Just what will separate the wireless winners from the losers?
European and US companies have only just dipped their toes in the
water in exploring the potential of wireless devices or
communicating channel with customers. The current investment
climate for wireless remains extremely cautious. However, many
companies are misguided in their beliefs about wireless and are
pursuing the wrong goals. Wireless is worth a second look. Indeed,
those who are now prepared to adopt a different perspective and
reconsider the potential of wireless applications may secure a
competitive advantage.
According to research from Viant conducted earlier this year many
companies have considered using wireless, but their investment has
been focused on business-to-employee applications. Only the most
basic steps have been taken in business-to-consumer (B2C)
development, usually the simple transposition of Web content onto a
wireless device, or the 'reheating of old dishes'. Retail banks
have created wireless offerings that are merely a subset of
Web-based offerings - balance checking or bill payments, say. And
few investment banks have gone beyond provision of derivatives of
existing desktop functions to top clients.
Some companies have attempted a more innovative approach: several
cruise lines and hotels are testing more unusual in-house or
on-board applications (mobile payments, restaurant bookings and
food ordering), but these are the exception not the rule. There are
few wireless B2C applications out there that are of any real value.
Scepticism about the timing and capability of next-generation
wireless technologies has underpinned the wait-and-see approach.
But the biggest hurdle to companies understanding and realising
their potential has been their uncertainty about the B2C wireless
'killer applications'. They remain unsure about the applications
that will appeal to a broad consumer base and generate profit and
have delayed development of such systems.
This will likely separate the wireless winners from the wireless
losers. It is 'killer experiences' and not 'killer applications'
that hold the key to success in the wireless arena. Companies
should set aside their caution and instead use existing
technologies to leverage the unique advantages of wireless in a
multi-channel context. Thus a range of valuable opportunities could
be realised. But what do we mean by 'killer experiences'?
A killer experience is designed around a customer point of view
rather than designing solutions around the company's own
organisation and value chain. This may require a radical departure
- companies collaborating with partners outside their industry, for
example - but bundling related services via a wireless offering is
likely to have enormous perceived value for customers. An airline
might link with other providers to offer local information, car
hire and hotel reservation services or mobile payment facilities as
well as its usual services via a wireless application. A business
traveller would normally have to seek these services from a number
of different sources.
A multi-channel context is also critical. A coherent customer
experience depends on the use of available channels in the most
effective way. In the wireless arena a combination of bricks,
clicks and mobility is key to enabling customers to access the
services they want anytime, anywhere, in the most appropriate way.
Although integration is important, a killer experience also relies
on wireless being the most relevant channel. The users' goals must
be time- and location-sensitive to make the offering valid via a
wireless channel. Imagine the convenience of being able to buy a
last-minute theatre ticket as you leave the office, or contact a
breakdown service from the roadside and track the progress of the
patrolman travelling to you.
Finally, applications must be customised for use over the wireless
channel - success will not come from extending existing PC
services. Wireless should either be used to enhance an existing
product or service or to deliver a new, tailored one.
Every firm has a unique context and strategy, so there is no
universally valid response to the B2C wireless opportunity - nor is
the technology appropriate for all companies. However, our research
indicates that for many businesses, the arena is worth revisiting
and wise investment now may be a long-term source of competitive
advantage. The wireless winners will be those who are mindful of
some key checks and principles:
- Re-assess whether waiting for new wireless technology really
will be productive: Expectations of new technology may not be
realised and factors such as lack of compelling content which are
slowing adoption can be addressed immediately
- Integrate wireless offerings into a multi-channel solution: How
does wireless integrate into the overall customer experience? What
does the customer want from you from each channel?
- Explore the potential of relationship marketing: wireless
technology offers a particular strength to create a one-to-one
relationship with consumers and data on their behaviours. What role
could wireless play for your marketing?
- Create a unique customer experience: Is the customer viewpoint
the focus? Is wireless the best medium for the initiative?
- Customise wireless products and serv-ices: How does your
application exploit wireless devices unique location- and
time-specific properties? Will the experience feel
personalised?
It will be interesting to see who is first to market with their
'killer experiences'.
Adam Turinas is head of consumer practice, Viant