effective Performance Appraisal, the talents of the individual can be developed for the good of the individual and the
betterment of ________________________________________ (hereinafter as ‘COMPANY’).
Our appraisal method is built around the principle that performance is a result of ability and motivation. Likewise,
the principle of self-development is employed fully in this program. There are three basic conditions that are
necessary for subordinate motivation and growth:
1. The employee needs to know what is expected.
2. The employee needs to know how he/she is doing.
3. The employee needs to be able to obtain assistance and guidance when and as needed.
OBJECTIVE
1.To make work a more meaningful and rewarding experience for all personnel through performance feedback
and evaluation.
2.To stimulate higher performance of personnel in their present positions by identifying specific areas and
developmental plans.
3.To assist by providing guidance in the orderly development of individuals for higher positions.
4.To ensure that every member of management receives a formal (developmental) performance review at least
annually.
5.To allow the subordinate and superior to discuss the review systematically and objectively.
THE PERFORMANCE EVALUATION
Based on position description requirements and performance objectives, the Performance Appraisal is completed
by the appraiser. Following a review for approval with the appraiser’s superior, a formal conference or session
is conducted with the appraisee where the final results are mutually agreed upon. One end product will be a
developmental plan, a list of goals and objectives, or standards of performance document.
Individuals must have development programs which will contribute to their job performance today, and prepare
them for future assignments. This appraisal should be conducted to counseling and developmental purposes only.
Salary review should be made apart from and at a different time than the formal Performance Appraisal. However, salary recommendations must also be based on performance achievements while observing appropriate
salary guidelines. This document can and should be an important reference tool during a salary review.
_____________________________________ ______________ _______________________________________
APPRAISER
DATE
SIGNATURE
_____________________________________ ______________ _______________________________________
APPRAISER
DATE
SIGNATURE
CHAPTER 2
27
PROCEDURE
Mark Exceptional, Commendable, Competent or Needs Improvement as they apply to each point.
(A) EXCEPTIONAL —
Far exceeds standards
(B) COMMENDABLE —
Consistently exceeds job standards in both quantity and quality.
(C) COMPETENT —
Meets all standards.
(D) NEEDS IMPROVEMENT —
Performance has not satisfied goals and standards.
MANAGEMENT PERFORMANCE APPRAISAL
1. TECHNICAL SKILLS
A
B
C
D
• Demonstrates adequate knowledge to satisfy position....
*
*
*
*
• Adheres to operating policies and procedures…………
*
*
*
*
• Qualifies to perform all essential skills…………………..
*
*
*
*
• Offers constructive ideas both within and outside of job
*
*
*
*
• Develops new processes, methods or procedures………
*
*
*
*
• Sees problems in light of the problems of others………..
*
*
*
*
• Identifies and defines problems clearly and early………
*
*
*
*
• Exercises sound judgment in solving problems………….
*
*
*
*
JOB KNOWLEDGE
CREATIVITY AND ORIGINALITY
PROBLEM SOLVING
COMMENTS:
__________________________________________________________________________________________
2. MANAGERIAL SKILLS
A
B
C
D
• Articulates thoughts and ideas precisely………………...
*
*
*
*
• Issues directions and assignment effectively…………….
*
*
*
*
• Keeps subordinates properly informed………………….
*
*
*
*
• Holds effective meetings as needed…………………….
*
*
*
*
• Displays a positive influence on others………………….
*
*
*
*
• Personal advise is sought and valued…………………..
*
*
*
*
• Obtains results without pressure or coercion……………
*
*
*
*
COMMUNICATIONS
LEADERSHIP
28
CHAPTER 2
THE PERFORMANCE REVIEW, PT 2 continued
PERSONAL ADMINISTRATION
A
B
C
D
• Subordinates paid within wage scales…………………....
*
*
*
*
• Conducts effective appraisals on time……………………
*
*
*
*
• Counsels with personnel as needed……………………...
*
*
*
*
COMMENTS:
__________________________________________________________________________________________
3. PERSONAL CHARACTERISTICS
A
B
C
D
• Works well with others in area…………………………….
*
*
*
*
• Works well with others outside of area…………………...
*
*
*
*
• Relates well with non-management personnel…………....
*
*
*
*
• Consistently reliable in carrying out instruction………….
*
*
*
*
• Operates within established policies and procedures…..
*
*
*
*
• Respects confidential and proprietary information………
*
*
*
*
COOPERATION AND ATTITUDE
DEPENDABILITY AND RESPONSIBILITY
COMMENTS:
__________________________________________________________________________________________
CHAPTER 2
29
4. PERSONAL DEVELOPMENT
A
B
C
D
• Displays consistent interest in work……………………….
*
*
*
*
• Actively upgrades job knowledge and technical skills…..
*
*
*
*
• Expands knowledge of other areas………………………
*
*
*
*
• Follows a program for self-improvement…………………
*
*
*
*
• Attains established objectives…………………………….
*
*
*
*
• Supports and participates in company training programs
*
*
*
*
PRESENT POSITION
GROWTH AND DEVELOPMENT
PERSONAL DEVELOPMENT PLAN
While management development is for the most part “self-development,” supervisors have a clear responsibility
to provide opportunities and to encourage self-development using all available resources. In some cases, efforts
should be made toward improving weaknesses, but it should also be emphasized that both the individual and
(COMPANY) will benefit most by concentrating on the development of strengths.
List specific steps to maximize strengths, improve on weaknesses or to prepare this person for potential advancement.
AREA
ACTION
ACTION
APPRAISEE’S COMMENTS
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________
Signature
________________________________
Date
APPRAISER’S OVERALL COMMENTS
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
30
CHAPTER 2
3
MANAGING
YOUR SALES STAFF
YOUR GUIDE TO:
■ GETTING THE MOST OUT
OF EVERY SALE
■ PROFESSIONALISM
■ COMPENSATION FOR
SUCCESS
■ GOAL SETTING
■ SECRET SHOPPING
CHAPTER 3
Margin Notes
“Accessory sales are a key
component in increasing
your profit margin.”
SELLING SUCCESSFULLY
Sell yourself. Sell your store. Sell the brands in your store. Sell your “best-in-class”
customer service. Good selling is what moves customers from intent to actual
purchase.
Your customers may already be in the frame
of mind that a local store such as yours can
offer a level of experience they may not
receive elsewhere. Capitalize on this expectation. Remember that, above all, you are
selling a relationship and a reason to keep
customers coming back to you.
CREATING A PERSONAL
RELATIONSHIP WITH YOUR
CUSTOMERS
■ Introduce yourself
■ Learn your customers by name
■ Speak to customers as friends
■ Find a common interest beyond
Every customer who enters your store should
just the sales conversation
be sold on both your personal level of customer service (the customer’s reason to keep
coming back!) and the product offering.
Developing and maintaining a personal relationship with your customers is your
key competitive edge, so spend the time to get to know your customers.
In addition to selling the customer on your customer service, having just the right
product and rate plan to fit their needs is critical. Do not forget to sell them appropriate accessories to enhance the functionality and enjoyment of the products.
Accessory sales are a key component in increasing your profit margin. Ideally,
accessory attachment rates should be at least two for every phone sold. To maintain a strong accessories attachment rate, carry plenty of inventory on headsets,
power chargers, car chargers and extra batteries. A good rule of thumb is to carry
seven days of inventory or more, pending product resource and availability.
BE THE PRO
Customers turn to your store as their primary source of information to research
future purchases, so create a professional in-store experience they will remember
and tell their friends about. When you represent more than one carrier and an
expanded product assortment, many customers may view your store as being less
biased than other wireless retail stores.
THE “BE BACK” BUS NEVER RETURNS
Close the sale while you have the customer in front of you. Remember, the research says you are already the preferred local expert. Since customers prefer to buy
more than 50 percent of their wireless products and services at stores like yours,
you may already be ahead of the game before a customer even walks in the door—
don’t blow it when they do visit your store!
PAY DIRT
If people find out the pay is good to work in a dynamic store with people who
have fun, they will flock to work for you. Be fair, and pay fairly for serving the
customer and for being friendly. Tie all compensation to meeting the goals. Then
routinely evaluate performance and measure progress against the goals. Use internal contests, carrier contests and incentives as part of the commission structure.
Remember to invite part-time employees to the incentive party, too.
32
CHAPTER 3
In-Store Professionalism
Dress professionally
Meet and greet each customer with a smile
Margin Notes
Handle no more than three customers at a time
During busy times, if a customer has to wait longer than five minutes for a sales person,
give them a gift certificate for waiting
Demonstrate the product every time
Compensation
Salary ranges should be competitive for your market
Commissions should be tied to goals
Stretch goals should be compensated above and beyond
Structure specific commissions for activations, upgrades and data or other services
Create bonus structure for above and beyond customer service and tie to carrier or other
monthly promotions
One way to compare wages in your local area is to use the keywords “salary
calculator” in any Internet search engine. This should give you various sources to
calculate salary ranges for your market, taking into account specific skill sets. These
online calculators also take into account cost-of-living adjustments that are market
sensitive and other local pay scale factors.
Compensation should always be tied to SMART goals (specific, measurable, actionable, realistic and time-bound) both for the store and across the organization.
SMART goals are one of the best formulas for your success and profitability:
■ Specific: Goals specify exactly what you want to achieve.
■ Measurable: Goals enable you to measure whether you are meeting the
objectives.
■ Actionable: Goals relate to actions, not just philosophy.
■ Realistic: Goals are realistic, both “stretch” and clearly “possible.”
■ Time-bound: Goals clearly state when you want to achieve your objectives.
Store Quotas
Establish individual activation and upgrade goals
Establish management activation and upgrade goals
Communicate quotas at the beginning of every month
Require minimum attainment of 50 percent of plan
Consider quarterly incentives tied to promotions
Identify separate accessory goals
Create enhanced data services goals
CHAPTER 3
33
Margin Notes
“When you incorporate staff
members’ ideas into
the vision and goals, they will
have a sense of ownership
and commitment to the
success of the business.”
For organizations large enough for district managers, show them how to interpret
the sales reports and make sure you gain staff input for developing the store goals.
If you do not have district managers or field managers, make sure to use your store
management staff to review general sales reports daily.
MOTIVATE GREATNESS
Sales teams are often motivated by just being
in the loop, so keep communicating what
is going on. Share your vision for the store
every day. Ongoing communication can be
a huge motivator and also gives employees
an opportunity to add their own frontline
feedback on what customers are saying.
Ask your staff their opinion—it is a way of
showing your team how much you value
them. When you incorporate staff members’
ideas into the vision and goals, they will have
a sense of ownership and commitment to the
success of the business.
FEEDBACK AND
COMMUNICATION
After soliciting feedback from your
team, it is important to complete
the communication loop. Even
if you do not take action on an
employee’s suggestion, make
sure you communicate why. Was
the timing off? Was a return on
investment not viable at the time?
Team members who continue
to give suggestions that are not
acted on—without understanding
why—may stop giving input.
Ensure that all staff understand the big
picture of why they should be selling certain
products and services. Give everyone on your team an assignment related to the
overall goals. Then assign stretch goals and rewards for meeting them. Most people
want to win. If you set clear expectations of what it takes to meet your goals, then
set the stage for what can happen if each person—or the entire team—exceeds the
goals.
This helps everyone work toward one goal, while at the same time feeling good
about contributing and being part of a team in a way that keeps morale high and
the store profitable.
You may find the worksheet on page 35 helpful in setting goals for your team.
34
CHAPTER 3
THE PLAY BOOK
ACTIVATIONS
Individual Goals
Daily
Monthly
Annually
Daily
Monthly
Annually
Monthly
Annually
Margin Notes
Manager
Salesperson
Salesperson
Customer Service
Part-Timer
Total for TEAM GOALS
UPGRADES
Individual Goals
Manager
Salesperson
Salesperson
Customer Service
Part-Timer
DATA/ENHANCED SERVICES SALES
Individual Goals
Daily
Manager
Salesperson
Salesperson
Customer Service
Part-Timer
SCHEDULE REGULAR MEETINGS TO DISCUSS GOALS
Daily
Every morning, set the tone of the day by reviewing the daily
sales targets of the store and yesterday’s sales. Offer pep talks
and words of encouragement throughout the day when
possible.
Weekly
Establish a regular time each week to review the results of the
previous week and the goals of the current week. Make the
meeting mandatory for all employees; select a day and time
that work best for maximum attendance.
Monthly
Hold an offsite meeting once a month to review monthly goals
and last month’s performance. Use this meeting as a brainstorming session with your team to develop ideas on how to
exceed goals as a team.
Annually
Create an event to celebrate accomplishments, review annual
sales results and share your vision for the upcoming year’s
goals.
CHAPTER 3
35
There is nothing inherently wrong with fostering competition. In fact, most
people do better in an environment where they can measure themselves with a
clear goal in mind and a reward at the end.
Margin Notes
Team-based competition is even better
because team members can add their talents
to make the effort worthwhile to all. For
example, one salesperson may be better at
explaining a particular technology. So ask
that person to be the designated subject
matter expert that others can rely on when
selling a specific technology or product. Note
of caution: if top performers see themselves
as “carrying” weaker performers on the team,
you may run the risk of losing them. Do not
carry the weak performer too long before
opting to hire a replacement.
HOW YOU SHOULD HIRE A
SECRET SHOPPER SERVICE:
Daniel Wittner, president of Satisfaction Services, advises selecting
a secret shopping company that
reports in a database context,
doesn’t use the same people over
and over, and specializes in using
smart and experienced shoppers
who are qualified. The reporting
of a shopping experience is both
subjective and objective.
Many companies favor contests that reward
individuals who reach a “successful level.” Contests that reward only the top performer may frustrate others who exceed expectations but fall short of the number
one spot. Make sure contests create performers out of all of your staff.
By creating performance improvement plans using SMART goals, it will be easier
to establish clear career paths for employees who want to grow. Always include
your part-time staff for every sales incentive and promotional program. Part-time
employees motivated by flexible work hours also benefit from being involved in
the latest in-store sales incentive program.
THE SECRET SHOPPER
In creating performance plans based on SMART goals, establish a clear set of
tracking mechanisms for accountability. One of the more popular measuring tools
is a secret shopper program, which gives you documented, specific feedback on an
individual staff member’s performance matched against your SMART goals.
“Secret shopper programs
can be used in a positive way
to gather information and to
build customer awareness.”
A secret shopper looks and talks like any ordinary customer, but in reality is a
trained, anonymous agent who carries on a transaction with your sales staff and
later records and evaluates various aspects of the exchange against a specific list
of criteria. Carriers, manufacturers and retailers spend an enormous amount of
money on marketing programs and materials to communicate with various sales
channels. Secret shopping programs are one way to evaluate return on investment
and on-floor effectiveness.
Secret shopper programs can be used in a positive way to gather information and
to build customer awareness. Make sure you have a good relationship with your
carrier rep and manufacturer representative. Ask them if they have ever secret
shopped your store. If so, ask them to share the results of their visit with you.
This can do two things. First, it lets them know you are equally interested in the
outcome. Second, you can also learn from the information and take appropriate
action.
36
CHAPTER 3
Carriers’ Secret Shoppers
Carriers often use secret shopping programs as a barometer to evaluate your stores.
