In-store Education Drives Wireless Consumer Sales

inWestern Wireless Boosts Sales with the Help of TESSCO's "Virtual Inventory" & Supply Chain Solutions

Company-owned stores and kiosks will remain the dominant channel for wireless phone sales as these locations are the key source of education for potential new users. Although the Internet might be a source for the mature market of wireless users who are upgrading their phones, new users will still be shopping at "brick and mortar" locations. According to IDC research, only 0.6 percent of wireless users have purchased their most recent handsets via the Internet, whereas 54 percent of wireless users purchase their phones in cellular stores and kiosks, as reported by market research firm NDP Intelect. Even the purchase trends at such mass merchants as Circuit City and Best Buy and at warehouse clubs remain low. Of all potential shopping channels, NDP Intelect reports that electronics and specialty stores are emerging, now accounting for approximately 16 percent of purchases.

Undoubtedly, phone sales are highest in cellular stores and kiosks and in electronics stores because the consumer's need for hands-on help in understanding the features and applications of cellular devices is extremely high. While those of us in the industry can easily reel off the hot handsets, accessories, technologies, and data applications, the average new user is reeling at the differences between phones and technologies-analogue, CDMA, TDMA, CDP. The plethora of choices in accessories alone can be extremely complex to new users.

The Conundrum
For the average consumer, carrier stores and resellers continue to be the best sources of education and help in making the right selection in phones and accessories. Carrier-store staff pride themselves in keeping up on the newest phones and technologies and love to walk the talk. However, selling accessories is frequently a source of frustration for retail staff because it can derail them from their primary job-selling activations and airtime. With the constant churn of new phones and accessory types, selling accessories is an even more difficult job than it would seem-especially with the typically high turnover of in-store staff.

The Solution: Self-sales Accessory Programs
However, some carriers have found solutions to improve how accessories are sold. Western Wireless, the #7 national carrier, is a good success model. Richard Hecht, executive director of sales distribution, looked for an accessory program in which the accessories actually sold themselves, allowing retail salespeople to focus on activations. Western Wireless was in the process of moving from centralized accessory distribution from a corporate warehouse to a decentralized system requiring each store to order, inventory and manage its own accessories.

Hecht had three critical objectives in addition to boosting accessory sales:

a virtual warehouse and just-in-time delivery,
a total-source, unified OEM/aftermarket program, and
an attractive, consistent in-store look for both OEM and aftermarket accessory sales displays.

Hecht found his answer in TESSCO's state-of-the-art accessory program. "We have recently implemented a program using the new TESSCO merchandising solutions program for both our aftermarket and OEM accessories. The program utilizes educational in-store displays designed in an instantly understandable grid matrix layout that aligns all available accessories by phone type. And, more importantly, TESSCO is our virtual warehouse for all of our accessories, providing just-in-time delivery to more than 200 Western Wireless stores."

Merchandising Sales System Aids Consumer Accessory Selection
The in-store sales representatives are the most excited about the new program because it's made their jobs selling and managing accessories significantly easier. "The accessory displays are very nice," says Katy Keller, a Western Wireless senior sales representative in Montana. "Customers gravitate to the displays and can find what they need very easily due to the matrix system. The systems are designed to align accessory choices by phone type, so the customer can find his phone on the wall display and easily see all of the accessories available for that phone. The objective is to drive impulse and multiple purchases by educating the consumer on the benefits to them of using various accessories. If a customer sees only a battery, she will buy only a battery. But with TESSCO's system, consumers are educated on the benefits of four to seven different accessories per phone. Consumers are purchasing two to three accessories at a time now that they understand how their phone's functionality will be improved with multiple accessories."

Beyond the educational help to the consumer, the program has significantly improved the store's ability to manage their accessory inventory. "Now, with TESSCO's merchandising solutions program, we have all items in stock . . . and the displays have improved the look of our stores. Thank goodness for TESSCO!" says Pam Clevidence, Western Wireless sales manager in Montana.

TESSCO's Accesory Sales Program
With TESSCO's accessory program for both OEM and Wireless Solutions aftermarket accessories, Richard Hecht's three objectives have been met:

TESSCO is his new virtual warehouse with just-in-time delivery;
TESSCO is his single source, providing a unified OEM and aftermarket program; and
TESSCO is delivering a consistent in-store look with innovative turnkey, in-store, point-of-purchase merchandising solutions that are proven to drive impulse and multiple purchases of both OEM and Wireless Solutions accessories.

Since implementation of the program in April, Western Wireless OEM and aftermarket accessory sales are up over 40 percent compared with one year ago. "Obviously, we are thrilled," said Hecht.

Learn more about TESSCO's Merchandising Solutions.

For questions, contact us today at 1-800-927-3350 or accessories@tessco.com.