It’s time for another of my regular checks on high street operators in association with retail analysis experts ShopperTrak. This time I’m looking at mobile phone stores, a category we’ve seen explode over the past 10-15 years and one which has come to dominate our high streets. As always these reports are written after actual visits to selected un-named stores and will focus on areas such as store design, operation, staff management and customer service.
Ok, I’ll admit it, I’m a bit of a gadget freak.
I spent my youth dreaming of the kinds of gizmos that now populate our everyday lives. Star Trek style talking computers, Blade Runner video phones, Batman’s wrist worn communicator and, not forgetting, jet packs.
The last item on my list might still be a way off, but the others are all with us now in ways that most of us have come to regard as just a normal part of our ordinary lives. Those of us who can remember the days before you could stand in the middle of nowhere and to speak to someone on the other side of the world, simply by reaching into your pocket, probably won’t appreciate how mind blowing that still is. The fact that such technology has now settled in as part of the mundanity of every high street might have something to do with that.
These stores sell us brain meltingly complicated technology in much the same way as we’d pick up a packet of kidney beans in our local supermarket. In fact, in many cases, we could do both under the same roof. It’s technology Jim, but not as we knew it!
For this outing into the new frontier of consumer electronics I chose a road I once frequented on a regular basis looking for the latest in Hi-fi and sound equipment. Tottenham Court road in the 80s and 90s was THE place to come for the latest sleek sound system at knock down prices. Part of the process in those days was to visit every store looking for the best deal, before playing each shop off against one another. I have to admit that’s a bargaining technique that stood me in good stead in future years in business.
It was therefore saddening to see upon my return, that my choice of electronics stores these days was not as diverse as it once was It is predominantly populated with mobile phone stores, with only a few of the store fascias I remember from the old days.
I chose to visit three mainstream mobile phone shops to make direct comparisons between them. As they are all selling exactly the same hardware, with only notional differences in tariff offers, it was quite easy to gauge how they stacked up against each other.
The Price is Wrong
The first store was arranged all on one floor so my arrival was easily visible to all the staff, who immediately came over and spoke to me. I could also see that other customers were being dealt with throughout the store. Thankfully, there wasn’t too much of the hard sell which can be common in similar stores.
There was some impressive up-selling going on from the outset as the store manager who had approached me enquired about the status of my current mobile contract. Interesting that these days no one ever assumes that you wouldn’t have a mobile phone!
Mobile phone stores are now gradually diversifying into ancillary products and this particular store had a good range of headphones, presumably for those who also use their phones as MP3 devices. I enquired about the price on a pair that caught my eye and this is where the fun began.
The price displayed said £160 which both I and the sales adviser felt was a tad on the high side. On checking the computer it turned out he was right, the actual price was an infinitely more reasonable £25! Neatly proving the advantage that a human has over a machine generated price tag. It also suggests that this company might need to double check their merchandising procedures! Regular shop floor and merchandising audits have been a feature of my own stores and really should be carried out at least once a month. This neatly demonstrates why.
Overall though it, was a very neat and well run store. A good experience.
ShopperTrak Says – Using retail analytics, it is possible to measure the success of different initiatives, including new customer service programmes and training to make sure your sales staff devote their full attention to engaging with the customer at the right time.
Wall of Death
In store number two, customer interaction seemed like it was top of the agenda as I was greeted by a designated staff member from behind a podium at the entrance.
Sadly, this seemed to be the limit of the initiative as I was then confronted by a human wall consisting of 4 sales staff in a line, each chatting to each other and apparently oblivious to my presence.
This was a store that appeared to know what was needed but was supremely bad at delivering it. Displays were messy and in desperate need of a spring clean. In one corner I noticed a seating area with charging points for phones, presumably there to increase dwell time in the store. A good idea in theory, although the floor was grubby and the chairs looked like they’d seen better days. There were no magazines or other literature for me to read and the idea of any refreshments being available seemed a forlorn hope.
ShopperTrak says – It’s crucial that retailers look at labour allocation in order to strike a happy balance between the number of customers entering the store and the availability of staff on hand to greet and serve. Shopper traffic data provides retailers with their truest measurement of sales opportunity, which is key to effectively scheduling labour. By scheduling the appropriate amount of employees and the best sales staff with the hours of greatest opportunity, it is possible to turn labour from an expense into a strategic sales tool. This includes including identifying when there is too many staff on the shop floor. During our visit, staff far outweighed customers.
I made a hasty exit past the still self absorbed sales staff and headed for store number 3.
Open For Business
On first appearance, my final mobile phone store looked like it was going to be a bit of a wash out. Visual merchandising was pretty weak with a painfully sparse window display seemingly based on an odd cardboard box theme.
Once inside, however, it was a completely different story – an effective layout with lots of opportunities to interact with products and plenty of customers being attended to on a one to one basis. There seemed to be a high number of staff and no one appeared to be kept waiting – a great result! The displays were clear and informative and would have kept me amused for a fair while even if there was a short delay in service.
I noticed there was a downstairs area so I headed off to investigate, finding a similar seating area to the one in the previous store. But that’s where the similarity ended. The execution of the idea here was far more accomplished. There were the same plug in stations for your phone or laptop, but the area was clean with a designer look sofa, plenty of literature to read a tea and coffee station, water cooler and even a well stocked fruit bowl! It looked like a place you could have stayed for lunch, although you might eventually have to buy something for the sake of appearances!
The final touch was the availability of meeting rooms adjacent to the seating area. Not something I’ve ever seen in a store before, but somehow it seemed to fit with the general ethos. It had a real ‘open for business’ feel and I’m sure this area could generate spin-off sales of their technology products. Something other similar stores could learn from.
ShopperTrak says – The break-out area was a real nod to the ‘retailtainment’ trend, going beyond just selling to shoppers, to entertain , and inspire them by providing the best possible shopping experience. In this case, the lounge was the perfect opportunity to say, ‘come on in, stay a while’. By encouraging shoppers to spend longer in the store, retailers increase the likelihood of shoppers making a purchase.
However, the measure of a good window display cannot be underestimated., if potential clients do not feel the pull to come into the there is no amount of entertainment inside the store that will help drive new sales, Being aware of pass by traffic peaks and having attractive window displays can really boost draw rates and as a consequence new sales.
This more positive experience marked the end of my survey of the mobile operators. Overall they seemed a mixed bag. Some good ideas in terms of design and add-on services, but in a few cases this wasn’t backed up by staff with enough engagement for my liking. The other interesting aspect was the expansion into other categories which seems to be a common factor in many retail sectors these days. With the merger of Dixons and Carphone Warehouse still fresh in our minds I wonder how long we’ll continue to see mobile phone stores on the high street dedicated only to this one narrow aspect of technology.
In an attempt to answer that question, I’ll be taking a look at how the wider technology sector is faring in my next report in a few weeks time. So don’t touch that dial folks! For more information on ShopperTrak’s full range of analytic services by click the link below.