Carrier secret shopping programs are usually designed to evaluate:
Margin Notes
■ Features and benefits of services
■ Priority selling, such as whether salespeople are pushing a specific service plan
■ Displays and merchandising
■ Training
■ Compliance and/or procedures
Manufacturers’ Secret Shoppers
Manufacturers use secret shopper programs for similar reasons as the carriers do.
Manufacturer secret shopping programs are usually designed to evaluate:
■ Displays and merchandising
■ Training
■ Literature availability
■ Promotions—implementation and execution
■ Product availability
Retailer and Distributor Secret Shoppers
Secret shoppers’ observations can help you uncover new ways of selling and
enhance your training efforts to sell more. Hiring a secret shopping service is a
good way to understand what is really happening on the sales floor and what you
can do to make it better. What’s more, results often can be submitted to you in
real-time.
Electronics Association, December 2005
www.satisfactionservices.com
CHAPTER 3
37
ES
V
S
VI
R
E TA I L S SUR
ER’
V2
E
UID
LG
W
A
IRE
L
4
YOUR GUIDE TO:
■ SALES TRAINING
■ PRODUCT TRAINING
TRAINING EVERY DAY
Margin Notes
A WELL-OILED MACHINE
Research indicates customers are seven percent more likely to be more satisfied
with their purchases from independent stores over carrier stores. Part of the reason
involves training. Salespeople sell well what they know well. A good sales training
program can set your retail organization apart from others. For starters, your staff
needs a solid foundation of needs-based sales
“…Independent retailers have an
training. Next, salespeople should be propedge in the number of customers
erly trained on the latest products, technolwho are very satisfied. Some
ogy and service plans. Salespeople who can
44 percent of independent store
talk to customers, listen for what customers
customers said they were very satneed and clearly demonstrate products will
isfied with their phone purchase,
close the sale.
compared to just 37 percent of
wireless carrier stores.”
Examine your employees’ baseline skill sets
Wireless Purchasing Study: Measuring Satisfaction
and assess skills that are missing from your
and Loyalty, Consumer Electronics Association,
December 2005
team. Next, determine what skills you need
to add to meet the goals of the store.
Establish a strong new-hire training program to impress upon new employees that
you value their learning. Don’t just pair up senior staff with junior staff, then say
good luck, and wish for the best.
New-hire training programs help to attract and keep good talent. Ongoing training will help you keep good talent. Product training is important, but never overlook the skills of actually how to “sell.”
Needs-Based Training
Needs-based selling begins with a discovery conversation to understand more
about the customer. How much is the customer willing to spend on both the
phone and service? What phone and service in that price range best fit the customer’s needs? Good conversationalists make good sales consultants.
Show your staff how to have an effective two-way communication, with emphasis on
listening to the customer. Observe the customer’s body language. Usually people speak
much louder with their non-verbal language. Make eye contact, and pause while you are
explaining a feature or benefit. The pause gives customers an opportunity to let you know
if they understand, or need more information from you. Pausing gives the customer time
to respond, and you a chance to assess if you clearly understand your customer’s needs.
Customer Communication
■ Make eye contact.
■ Hold a two-way conversation about what
customers think they need.
■ Listen…and then listen some more.
■ Watch for a customer’s body language—
observe interest level.
■ Demo the product.
■ Smile naturally and warmly.
■ Thank customers for their visit even if they
do not make a purchase from you.
40
CHAPTER 4
MAKE SURE YOUR TEAM
KNOWS HOW TO IDENTIFY
YOUR CUSTOMERS’ NEEDS.
■ What do you want? (which
phones and services customers
are attracted to and why)
■ What do you need? (how
customers plan to use the phone
and service features)
■ Listen. (Let the customers speak;
they will tell you what they
want.)
CEknowhow.com
CEA offers interactive online training and certification specifically created for
independent wireless retailers. This training covers basic wireless industry knowledge as well as tips to help you profile and understand your customers’ needs.
Margin Notes
CEknowhow.com Wireless Training Topics
Identifying Your Customer’s Needs
Choosing a Service Plan
Anatomy of a Cell Phone
Accessibility for Customers with Disabilities
Selling Wireless PDAs
Converging Devices: Smartphones
Selling Accessories
Selling and Using Camera Phones
History of Wireless
How Wireless Works
Recycling
Wireless Networks—Overview and WANs
Wi-Fi for the Mobile User (WLANs)
Bluetooth (PAN)
Selling Data Applications
We recommend that you review the CEknowhow training and then have each of
your employees take it. Go to www.CEknowhow.com and click on the wireless
section and receive the free training certificate. All staff in your store are eligible to
take this training—frontline salespeople, customer service reps and management.
Since its inception, more than 12,000 wireless retail professionals have participated in the CEA wireless certification program. Some retailers use CEknowhow
training as required training for all newly hired employees.
AND THE MANUFACTURER SAYS…
Spend time visiting the website of every manufacturer whose products you sell
and service in your store. Along with the carriers, manufacturers are brand gurus.
Know what they have to say about the
products they make. Online sales sheets and
GET CERTIFIED, EVERYONE
other materials on manufacturer websites
IS DOING IT!
can help you craft your own sound bites
“At CompUSA, we are dedicated
and 10-second sales pitches when you are
to keeping our sales associates
face-to-face with customers. Communicate
informed on the latest technolothe manufacturers’ website resources to your
gies. The CEknowhow training is
sales staff so they are aware. Some retailers
extremely valuable to our overall
training efforts, providing an
do role-play selling during morning staff
interactive and highly effective
meetings before the store opens and during
way for our team members to
downtimes on the selling floor.
learn the skills they need to best
assist our customers.”
—Tom Labadie, director of training and development,
CompUSA
CHAPTER 4
41
How to make manufacturer website information actionable for your team:
Margin Notes
Pick one feature a week from each manufacturer’s website, and have your sales
team script the pitch by customer type. Example: Text messaging will be communicated differently to a parent or teen or business professional. Make sure your
sales team can effectively describe these features for each customer type.
THE CARRIER PIGEON
Leverage the carrier’s message(s) inside the store. Use all the tools available from
your carrier partner(s), including training sessions, online training programs, and
all sales materials. Develop a relationship with your carrier’s rep and let them know
you want and need training tools. Share your goals with your reps. Let your rep(s)
know more about what is going on with your business beyond what they can see
on activation reports and product sales reports for your store.
BEST TRAINING SOURCES, FOR FREE
Reward your team for completing training programs
■ CEA Wireless Certification Program at www.CEknowhow.com
■ Carriers (visit every carrier website—even those you are not selling—to see their
training)
■ Manufacturers (download the product specification sheets)
■ Distributors (many are offering great training programs now)
■ Other Web-based training resources (by using keywords “wireless training” in a
search engine, you will find a variety of interesting wireless training)
CEA Training Materials
Where to find them
CEA Wireless Certification Program
Get certified today for FREE, online at
www.CEknowhow.com
CEA Wireless Communications Retailer
Tool Kit CD rom
Send an e-mail to [email protected] to
request a copy
CEA Wireless Communications
Accessorize now! CD rom
Send an e-mail to [email protected] to
request a copy
DEMO DANCE
Demo lines are for demos, not for ordering pizza! Use these lines for showcasing
data, text messaging, multimedia and video capabilities. Require your staff to have
hands-on experience with what you want them to sell. Example: if you want to
push higher margin items like the BlackBerry, or other heavy service products,
then put those products in the hands of your salespeople to personally use the
technology. One independent store found a 50 percent increase in unit sales
within 90 days of issuing a BlackBerry to each of its senior salespeople.
42
CHAPTER 4
BE PREPARED
Demonstrate services properly. Show instead
of tell. Role playing is a good way to test
drive your demo dance before you do it in
front of a real customer. Many people are
visual, so selling visually is very powerful
and can make for a much faster close. If
you allow your customers to actually touch
and use the product before they make the
purchase, it will help validate which product
or feature best fits their needs.
You also can take any fear out of a customer’s
mind by demonstrating how to set up a feature or showing how easy a particular feature
is to use. One retailer requires sales staff to
perform product demo shows at their weekly
sales team meetings. A peer presentation and
critique can make you smarter in front of a
critical customer.
DEDICATE AN AREA IN
YOUR STORE FOR
CUSTOMERS TO
EXPERIENCE THE PRODUCT
Margin Notes
North Pacific Cellular dedicates
an area of the store where a customer can hear a ring tone, check
an e-mail and surf the Internet
right in the store. According to
Dennis Reagan, owner of North
Pacific Cellular and a veteran of
wireless retail for more than 19
years, “Every time a North Pacific
Cellular sales associate demonstrates streaming video on a piece
of equipment in the store, they
almost always close the sale!”
STOP, DROP AND TRAIN
We are always learning. If your staff’s eyes are open, they are learning—from you,
from each other, from your reps, from customers. Invest in your future and take
the time to train your team every day. Encourage your staff to discuss new products, service enhancements and technologies with each other. This is continuing
education. Training happens every day!
www.CE.org
www.CEknowhow.com
CHAPTER 4
43
ES
V
S
VI
R
E TA I L S SUR
ER’
V2
E
UID
LG
W
A
IRE
L
5
CREATING A
COMFORTABLE
BUYING ENVIRONMENT
YOUR GUIDE TO:
■ FIRST IMPRESSIONS
■ MANAGING TRAFFIC
■ MERCHANDISING
Margin Notes
LOOK LIKE YOU ARE IN BUSINESS PERMANENTLY
Beginning with the exterior of the store, make sure you have quality, permanent,
well-lit signage. Display products and services as a “story” in the window to encourage walk-in traffic. Window signage is important to tell a cohesive story. Less
is more in terms of how many signs, posters, products and light boxes to put in
the window.
THE FIVE-SECOND FIRST IMPRESSION
The look and feel of your store speaks directly to the credibility of your business.
Customers respond to clean, attractive, well-lit stores with branded product displays. Make sure your displays include a touch of lifestyle imagery.
Store layout must appeal to customers’ subconscious decision-making to purchase—or not—in the first five seconds they are in the store. In order to succeed,
your store should be on par visually with carrier retail stores. Store layout should
be well thought out and intentional. Understand what your product assortment
and service offerings are, and how they appeal to certain customers to enhance
their experience. Your store layout will be different depending on whether you are
an exclusive authorized carrier retailer or selling multiple-carrier services.
Take charge of your store’s merchandising and look. Do not underestimate the
“silent” salesperson—the point of purchase signage and merchandising that customers see before they ever interact with a salesperson. To prevent your store from
appearing cluttered, create a clean visual presentation using your manufacturer and
carrier POS materials. Create your own look and feel that fits your client base.
First Impressions
Friendly greeting from salesperson in first five seconds
Open floor plan, good lighting and product on display
Carrier and manufacturer brand names in store in an uncluttered manner, keeping
each flat wall dedicated to a single brand message
Simple signage with price points and sale items clearly marked
Accessories clearly priced and on display
Seating area or other designated place to complete contract or other POS paperwork
Keeping your store presentation focused creates a welcoming environment. Obtain
POS materials to tell your product story and service offering to appeal to your customer base. Again, less is more. Do not clutter your store with too much literature
because it can confuse the customer. Discard old and outdated spec sheets, demo
phones and discontinued promotional materials. Keep your presentation fresh and
current.
46
CHAPTER 5
Store Layout
Best selling items should be at eye level.
Customers read left to right, so place product and signage accordingly.
Margin Notes
Price-point signage should be placed visually low to high.
Do not crowd your product presentation.
Accessories should be easy to find.
Use generic displays that allow for easy update for product and service signage;
keep all promotional materials current.
MANAGING STORE TRAFFIC
In managing store traffic, each salesperson should only cover up to three customers at one time. To manage large volumes of customers simultaneously, without
losing any of them as prospects, sometimes a simple “hello” or gift certificate will
let a customer know you are sorry for their wait.
The average activation process takes 25 minutes and during this time, you have a
captive audience. Merchandise the store for add-on sales. Lay down three accessories that fit the phone you are in the process of activating—such as car charger,
Bluetooth headset or carrying case. Customers will likely purchase at least two out
of the three accessories.
NOT JUST A PRETTY FACE
What makes the difference between good
and great is not just a beautiful store—it is
the entire experience at retail. Offer everyone
who walks in the door the same high level of
customer service. There is room for improvement at every turn. It is up to you to know
your customers, know how they want to be
treated and bring about changes to create the
best shopping experience possible.
What can you do to improve your customers’ experiences in your store so that they
are very satisfied? What would it look like
for your customers to feel like they had the
“dream” wireless retail experience?
“Once per month take 15
minutes to brainstorm with
your staff on some creative
ways you can set “a dream
retail experience” in motion
in your store.”
The Wireless Purchasing Experience Study: Measuring Satisfaction and Loyalty revealed that “70
percent of wireless purchases are
occurring in person as opposed to
online. While overall satisfaction
is strong, the number of in-person
buyers who were “very satisfied”
only stood at 39 percent.” That
means more opportunity exists
for retail stores that can provide
a better customer service experience. When you focus on the
total customer experience—from
the first greeting to follow-up after
the sale—you win.
Use this worksheet as a guide:
BRAINSTORM—HOW CAN OUR STORE PROVIDE THE BEST
SHOPPING EXPERIENCE?
■ Are we are all friendly and helpful?
■ Do customers have space to look on their own? Do we know when to help?
■ Are we asking all the right questions to sell a new customer?
■ Do we have the right phone for each customer in stock?
CHAPTER 5
47
■ Do we discuss every service plan available for each customer lifestyle?
■ Do we have plenty of accessories for each new phone?
Margin Notes
■ Are we informative but not pushy?
■ Can we teach our customers something new today, even if they did not purchase?
■ Are we helping customers set up their phone at the time of purchase?
■ Can we offer a discount for our customers when they refer a friend?
48
CHAPTER 5
6
YOUR GUIDE TO:
■ ADVERTISING
■ GETTING CUSTOMER
REFERRALS
■ SELECTING THE RIGHT
MEDIUM
MARKETING
Margin Notes
MARKETING FOR SUCCESS
What kind of customers live and work near your store? The more you know about
them and their needs, the better your chances of success. To put it simply, your
core audience is a 15-minute drive or walk from your store. A good marketing
plan puts thought into how to best reach these primary customers.
For example, if you live in a college town, make sure to have products with heavy
text messaging and ring tone capabilities. If your store is closer to a business user
community, make sure to carry e-mail devices and extra power chargers for the
business traveler.
Understand
the profile of
customers in
your market
Identifiy
customer
needs through
conversation
Offer your
customers the
best product
and plan for
their needs.
SALES
AND
PROFIT
PROGRAMS
In addition to having an overall marketing plan for the year, map out specific marketing activities at least 60 to 120 days in advance. Keep them simple to execute,
and identify how you will track the success of each effort. Knowing the success
rate of each program will help you in planning the following year’s marketing and
budget.
Offers should be clean and simple for the customer to understand, and easy for your
sales team to execute. Tailor fresh and interesting programs to fit the needs of target
audiences and specific customer profiles. You can focus on price points, seasonality, a
specific product or a specific product category—whatever meets the customers’ need.
