Smart

phone, smarter service

Prescient mobile thinking - vital to the multi channel customer experience

April 2012

Mobile phones have evolved into a broad range of smart, sophisticated computing devices that can deliver a wide variety of services, content and applications. Many organisations are already exploiting this opportunity, and many more are keen to follow, but they need to ensure they really understand the requirements of those they are targeting. People are very attached to their mobile phones and have increasingly high expectations of services that are delivered to or through them. However, mobile is only one element of the multiple channels now available. Forward intelligence is required to get to grips with the personal needs, constraints and context of mobile use in order to incorporate mobile as part of an effective multi channel customer experience.

Rob Bamforth Quocirca Ltd Tel : +44 7802 175796 Email: Rob.Bamforth@Quocirca.com

Clive Longbottom Quocirca Ltd Tel: +44 118 948 3360 Email: Clive.Longbottom@Quocirca.com

Copyright Quocirca 2012

Smart phone, smarter service

Smart phone, smarter service

Prescient mobile thinking - vital to the multi channel customer experience
Mobile phones have evolved into a broad range of smart, sophisticated computing devices that can deliver a wide variety of services, content and applications. Many organisations are already exploiting this opportunity, and many more are keen to follow, but they need to ensure they really understand the requirements of those they are targeting. People are very attached to their mobile phones and have increasingly high expectations of services that are delivered to or through them. However, mobile is only one element of the multiple channels now available. Forward intelligence is required to get to grips with the personal needs, constraints and context of mobile use in order to incorporate mobile as part of an effective multi channel customer experience.

Smart mobile devices create new opportunities

The growth in smartphone and tablet adoption is very different to the growth of PC usage over the last couple of decades. These mobile devices are seen as cool and desirable as well as functional. People have an emotional attachment and thus carry them everywhere. They have a different relationship with the technology, which provides a personal and social connection and therefore opens up the opportunity for organisations to have a more individual dialogue. This is not simply at the level of using a mobile phone to catch up on the generalities of Facebook or Twitter, but a way of creating and supporting communities of interest. These may be about companies, products or services, but they are more likely to embrace groups with shared experiences, aspirations or needs groups including consumers, employees within the workplace, and beyond. Smart mobile devices, and the networks they are attached to, already collect a wealth of information that could be used to streamline the user experience. Further use of tools in the network that recognise the constraints of the mobile user and adapt services dynamically or in advance, such as context aware and prescient input or search, are vital to ensure relevance to that user in that condition, that time and place. This greatly helps minimise frustration and drive up adoption. The internet opened up an online channel to complement (and sometimes compete with) the physical world. Now customers have multiple options and channels that they can use for accessing services, often overlapping or disjointed. Rather than be seen as an alternative, mobile is complementary to the whole multi channel customer experience. However, it can provide unique insights based on location and other aspects of personalised context. Use of this personal connection comes with responsibilities. Individuals needing access to their mobile services may have time and location pressures as well as the physical constraints of the device. They may rely solely on their mobile device for many critical daily activities beyond communications such as ticketing, financial affairs etc. or it might simply be a companion device to others. Services need to be designed and delivered in a smarter way to be tailored to the individual demands and limitations of users. While the mobile industry is quick to generate short-term gimmicks that stand out from the crowd, longer-term adoption and usage of services require that they fit in. Everyone is constrained by how much time and money they can afford to spend but, in the mobile context, time and efficiency are even more precious. Familiarity and fitting in to a style, process flow or application helps support continued usage. Strong and solid integration reduces user angst.

Social media is an essential partner for mobile Forward thinking, user needs and context are key to delivering relevance Mobile is integral to the multi channel customer experience Mobile users are sensitive to abuse of their personal communications Mobile value does not need to stand out, it needs to be seamlessly integrated

Conclusions
It is clear the world of user access to all sorts of communications and services is going mobile, however it is not yet clear that those offering services have done enough to make sure they offer the right level of tailoring, efficiency and value that mobile users will expect and demand. The information required to hone services for mobile is there; it just needs to be gathered and used more intelligently. Those companies that do this will have a greater level of success as they exploit the mobile channel.

