Home' Convenience and Impulse Retailing : February March 2014 Contents February / March 2014 | C&I | www.c-store.com.au
for customer’s to recharge. This drives
traffic and more opport unities to sell.
Choosing the right range of telco products for
a particular store requires close analysis of the
demographics of the local population and their
shopping habits. In other words, convenience
stores must really know their customer.
Having said that, pretty much everyone is a
potential telco customer pretty much all of the
time. Telco products have a wide appeal to anyone
that shops in the convenience channel. They
may be bought by customers on impulse after
they have seen a great offer displayed, or they
recognise a cer tain brand, or they may simply
realise that they need to by a new phone.
While mobile carriers would like convenience
outlets to range as many products as possible, the
reality is cer tain outlets will have their strengths.
Vodafone says its existing customers
transact most in convenience locations
– s o prepaid recharges tops the telco
product list for these sites. This is followed
by new customers joining Vodafone,
purchasing $2 SIM starter packs.
The company says it has seen
some success in cross-selling
prepaid mobile Broadband, but
only in locations that dedicate
promotional space for this sub-categor y.
Handsets represent another oppor tunity,
par ticularly in high traffic areas where
customers are time-poor. Operators should
host a fresh, and current range with a ‘good,
better, best’ approach in terms of price
and phone features. Sites in high student,
backpacker and tourist locations are most likely
to benefit from ranging low-end handsets.
Vodafone believes ranging an entry level 3G
handset will achieve significant success for
convenience stores in the right areas. It says
customers interested in
expensive devices tend
to join plans to help pay
for the phone over time.
However, for customers
less concerned with
high-end devices, the
prepaid segment of the
market is substantial and can generate revenue
for operators who see value in telco products.
Vodafone also says
trialling an affordable
dev ice can be hugely
beneficial. It says
there has been
huge growth in this
market and many
of these customers
are still choosing
to have a prepaid
ser vice to control costs.
The company says stores shouldn’t be afraid
to experiment with different products and try
to promote them within their store as much as
possible. For example, it says if a site is some
distance away from an internet café, then it could
be worth testing the
waters by offering
Pacific Optics, which
is the approved
within petrol and
convenience, says both
regional and metro
have shown considerable uplift in telco sales. It
says convenience retailers are showing a keen
interest in running activity to help build the
category and those which will benefit the most
are those that offer range and a dedicated space.
As Australians rely more and more on electronic
devices while they are out and about, a clear
opportunity for chargers is also rapidly emerging.
Pacific Optics says the Walk n Talk Charger
range is Australia’s leading mobile phone
charger in petrol and convenience, and is
available in more than 4500 outlets nationally.
The Walk n Talk range has recently
been refreshed to offer a quicker
charging power and is said to be
achieving annual growth in excess
of 30%. It has also introduced
lightning chargers for Iphone
5 and is widening it appeal as a
charger for tablet computers.
The technology boom then has dramatically
increased the need for customers to have more
phone and tablet power, and this new demand does
not seem to be slowing. New innovative products
are hitting this space all the time such as Pacific
Optics’ new pre-charged multi charger called
Power2Go, which allows customers to charge their
device on the go and without a fixed power source.
With some major convenience categories
seemingly in serious decline, telco then
offers innovative operators a real oppor tunity.
With an increasing focus being put on the
categor y - both by the telco companies
themselves and convenience stores - sales
of telco products are likely to rise steeply.
As well as prepaid recharge, convenience
customers are now expecting to access a
convenient and competitive choice of mobile
phones, broadband devices and other accessories.
Operators who fail to properly stock and
manage a good range of telco products will also
certainly be left ruing the missed opportunity.
Convenience & Impulse Retailing would like to thank
Vodafone and Pacific Optics for supplying information for
AT A GLANCE
• The most recent Convenience Shopper Survey found
that customers still want to see an even broader range of
telecommunications products and services.
• Signage is crucial. Many outlets lose repeat business simply
because customers are unaware that they had access to telco
products and recharges.
• As well as mobile recharge, more stores are now supporting a full suite
of telco products including handsets, broadband, and starter kits.
• Handsets will sell better in high traffic areas where customers are
time-poor. Operators should host a fresh, and current range with a
‘good, better, best’ approach in terms of price and phone features.
particularly in high
boom has dramatically
increased the need
for customers to have
more phone and tablet
power, and this new
demand does not seem
to be slowing...
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