You can launch simple loyalty programs,
using coupons redeemable for additional
purchases upon a customer’s next visit. All
programs should clearly state an expiration date. These time-bound promotions
allow you to track results before and after
to measure effectiveness. Generally, promotions should run from three to six weeks for
maximum benefit.
It is also effective to create relationships
with organizations and their members who
might need your wireless products and
services. Customize simple programs for
the leaders of organizations to offer their
members.
50
CHAPTER 6
CREATE SPECIAL OFFERS FOR
TRUSTED ORGANIZATIONS IN
YOUR AREA
■ Organizations (Parent Teacher
Association, alumni club, historical society, civic associations)
■ Social clubs (garden club, sports
boosters)
■ Churches or other places of
worship back often
Examples of Affinity and Loyalty Marketing Programs:
Program
Target Audience
Refer-a-Friend Coupon
All customers
College Roommate Offer – 2 for 1
Teen and text messaging customers
Family Plans
Household decision-maker
Employee Plans for Local Businesses
Business users and family plans
Dads and Grads Promotion
Tech-savvy users
Announcing the “X Phone” is here
Early adopters, tech-savvy users
Safety First Promo
Safety-only user, glove compartment user
Margin Notes
Gaining endorsements in the community and building personal relationships with
other organizations will help you reach beyond one-to-one relationships. Start by
offering businesses in your area special programs and discounts for their employees. Create incentive referral programs for the employees to refer others to you.
When you know the leaders of organizations on a personal basis, you can ask if
they will recommend your services relating to a specific offer. This gives you credibility with their members. These are called “affinity marketing programs.”
TRADITIONAL ADVERTISING
When creating your marketing plans, consider where your customer “listens” most
often. Choose the right type of advertising to meet your business goals. If your budget
allows, use traditional advertising in local TV, radio, print or online channels.
Some retailers get great results using local TV, especially cost-effective cable, which
allows you to choose particular channels and time slots to reach your targeted
audience. Check with local high schools and community colleges to see if broadcast or video students offer their video ad-creation services at low cost. Creating a
localized ad for cable TV gives you an opportunity to use local talent, feature satisfied customers and strengthen the bonds with your community. It’s worth getting
a cost estimate for cable TV when you are doing your marketing plans for the year.
Radio is often a good bet for most retailers, particularly when you are trying to
reach a Spanish-speaking audience. Again the benefit is being able to pinpoint the
audience and tailor an ad particularly to them.
Print can be effective, but costs can be high. When you are talking with local newspapers, ask whether they bundle advertising space. Sometimes you may be able to combine a traditional print ad with an online ad in the newspaper’s website for a reasonable
price. Your community also may have a free-distribution “shopper” or community
publication, where ad rates are lower. Such publications are still a very crowded space,
so hone your message and offer so that you stand out above the clutter.
Don’t forget ads in specialty publications, such as the college newspaper if you
live in a college town, or PTA and sports newsletters to reach parents with special
offers. As you drive or walk around town, keep attuned to other opportunities:
billboards at the youth sports field or even ad space at the local bus stop shelter.
CHAPTER 6
51
The key is choosing venues that will reach the audience you want, and writing a
compelling message to bring customers into your store.
Margin Notes
“Learn how to maximize
advertising dollars. Perhaps
some co-op funds may be
available, or perhaps the big
newspaper ad isn’t as efficient
as a smaller local “Penny
Saver” type of advertising.
Use all available resources
to help drive your customers
to your store.”
Remember, your retail location experience is your brand, with carrier and manufacturer brand messages leveraged inside. But since most consumers get hit with a
blizzard of ads and offers, it helps to get your advertising message out and repeat it
often with the audience you’re trying to reach.
MANAGE YOUR MARKET DEVELOPMENT FUNDS (MDF)
MDF funds are set aside over and above your co-op dollars to push brand messages and product sell-through at retail. These are scarce funds but they do exist.
Your chances for accessing MDF are greater if you share your ideas with your carrier, manufacturer and distributor rep at an early stage. If you have strong relationships with them, your reps may be more open to helping you access MDF.
As the retailer, you must have a marketing plan that resonates with the carrier,
manufacturer and distributor rep. Show your reps how you incorporate their sales
goals and their brand image into the process.
Many of the reps are compensated on both sales and market share. MDF can be
used in many cases for special promotions to help develop your store or a new
store opening. When developing your marketing and advertising plan for the year,
MDF can play a role, but it requires early conversations with your reps about the
specifics of what you hope to do.
GAIN ACCESS TO CO-OP FUNDS
Co-op funds are accrued based on your sales (activations/product) and can be
available from your carrier, manufacturer, distributor or all of them.
Build relationships with your carrier rep to be on the inside track for carrier promotions. Communicate weekly with your reps to learn about promos and let your
reps know that you are eager to participate.
Take advantage of carrier advertising campaigns. All of the carrier and manufacturer efforts can be extended by your retail location. Just add your own spin on
them by extending additional offers or in-store promotions for companion
accessories.
GUERILLA MARKETING
Low-Budget Marketing Ideas:
■ Check with your local radio station for “spot buys.”
■ E-marketing—use e-mail to reach out to your customer base and affinity
partners.
■ Store-front signage—try attention grabbers like balloons and gobo lights.
■ Yellow Pages advertising—check both online and the book.
■ Give customers a great shopping bag for their purchases and product literature.
The bag should highlight your store name, address, phone number and website.
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CHAPTER 6
WORD-OF-MOUTH REFERRALS
Who is in your personal network? Your sports league, church, bingo or poker club
and civic organizations are all good places to look for referrals. Talk to everyone
you know, everywhere you go.
When you hear a complaint or concern in casual conversation, it may be an opening for a potential sales lead (“I’m so busy,” “I can’t remember my dentist’s phone
number,” “The kids are always on the phone,” “I’m nervous about my kids being
on the road so much.”) With a few tactful questions, you could wind up showing
someone how to store names and numbers in their new phone, or giving them the
fun of seeing how voice-activated calling works.
Margin Notes
Remember to carry your business cards, even to the soccer field, bowling alley or
weekend farmers’ market. When talking to acquaintances, ask them if they know
anyone who needs the latest wireless device. It can turn out to be an easy way to
get pre-qualified leads.
DIRECT MAIL
Post-sale service is every bit as important as the first impression a customer gets of
your store and its service. Experts recommend reaching out to customers post-sale
six times annually, on average. The aftersale is just one opportunity to continue
JOIN LOCAL ORGANIZATIONS:
the customer relationship.
Direct mail—especially large, simple
postcards—is a great way to personally
communicate with your customers. You
can print a number of postcards that have
your store logo or image on the front, but
leave the back blank. Later on, you can
tailor and print short, specific messages on
the back for a small number of customers
at a time. If you have a high resolution
(photo quality) image of your store logo
or other image, visit www.vistaprint.com
for inexpensive and easy to produce postcards. Also check with your local printer
for a good deal.
■ Business networking
organizations
■ Chamber of Commerce
■ Local retailers’ associations
■ Community groups
(beautification, emergency
preparedness, PTA, sports)
When appropriate, offer to give
presentations on the wireless market,
service plans and technology like
video streaming or Bluetooth capabilities. Make sure to get an attendee
list at the end of the meeting.
PUBLIC RELATIONS—DO IT YOURSELF SUCCESSFULLY
To create a voice in your market, reach out to the local papers and radio stations
to be interviewed as a local merchant. Share with them what you are doing to support the community.
Newsworthy reasons to be interviewed by the press:
■ Event participation in your community (e.g., state fair, expo, trade show, etc.)
■ Event sponsorship (e.g., local concert, civic event)
■ Organization sponsorship (Little League or other sports team)
■ New store opening or relocation
■ Grand opening
CHAPTER 6
53
Margin Notes
Word-of-mouth publicity
and grassroots “buzz” help
make viral marketing
powerful, and they can help
your store succeed.
Create your own press releases on a small
budget. For only a few hundred dollars you can reach many people in your
specific market using services such as
V-News Service offered by Virtual Press
Office (VPO). All you have to do is create
an invitation for a new store opening or
special event at your store, send it to VPO
and they will create an e-mail campaign
for you. Using a service like this gives
you the option of having them use your
database, their database or both to send
out your information. You do not have to
be creative or a good writer; they help you
with it. You can attach product literature
or carrier brochures to the invitation,
which gives readers more reasons to visit
your store.
REACH OUT TO YOUR
CUSTOMERS SIX TIMES PER
YEAR BY SENDING:
■ Letter of thanks for a recent
purchase or new activation
■ Postcards to remind them of
upcoming events or new product
arrivals
■ Anniversary card with upgrade
reminders, promos and trade-in
offer when contract is up
■ Carrier offer extension plus your
own offer to keep the customer
■ Birthday card—it is amazing how
well this one works!
■ Sneak preview sales
opportunities—special events to
see new products
PRESS RELEASE NEWS
SERVICE IDEAS
■ Create an invitation or newsworthy promotion and have VPO do the rest for
you. You can find more about VPO and the V-News Service at www.VPOinc.
com or call them at (973) 783-7787. As a partner with CEA, they have been
serving the wireless community for many years.
■ Write a press release about a new store opening or other newsworthy promotion (for some examples, Google “press releases” to see some examples of basic
formats). For a nominal fee you can post it online at www.prweb.com, which
distributes to thousands of media outlets.
BE A PRESENCE IN YOUR COMMUNITY
Create a buzz. If you sponsor a soccer or other sports team, let people know it
(your store’s name on the back of the team shirt, your store’s name in the program,
your store as sponsor of the season’s-end celebration, a sign and photo of the team
in your window).
Most people enjoy doing business with
people who give back to the communities
they live in. If you donate your recycled
phones to a charitable program in your
community, for instance, tell people you
do this in your store. Make it easy for
them to donate their recycled phones
as well, making available a marked box
and forms that can be used for tax return
purposes.
Also encourage and reward your staff for
getting involved in the community. Staff
can wear your store’s t-shirts while partici-
54
CHAPTER 6
MEDIA ATTENTION CAN TURN
INTO PROFITS:
■ Being mentioned in the local
paper can increase your store
traffic.
■ The more people who are talking
about you, the more attention you
will receive.
■ Publicity can increase the
effectiveness of your marketing
and advertising efforts.
pating as a group in walks or runs to benefit worthwhile causes, contributing to a
local food bank or getting involved in a stream clean-up or similar environmental
project.
Margin Notes
Why publicity is better than advertising:
■ It is “viral.” Ad space alone cannot talk, people do that for you.
■ It is usually free; advertising always costs something.
■ It builds your credibility as an expert.
Word-of-mouth publicity and grassroots “buzz” help make viral marketing powerful, and they can help your store succeed. Viral marketing helped eBay grow to
become the giant in the online and auction industry, with more than 150 million
registered users who look at, sell and trade goods worth more than $40 billion (as
of 2006).
TRACKING DATA
Tracking data helps you capitalize on your promotions, good marketing and effective publicity. To track data easily, it’s necessary to create a customer database and
rigorously keep it up to date. All the snazzy promotion pieces in the world won’t
help if you are sending them to a mailing list of customers who have moved out of
town.
“eBay is, in short, the
Net’s most vibrant online
trading community and
how it got there is as
idiosyncratic as its start: via
grassroots marketing fueled
by word of mouth.”
Best Viral Marketing, Brandweek, June 28, 1999 by
Kipp Cheng.
FINDING AN AFFORDABLE CRM TOOL
THAT WORKS FOR YOU
Some retailers simply use Excel spreadsheets to keep track of their customer and
promotional information. You also can purchase basic Customer Relationship
Management (CRM) software to track your promotions and create the database.
For small and mid-size business owners, ACT! CRM software is fairly easy to
implement and keep updated. Other store owners build custom software specific
to all their business planning needs, including tracking promotions and customer
profile information.
CRM software providers such as TeleTracker and iQMetrix combine customer
profile tracking capabilities along with comprehensive business planning tools.
For details, see the next few chapters.
Promotions:
■ Start with a goal for the event or advertising period.
■ Measure sales before and after the event period.
■ Evaluate whether the promotion met, exceeded or failed your expectation.
■ What did you learn from the result?
CHAPTER 6
55
Customer Profiles:
■ Capture contact information from every customer, even those who do not
purchase.
Margin Notes
■ Identify each user type (e.g., business user, high-tech, safety-only).
■ Include purchase data.
■ Input contract expiration data.
■ Calculate a chargeback window for every new customer for business planning.
“Get your customers off
their couch and into
your store by featuring your
specials and your service,
and by quoting satisfied
customers who can speak to
the advantages of
shopping at your store.”
■ Input customer birthday
■ Mark contract anniversary date.
■ Keep track of how often you contact each customer via direct mail, e-mail
and phone.
GET ON THE INFORMATION SUPER HIGHWAY
Online Advertising
We live in an immediate gratification society. Many customers validate your existence based on whether you have an effective website. Since customers are already
doing their research online to find product and service information, make sure
they can find your store online as well.
Get your customers off their couch and
into your store by featuring your specials
and your service, and by quoting satisfied
customers who can speak to the advantages of shopping at your store. Such
testimonials can tout your individualized attention, your experience and your
ability to match the right product to their
needs.
TRACK AND MEASURE
“Consumers who purchased their
phone at an independent retailer
appear to be much more enthusiastic
researchers compared to carrier store
buyers. For example, these buyers
are three times as likely to research
ad circulars or newspaper ads.”
Wireless Purchasing Study: Measuring Satisfaction
Be sure your basic contact information is
and Loyalty, December 2005, Consumer
Electronics Association)
clearly displayed on the website, including
a map, directions, hours of operation and
phone. Add your e-mail address only if
you are able to tend to such messages regularly, even when your store is not open.
Although your website does not have to be extensive, it does need to stay fresh,
with changes to reflect new products, sales or seasonal specials such as back-toschool or Christmas ideas.
56
CHAPTER 6
Find affordable Web developers in your market:
■ Check with nearby high schools and colleges for students studying Web design.
■ Inquire with your local Chamber of Commerce for freelance Web developers.
■ Check CraigsList and community job-posting boards for freelance designers.
Margin Notes
■ See what the Yellow Pages offer.
■ Always check references and examples of work before hiring.
You can use the Web to advertise in a targeted fashion. Several online companies
offer various cost-effective Internet advertising programs, such as GoogleAdWords
or GoogleAdSense.
E-MAIL MARKETING
Most businesses, organizations and entrepreneurs use e-mail daily as a critical
customer communication tool. Regardless of your store’s size, your customer relationships and your brand benefit when you strategically use e-mail as a marketing
channel.
ExactTarget, Constant
Contact and BizConnector
are good examples of
e-mail campaign tools
available on the Web.
However, an increasing number of consumers guard their e-mail address to protect their privacy, and many laws protect consumers from spamming (unwanted
e-mail). When you are walking a customer through the sign-up process for a new
product, make sure you clearly ask for and receive signed permission before you
send e-mail. The term “opt-in” refers to gaining permission from customers to
send e-mail. Always give customers an easy way to discontinue e-mail communication as well (opting out).
To use e-mail to stay in touch with your customers, consider the type of knowledge and expertise they would like to receive via e-mail—news, trends, insights,
tips—and the appropriate frequency. Then determine a consistent design and
format for your messages. The design and format help to shape your content and
support branding. Remember to keep the messages short, punchy and relevant.
