Vodafone set to axe new B2B connections targets on July 1

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Operator to measure a dealer’s success based on the value of its customer base

Vodafone is set to axe new connection targets for B2B dealers from July 1.

This is according to Vodafone’s platinum and gold partners, who told Mobile News targets will be measured on billed revenue over the course of the year, instead of connection numbers.

Vodafone director of small business Tim Stone said of the changes: “Our goal has always been to create the best partner and customer experience bar none, and any changes to targets support the pursuit of this goal.

“We’re focused on helping our partners to deliver the benefits of new and better ways of working to more British business and we believe this model will drive that.”

A platinum partner said: “It’s a bold but very sensible move by Vodafone. There is no market share left so the focus needs to be around margin, not the number of mobile numbers.

“It is something we have been wanting for some time. New connections will always remain a key part of the business, but margins are what really matter.”

A gold partner added: “It’s a much more rational way of doing business and a very positive move by Vodafone.”

It is a major U-turn by the operator, which angered platinum and gold partners in August by increasing their monthly connections targets from 100 to 125 and 35 to 45 respectively.

Details of the new model were emailed to Vodafone partners last week by its head of partner services Rob Mukherjee. The email, seen by Mobile News, outlines the set of new KPI targets that must be achieved by March 31, 2013.

Vodafone platinum partners say they are required to increase their total billing by £64,000 for the year, while gold partners must increase theirs by £22,000 during the same period. Gold partners must bill a minimum of £35,000 in total.

In addition, three per cent of their total billing revenue must be earned from sales of Vodafone’s unified communications products One Net and/or One Net Express, while platinum partners must achieve a minimum of five per cent.

Vodafone originally scrapped One Net and One Net Express targets back in September for platinum and gold partners amid concerns about its reliability and performance. Dealers claim the product has improved vastly.

Partners who fail to achieve one or more KPI targets will be relegated from their current tier (ie from platinum to gold or gold to silver).

The Vodafone partner programme is also now being reviewed on an annual basis, rather than every six months. The next review is on May 31.

Vodafone will provide full details on the changes, as well as outlining its strategy for the next 12 months, at its ‘Partner of the Year’ awards at the May Fair Hotel in London on July 12.

The event, which has been dubbed ‘Better Business Story’, will also mark the launch of Vodafone’s new ‘UC Solutions Specialist’ accreditation, which will be awarded to dealers that achieve specific One Net Business capabilities and KPIs throughout the year.

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