Boost Mobile has adjusted the compensation it gives to dealers when a customer replenishes their airtime minutes. In addition, the firm is reducing the number of locations where customers can buy more airtime.
In an interview with FierceWireless, Jeff Auman, vice president of sales and distribution at Boost, said that because the company has seen such enormous growth in its $50 unlimited monthly plan, the average revenue per user is increasing and therefore Boost has adjusted the replenishment compensation to account for that higher ARPU. "We don't give customers a hidden fee when they replenish. We pay that margin to the dealer," Auman said. Although Auman wouldn't provide specifics on the reduced compensation, one Boost dealer, who did not wish to be identified, said that the company reduced the compensation of non-exclusive dealers by 43 percent and exclusive dealers by 60 percent.
Since more people are signing up for the monthly plan, fewer are replenishing with smaller, more frequent payments, Auman said. The company has decided to reduce the number of places where customers can replenish and instead encourage them to return to dealers that sell Boost phones and service. "I'm concerned about the customer experience," Auman said. "I want to have a bias toward the dealers that sell Boost phones and service. They have more skin in the game and deserve to be rewarded."
Auman said that currently Boost has more than 100,000 locations where customers can replenish their airtime minutes. However, he would not say how many replenishment locations the company plans to eliminate.
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