Put yourself in the recipient’s shoes: what would be such an interesting or compelling headline that you would open and read this e-mail among a flood of others?
Successful e-mail campaigns become viral. Make sure you add an easy button to
“send this e-mail to a friend.” Also use your website so that new interested clients
can easily opt-in for e-mail news. You are building your relationships and your
brand via e-mail. If customers are amenable, perhaps they also will allow you
to send text messages about usage tips and upcoming promotions for their new
phone.
CHAPTER 6
57
ADVANCED WIRELESS RETAIL
MARKETING/ADVERTISING PLAN TEMPLATE
Use this as a guide to plan and track your marketing and advertising goals:
Margin Notes
Result
Month/
Quarter
Cost*
Event/Activity
Deadline
Promo
Date
This Year
(TY) – Last
Year (LY)
$1,000
Direct Mail
Dec
Jan – Feb
+5%
February
$1,000
Valentine’s Day
In-Store Rebate
Jan
Feb
Even
March
$2,500
College Basketball
In-Store Promo – 2 Feb
for 1
Mar – Apr
+12%
0
Off Promo
Apr
$2,500
Grads and Dads
Sweeps
Apr
May – Jun
+7%
$2,500
Grads and Dads
Sweeps
Apr
May – Jun
-2%
0
Off Promo
August
$1,500
Back-to-School
Promo
Jul
Aug
September
0
Back-to-School
Promo Carryover
Jul
Sep
+3%
$5,000
PDA Promo
Aug
Oct
+10%
$10,000
Holiday
Extravaganza
Aug
Nov
$15,000
Holiday Extravaganza Carryover
Aug
Dec
January
(Q1)
April
(Q2)
May
June
July
(Q3)
October
(Q4)
November
December
Jul
* Your marketing expense budget should support your annual sales goals.
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+2%
-2%
+3%
46% OF
ANNUAL
SALES OCCUR
IN Q4
Best Viral Marketing, Brandweek, June 28, 1999 by Kipp Cheng.
Wireless Purchasing Study: Measuring Satisfaction and Loyalty, December
2005, Consumer Electronics Association®
Margin Notes
www.VPOinc.com
www.prweb.com
www.vistaprint.com
www.CE.org
www.exacttarget.com
www.bizconnector.com
www.teletracker.com
www.iqmetrix.com
CHAPTER 6
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YOUR GUIDE TO:
■ INVENTORY
■ SALES
■ BUDGETS
FORECASTING AND
BUSINESS PLANNING
GUIDE TO WIRELESS RETAIL BUSINESS
PLANNING PHILOSOPHY
Margin Notes
1. Carefully evaluate each supplier (strengths vs. weaknesses); work with the suppliers who want to work with you, not just those who need to make quota.
2. Terms. Ask for terms from every supplier. Not every supplier will issue terms,
but some suppliers are hungrier than others and can be more flexible. If you sell
for cash, but get goods on terms, you can keep monies in your bank to earn interest for a longer period of time than if you pay COD for equipment.
3. Reserve some commissions to offset chargebacks when they occur (and they
WILL occur). Many retailers cash their commission checks and spend it all to
keep the business running, leaving no room to cover a slower month in the future.
4. View commissions as an investment proposition. You are fully vested once
the consumer is completely through the chargeback period. Before then, you are
“at risk” for a chargeback. Calculate your chargeback percentage cover in the previous chapter, to create a reserve to cover your risk exposure.
“You must forecast and plan
your business for long-term,
sustainable growth.”
5. Offer solutions—not hardware, or pricing plans, but solutions. Ask questions to make sure you understand the consumer’s needs fully, then make recommendations that meet all of the consumer’s needs.
6. Know what all the other carriers offer in your specific market. Know your
competition well. Study the industry, not just your offers.
7. Understand your core business. Many retailers are “scrappers” and are just
looking to make something happen in terms of sales and profits; while others
completely understand their core business and can methodically develop a plan to
incorporate real opportunity. Be methodical.
8. Draw up a business plan for growth opportunities and review your business
plan monthly. Quite often one program will succeed at the expense of another
due to lack of resources. Don’t stretch or overburden existing resources to stray
away from the core business.
BEAN COUNTING—FOCUS ON METRICS
You must forecast and plan your business for long-term, sustainable growth. Most
retailers are swamped with marketing plans, sales goals and equipment needs.
When you feel squeezed for time, it’s tempting to pay scant attention to tracking
and analyzing key metrics. But building your metrics is vital to long-term success. The best thing you can do is hire someone to concentrate on building your
metrics. This person should have a sharp, analytical mind and must be familiar
with tools such as Excel—to build dynamic spreadsheets—and QuickBooks,
to manage back office accounting. Creating good metrics also requires a certain
mindset, however—being able to envision how you want your business to succeed,
and working backward from that to nail down specific milestones and accomplishments to make it happen.
What makes a good metric, or measurement? It is the desired end result, the outcome (not a process). It is measurable in quantity, such as “Improve reactivation
rate from x to y percent” or “Sell x percent more of xyz commitment in Q4 than
last year.” It is sometimes measurable in quality as well, such as “x percent customers report satisfactory follow-up from salespeople.”
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Effective Metrics
Bundling Agreement Administration (even going to small claims court, if necessary).
“Successful Bundling Agreement Administration increases from x percent to y percent.”
Margin Notes
Individual salesperson deactivation rate.
One-for-one activation to revenue recognition (to make sure you get paid for every
activation). “100 percent of activations result in revenue.”
Customer follow-up (“Sales staff follow-up with customers increases from x percent
to y percent.” or “X percent of customers in survey report satisfactory or superior
follow-up.”)
Track equipment shelf time (what type of equipment is moving and what isn’t).
Forecasting
Marketing success (“X ads result in y (#) sales, generating $z net revenue.”
Compare return on investment (ROI) for different types of ads in different media).
Follow up with deactivated customers to see if reactivation has occurred, thus
recovering reimbursable commissions. “Reactivation of deactivated customers
increases from x percent to y percent.”
Hiring this person will allow owners to focus on sales, marketing and equipment
purchasing. This person, if managed correctly, often will generate income in
excess of their cost. It is easy to see this as an incremental cost to the operation,
when in fact it can become a profit center.
INSTALL BUSINESS-PLANNING SOFTWARE
Purchase custom business-planning software for balancing your commissions
and tracking chargebacks. In the short term, it will pay for itself. Use customer
relationship marketing (CRM) software. Two popular business-planning software
programs are iQmetrix and TeleTracker, which have saved time, money and headaches for other wireless retailers. Make sure any software you choose uses similar
logic to your distributor, master agent or carrier.
TeleTracker
TeleTracker Online offers a comprehensive retail management system designed
specifically for wireless retailers. You can
streamline the day-to-day operations of
your business by automating many of the
tasks associated with wireless retailing.
TeleTracker Online is a real-time, Internet-based, point-of-sale program designed
to support an unlimited number of locations. (See Appendix A.)
TELETRACKER SOFTWARE
FEATURES AND BENEFITS
■ Streamlined point-of-sale
■ Inventory control (serialized)
■ Commission tracking and
reconciliation
■ Integration with most major
wireless providers
■ Interface and compatible with
popular accounting packages
Maintaining maximum control of your
retail business is impossible without
reliable inventory software solution. The
TeleTracker software is inventory driven. Maintaining a seamless inventory software control, from purchasing to point-of-sale, will save you time and money.
CHAPTER 7
63
Margin Notes
IQ Metrix
RetailiQ is another leading retail management solution, designed specifically
for wireless retailers by IQ Metrix. Their
solution combines POS, CRM, inventory,
accounting, human resources, marketing, intranet and e-commerce. RetailiQ
provides core functionality and allows you
to implement any one of their add-on
modules at any time. (See Appendix B.)
IQ METRIX SOFTWARE
FEATURES AND BENEFITS:
■ Intuitive point-of-sale interface
■ Corporate, regional and store
vitals in real time
■ Multi-location sales reporting
■ Intelligent sales planning dash
board
■ Full featured e-commerce inventory
management
SHOW ME THE MONEY!
Learn how to manage cash flow that
fits your specific business model. Cash flow is ultimately more important than a
balance sheet. Tie this into your business plan and make adjustments every week.
Create a routine and standard process to review your books once a week. Measure
against the same sales period for last year. This can be done as simply as you need.
Review the following reports daily and act on them monthly:
■ Operating Statement—fixed expenses and variable expenses
■ Profit & Loss Statement—revenues received against associated costs
■ Income Statement—revenues received from multiple sources
■ Accounts Receivables Reporting—commissions due to you
While each of these has a specific meaning in the accounting world, they often are
used interchangeably to describe statements showing how your business is performing this year compared to last year, and compared with your goals. Whether
you use a simple Excel spreadsheet or more sophisticated software, keep track on
your aging receivables. Follow up with carriers and distributors for your aging
receivables.
An average three percent of commissions nationwide are never paid because retailers do not track them. Watch your commission receivables on a monthly basis and
don’t wind up in that position.
ACCOUNTING TIP
When experiencing big income months, make a conscious decision to invest some
money growing the business, or bank it for future opportunities. Many small
retailers live hand to mouth. Remember the old fable of the grasshopper and the
ant, and plan for the slow months. When business is slow, either terminate and
downsize, or hire and go after new business.
FOCUS ON BUDGETING
Once you have some historical data, for as little as even 90 days, you can begin
forecasting sales patterns. With a year or more of data, you should be able to plan
correct inventory levels and sell-through of product, activations and upgrades.
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Income-Expense Statement with chargeback adjustments
Revenue
Jul
Aug
Sep
Nov
Dec
Activations
Retail Revenue
Commissions
Earned
Reserve for
Chargeback
7th Month CB
"Roll-In"
60
$9,000
75
$11,250
90
100
$13,500 $15,000
120
$18,000
140
80
60
$21,000 $12,000 $9,000
$15,000
$18,750
$22,500 $25,000
($3,750)
($4,688)
($5,625)
Total Revenue
$20,250
Total Expenses
Net Income
Expenses
Equipment Cost
Oct
Mar
Apr
May
Jun
60
$9,000
70
$10,500
80
$12,000
90
$13,500
$30,000
$35,000 $20,000 $15,000 $15,000 $17,500
$20,000
$22,500
($6,250)
($7,500)
($8,750)
$25,313
$30,375 $33,750
$40,500
$47,250 $27,200 $20,650 $20,050 $24,125
$15,000
$15,000
$18,750
$18,750
$22,500 $25,000
$22,500 $25,000
$30,000
$30,000
$5,250
$6,563
$7,875
$10,500
$8,750
Jan
Feb
($5,000)
($3,750)
($3,750)
($4,375)
($5,000)
($5,625)
$200
$400
($200)
$500
($400)
$350
$26,600
$30,725
$35,000 $20,000 $15,000 $15,000 $17,500
$35,000 $20,000 $15,000 $15,000 $17,500
$20,000
$20,000
$22,500
$22,500
$12,250 $7,200
$6,600
$8,225
$5,650
$5,050
$6,625
Chargeback
Adjustments
Reserved for
$3,750
$4,688
$5,625
$6,250
$7,500
$8,750
$5,000
Chargeback
Actual
$3,550
$4,288
$5,825
$5,750
$7,900
$8,400
$5,150
Chargeback
7th Month CB
$200
$400
($200)
$500
($400)
$350
($150)
Adjustment
(Highlighted area shows how the chargeback adjustment is added (or subtracted) to revenue at the end of the chargeback window)
The goal is to forecast sales and budget inventory levels so that they equal your
desired profit probability of your store. Once historical data is in place, you should
develop the plan and review it monthly.
Your forecast should drive all sales quotas and performance expectations. There will be
anomalies along the way—for example a new product launches and you incur pentup demand because carriers need to service their branded stores first—but it is almost
impossible to plan for these. Make sure you have good relationships with your supply
sources to help you get back on track with your budget as soon as possible.
Selling Wireless Successfully: The Retailer’s Survival Guide, 2004 Consumer
Electronics Association
www.CE.org
www.teletracker.com
www.iqmetrix.com
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YOUR GUIDE TO:
■ CHOOSING PRODUCT
LINEUP
■ DECIDING INVENTORY
QUANTITY
MANAGING
INVENTORY
Margin Notes
BUNDLING AGREEMENT ADMINISTRATION
When customers are signing up for service and get a free or discounted phone,
they should sign a bundling agreement. This bundling agreement requires them
to reimburse the retailer for the cost of the phone, or discount, if they deactivate
within the chargeback period.
Many retailers have bundling agreements, but few follow up on them. A simple
phone call to a customer who violates the agreement may allow you to recoup the
loss on the phone sale. If 10 people violate their agreement and you call all 10,
you may get 2, 3, 4 or more to live up to their commitment and pay. That means
you could potentially recoup hundreds of dollars with just a few phone calls. For
larger losses, consider small claims court to collect on costs associated with violated
bundling agreements.
THE CHICKEN OR THE EGG
Which comes first, the service deal or the phone deal? What moves customers to
purchase: the phone or the service? At best, it is a constant balance between the
two and can change on any given day. Balancing the right mix of product with
the right quantity on hand depends on how well you know your customer base,
anticipate your store traffic and analyze your historical sales data.
MANAGING MULTIPLE CARRIERS
If you are already managing more than one carrier to service your customer base,
then you already know that managing different activation systems and policies
simultaneously can be quite daunting. This is all the more reason to invest in
business planning software to manage multiple carrier sell-through and activation
processes.
INVENTORY
A good rule of thumb is to carry no more than seven days of inventory unless it
is the hot deal of the day or a closeout item. Use a point-of-sale (POS) system to
track electronic serial number (ESNs), fraud, theft and defective product. Consider using a surveillance system, especially for stores with high walk-in traffic. Do
not overstock. Most suppliers do not price-protect, so keep on-hand inventory to
a minimum to accommodate a few days worth of activation activity. Try ordering
equipment twice a week; perhaps on Thursday (to bring enough to last through
the weekend) and then again on Monday (to cover the first half of the week).
Buy low, sell high (unless buying down equipment by applying some of the commissions being generated from the activation); however, the premise remains the
same. Always take advantage of carrier-subsidized product promotions.
MARGINS
Gross Margin—This is the most basic calculation and is simply how much you
sell the product for, minus how much you paid for the product.
Example:
Gross Margin—(retail price—wholesale price) / (retail price) OR
20 percent = ($1.00–$.80) / $1.00
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Net Margin—This calculation adds direct costs into the gross margin calculation.
Typically, these costs only are included if they are directly related to the cost of
the product.
Example:
Net Margin = (retail price—wholesale price—shipping costs)/(retail price) OR
15 percent = ($1.00–$.80–$.05) / $1.00
CAUTIONARY TALES
Watch out for counterfeit goods, especially accessories. Know your vendor, know
your product. At a tradeshow in 2001,
more than 140 vendors were cited and
issued “cease and desist” orders for patent
infringement. This is why it is important
to procure quality product from quality
suppliers. Know your suppliers well.
Understand their return policy so that
you do not get stuck with defective merchandise that you are unable to return or
sell.
Margin Notes
PROTECT YOURSELF FROM
RETURN FRAUD
■ Choose reliable OEM and aftermarket accessories suppliers.
