What is Tier Work?
Back in 2020 we introduced you to our Tier Up program. This program was designed to educate you on what the new TracFone tier earnings system was, how it paid out, and what key performance metrics the ability to jump tiers was based upon.
For 2022, we would like to introduce you to “Tier Work” – a multi-part program where we talk about the actual and practical in-store activities you and your staff can do – you know, the “work”. These things should have either a direct or indirect effect on your performance metrics, and help to propel you up a tier (or two!) in your very next quarter.
But before we get down to our “work” let’s first review what the tiers are and how the payout SPIFFs are structured to each tier.
You probably already know there are 4 tiers, beginning at AR Non-Member tier earning the lowest level of commission at 110%, then the Member tier at 120%, to the Pro tier at 150% and finally the Elite tier coming in at an impressive 175% SPIFF commission rate. Tiers are based on 2 key metrics – the amount of activations per quarter and your One-time Redeemer Rate (1xR).
Everyone starts out at the AR Non-Member tier. Basically, if you do less than 5 activations per month (14 or less for the quarter) and/or have a One-Time Redeemer (1xR) rate of over 40% you are going to stay firmly in the AR Non-Member rate tier. You really don’t want to be here though because it only pays 110% and it’s not a big leap to try and get more than 5 activations per month, right? But then you may also have to do some work on your 1xR rate to bring it into the below 40% range…do those two things and you will tier up for the next quarter and effectively increase your SPIFF rate by 10%.
The real growth comes in when you can button up that 1xR rate to below 30% and increase your activations just a but more to about 15 per month. Now you are eligible for the Pro tier at a healthy 150% SPIFF rate. Drive through some more activations and keep up the good work with that 1xR at 30% or less, and you are going to enjoy big 175% SPIFF levels at Elite dealer status. There are also other benefits that come along with Elite status so don’t forget to factor those in too.
How can I increase my SPIFF earnings?
Read these short lessons on how to put in the work and get to the next tier.
Enter your Phone number into the Customers Phone
Enter your store phone number and contact info in the customers phone upon activation. By doing this the customer will recognize the number when you call asking for NPS reviews or to have them come back in for a refills. By knowing whos calling the customer will feel more at ease to answer.
What are the benefits of doing this?
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The customer will recognize the number when you call instead of assuming its spam and will be more likely to pick up.
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If you send a text out the message it wont be perceived as spam.
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Incorporate WhatsApp promotional broadcast, be able to send your customer a WhatsApp message about in store promotions you may be running,
Offer an Incentive
Convincing customers to come back for a refill can be hard, but there’s a way to get them to renew or return! By incentivizing your customers with free accessories you’ll not only increase your chances on a possible renewal for the next month from them, but you’ll be able to keep your 1xR down as well! Just simply apply a 2nd or 3rd month renewal incentive with a free accessory of your choice for the customers who return/renew.
What are the Benefits?
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Helping you control and reduce your 1xR rate (remember below 30% will allow you to get to the highest earning TracFone tier).
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Customers that come back to your store may buy additional items.
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They may be so motivated by this offer that they will mention it to their friends and family (you should also offer a reward for that!)
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The combination of increased activations and return renewals will put you on the path to a higher tier, which ends in higher earnings.
Increase Your Foot Traffic
Getting foot traffic through your store for new activations can be tricky. How can you get renewals to come back? How can you increase your activations dramatically? One way is to advertise. Put up signs and posters in your front windows. It will let them know with a quick glance what plans, and promotions are available. Posters are one way, but maybe you need to get more aggressive with attracting attention and people to your store. Why not plan an event?! Have a giveaway, a contest or drawing. You could even invite a food truck to come and park outside your store! With a food truck you can create an agreement between you and the food truck to have a free item coupon for your customers when they activate at your store!
What are the Benefits?-
Increased foot traffic in your store.
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Potential new activations.
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This will get people talking about your store.
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People will potentially refer friends and family.
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You’ll have something noteworthy to post on social media and can build your followers.
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If you reward renewals, you will lower your 1xR – and you know this is the key to increased SPIFF earnings
3 Month Plans at Activation
A great way to make sure you keep your 1xR low is to sell 3 month plans at activation. What this means is that not only will you secure your rebates, but you will instantly secure a customer. By having the customer sign up for a 3 month plan they won’t have the stress and worry about remembering to make sure they renew their plan, which means you will successfully avoid any unpredicted loss. With these plans in place both you and the customer can be at ease about the upcoming months.
What are the Benefits?
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Convenient for your customers – they don’t have to worry about forgetting their renewal date.
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Lower your 1xR (and your 2xR…and 3xR!!).
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3 Month branded handset rebates are secured!
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Avoid any unexpected loss on handset rebates, and month 2, 3 SPIFF earnings.
TracFone Commissions Calculator
The real growth comes in when you keep your 1xR rate below 30% and increase your activations just a bit more to about 15 per month. Now you are eligible for the Pro tier at a healthy 150% SPIFF rate. Take a look at this cool Commission Calculator we created. Plug in your last quarter numbers at your current tier to see what your (bases) commission was. THEN change your tier to the next higher level and see what you could have earned with an increased tier.
What are the Benefits?
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Seeing the results of keeping your 1xR down.
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Create goals for your store
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Earn more in SPIFF commissions
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See what it takes to move to the next tier (you might be surprised with your numbers)
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See the reward you could have jumping to the next tier
One Time Redeemer Dates
When we look at increasing tiers, we are paying attention to two important things: Number of Activations and the One-Time Redeemer rate (1xR as we abbreviate it). Customers have a 45 day grace period to renew their plan so that it still counts for the dealer as a continued renewal. Because of this 45 day period, the 1xR rate quarter end date is 45 days earlier than the quarter end and Activation goal end. Use your 1xR report on DAP to locate all your customers in the 30-45 day since activation window and call them, text them, flag them down – do whatever it takes to get them into the store to renew.
What are the Benefits?
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Move up a tier for the next quarter
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Helping you control and reduce your 1xR rate (remember below 30% will allow you to get to the highest earning TracFone tier)