Computer store is ending hard-sell

I read this article in thisismoney.co.uk which may give another option as to how we can balance the arguement between agressive commission staff remuneration and a customer service mentality. This is an extreme case but it could be useful to consider a blannced approach.

Sean Poulter, Daily Mail
24 March 2006
SALES staff at a leading computer store chain will no longer be paid commission on top of their basic salary, to encourage them to give good advice rather than engage in hard-sell tactics.

PC World, part of the Dixons empire, says its employees will spend more time listening than talking.

Advice will be based on meeting customer needs, rather than which product offers the best commission for the shop assistant.

Traditionally, electrical store salesmen have operated on the basis that it is their job to harry customers into spending more than they had intended, thus generating more commission.

However, friendly and expert customer service is now being seen as the 'magic bullet' for High Street stores in their fight with cut-price Internet retailers. Under the new PC World scheme, labelled 'One Team', the store staff are rewarded for working together and offering good customer service, rather than the in-fighting caused by commission-based schemes.

The team bonus is based upon independent 'mystery shopping' surveys of customer services conducted weekly in every one of the 150 PC World stores.

Trials of the system in new PC World stores suggest that shoppers appreciate the change in tone. These found that 5% more customers were likely to make a purchase in a 'One Team' store. Managing director Keith Jones said: 'It required a leap of faith. But the sales data was so overwhelming it left us with very little choice.'

The scheme might be considered bad news for those salesmen who have done well under the commission system.

However, the blow has been softened by the fact that some 275 of these high-fliers have been appointed 'sales coaches', guaranteeing them a higher basic wage.

Under the new regime, staff in PC World's 150 stores can expect to earn £13,000 a year after 12 months' service. A team and store bonus is on top of this.

This compares with the previous system, where the basic salary was £11,000, plus commission worth up to 20% of pay.

Surveys of customer satisfaction at One Team stores give 8.3 out of ten, compared with the group average of 7.6. PC World's sister brands, Dixons, Currys and The Link, are expected to adopt the same regime.