Fairfax media on the weekend reported candid comments from Optus CEO Kevin Russell about overcharging and what the company has done to improve the customer experience. Russell’s comments are uncommonly open for a telco CEO.
“Let’s be crystal clear. As an industry, we know how people use their phones, we know that young people will get their first smartphone and go bananas on it, we know people are going to get hit with a $500 or $600 bill, and we know that if they don’t complain we’ll get an extra whopping bit of revenue,” Mr Russell said on Thursday night. “It’s just crap.”
But he said he honestly believed Optus had been doing a number of good things to address “some of the things that piss people off”, such as bill shock.
I wonder if Kevin Russell would be as forthcoming in talking about his company’s soon to hit 25% cut in commission for small business newsagents.
The Optus commission newsagents earn for selling Optus mobile phone recharge product is set to drop from 4% to 3%. The company has not disclosed commission and commission movement for supermarkets and others selling its recharge product.
With SingTel (Optus’ parent company) profit down .2% YOY there appears to be no financial justification for hitting small business newsagents with a 25% cut in commission. Kevin Russell should be held to account for the decision by the company to hit small businesses in this way.
The company’s fairer approach to its customers should be reflected in its dealings with its small business partners – if it’s serious about being a better corporate citizen.
3% commission on Optus mobile recharge equates to 90 cents for a transaction that would take, on average, two minutes – by the time the shopper pays. The 90 cents does not even cover the hourly cost for retail staff on a Sunday and barely covers it for weekdays.