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Smart phone, smarter service

Mobile surge
Mobile phone adoption has been growing for some time and, according to the GSMA, by the end of 2011 there were over 6 billion mobile connections on the planet, a rise of a billion during the year. The majority of devices are still simply phones, or feature phones, but in most of the mature markets Japan, South Korea, US and much of Europe smartphones have risen to become the number one choice. Despite appearing over a decade ago, initially with slightly clunky devices from Nokia and Sony Ericsson, smartphones have always been, by their very nature, more expensive and bigger than feature phones, with shorter battery life and, in many cases, a poorer capability for making phone calls. However, it is their ability to support other applications that makes them really appealing. The real widening of growth to more mass-market ownership of smartphones happened as the RIM BlackBerry became the mobile device of choice for senior executives for email on the move and, more latterly, surprisingly, for teenagers for other forms of messaging, particularly using BlackBerry Instant Messaging (BIM). These devices became more than just fancy communicators as they grew their compute power. It was Apples iconic iPhone and, more importantly, its impressive ecosystem drive through the App store that created a new business model that turned the mobile industry in particular network operator dominance upside down. While it liberated the creation of content, Apple kept, and still keeps, control of the publication side and its devices are at the more expensive end of the smartphone spectrum. However, its success spurred on the rest of the industry to produce lower cost smartphones and ape many of the features that made the iPhone successful. Smartphones are now no longer a phone with a computer connected to a wireless network. They increasingly contain accelerometers and positioning systems which means that the applications that run on the device and across the network are more sophisticated and personal than previous generations of applications. These smart mobile applications are the cornerstone of the surge in mobile use. Mobile apps may have started off with standalone items like downloadable ringtones, games and then iTat (apps that are downloaded, used a few times and just left) but they have developed into clever front ends and adaptable channels for further content and services. The re-emergence of tablet computers has also boosted the smart mobile application market. Again, the concept was not new, although most early tablets still had the option of a physical keyboard and most would depend on a stylus. These early tablets were more for business use and some early adopting consumers, but the current generation of tablets, in particular Apples iPad, has generated a significant growth in usage and changed the model of using IT and communications systems. The consumerisation of IT for business use means that growth in usage here mirrors the wider market. While still lagging smartphones, among business users there is significant tablet adoption. Quocirca 2012 -3-

Smart phone, smarter service

Reach, relevance and relationship

The ability to communicate on the move has become the most popular consumer utility service; hence the mobile phone is the single most carried personal item of technology and finds its place alongside keys and wallet or purse as the items many people check are on their person before leaving their home. Given the continued growth in adoption of mobile devices with even greater functionality in particular smartphones, tablets and mobile apps it should be no surprise that organisations of all types see this as an opportunity to target for services, advertising and sales as a channel for interaction.

Mobile reach why is it different?

Organisations already have many interaction mechanisms at their disposal from relatively expensive physical locations to lower cost contact centres and online presences, both directly and through social media. However, the exploitation of a mobile channel delivers specific additional benefits: - Convenience at home, in the office, out travelling, or overseas, the mobile phone is the one consumer item of technology that is likely to be with its owner. The frequency and reach of contact available through the mobile channel is convenient for both supplier and consumer. - Cost-migration from expensive channels services can be delivered right to the point of need wherever the user is, without having to build new infrastructure. The phone can act as point of sale, point of information, or point of service. Mass market moving a channel online from the physical presence is an obvious step, but not everyone has convenient access to the internet, whereas even those without it are likely to have a mobile phone. Phone penetration this is so high that even when other channels are effective at reaching consumers, the mobile channel is available as a supplementary or alternative route. If an airline needs to alert a traveller to a change in route or cancellation, the mobile route is more effective than sending an email, even if the original itinerary was communicated via an email. Developing economies not all countries have the legacy of a fixed telephony or internet infrastructure. Coverage may be incomplete, due to cost or geographic, social or political instability and some regions are skipping the stage of fixed infrastructure altogether and going straight for a wireless connected society.

