Cellphone stores: an experiential marketing revolution? Telecom Careers Insider Episode 17

Will gigabit, IoT, 4K, VR, 5G and Raspberry Pi revolutionize the cell phone store experience?

The Apple Store concept was an evolutionary step in the cellphone store buying experience. Apple surrounded the consumer with plenty of tech toys, non-commissioned, low-key staff, and of course the “Genius Bar,” which continues to be an prompt, effective way to solve customer’s technical challenges. The Michigan Ave. Apple Store in Chicago at one time offered an auditorium style education center to teach baby boomers and millenials how to use their technology while showcasing new technology. The Apple Store, in many ways, is the antithesis of conventional cellphone stores, which are transaction oriented. 

The introduction of gigabit, home automation, home security, the “Internet of Things,” 4K resolution, virtual reality and the promise of “5G” should be the catalyst for a cell phone store revolution via experiential marketing integrated with real time consumer test labs functionality.

From the early “brick phone” car installation cellphone stores, to today’s Walmart, Best Buy, RadioShack, Costco, Apple Store, mall kiosk, Amazon.com, corporate store and premium wireless retailer cell phone stores, mobile and IoT device distribution is on the verge of a retail revolution driven by experiential marketing. “Try before you buy” coupled with hands on technical support will take on new meaning as wireless operators leverage 10,000-plus plus retail distribution locations to mesmerize customers with new “must have gadgets” while appeasing shareholder demands to reduce churn and increase revenue per customer. The new stores provide carriers with yet another opportunity to battle over-the-top service and content providers for consumer hearts, minds and wallet share.

Today’s household has the computing power, digital storage and security requirements rivaling those of large corporations only a few decades ago. The big question is where will mom, dad and and the in-house IT department (kids) turn for technical support, proof of concept, and do it yourself technology and software development?  

The cellphone store of the future –  “A geek tech shop experience”

The answer could be coming to a cell phone store near you. If RadioShack is not already planning the concept (if not, you read it here first) they should return to their roots as a DIY makers haven for hardware and software tinkerers. If they are really smart, they will engage elementary, high schoolers and retirees to stop by for Raspberry Pi training while also asking IBM, Intel and Qualcomm for co-op marketing dollars to hold IoT developer seminars at night and weekends at in specially designed interactive educational studios. While at it, they could hold “gamer” nights where visitors get to test out the latest mobile devices using extreme graphics chips while watching top gamers on Twitch.tv or ESPN video game championship.

Verizon has launched “Innovation Centers” co-located with their Innovation Labs in Boston and San Francisco that feature “state-of-the art showcases of visionary ideas, commercial products and innovation solutions still in progress.” Why not open these centers to the public to experience and purchase the latest technologies?

Forgive me for I have digressed. This week on Telecom Careers Insider, Omar Khan, President of TCC, Verizon Wireless’ largest premium wireless retailer with 1,700 employees and 700 stores in 38 states, stopped by the RCRatx Studio Lounge, located in trendy and increasingly crowded, East Austin. Listening to Omar describe TCC’s focus on the in-store customer experience and their thoughtful approach to sourcing, training and developing employees got me thinking about where we are today in terms of the cell phone store buying experience.

TCC President, Omar Khan – “I am a product guy”

Check out the video interview or listen to the podcast

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Omar Khan has a masters and undergraduate electrical engineering degree from MIT and has held executive industry technology roles including CTO for Samsung Mobile and VP of Motorola’s $30 billion Global Supply Chain and Business Operations. When asked why he joined a 30 year-old family run Verizon premium wireless retailer, he responded by saying that he was a “product guy” and that TCC offered him the opportunity to innovate with the customer retail channel. He went on to describe the systems and processes required to run a 700 hundred store retail organization as well as TCC’s embedded customer and employee centric “DNA” that drives the success of the company.

TCC is privately held and does not disclose revenue; however, back of the napkin math would suggest that TCC has close to a $1 billion in gross revenues (700 stores x $1.5 million per store equals $1 billion+). Not bad for a family owned company founded in 1991 in Marion, Indiana.  The early TCC cellphone stores were Midwest GTE reseller locations in rural and suburban areas, where the tier-one operators typically do not locate corporate owned retail stores. TCC now has over 700 stores across 38 states.

TCC – the virtuous circle of success and culture of good

Khan highlighted TCC’s “Virtuous Circle of Success”, which provides the guiding principles by which TCC employees live and work, along with TCC’s Culture of Good, which has donated 260,000 backpacks to students in need. TCC’s Virtuous Circle of Success is based on the following principles:

• Customers matter: TCC provides customers with outstanding service and sincere care that meets customers’ unique needs at a competitive price.
• Employees matter: TCC creates a culture that inspires and motivates people to reach their full potential while also being part of the company’s greater purpose.
• Community matters: TCC supports the people in the communities where our stores are located by giving of our time and money.
• Passion: When we are passionate about making a difference in the lives of the people our company touches, we will succeed.

TCC has the retail presence, the Verizon network, the financial resources, an employee/customer/community-centric culture and the product leadership to spark a cellphone store revolution. Time will tell if they have the vision.

TCC has nearly 600 positions open on their website. They also have an expanded presence on social media:

• Facebook with over 17,000 likes
• Youtube – why work at TCC
• TCC Talk Show – tech with a little style

Bottom line – who will lead the cellphone store revolution?

With wireless carriers like Verizon Wireless and distributors like TCC, led by technology product guys like Khan, continuously rolling out new services, it will be interesting to see when the cellphone store revolution will commence.

Given the complexities of buying, deploying and securing smart home solutions, which include media gateways, gigabit 802.11ac dual band and two IP addresses for use as public and private hot spots, and dozens of connected devices and endpoints, many of which could provide a hacker with access to your information stored somewhere in the cloud, an opportunity exist for a traditional cellphone store to transform itself into a technology showcase coupled with a Best Buy “Geek Squad” center of sorts.

Increasing physical customer engagement is at odds with what RCR Wireless News heard from carriers at the 2015 TC3 Summit hosted by the Telecom Council of Silicon Valley, where carriers stated they were looking to increase customer “online” engagement to 50% or more. This strategy seems to be in stark contrast to Apple’s interactive Genius Bar approach to the customer experience as well as the unquestionable market demand for greater hand holding by households and small business.

Careers in technology – cellphone stores may be a place to start

Not sure what you want in your career? There are three good reasons to consider a job in retail technology sales:

• Mobile technology is increasing in complexity. Mastering technology while knowing how to connect consumer needs with solutions will open untold number of career opportunities in the future.
• Earn $24,000 to $55,000+ in an entry level retail sales position with material opportunity for advancement.
• Live and work anywhere. There are literally tens of thousands of retail sales and operations positions available in every market worldwide.
  • See Apple retail careers
  • See Radioshack careers (1300+)
  • See AT&T retail careers
  • See Verizon retail careers
  • See T-Mobile retail careers (1900+)
  • See Sprint retail careers (1300+)
  • See C-Spire retail careers
  • See Carolina West retail careers
  • See Bluegrass Cellular retail careers
  • See Cellcom/Nsight careers
  • See TCC retail careers, a Round Room Company

Have an opinion on the cellphone store of the future? Please send me an email at [email protected].