One clear strategy in marketing wireless phones to consumers is keep it simple. The phone is not just a business tool but an easy, fun device that keeps you in touch and could save your life.
But how simple is it?
Industry is challenged when it comes to the customer’s buying process and follow-up. In some cases, customers choose from a dozen phones, several carriers and a handful of calling plans and service options. They walk out with a contract, list of services and options, ads, instruction manuals, battery warnings, service warranties and more ads.
At the least, it can be a headache. For some it’s overwhelming.
Once activated, if users have trouble making or receiving calls, how do they know if there is a problem with the phone or with service, or did they just forget to turn off the pager mode? Who should they call?
The result is a customer who may be confused or unhappy and a carrier that could lose revenue.
“Customer care and billing is probably going to be the single most important differentiator in the next few years,” said Bukasa Tshilombo, analyst for Northern Business Information Inc. In fact, “billing and customer care are going to be products,” he added, where a carrier may offer detailed billing or other services for a small fee.
Most carriers want to be their customers’ point of contact after the sale, and can answer customers’ questions about phone features, service options, bills and other questions. Whether customers know this information is available to them or not depends on the seller’s explanation of service and carrier’s contact efforts.
The phone-in-a-box concept was an industry breakthrough in terms of simplifying the buying process, said AirTouch spokeswoman Amy Damianakes. It’s prepackaged, self-contained and has one service plan.
A boxed phone “is not complicated and there are few bells and whistles,” said Ken Woo, spokesman for AT&T Wireless Services Inc. “New customers call an 800-number for activation and they walk you through everything. Generally, people understand the features and limitations,” he explained.
But the buying process gets more complicated in stores where shoppers choose their own phone and service. In these cases, carriers must rely on the knowledge of their distributors, which could be company-owned stores or mass retailers. The latter is where carriers lose the most control.
“The job of carriers is to do whatever we can to train the retail employee to make sure they help and educate the customers,” said Damianakes. “You’re best off when your salespeople know the limits of their knowledge, or you run the risk of providing misinformation.”
Damianakes said AirTouch’s distribution partners are rewarded based on the value their customers bring. “We’re looking at recurring revenues,” she added. Previously, salespeople sold a phone and activated service for a flat commission. By rewarding incrementally, salespeople have an incentive to best match certain phones and services to a customer’s particular needs.
Follow-up is a high-priority at AirTouch Cellular, said Damianakes. Yet, she indicated this issue is a challenge and AirTouch is “continuing to do things to simplify the process.”
AirTouch, like many carriers makes “welcome” calls to new subscribers. Through this initial contact, representatives can address many of the questions subscribers have about their phones and service, said Damianakes.
“To say we’re undergoing a revolution in our customer care process is an understatement,” said Woo. “John Walter, the president and CEO (of AT&T Corp.), has said to division managers and officers of the corporation that the quality of products and services and customer service we provide has to be best in class, and there’s no negotiation on that.”
On the front end, AT&T works with its company-owned stores and other mass retailers to ensure the salespeople are trained properly. A clear distinction is made between customers who need more attention and education and those who just want a quick buy and no wait, said Victor Petralia, director of customer care for AT&T Wireless. “We want to provide only the relevant information (for the customer) to get started and be comfortable,” he explained.
AT&T Wireless’ customer service team is trained to understand consumers, the wireless technology and company policies and procedures. The team fields questions about service and phones. Petralia noted his team has manuals that list profiles for every wireless phone on the market.
For Go Phone buyers, AT&T’s boxed product, the carrier is guaranteed immediate contact because the customers must call to activate service. On that first call, AT&T answers questions and has the opportunity to sell more features and gain customers’ feedback. As an off-the-shelf product, the Go Phone package must present information that is clear, concise, understandable and helpful, added Petralia.
For other retail customers, AT&T initiates welcome calls to ensure customers understand and are happy with their choice of phone and service.
AT&T tracks all calls. The problems, questions or benefits of service reported are categorized. If one customer calls not understanding a portion of his or her bill, the agent explains it. If 100 people call about that portion of the bill, AT&T knows to make a change.
Tracking helps the company streamline the customer service process and be proactive in meeting needs of future customers. In addition, AT&T takes customer feedback and tries to assist phone manufacturers in making technology easier.
“We continue to rethink the way we do business. As business evolves, needs change,” noted Petralia.
AT&T Wireless also distributes a customer newsletter.
The carrier has won two J.D Power & Associates awards for customer service, said Woo.
Bell Atlantic Nynex Mobile has an indirect account support team that includes field specialists who visit stores frequently to ensure point-of-sale items are in order and that salespeople understand the products and services offered.
Jim Boxwell, manager of Bell Atlantic Nynex’s customer service productive support team, said proactive calls are made to customers on a schedule. This allows the carrier to build loyalty with customers and gain feedback to better improve services, said Boxwell.
Those customers receive a welcome call three to five days after activating service to verify account information, answer questions, review calling plan features and to store contact names. Contact names include co-workers, friends or family for whom the user wants to share the phone and access to the account. This saves the subscriber’s spouse or child having to jump so many hurdles when they interact with customer service. On the flip side, users can store names of people not permitted to access the account.
Customers also are asked why they chose Bell Atlantic Nynex over another carrier.
The “billing call” is made one month into service, and its main purpose is to make sure customers understand their bill. Six months into the contract, Bell Atlantic Nynex makes its “pricing plan” call. The carrier examines usage and may suggest another plan or the addition/subtraction of features that could save the customer money or benefit them.
The “anniversary call” is made in the 10th or 11th month. The carrier assesses the overall picture of the customer’s account and usage and may try a soft sell for a service upgrade. Also, this call is an opportunity to retain a customer that is considering dropping service.
