Saturday, June 14, 2008

Are Devices Key to Engagement?

So why don't users "love" their communication service providers? At some level, you can blame the quality of customer service. In some cases you might blame the service itself. The answer is vitally important.

Businesses and products that customers "love"--are highly emotionally involved iwth--make more money than businesses and products that users are not emotionally bonded with.

So ask yourself: does anybody you know "love" their dial tone? Does anybody you know love their bitstream?

Ask yourself a different question, then. Do you know anybody who loves their car, loves a car, loves a perfume, a set of golf clubs or a recent movie featuring four Manhattan women?

You're getting different answers, aren't you? So here's the point: at a basic level, communication service providers will make higher margins, and more sales, if they somehow can create an experience so personal that users actually create emotional bonds of the sort they have with their favorite brands, activities and pursuits.

So here's why Apple's iPhone or RIM's BlackBerry are important. They are the closest thing the communications industry has found to a service attribute that does create an emotional bond.

So think about the video entertainment business. Do you know many people, aside from those using DirecTV, who actually "love" their video provider? To the extent the service does create emotional bonds, how are those bonds created? With the actual programming, not the packager.

Igt's sort of the same problem. People might love watching a favorite movie or TV series. They will be emotionally involved with the content. It is doubtful they are so involved with the retail packager of that programming.

So far, we know one new thing: you can get customers who are passionate about their devices. To the extent that those devices require communications, service providers benefit. So pay attention to devices. They are the "hot," affective parts of your relationship with customers. The quality and terms of service are the "cool" parts. You have to do those things right, but you won't gain much loyalty by doing so.

For that, you need the passion only a user experience empowered by a device can provide. At least so far. We've got a long ways to go before an application or service really is capable of creating the sort of emotional bond that does create higher margins.

See related posts on the MetaSwitch community on Facebook (click on "Related article" below)

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