Case Study: Carphone Warehouse

Case Study: Carphone Warehouse hangs up on commission

Carphone Warehouse removed commission from all its London stores in November 2008. Following a successful trial, it has now extended this to its 820 stores across the UK.

Andrew Harrison, Carphone Warehouse chief executive, says the organisation recognised that the mobile phone retail industry had suffered in the past from a reputation for hard-sell tactics and poor customer service.

The move away from commission was designed to create a different culture, assuring customers that they would receive a truly impartial service.

“This is also great news for our employees, who will get a significant uplift in their basic pay, which is of real comfort to them in the current economic environment,” says Harrison.

Rewardworks director Steve Watson says: “There is no motivation to help customers who are not going to buy from you.

“Carphone Warehouse is an established brand now, so sales are easier and commission isn’t necessary.”