O2 has taken its first step to restructure indirect distribution by setting up a new ‘O2 Approved’ club for Fone Logistics and Avenir dealers, revealed in detail to dealers of each respectively at conferences yesterday (June 29) and tomorrow (July 1).
O2 is expected to reduce its distributor partnerships next month (July), with HSC widely expected to be dropped as it struggles with quarterly KPIs.
The new ‘O2 Approved’ club comprises 20 indirect partners and parallels O2’s dealer ‘Centre of Excellence’, which has just seen all 21 direct members opt to sell O2 exclusively.
Mobile News understands Fone Logistics and Avenir were approached by O2 in May to each select 10 of their best-performing dealers for customer churn, revenue and volume, regardless of their network loyalties, and put them forward to join the new programme.
The move is considered to be part of a careful strategy by O2 to attract the best B2B dealers in the land, and at the same time draw them away from rival networks.
O2 business sales director Ben Dowd (pictured) said: “As part of our ongoing strategy to get closer to our independent partners we are launching a new programme with our distributors on July 1. We believe our approach is market-leading and will allow us to support independent partners who share our long term vision for success.
“O2 Approved will help independents create value for customers, improve retention and drive sales of high value connections. We see our independent partners as being key to growth in the years ahead. As we move into a converged technology world.”
O2 will set ‘Approved’ indirect partners demanding KPIs around new and upgrade business, as well as secondary data and broadband connections. They are also expected to maintain a minimum churn level of 10 per cent and ARPU of £40.
In return they get many benefits so far exclusive in the dealer channel to Centre of Excellence partners, including access to iPhone handsets, marketing support and training.
The channel saw huge relevance last week in O2’s choice of distributors for the programme. HSC and Redstone are both understood to be on performance reviews. MoCo is also considered to be at risk.
O2’s second business quarter ends June 30, a day before the new ‘O2 Approved’ programme begins, and a decision on O2’s other distributor partners is expected. HSC has already informed its dealers, its £100 O2 connection bonus will end before the end of June.
O2 refused to comment on its other distributor relations.