Phones 4U rewards customer service

Under the new scheme, which has been trialled since March, bonuses are awarded against a set of key performance indicators, including customer satisfaction with service in stores, as well as achieving profit targets.

The previous system awarded bonuses entirely on whether a store hit its gross profit target.

The news comes as other mobile phone retailers shift their bonus structures. O2 announced last week that it is to introduce a new bonus scheme that rewards staff on individual as well as collective performance. Carphone Warehouse led the way by scrapping staff sales commissions last year to encourage staff to be impartial with their advice. The retailer has introduced higher basic salaries and customer service-related bonuses.

Phones 4U retail director Nick Fisher said: “Now 50% of the bonus is based on gross profit targets and the other half is based on key performance indicators. Staff are more focused on offering the best customer experience and so customer retention is improved.”

The new scheme was rolled out across the 450 Phones 4U stores at the beginning of this month. It gives store managers at Phones 4U the opportunity to earn more, since quarterly bonuses are awarded as well as monthly ones. The quarterly bonus is awarded if monthly targets are consistently achieved within the quarter.

Fisher said: “Store managers are adopting a more mature, longer-term and balanced approach to management to fulfil their customers’ needs.

“They see the benefits of developing their staff and teaching them what they expect of them.

“Good store management can make a real difference to an individual store’s performance.”