■ Effectively procure all equipment
using trusted distribution partners.
■ Hire trustworthy employees who
do not steal assets from the
company.
PREVENT SHRINKAGE BY INSTALLING THE APPROPRIATE
LEVEL OF SECURITY
At Phones Plus, CEO Rami Merheb learned a valuable tip for securing his business. All 16 Phones Plus stores are equipped with Web-cams monitoring all of
their stores 24/7. The cost was approximately $3K per store but, once the system
was installed, his overall shrinkage went from $200K to less than $20K per year.
Unfortunately, five out of seven personnel were terminated for theft as a result of
the surveillance. Ultimately, this small investment equated to hundreds of thousands of dollars in savings every year. Now that is a worthwhile investment.
Track how much inventory is moving through your store by creating a simple
“run rate report.”
Inventory Run Rate Report
Description
on hand
sold
today
MTD rec’d
MTD sales
last month's
sales
days of
inventory
daily avg
run rate
sell price
cost
delta
PHONE - BASIC
56
0
0
39
PHONE - BASIC
14
0
0
1
75
17
3
68
$114.00
$113.00
$1.00
4
168
0
2
$249.00
$248.00
PHONE - BASIC
17
0
0
$1.00
0
4
17
0
0
$149.00
$148.00
PDA - BASIC
3
0
$1.00
0
0
3
3
0
0
$419.00
$418.00
PDA W/WINDOWS &
CAMERA
$1.00
5
CAMERA PHONE
5
0
5
1
4
60
0
2
$624.00
$623.00
$1.00
0
0
4
4
15
0
7
$199.00
$198.00
CAMERA PHONE
$1.00
11
0
20
19
5
7
2
33
$113.00
$112.00
$1.00
CAMERA PHONE
19
0
0
9
11
25
1
16
$129.00
$128.00
$1.00
PHONE W/MUSIC
59
6
80
69
0
10
6
121
$259.00
$258.00
$1.00
PHONE W/MUSIC
71
3
100
29
0
29
2
51
$259.00
$258.00
$1.00
DATA CARD
7
0
0
2
0
42
0
3
$210.00
$209.00
$1.00
267
9
205
173
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Create a similar run rate report for your accessories inventory as well. Track your
attach rates and never run out of inventory on core products and hot sellers. A general rule of thumb is to average a two-to-one attachment rate for accessories sales.
Margin Notes
Carry enough accessories inventory to obtain a high attachment rate:
David Lorsch, president and CEO of DBL Distributing, one of the largest consumer electronics accessories distributors in the United States, says, “The wireless
accessories business has shifted in the last five years. Previously, the focus was
primarily car cords and batteries. While it is still important to push additional
car cords, battery technology has increased so much it has become a lesser focus.
Today, retailers must understand their customer base in order to have a profitable
accessories product mix. Most retailers still tend to be safe with buying all black
accessories. While it is wise to be safe with your inventory dollars, do not be afraid
to match your demographics with the correct inventory. For younger and more
fashion-conscious customers, buy some color or a few fringe accessories allowing
customers to personalize their wireless devices. For business users, make sure you
sell two power chargers for every device—one for home or office use and one for
traveling.”
SOURCES:
www.CE.org
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COMMISSION
ACCOUNTING
YOUR GUIDE TO:
■ COMMISSIONS
■ CHARGEBACKS
Margin Notes
COMMISSIONS
Many carriers and master agents make broad claims about the services they provide. Take them up on their offer. Representatives from your carriers and master
agents should be consultants, not just order takers. They should be able to explain
all of the basics and tap into resources to provide more sophisticated help on commission, accounting and economic matters. They won’t run your business for you,
but they should be able to make sure your processes and systems are sound, so
that you know you are running it as efficiently as possible. If they cannot do this,
perhaps you are with the wrong carrier or master agent.
Most important, forecast, report and reconcile commissions every month. On
average, three percent of commissions nationwide are never paid because retailers
are not tracking.
From time to time, your carrier or master agent may leave a loophole in their process. Perhaps you realize a way to increase your commission by using their activation system in a way that it was not intended, or by some other means. Don’t do
it. Whatever short-term gain you receive will be far outweighed by the long-term
damage to your relationship and reputation.
CHARGEBACKS
Customers discontinue their service for reasons completely outside of your control, causing the carrier to “charge back” commissions paid as well as nullifying
any unpaid commissions as a penalty to you.
Be careful. Proactively plan and report chargebacks in your business planning process. Understand the impact of chargebacks and commissions on overall business
and what this means to the staff.
Combat chargebacks by staying in touch with your customer base. Contact customers after the sale and maintain a relationship throughout the chargeback window and beyond. Call all chargebacks. Many customers move to areas for which
you are not paid a commission.
Invoice all activations to the carrier to create a paper trail of activities. Use an
invoice tracking report to validate accuracy and timeliness of chargebacks.
DEACTIVATION TRACKING
Be mindful of deactivations. Most dealers do not know their true deactivation rate
because they neglect to include deactivations that occur prior to a commission
being issued. Many dealers track their overall chargeback rate, but by neglecting
deactivations that don’t result in a chargeback (because commission was never
paid) they have a false picture of their sales effectiveness.
FINDING YOUR CHARGEBACK RATE
A retailer activates 100 new accounts (all on the same plan and earning the same
commission) in January. Seven of these January customers cancel service in February, five more cancel in March, no one cancels in April, four cancel in May, four
cancel in June and five more in July, resulting in 25 total cancellations from the
January activations. Because a total of 25 customers cancel from the January
activations—which by August is past the 180-day grace period used by most
carriers—the chargeback rate you should plan for would be 25 percent.
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Monthly Reserve Progression
Chargebacks in July
Jul
Commisions Earned
$15,000
Reserve Account
$3,750
Month 1 CB
$710
It is important to plan
for chargebacks by
earmarking a fund to
cover this future negative
impact on your business
commissions.
Month 2 CB
Margin Notes
(Highlighted items represent current month chargebacks applied
to previous commission period)
Month 3 CB
Month 4 CB
Month 5 CB
Month 6 CB
Net Remaining
$3,040
Chargebacks in August
Jul
Aug
Commisions Earned
$15,000
$18,750
Reserve Account
$3,750
$4,688
Month 1 CB
$710
$858
$355
Month 2 CB
Month 3 CB
Month 4 CB
Month 5 CB
Month 6 CB
Net Remaining
$2,685
$3,830
Chargebacks in September
Jul
Aug
Sep
Commisions Earned
$15,000
$18,750
$22,500
Reserve Account
$3,750
$4,688
$5,625
Month 1 CB
$710
$858
$1,165
$355
$429
Month 2 CB
Month 3 CB
$533
Month 4 CB
Month 5 CB
Month 6 CB
Net Remaining
$2,153
$3,401
$4,460
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73
Completed chargeback adjustments
Commisions Earned
Monthly Chargebacks
Jul
Aug
$15,000 $18,750
($710)
($1,213)
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
$22,500 $25,000 $30,000 $35,000 $20,000 $15,000 $15,000 $17,500 $20,000 $22,500
($2,126) ($3,263) ($4,633) ($5,964) ($6,009) ($6,236) ($5,985) ($5,565) ($4,910) ($4,476)
$3,750
$4,688
$5,625
$6,250
$7,500
$8,750
$5,000
$3,750
$3,750
$4,375
$5,000
$5,625
$858
$429
$643
$1,072
$643
$643
$400
$1,165
$583
$874
$1,456
$874
$874
($200)
$1,150
$575
$863
$1,438
$863
$863
$500
$1,580
$790
$1,185
$1,975
$1,185
$1,185
($400)
$1,680
$840
$1,260
$2,100
$1,260
$1,260
$350
$1,030
$515
$773
$1,288
$773
$773
($150)
$750
$375
$563
$938
$563
$690
$345
$518
$863
$925
$463
$694
$960
$480
$1,105
$563
$1,335
$2,294
$3,560
$4,520
Reserve Account Details (25% withheld)
Placed into Reserve
Account
Months 0–1 CB
Months 2 CB
Months 3 CB
Months 4 CB
Months 5 CB
Months 6 CB
$710
$355
$533
$888
$533
$533
Net Remaining $200
(Highlighted area represents Jan actual chargebacks applied to the appropriate previous commission period)
Simply tracking deactivations and chargebacks is not enough, as you can see in the
chargeback adjustment example. It is important to know that your store has an
overall chargeback rate of 15 percent and to constantly strive to lower that number. It is even better to know that staff member Sally has a chargeback rate of three
percent and Steve has a chargeback rate of 30 percent. Now you know you need to
retrain or replace Steve.
Many dealers do not pass through chargebacks to their staff. Dealers should at
least consider penalizing their sales reps for chargebacks. You might consider this
to change behavior. You could charge back everything over a certain monthly
percentage, or pass through half the chargebacks a salesperson generates, or give
bonuses for low chargeback rates.
CHARGEBACK DANGERS
Jul
Aug
Sep
TRUE Net
$5,250 $6,563 $7,875
Income
Cash Flow $8,290 $10,038 $11,374
Fixed Costs $4,250 $4,250 $4,250
Oct
Nov
$8,750
$10,500 $12,250 $7,000 $5,250 $5,250 $6,125 $7,000 $7,875
Dec
Jan
Feb
Mar
Apr
May
Jun
$11,737 $13,367 $15,036 $5,991 $2,764 $3,015 $4,935 $7,090 $9,024
$4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250 $4,250
www.CE.org
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1
10
UNDERSTANDING
YOUR INDUSTRY
YOUR GUIDE TO:
■ WHAT THE RESEARCH SAYS
■ WHAT TO READ
■ WHAT TO JOIN
■ STAYING CURRENT WITH
LEGISLATIVE ISSUES
Margin Notes
THE CRYSTAL BALL
Focus on the future, not just today. Many new opportunities and challenges are
still ahead. As long as technology continues to change, there will be new ways of
doing business. It is important not only to have a “Main Street” approach to your
business, but to consider what is happening on a larger scale in the market. By
staying on top of the latest research, you can gain a greater understanding of how
quickly customers are accepting new technologies and adopting new purchasing
patterns over time.
RESEARCH SOURCES
For reliable, trustworthy research, visit
www.CE.org. There is a wealth of free
information available to non-members.
Even more is available if you join as a
CEA retailer.
SIGN UP FOR FREE ONLINE
SUBSCRIPTIONS TO INFORMATIVE WIRELESS INDUSTRY
E-MAIL PUBLICATIONS:
■ CEA SmartBrief
■ CTIA SmartBrief
■ eWeek
■ Fierce Mobile Content
WHAT THE RESEARCH SAYS
Research can both reflect history and
■ FierceWireless
anticipate the future. It is a way of trend■ The Channel Insider
ing the past, but also understanding how
■ Wireless Insider
what is coming down the pike will affect
your sales floor. For example, who would
have guessed five years ago that the ring
tone download business would be a billion dollar revenue industry?
By learning what is happening in Europe and Asia, we often can get a glimpse of
how new services and applications may unfold in the US. Europe was experiencing customer fascination for personalizing their phones with faceplates and other
gadgets long before they were available in the US. Other markets have uncovered
revenue opportunities that you can apply to your customer base right here at
home.
Helpful Wireless
Magazine Publications:
■ CE VISION
■ RCR Wireless News
■ The Prepaid Press
■ Wireless Week
PLAN FUTURE PARTNERSHIPS
Get involved! Join associations like the CEA, which has a primary goal founded on
training and education. CEA helps you stay on top of trends and gives you access
to others within the wireless industry that you can partner and associate with.
Other associations focus on carrier issues, or retailers—CEA offers a focus on wireless retailers.
Expand your relationships to include partners who can deliver new revenue stream
opportunities, such as ring tone suppliers, voice-over-IP (VOIP) service providers
and local Wi-Fi service providers. These new wireless service providers need points
of distribution like yours to sign up subscribers. Traditional carrier relationships
continue to change and there is still room for even more consolidation among the
carriers. Keep your options open to new revenue sources today and in the future.
MOBILE VIRTUAL NETWORK OPERATORS (MVNO)
A Mobile Virtual Network Operator (MVNO) is a mobile operator that does not
own its own spectrum and usually does not have its own network infrastructure.
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CHAPTER 10
MVNOs are just getting their feet wet in this business. Their effect on the future
of wireless retailing is still unknown. However MVNOs are paving the way for
new business models because they have business arrangements with traditional
mobile operators to buy minutes of use (MOU) for sale to their own customers.
This creates opportunities for partnering and for selling specific content over other
operators’ infrastructure.
Margin Notes
MATCHING CUSTOMER NEEDS WITH
NEW CONTENT-RICH PRODUCTS
“…the emergence of MVNOs such as Movida and Amp’d Mobile has seen the
development of product lines specific to certain markets. The difficulty for retailers
today is determining which products will appeal to their customer base. “Boost
attracts the youth market with a push-to-talk solution, Movida targets the
Hispanic customer with low-priced international calls, while Amp’d pay-as-you-go
goes after the technology savvy 18- to 34-year-old with unique broadband content,” said Bruce Hallinan, vice president of Prepaid Services at American Wireless. “They market their handsets and content for their prospective customers and
need to find the appropriate channel to reach these prospects.”
Several new mobile phone companies are focusing their efforts on content
(rather than voice) as the lead selling feature. Content is the new game to watch.
Traditional operators and newly forming MVNO companies alike are focusing on
how to sell more meaningful content to end users. This includes demographically
matching the needs of segmented customers. In a nearly saturated handset market,
listen and learn how this new content can affect the services you will be selling in
the future.
Content is the new
game to watch.
ON DELIVERING MOBILE CONTENT
As a leading distributor of wireless products, CellStar is expanding its portfolio to
include mobilized content services, according to Maria Hernandez, vice president,
U.S. Sales & Marketing at CellStar. “SmartVideo from CellStar delivers live, fullmotion TV to handheld devices such as cellular phones and PDAs. SmartVideo
features high quality, fully synched streaming video programming that includes
news, music videos, weather, sports and more. SmartVideo offers an array of
entertainment choices for consumers, from sports buffs and music lovers to business travelers and newshounds.”
DISNEY TO YOUR CELL PHONE
Your kids would love a cell phone. In exchange, they promise to clean their room
and do their homework. You’re happy to give them one—especially for safety reasons—provided they don’t rack up excess text messaging and other charges.
But do youngsters want a phone letting you tightly control how many minutes
they use? Plus, who they call and when they call? Do they want a phone letting
you track their location via GPS?
These are the main questions surrounding the recently launched Disney Mobile
family cell phone service I’ve been testing with two LG DM-L200 handsets. While
such location tracking and other features exist in other family-oriented cell phones,
Disney is nicely putting the various elements together. Walt Disney may seem an
unlikely wireless carrier, but Disney Mobile is no Mickey Mouse operation.
CHAPTER 10
77
Margin Notes
The LG phones are one of two handsets that work with the new service; Pantech
supplies the other. Disney Mobile is a prime example of a company selling phone
service under its own brand. Sprint is the underlying carrier. “Disney Mobile
family cell phone service helps parents keep track of kids,” by Ed Big, USA Today,
July 26, 2006.
