Thursday, April 13, 2006

IMO provides cellphone buying without hang-ups

USA TODAY profiles IMO, which stands for Independent Mobile, a cellphone retailer "built for a market teeming with a bewildering array of phones, features, plans and carriers. Nearly 85% of consumers have at least some trouble shopping for wireless service, said a Consumer Reports survey last year."

According to the article, "IMO intends to help consumers navigate the maze with sleek contemporary stores populated with uncommonly helpful representatives and interactive PCs that can whittle down the choices in seconds. IMO says sales staff can be candid and unbiased because they offer all the major carriers, as well as niche brands such as Virgin Mobile and Boost."

The retailer also helps consumers learn to use their handsets and services at no extra cost. IMO currently has two stores — one in Columbus, Ohio, and the other in Framingham, Massachusetts — and has "plans to go national, opening stores in 125 cities by the end of the decade."

The article looks at IMO's different approach to selling mobile the the current traditional retail methods, such as "the carriers' own stores and independents such as Best Buy, RadioShack and thousands of mom-and-pop outfits." While "carrier stores offer only their services, and sales employees are paid commissions based largely on signing new customers, IMO pays higher salaries and no commissions, making for a no-pressure environment.

Ovum analyst Roger Entner said, "The (carriers) are not doing a great job (selling added features) and they know it."

Yankee Group analyst John Jackson noted "the independents, meanwhile, typically stock only the two or three carriers with whom they have near-exclusive deals. They were instrumental in growing subscribers in the 1990s but are ill-equipped to hand-hold customers through today's jumble of features and phones."

Forrester Research analyst Ted Schadler added, "IMO can fill that gap," likening "IMO to Apple and Best Buy's Magnolia home theater stores, which sell "experiences" rather than products."

Yankee's Jackson warned that despite its advantages, IMO faces risks with "a sales force that can only know so much about so many features."