LEGISLATION
Legislative issues surround the wireless industry like any other. It is important
to stay on top of issues that affect your business and your customer base. One
example: state laws requiring the use of headsets while driving can positively affect
your bottom line.
By reading wireless publications, you can stay on top of legislative issues as they
arise. Usually, laws are discussed well in advance of their implementation. When
lawmakers wanted to legally require a standard for E-911 services, making carriers bear the burden of the expense of the equipment by a certain date, it was in
discussion in wireless publications for more than a year.
New issues around content creation and availability of content to your customers
will certainly be in discussion for some time as business models and legal implications are refined. Stay tuned to your industry leaders, publications and tradeshows.
As with all technologies, the story is always unfolding.
“Senate action on the Communications Act of 2006, which includes video choice
legislation and incorporates a national regulatory framework for the wireless
industry, would be great for consumers and the electronics industry. The Senate
bill’s national framework and moratorium on wireless taxes benefits consumers
and the electronics industry retailers who serve them. Action on this legislation,
coupled with implementation of the DTV bill which passed earlier this year, could
make 2006 a pivotal year for the consumer electronics industry.” Howard Woolley,
senior vice president—Public Policy and Government Relations, Verizon.
Selling Wireless Successfully: The Retailer’s Survival Guide, 2004, Consumer
“Disney Mobile family cellphone service helps parents keep track of kids,”
by Ed Baig, USA Today, July 26, 2006
www.CE.org
78
CHAPTER 10
11
YOUR GUIDE TO:
■ SELLING THE TECHNOLOGY
■ THE BOTTOM LINE TO
WINNING AT WIRELESS
SELLING DATA,
SELLING WHAT’S HOT
Margin Notes
PLAN TO SELL AND SELL TO PLAN
Yes, you must ask a lot of questions in order to sell the right product and services
to your customer. This requires a real conversation with a heavy dose of “getting to
know you.” Instead of interrogating, take an approach of showing them how easy
it is to use the features and what benefit they will gain. After all, you are using all
the technologies and have test driven all the products.
In addition to finding out how your customers will use the product, you need to
help guide them to a plan that best fits how often they will use the services. Word
to the wise—only sell your customers what they need. If you talk them into the
right plan that fits their needs, they will be back to see you—and they will tell
their friends to come see you, too.
No customer wants to be oversold, or undersold. Over-selling an activation plan
may result in a chargeback and ultimately lead to the loss of equipment as well.
Sell based on what your customer needs and they will be satisfied customers.
Examples of most data service buckets:
Category
Payment Basis
Unlimited use
A flat rate for unlimited access to certain types of
data services
Usage-based
Payment based on amount of data used, often per
megabyte basis. Note: 1,000 Kb (kilobytes) = 1
Mb (megabyte). A five sentence e-mail to check
a sports score or price stock is 50 Kb, 10 e-mail
downloads may be 1 Mb.
Subscription
A monthly subscription for some applications
Pay per use
Payment per use of the service
Pay per download
A specified fee for each transaction. Allows
revenues to be shared with content providers.
This billing may be referred to as “BOBO,” which
stands for “Billing on Behalf of Others.”
Source: CEknowhow.com Wireless Certification Program, Training Module: Wireless Data Pricing Plans
SHOW AND TELL
To sell effectively, you must demonstrate the new technology. At a minimum,
managers must use Bluetooth-enabled products, multimedia enhanced products
with cameras and streaming video, as well as data and content-rich services. Again,
salespeople sell to customers what they know. Don’t miss a selling opportunity
because you did not take the time to understand the technology.
Learn data card and PDA technology—phones are not just for making calls any
more. Don’t pass up business opportunities due to lack of understanding of the
newer technology. Seek whatever guidance and training resources may be available.
Example: One independent store found a 50 percent increase in unit sales within
90 days of issuing a BlackBerry to each senior salesperson. Result: More products
sold and more data services sold, providing longer realized revenues.
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CHAPTER 11
HOW TO DIFFERENTIATE WITH NEW TECHNOLOGY
“The carriers are focused on providing consumers with rich, enhanced services,
promoting music video and entertainment. Products with Bluetooth technology
and phones with stereo audio, stereo headsets, keyboards, etc., will allow consumers to have a better experience with no cords to tangle up and get in the way.
Wireless retailers who concentrate on these technology advancements and service
offerings will win out with sales of both enhanced services and Bluetooth accessories and ultimately, customer loyalty.” —Rick Goricki, senior director of sales,
Plantronics Inc.
Margin Notes
USE “IT” OR LOSE IT
Ask yourself, are you using the latest and greatest data services? If the answer is no,
you must run—not walk—and sign yourself up today for all available data services
provided by the carriers for which you are building your retail business.
Be a leader and focus on new technologies even if you are not personally the
demographic audience intended for these services.
“Convergence and technology integration
provide retailers with great opportunities
Your role is to know your customers
better than they know themselves, so
to offer consumers a full suite of innovayou can sell them what they need.
tive products and services across a variety
of wireless platforms. Familiarity with
ever-changing advanced data applications and technologies is critical in terms of customizing solutions unique to the
customer.” —Eric Fitzgerald Reed, director, Market Issues & Policy, Verizon
As the research noted in Chapter 1, customers will come to your location before
a carrier store or other big box retailers to learn about what is new and hot. Don’t
miss the opportunity to educate the customer and then close the sale. If you are
using the technology—and your sales team is using the technology—you will be
able to remove any hesitation that one has about selling it. Remember that new
data products require new accessories sales, too.
HOT STUFF
Presentation without demonstration is merely conversation.
■ Does this customer need to access the Web? Show them how you connect and
what size screen best fit their needs. Sell equipment with Internet browsers. Pair it
up with a service plan with data.
■ Does this customer text message? Show them how they can text message a friend
right there on the spot, easily request stock quotes or sports scores and customize it to their favorite team. Sell them phones that have easy navigation keys and
easy user interface for typing. Combine a good service plan that includes the right
number of estimated text messages that a customer might need in a given month.
■ Is your customer a heavy e-mail user? Show them how they can access their email and the format. Sell them phones with big screens and easy user interface for
replying, along with an e-mail data service plan.
■ How about a camera phone? Take a photo of the inside of the store and show
them how easy it is to send it to another camera phone with that service, or to
CHAPTER 11
81
anyone’s e-mail. Great for last minute photo ops. Sell them multimedia equip
ment and service plans that can accommodate their inner artist. Take the extra
time to show them how to connect the multimedia settings on their phone.
Margin Notes
■ Other multimedia features: show streaming video.
■ Is your customer a gamer? Have you played Orcs & Elves and JAMDAT Sodoku
on your phone yet? Share your latest score. You can even demo secret tips for
playing.
■ Magellan, where are you? Some devices now have Global Positioning System
(GPS) loaded so customers can find out where they are and where they would
rather be. Find out if your customers need GPS in their phone too.
■ Enhanced 911 (E911) is an important support feature for wireless phone users
who dial 911, helping to track the location when they make the call. This is a
good selling feature for the “emergency user” customer.
■ Red hot Commuters who want to look cool—and be functional—should own a
Bluetooth headset. Look ma! No hands and no wires. These headsets connect to
most of the newest, hottest equipment and are a must-have accessory. Headsets
are required while driving in many states—it’s the law!
SOURCES:
www.CE.org
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CHAPTER 11
WINNING AT WIRELESS RETAIL
PLAN
ORGANIZE
Set goals for the store(s)—create a
plan with your suppliers and carrier(s),
where you want to be this year v. last year.
Identify a stretch goal.
Create a business plan and think beyond
today.
Build strong relationships with
everyone important to your success—carriers, manufacturers, distributors, your sales
staff and customers.
Find resources to help you be successful,
such as alternative online training programs
and industry news outlets.
Join organizations to be part of a larger
community.
Learn and teach something new every
day.
CONTROL
EXECUTE
Manage cash flow.
Sell with passion and market your retail store
as a brand.
Review sales goals and inventory levels
weekly.
Hire tech-savvy, strong salespeople and
support staff.
Deliver a memorable retail experience and
service the customer beyond the sale.
Contact your customer base six times per
year.
CHAPTER 11
83
ES
V
S
VI
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V2
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UID
LG
W
A
IRE
L
GLOSSARY OF MUST-KNOW WIRELESS TERMS
BY AMERICAN WIRELESS
2G (second generation wireless)
2G wireless technologies that can be divided into TDMAbased and CDMA-based standards, depending on the type
of multiplexing used.
2.5G
2.5G describes the state of wireless technology and capability usually associated with General Packet Radio Services
(GPRS)—that is, between the second and third generations
of wireless technology. The second generation or 2G-level
of wireless is usually identified as Global System for Mobile
(GSM) service and the third generation or 3G-level is
usually identified as Universal Mobile Telecommunication
Service (UMTS). Each generation provides a higher data
rate and additional capabilities. There is also a fourth
generation (4G) of technology in the planning and research
stages.
3G (third generation wireless)
The next generation of wireless communications beyond
today’s digital PCS technologies. When available, 3G
wireless technologies will allow for much higher transmission
rates to wireless devices, leading to more useful services
and a better user experience.
802.11b
Institute of Electrical and Electronics Engineers standard for
wireless local area network interoperability.
“A” Carrier
Most areas of the United States have two cellular carriers,
each of which operates on a different frequency band. One
is designated the “A” carrier (non-wire line carrier) and the
other is designated the “B” carrier. In some markets there
may be only one carrier, which may be “A” or “B.”
A/B Switching
Most cellular phones have the ability to switch to the “A” or
the “B” frequency bands. This feature is useful when roaming outside your home coverage area.
Access fee
Monthly charge for the ability to connect to a wireless
network. This fee is assessed monthly whether the phone is
actually used or not.
Activation
Configuration of a wireless phone so that it is ready to
transmit and receive calls on the wireless network.
Airtime
Total time that a wireless phone is in connected and in use
for talking. This includes calls both received and placed.
Air interface
Standard operating system of a wireless network; technologies include AMPS, ReFLEX, FLEX, POCSAG, TDMA,
CDMA and GSM.
Alphanumeric
Display, message or readout that contains both letters and
numbers. Synonymous with text messaging.
Alphanumeric display
Display, usually LCD, that has the ability to display both text
and numbers. Most often found on the front of a wireless
handset or pager.
AMPS (Advanced Mobile Phone Service)
Analog cellular air interface standard used in the United
States and other countries.
Analog
Method of modulating radio signals so that they can carry
information such as voice or data.
Antenna
Device that facilitates the transmission and reception of
radio signals.
APC (adaptive power control)
Feature of some wireless handsets that helps reduce power
consumption to increase battery charge life.
ARPU (average revenue per user)
Measurement of how much revenue per mobile user as
calculated by carriers and distributors.
Area Code
Three-digit telephone number prefix assigned to a calling
area.
Authentication
Feature used to reduce fraud by confirming the identity of a
phone to the wireless network.
Automatic call delivery
Service feature that allows a user to receive calls when
roaming outside of the phone’s home coverage area.
Activation fee
One-time up-front charge for activation of a wireless phone.
GLOSSARY
85
“B” Carrier
Most areas of the United States have two cellular carriers,
each of which operates on a different frequency band. One
is designated the “A” carrier and the other is designated the
“B” carrier (wire line carrier). In some markets, there may be
only one carrier, which may be “A” or “B.”
Bandwidth
Classic use means “width of the band,” the “width of the
signal” or the “amount of spectrum occupied.” This is not
the same as the rate of transmission. While it is generally
true that “the faster the rate, the wider the spectrum requirement or bandwidth,” there are some exceptions. One
of these is the sending of four FLEX™ phases in parallel
through one radio channel, and the other is the ever-increasing modem speeds through plain old telephone lines. The
voice bandwidth of a standard (unconditioned) telephone
line has not changed over many years. A few years ago,
300 BPS was the fastest a modem could operate over a
standard telephone line. Today, most modems operate at
28,800 BPS and many at higher speeds (30 to 50K BPS).
The voice bandwidth of the telephone line has not changed
but the speed of the data transmitted over it has increased
dramatically. This is accomplished with special modulation
techniques that essentially send the serial data information
in separate parallel paths to increase the overall speed or
throughput—but not the bandwidth.
Bluetooth
Short-range wireless protocol meant to allow mobile devices
to share information and applications without the worry of
cables or interface incompatibilities. The name refers to a
Viking king who unified Denmark. Operates at 2.4 GHz.
See bluetooth.com.
BREW (Binary Runtime Environment
for Wireless)
Qualcomm programming platform designed to facilitate the
development and use of data applications that can function
on any CDMA-based wireless device. Common applications
include games and software for corporate functions. See
J2ME for a similar technology from Sun Microsystems.
Broadband
Communications medium capable of transmitting a relatively
large amount of data over a given period of time. A
communications channel of high bandwidth.
Broadband PCS
Synonymous with personal communications services created
in the A - through F - Block U.S. FCC auctions and used for
voice and data.
86
GLOSSARY
BTA (Basic Trading Area)
Geographic region defined by a group of counties that
surround a city, which is the area’s basic trading center. The
boundaries of each BTA were formulated by Rand McNally
& Co. and are used by the FCC to determine service areas
for PCS wireless licenses. The entire United States and some
of its territories are divided into 493 non-overlapping BTAs.
Call forwarding
Feature that allows the transfer of incoming calls to another
number of the user’s choice.
Call setup
Activity that occurs in order to establish a call connection
between a wireless handset and the wireless system.
Call waiting
Feature that allows a user to be notified of another incoming call while a call is already in progress, and gives the
user the ability to answer the second call while the first call
remains on hold.
Caller ID
Feature that displays a caller’s telephone number and/or
name before the call is answered.
Capcode
Pager’s electronic identity. A carryover from the days when
the code was printed or typed on a pager’s “cap” or the top
of the case. Some pagers have more than one capcode,
including individual messaging codes, group-call codes and
mail drop codes—used for transmitting information such as
news, weather and sports.
Carrier
Company that provides telecommunications services.
CDMA (Code Division Multiple Access)
Digital communication technology used by some carriers to
provide PCS service. Also known as IS-95A or cdmaOne.
Other technologies used are TDMA and GSM.
cdmaOne
The IS-95 CDMA standard developed by Qualcomm Inc.;
a word coined by the CDMA Development Group.
CDMA2000 1X (Also 1xRTT)
3G wireless communications standard evolved from CDMA
technology. It has double the voice traffic capacity of CDMA
and provides peak data rates of 153 kbps.
CDMA2000 1xEV-DO (and 1xEV-DV)
3G wireless communications standard further evolved from
CDMA2000 technology. It is a standard optimized for data
transmission providing a peak data rate of 2.4 Mbps with
a typical user experience of 300–800 kbps. 1xEV-DV is
optimized for both data and voice transmissions.
CDPD (Cellular Digital Packet Data)
Technology for transmitting data over analog cellular networks. Requires a special modem and the wireless carriers’
network must be upgraded to accommodate such data
transmissions.
Cell
Geographic area within a wireless system that is covered by
the signal sent and received by the transmitter and receiver
equipment located within that area. Typically referred to as
a “cell site,” these are represented by various shapes by
engineers when planning systems. The hexagonal shape
was originally derived from the honeycomb of bees, within
which each single unit is referred to as a cell.
Cell site
Transmission and reception equipment, including the base
station antenna that connects a cellular phone to the
network.
Cell splitting
Process of creating more coverage and capacity in a
geographic area by having more than one cell cover the
same area that a single cell originally did. Each cell then
covers a smaller area, with lower power, and thus offers
the ability to reuse frequencies more times in a larger geographic coverage area.
Cellular
Name given to the original concept of dividing a large geographic area into smaller coverage areas called cells. Each
cell handles calls on different channels and communicates
with the central processing unit, called a switch, or terminal,
to facilitate the handing-off of calls from one cell to another
as a user moves through the system. Cellular telephony is
used in hundreds of countries worldwide and boasts more
than 200 million subscribers.
CO (central office)
Connection point between the wireless phone system at the
MTSO and the landline phone system at the PSTN.
Clone (cloning)
Wireless phone that has been programmed to mimic another wireless phone. Often used to defraud a wireless carrier
by placing illegal calls without any intention of payment.
CoFeTel
Comisión Federal de Telecomunicaciones, the Mexican
equivalent of the U.S. Federal Communications Commission.
Coverage area
Geographic area served by a wireless system. Same as
service area.
CRM (customer relationship management)
Information industry term for methodologies, software and
Internet capabilities that help a company or organization
manage customer relationships in an organized way.
Cross-talk
Signal leak from one channel to another—often the cause of
noise and distortion.
CSA (Canadian Standards Association)
Government agency in Canada that certifies electrical
devices.
Or, used with various carriers, CSA can stand for Customer
Subscriber Agreement.
D-AMPS (Digital AMPS)
Used by Ericsson Inc. to describe IS-136 time division multiple access technology.
DCS 1800 (Digital Cellular System)
Global system for mobile communications-based PCS network used outside of the United States.
Decibel (dB)
Unit of measure used to express relative difference in power
or intensity of sound.
Digital
Newest form of wireless communications that takes all voice
transmissions and converts them to computer language
(zeros and ones, or binary language) and then reconstructs
them into the original voice format at the other end. More
secure than its original sibling, analog, and also relatively
impervious to static or fading signals.
DSP (digital signal processor)
Specialized microprocessor that performs mathematical
operations on a data stream in real time to produce a second (modified) data stream.
Dual band
Feature on some wireless phones that allows the handset
to operate using either the 800 MHz cellular or the 1900
MHz PCS frequencies.
Dual mode
Feature on some wireless phones that allows the handset to
operate on both analog and digital networks.
Duplex
As in ordinary telephone service, a characteristic of a communications system where simultaneous transmission and
reception is possible.
GLOSSARY
87
E-911
In the United States, E911 (Enhanced 911) is support for
wireless phone users who dial 911, the standard number for
requesting help in an emergency. Since wireless users are
often mobile, some sort of enhancement is needed to 911
services that allow the location of the user to be known to the
call receiver. E911 support is mandated by the U.S. Federal
Communications Commission (FCC) for traditional mobile
phone service.
E-mail
Ability to send and receive text messages through a wireless
handset.
EBITDA (earnings before interest, taxes,
debt and amortization)
Corporate income statement item that measures a company’s
total sales minus such items as operating expenses before
interest, taxes, depreciation and amortization. Because
many companies such as cellular, paging and PCS carriers
often begin operations with huge capital debts, EBITDA is
considered by some to be a better gauge of the company’s
performance than net income, which likely will be skewed
negatively by large debt payments and other items. Another
view is that it is a nonsensical way to say how much money
a company would be making if it were not losing so much
money.
EDGE (Enhanced Data for GSM Evolution)
A further development of the GSM protocol designed to
handle data at speeds up to 384 Kbps. Considered to be
3G wireless technology.
ERMES (European Radio Messaging System)
Paging system specification used in Europe and other parts
of the world.
ESMR (Enhanced Specialized Mobile Radio)
Using frequency bands originally allocated for two-way
dispatch services, companies such as Nextel and Southern
LINC have built digital mobile phone services similar to cellular and PCS systems.
ESN (electronic serial number)
Unique serial number of a cellular phone that identifies it to
the cellular system for the purpose and placing and receiving
calls.
FCC (Federal Communications Commission)
U.S. government agency responsible for regulating communications industries.
Fingerprinting
See radio-frequency fingerprinting.
88
GLOSSARY
FLEX™
Motorola Inc. licensed protocol that gives carriers more
capacity on their networks and faster transmission times.
Also refers to the FLEX family of protocols: FLEX, InFLEXion,
ReFLEX25 and ReFLEX50.
Follow-me roaming
Ability of a wireless system to forward incoming calls to a
handset that is roaming outside its home service area without
any pre-notification to the wireless carrier.
Frame relay
Packet-based interface used to transmit bursts of data over a
network.
Frequency reuse
Ability of specific channels assigned to a single zone to be
used again in another zone, when there is enough distance
between the two zones to prevent co-channel interference
from affecting service quality. The technique enables a wireless system to increase capacity with a limited number radio
of channels.
Full-duplex
Radio term applied to transmissions such as telephone calls
or wireless data that allow talking and listening at the same
time by using two frequencies to create one channel. Each
frequency is used solely for either transmitting or receiving.
FWA (Fixed Wireless Access)
Also known as wireless local loop (WLL).
GHz (gigahertz)
One billion radio waves, or cycles, per second. Equal to
1,000 megahertz, which is equal to 1,000 kilohertz, which
is equal to 1,000 hertz. The abbreviations are: GHz, MHz,
KHz and Hz.
GPRS (General Packet Radio Services)
2.5-generation technology (being implemented in GSM
networks) that may offer wireless data access speeds of up
to 144 kilobits per second in end-user devices.
GPS (Global Positioning System)
Satellite-based navigation system made up of a network of
24 satellites placed into orbit by the U.S. Department of
Defense. GPS was originally intended for military applications, but in the 1980s, the government made the system
available for civilian use. GPS satellites circle the earth twice
a day in a very precise orbit and transmit signal information
to earth. GPS receivers take this information and use triangulation to calculate the user’s exact location. Essentially, the
GPS receiver compares the time a signal was transmitted by
a satellite with the time it was received. The time difference
tells the GPS receiver how far away the satellite is. Now,
with distance measurements from a few more satellites, the
receiver can determine the user’s position and display it on
the unit’s electronic map. [GARMIN]
GSM (Global System for Mobile
communications)
A digital cellular or PCS network used throughout the world.
IM (instant messaging)
Ability to exchange messages over the Internet in a real-time
online “conversation” between two or more people.
GSM-Plus
Enhanced version of global system for mobile communications technology that will be developed to meet IMT-2000
capabilities.
IMT2000
Set of proposals for standards defining 3G wireless network
performance. An effort from the ITU (International Telecommunications Union), an organization of the United Nations.
GSM-R
Global system for mobile communications for railway
networks. GSM-R uses standard base station and switching
infrastructure to provide fast data transmission for railways.
InFLEXion™
Narrowband PCS technology developed by Motorola
Inc. that allows for voice paging. Carriers such as Paging
Network Inc., Amtel Wireless and Conxus Communications
Inc adopted it. Only Amtel Wireless in Puerto Rico remains
in operation. It is not “digital voice” as sometimes described.
Handoff
Transfer of a wireless call in progress from one transmission
site to another site without disconnection.
Hands-free speakerphone
Feature of some wireless phones that allows the users to talk
and listen to calls without holding the phone against their
head.
Handset
Any handheld device used to transmit and receive calls from
a wireless system. Also known as a wireless phone, a cellular phone, a mobile phone and a PCS phone.
Handshake(ing)
Signals between a wireless phone and a wireless system to
accomplish call setup.
Home coverage area
Designated area within which cellular calls are local and do
not incur roaming or long distance charges.
HomeRF
Digital wireless communications protocol designed for the
transport of voice and multimedia content between consumer
electronic devices (including PCs) in a residential setting.
Operates at 2.4 GH.
Hz (hertz)
Unit of measurement of one cycle per second, or one radio
wave passing one point in one second of time. Named in
honor of Heinrich Hertz, the discoverer of the theory of radio
waves.
IC
Industry Canada (formerly “DOC”—Department of Communications), the government agency in Canada that regulates
wireless devices.
iDEN (integrated Digital Enhanced Network)
Motorola Inc. enhanced specialized mobile radio network
technology that combines two-way radio, telephone, and
text messaging and data transmission into one network.
IP (Internet Protocol)
Data-oriented protocol used for communicating data across
a packet-switched inter-network. IP is a network layer
protocol in the internet protocol suite and is encapsulated in
a data link layer protocol (e.g., Ethernet). As a lower layer
protocol, IP provides the service of communicable unique
global addressing among computers.
IS
Designation of the American National Standards Institute—
usually followed by a number—that refers to an accepted
industry protocol; e.g., IS-95, IS-136, IS-54.
IS-136
Latest generation of the digital standard time division multiple
access (TDMA) technology.
IS-41
Network standard that allows all switches to exchange
information about subscribers.
IS-54
First generation of the digital standard time division multiple
access technology.
IS-661
North American standard for 1.9 GHz wireless spread
spectrum radio-frequency access technology developed
by Omnipoint Corp. IS-661, for which Omnipoint was
awarded a pioneer’s preference license for the New York
City market, is based on a composite of code division multiple access and time division multiple access technologies.
The company says IS-661 reduces infrastructure costs and
allows higher data speeds than mainstream GSM or TDMA
platforms.
IS-95
Standard for code division multiple access.
GLOSSARY
89
J2ME (Java 2 Micro Edition)
Java environment optimized to run applications on devices
small devices with limited processing power and memory.
See BREW for a similar technology from QUALCOMM.
Messaging
Synonymous with text paging, “texting,” e-mail or short
messages, received on alphanumeric pagers and two-way
wireless devices.
KHz (Kilohertz)
One thousand radio waves, or cycles, per second.
MHz
Megahertz: One million radio waves, or cycles, per second.
Equal to one thousand Kilohertz. The abbreviations used are:
GHz, MHz, KHz and Hz.
Ku-Band
Radio spectrum in the 10.9 GHz to 17 GHz range used by
satellite communications systems.
Landline
Traditional wired telephone service.
LAN (local-area network)
Group of computers and associated devices that share a
common communications line or wireless link and typically
share the resources of a single processor or server within a
small geographic area (for example, within an office building). Usually, the server has applications and data storage
that are shared in common by multiple computer users.
LCD (liquid crystal display)
Flat panel screen used to display numbers and/or characters. Often found on a wireless handset.
LED (light emitting diode)
Light on a handset to alert the user of various conditions.
LMDS (local multipoint distribution service)
Located in the 28 GHz and 31 GHz bands, LMDS is a
broadband radio service designed to provide two-way transmission of voice, high-speed data and video (wireless cable
TV). FCC rules prohibit incumbent local exchange carriers
and cable TV companies from offering in-region LMDS.
MDF (market development funds)
Funds allocated to the carrier from the manufacturer to develop marketing in specific areas such as enhancing in-store
presentations or displays, or supplemental advertising or
special event marketing. These funds are usually negotiated
between the store/dealer and the carrier and occasionally
with the manufacturer directly.
MP3 (MPEG 3)
Audio compression format available for downloading digital
music files from the Internet. MP3 can take larger audio
recordings and shrink them down to a fraction of their size
while losing little fidelity sound.
Memory dialing
Feature of a wireless phone that allows multiple numbers to
be stored in the phone itself for quick dialing by pressing one
or two buttons.
90
GLOSSARY
MMDS (Multipoint Multichannel Distribution
Service)
Often referred to as “wireless cable,” since it is a wireless
system used to distribute cable television and other broadband signals to multiple users by way of a single transmitter.
MMS (Multimedia Messaging Service)
Similar to SMS, but in addition to plain text, MMS messages
may include multimedia elements such as pictures, video and
audio. These multimedia elements are included in the message, not as attachments as with e-mail.
Monophonic ring tones
Ring tones made up of a series of sequential beeps at different frequencies. These sound like the beeping of a computer,
and the tunes are simple because the phone can only
produce one sound (beep) at a time.
MSA (Metropolitan Statistical Area)
An area defined by the U.S. government for use in grouping census data and other statistics. MSAs include a city of
at least 50,000 people or an urbanized area of at least
100,000 people and the counties that include these areas.
Not all areas of the United States are in an MSA. The FCC
uses these area definitions to license cellular telephone
service carriers. The FCC often uses the term MSA to mean
Metropolitan Service Areas; they are the same geographic
areas. There are 306 regions of the United States designated as MSAs.
MTA (Major Trading Area)
Area consisting of two or more Basic Trading Areas as
defined by Rand McNally & Co. The FCC uses these large
areas to determine service areas for some PCS wireless
licenses. The United States is divided into 51 MTAs.
MTSO (Mobile Telephone Switching Office)
Office housing switches and computers to which all cell
sites in an area are connected for the purpose of eventual
connection to the PSTN. The MTSO handles the connection,
tracking, status and billing of all wireless call activity in an
assigned area.
MVNO (Mobile Virtual Network Operator)
Mobile operator that does not own its own spectrum and
usually does not have its own network infrastructure. Instead,
MVNOs have business arrangements with traditional mobile
operators to buy minutes of use (MOU) for sale to their own
customers.
NAM (number assignment module)
Component of a wireless phone that holds in electronic
memory the telephone number and ESN of the phone.
NAMPS (Narrowband Advanced Mobile
Phone System)
NAMPS combines cellular voice processing with digital
signaling, increasing the capacity of AMPS systems and
adding functionality.
Narrowband PCS (nPCS)
Latest generation of wireless messaging networks, including
two-way, acknowledgment and automatic roaming. Now
able to offer many wireless telemetry services. The “n” in
“nPCS” is not narrow at all when compared to traditional
paging; it can only be considered narrow when compared
to broadband PCS telephones.
Numeric
Display, message or readout that contains numerals only,
such as in paging.
No-answer transfer
Feature of a wireless service. If a call is not answered in a
specified number of rings, it will be transferred to another
phone number of the user’s choice.
No-service indicator
Feature of wireless phones that tells the user that wireless
service is unavailable in a particular location. Usually an
LED on the handset.
PAN (personal area network)
Interconnection of information technology devices within the
range of an individual person, typically within a range of
10 meters. For example, a person traveling with a laptop, a
personal digital assistant (PDA) and a portable printer could
interconnect them without having to plug anything in, using
some form of wireless technology. Typically, this kind of
personal area network could also be interconnected without
wires to the Internet or other networks.
Paging
Feature of a wireless device that allows reception of a signal
or alphanumeric message.
PCIA (Personal Communications Industry
Association)
Trade group representing PCS, SMR, private radio and other
wireless users and carriers. Formerly known as Telocator.
PCS (Personal Communication Services)
New generation of wireless-phone technology with a range
of features that provides the user with an all-in-one wireless
phone, paging, messaging and data service.
PDA (Personal Digital Assistant)
Portable computing device for organizing personal data
such as telephone numbers, appointments and notes.
Capable of transmitting and receiving data when equipped
with a wireless module.
Peak period(s)
Any time of day, as determined by a wireless carrier, when
there are high levels of communications traffic on the system.
PHS (personal handy phone system)
Extended cordless telephone system used primarily in Japan.
Off-peak
Any time of day, as determined by a wireless carrier, when
there is lower communications traffic on the system. Carriers
make this distinction to offer lower rates during periods when
demand is low.
PIM
Personal Information Software is used on a desktop computer or PDA. PIM software enables you to take the daily
stream of information that comes across your desk and
organize it in a manner that suits your personal style, e.g.
appointments, weekly meeting reminders or even having to
turn the computer off.
OLED (organic light-emitting diode)
Displays made of organic materials that light up when
charged with an electric current. Such displays are sharp,
clear and viewable from wide angles.
PIN (personal identification number)
Code used by a wireless operator to complete a call. Generally PIN numbers have 4 to 10 digits. Sometimes the PIN,
is an actual telephone number.
Orbit
Fixed circular, elliptical or other path around the Earth.
POCSAG (Post Office Code Standardization
Advisory Group)
Standard paging protocol developed by the U.K.’s Post
Office Code Standardization Advisory Group [note the
British spelling]. Also known as CCIR Recommendation 584
and Radio Paging Code (RPC) No. 1.
OTAP (over-the-air programming)
Ability of carriers to add new types of services to a customer’s device by using the wireless network instead of requiring
the customer to bring in the device for reprogramming.
GLOSSARY
91
POTS (plain-old-telephone-service)
Another name for traditional wired, land-based telephone
service.
POS (point of sale)
Refers to the entire experience at the point of sale; can be
the presentation of marketing materials or the actual transaction of closing a sale at retail.
Polyphonic ring tones
Phones that play polyphonic ring tones have the ability to
produce 16 separate sounds at once. This makes for music
that is much richer; the tunes sound more like the music you
know.
Prepaid cellular/wireless
Service plan offered by some wireless carriers that allows
subscribers to pay in advance for wireless service.
PRL (preferred roaming list)
Database in a CDMA-based wireless phone that tells it how
to find and connect to locally available wireless network(s).
The function of the PRL is most important when a phone is
outside its home network and must seek out an alternate
network. The PRL in a phone can be periodically updated to
account for changes in wireless networks that the phone may
encounter.
PSTN (Public Switched Telephone Network)
Worldwide voice telephone system.
Radio-frequency fingerprinting
Electronic process that identifies each individual wireless
handset by examining its unique radio transmission characteristics. Fingerprinting is used to reduce fraud since the illegal
phone can not duplicate the legal phone’s radio-frequency
fingerprint.
ReFLEX™
Narrowband PCS technology developed by Motorola that
allows for two-way text messaging and wireless telemetry.
ReFLEX 50 was developed jointly with and for SkyTel, and
then later ReFLEX 25 was developed for the rest of the industry. Version 2.7, when implemented, will offer a common
standard, merging the two protocol variations into one. This
will allow the same messaging device (a new one) to roam
between two different systems, which may even be operated
by two separate companies.
RFI (Radio Frequency Interference)
An undesired radio signal that interferes with a radio communications signal causing extraneous noise and/or signal
dropouts.
92
GLOSSARY
RF (radio frequency)
Radio Frequency is more often used to mean Radio Energy
than the actual frequency. “RF” is a common term used when
referring to the radio transmitter, receiver or antenna portions
of a communications system.
RF noise
Undesired radio signals that alter a radio communications
signal, causing extraneous sounds during transmission and/
or reception.
Ring-back tone
Tone you hear (in the earpiece) when you place a call and
are waiting for the phone to be answered. The standard
tone is usually an on-and-off ringing sound. On some wireless systems, users have the ability to choose the tone heard
when other users dial their number.
Ring tone
A sound from your phone used to signal an incoming call
or message. On most new phones, additional sounds can
be downloaded from the wireless system or by data cable.
These sounds can take the form of anything you want; the
most popular sounds are music. See monophonic ring tones
and polyphonic ring tones.
Roaming
Using your wireless phone in an area outside its home coverage area. There is usually an additional charge for roaming.
Roaming agreement
An agreement among wireless carriers allowing users to use
their phone on systems other their own home systems. Roaming fee is charged for roaming.
RSA (Rural Service Area)
Areas not included in MSAs are divided into RSAs. Generally these are the rural areas of the United States The FCC
used RSAs to license cellular carriers in areas not included in
MSAs. There are 428 RSAs in the United States
S-Band
The frequency spectrum near 2 GHz used for land-based
microwave and some mobile satellite communications.
Service area
Geographic area served by a wireless system. Same as
Coverage Area.
Service plan
Contract between a wireless carrier and a wireless subscriber that details the terms of the wireless service including
rates for activation, access and per minute usage.
Sensitivity
Measure of a receiver’s ability to viably receive weak radio
signals.
Signal-to-noise ratio
Measure of the power of a signal versus noise. A lower ratio
means there is more noise relative to signal.
SMS (Short Messaging System)
Feature of PCS phones (primarily GSM) that allows users to
receive and sometimes transmit short text messages using
their wireless phone.
Spectrum
Entire range of electromagnetic frequencies.
Simplex
Radio technology that allows only one-way communication.
The FM radio in your car or TV set could be viewed as a
simplex device.
Simulcast
Signaling technique that broadcasts the same signal over
multiple sites in a network with precise control over frequency, phase (timing) and amplitude to avoid signal cancellation in the overlap areas. This is one of the reasons that
paging systems penetrate into buildings and offer seamless
coverage better than other methods of transmission that only
use one site at a time.
SMR (Specialized Mobile Radio)
Dispatch radio and interconnect service for businesses. Covers frequencies in the 220 MHz, 800 MHz and 900 MHz
bands. Also called Trunking.
SMS (Short Message Service)
Usually refers to wireless alphanumeric text messages sent to
a PCS telephone. The GSM protocol was the first and only
protocol to support text responses from a PCS telephone.
Several competing protocols support the receiving of these
messages but not the transmitting, or the responding back to
the sender. The supporters of these other protocols are now
adding on the ability to initiate or respond to text messages.
Sometimes SMS is incorrectly used to refer to any short
electronic text message on a wireless network. Its original
and correct meaning simply was a short text message to a
PCS telephone.
SNPP (Simple Network Paging Protocol)
Network/Internet protocol that allows for a simple and efficient means of sending paging data from a PC to a paging
switch. This protocol acts as translator between the Internet
and the older TAP/IXO protocols. The most obvious benefit
is the elimination of the need for modems and phone lines
to produce alphanumeric pages, and the added ease of
delivery of pages to terminals in other cities.
Smartphones
Any electronic handheld device that integrates the functionality of a mobile phone, personal digital assistant (PDA) or
other information appliance. This is often achieved by adding telephone functions to an existing PDA (phone or putting
“smart” capabilities, such as PDA functions, into a mobile
phone. A key feature of a smart phone is that additional
applications can be installed on the device. The applications can be developed by the manufacturer of the handheld
device, by the operator or by any other third-party software
developer.
Spread spectrum
Communications technology in which a signal is transmitted
over a broad range of frequencies and then re-assembled
when received.
SS7 (Signaling System 7)
International high-speed signaling backbone for the public
switched telephone network (PSTN).
Standby time
The time a phone is on but not actively transmitting or receiving a call.
Subscriber
Cellular phone user.
System selection switch
Feature of some cellular phones that allows switching
between “A” and “B” cellular carriers. This feature is often
used when roaming.
T9® text input
Feature built into many phones that allows you to use one
key press per letter when entering text on your wireless
phone. T9 helps to make entering text on a limited keypad
quick and easy. See T9 for more information.
Talk time
The time a phone is on and actively transmitting or receiving
a call.
TCP/IP (Transmission Control Protocol/
Internet Protocol
Internet protocol suite developed by the U.S. Department
of Defense in the 1970s. TCP governs the exchange of
sequential data. IP routes outgoing and recognizes incoming
messages.
TDMA (Time Division Multiple Access)
Digital air interface technology used in cellular, PCS and
ESMR networks.
Telecommunications Act of 1996
Federal law intended to increase competition among wireless and wire line carriers for the benefit of customers.
GLOSSARY
93
Telematics
Integration of wireless communications, vehicle monitoring
systems and location devices.
Third-generation
New standard that promises to offer increased capacity and
high-speed data applications up to 2 megabits. It also will
integrate pico-, micro- and macro-cellular technology, and
will allow global roaming. Also called 3G.
Toll charges
Charges for placing long distance calls.
Toll-free calling area
Area in which calls can be placed without incurring long
distance charges.
Trunking
Spectrum-efficient technology that establishes a queue to
handle demand for voice or data channels.
USB (Universal Serial Bus)
Plug-and-play interface between a computer and addon devices (such as audio players, joysticks, keyboards,
telephones, scanners and printers). With USB, a new device
can be added to your computer without having to add an
adapter card or even having to turn the computer off.
U-SAT (Ultra Small Aperture Terminal)
Satellite receiver dishes (usually smaller than VSATs) for telemetry and other remote monitoring.
UHF (Ultra High Frequency)
Referring to radio channels in the 300 MHz to 3 GHz
band.
UMTS (Universal Mobile
Telecommunications System)
An evolution of GSM technology to 3G. The underlying
transmission standard is WCDMA.
Unified messaging
Software technology that allows carriers and Internet service
providers to manage customer e-mail, voice and fax messages from any phone, PC or information device.
UWC-136
Third-generation wireless standard proposal based on TDMA
technology that was developed by the Universal Wireless
Communications Consortium and is one of the 3G candidates submitted to the International Telecommunication Union
by the United States
VHF (Very High Frequency)
Referring to radio channels in the 30 to 300 MHz band.
VSAT (Very Small Aperture Terminal)
Small satellite dish installed at end-user locations.
94
GLOSSARY
Voice-activated dialing
Feature that allows users to speak words into a wireless
phone to cause it to dial pre-programmed telephone numbers
without using the buttons.
Voice mail
System that answers calls and allows users to reply to, save,
delete or forward messages.
Voice recognition
Capability for cellular phones, PCs and other communications devices to be activated or controlled by voice
commands.
WAP (Wireless Application Protocol)
Global protocol in many newer wireless devices that allows
the user to view and interact with data services. Generally
used as a means to view Internet web pages using the
limited transmission capacity and small display screens of
portable wireless devices.
WARC (World Administrative Radio
Conference)
Biennial meetings of International Telecommunication Union
member-nations to discuss and resolve global spectrum
allocation issues.
WCDMA (wideband CDMA)
3G wireless communications standard that evolved from
CDMA. The standard, often called UMTS, uses wider 5
MHz channels (vs. 1.25 MHz for CDMA) for increased
voice traffic capacity and peak data rates of 384 kbps.
WCTP (Wireless Communications
Transfer Protocol)
WCTP is an XML-based standard for communicating
between disparate wireless messaging systems. It is specifically aimed at creating an easy means of passing alphanumeric and binary messages to and from wire line systems
and two-way capable wireless devices. It was designed to
address some of the issues with legacy protocols such as
TAP, TNPP and SMTP as applied to wireless communication
networks.
Wi-Fi
Wireless data networking protocol used to connect PCs and
laptops to a network. Also known as 802.11b and WLAN
(wireless LAN), it is the most common means of wireless
networking and operates at 2.4 GHz.
Wireless
Using the radio-frequency spectrum for transmitting and
receiving voice, data and video signals for communications.
Wireless carrier
Company that provides wireless telecommunications
services.
Wireless Internet
RF-based service that provides access to Internet e-mail and
the World Wide Web.
Wireless IP
Packet data protocol standard for sending wireless data
over the Internet.
Wireless IT (wireless information technology)
Monitoring, manipulating and troubleshooting computer
equipment through a wireless network.
Wireless LAN (local-area network)
Local area network using wireless transmissions, such as
radio or infrared, instead of phone lines or fiber-optic cable
to connect data devices.
Wireless PBX
Equipment that allows employees or customers within a
building or limited area to use wireless handsets connected
to an office’s Private Branch Exchange system.
WLAN (wireless local-area network)
Type of local-area network that uses high-frequency radio
waves rather than wires to communicate between nodes.
WLL (wireless local loop)
Wireless system meant to bypass a local landline telephone
system. A home or businesses phone system is connected
to the public network by a wireless carrier instead of by the
traditional local phone company.
WPDA (Wireless Partnership for Donor
Awareness)
Wireless industry’s effort to raise organ and tissue donor
awareness.
X.25
Specification from the Consultative Committee on International Telephone and Telegraph on layered protocols
connecting computer terminals to a public, packet-switched
network.
xDSL
Designation for Digital Subscriber Line technology enabling
simultaneous two-way transmission of voice and high-speed
data over ordinary copper phone lines. An aDSL line
designates one that is asymmetrical in that the downloading of information from the Internet is much faster than the
uploading of information from the home or office computer
to the Internet. This characteristic fits well with most Internet
browsing requirements, where one “click” on an Internet link
at the computer is followed by a large amount of data being
sent from the Internet back to the computer.
GLOSSARY
95
REFERENCES
Margin Notes
CEA Publications
Selling Wireless Successfully: The Retailers Survival Guide v. 1, 2004
Wireless Product Specialist: Study Guide, 2005
CEA Multimedia
Accessorize now! Maximize the Experience Retailer Tool Kit CD
Wireless Communications Retailer Tool Kit CD
CEA Research and Online Materials
Coyote Insight Wireless Retailer Focus Group Findings, October 2004
Coyote Insight Wireless Retailer Focus Group Findings, June 2006
The Retail Sales Associate: An Overview of Training, March 2006
Wireless Purchasing Study: Measuring Satisfaction and Loyalty, December 2005
Wireless Industry Publications:
America Unwired: A Guidebook to the Wireless Industry, 1998
New Directions in Wireless: Retail Sales; The Edmond-Howard Network, 1997
New Profits in Wireless Retailing, Edmond H. Legum, 2005
Wireless Ways: Wireless; Edmond H. Legum, 1999
ADDITIONAL RESOURCES:
www.CE.org
www.CEknowhow.com
CE VISION
CEA SmartBrief
The Channel Insider
CTIA SmartBrief
eWeek
Fierce Mobile Content
FierceWireless
The Prepaid Press
RCR Wireless News
Wireless Insider
Wireless Week
96
REFERENCES
APPENDIX A & B
APPENDIX
97
APPENDIX A
TeleTracker INVENTORY CONTROL REPORTS
98
APPENDIX A
TeleTracker COMMISSION TRACKING
APPENDIX A
99
TeleTracker AUTO PROVIDER ROCONCILIATIONS (COMMISSIONS)
100
APPENDIX A
TeleTracker BUSINESS PLANNING AND FORECASTING
APPENDIX A
101
TeleTracker FINANCIAL REPORTS
102
APPENDIX A
APPENDIX B
IQ Metrix ROADMAP
APPENDIX B
103
IQ Metrix EXECUTIVE DASHBOARD
104
APPENDIX B
IQ Metrix SALES DASHBOARD
APPENDIX B
105
IQ Metrix E-COMMERCE
106
APPENDIX B
107
108
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WINNING AT WIRELESS RETAIL: THE WIRELESS RETAILER’S SURVIVAL GUIDE, VERSION II
WINNING AT
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WIRELESS RETAIL
THE WIRELESS RETAILER’S SURVIVAL GUIDE: VERSION II

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