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In most cases the mobile channel is an extension or a broadening of current reach, not something that requires existing infrastructures to be replaced or isolated. It is an alternate or supplementary channel but it still needs to be well integrated with other routes, and with existing business processes. Most of the companies who failed with their innovative business models during the dotcom boom and bust were not brought down by poor use of the technology, but by an inability to integrate their new online channel with a solid commercial foundation. The same will be true of companies who place the use of a mobile channel ahead of good business sense. Understanding the constraints and most likely needs of the mobile user is vital to creating services that can be both readily adopted and have lasting appeal. Services need to think ahead or be prescient about what the user might be looking for or trying to accomplish, in order to streamline the task and make it simple in what might be challenging conditions. This prescience can come from making intelligent use of current context or generating smart inferences from data already gathered about past behaviours and actions.

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Smart phone, smarter service

Service relevance one approach definitely does not fit all

The reach of the mobile phone is very appealing, but it comes with constraints. Not only is it likely to be kept with its owner at all times and places (many studies indicate this includes private and personal spaces such as bedrooms and bathrooms), but there is an emotional connection because of its use as a social tool. Smartphones now carry a wealth of personal information diaries, contacts etc. as well as the tools necessary for social connection and communications email, text, instant messaging and social media as well as the original voice. Unlike the personal computer industry, which, after the advent of the IBM PC and MS-DOS fairly quickly matured to a common platform with a handful of mass market and a fair number of more specialist manufacturers, the mobile industry has continued to offer a huge diversity of platforms and, ultimately, choice. The result of consumerisation is a proliferation of personal choice among business users that starts to match that available to consumers. Far from seeing a consolidation in the variety and ranges of mobile devices available, there has been increasing diversity, despite current warring over intellectual property and patents. The emergence of the mobile app market, with its consequent low cost and transaction simplicity, means that mobile devices have the capacity to vary considerably in specification and function to meet the personal needs of each individual. Constraints therefore come not only from these obvious technical limitations of size, functionality, network access, battery life and user interfaces, but also from user acceptance, behaviour and expectations. For a variety of reasons, this reach has to be used carefully in order to be relevant depending on the context of the individual. - External distraction - mobile users are often away from the comforts of home or office, so are probably busy with other things, distracted and possibly in a rush. - Internal distraction many will often be using their mobile device as a diversion to pass the time or relax playing games, catching up with friends, listening to or watching media and they may not welcome being interrupted. - Demographics despite the stereotype of the digital native generation, mobile devices are used heavily by executives, retired folk, career climbers and teenagers. Despite having overall different expectations, they may, at times, have similar needs. - Modus operandi for some the mobile device will be their only mechanism for getting online (even in the US this figure is thought to be around 25%), but for others the mobile will only ever be a companion device to other mechanisms, such as a desktop. Organisations looking to use the mobile device as a channel must bear in mind that they do, in many respects, offer less functionality than many existing channels, despite offering greater reach and context. Keeping both the mobile channel connection and any resulting services relevant requires that organisations deliver something of value to the user at that moment and this means that organisations need to focus more on listening, collecting information and taking feedback so that they can intelligently reflect this back into their mobile offerings. It also means trying to find ways to take redundant and unnecessary activities out of the users way and providing as many predictive techniques as possible to ensure their progress is as unencumbered and streamlined as possible.

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Smart phone, smarter service

Building relationships - what does the mobile connection bring?

Done correctly, mobile enhances relationships at all levels. It combines the technical aspect of universal connectivity with the emotional aspect of social reach, and it should be no surprise that the two elements of mobile and social are both currently at the forefront of interest in most organisations, despite coming from different directions. Mobile application development started off by building applications for deployment to employees, such as field force automation in utilities, logistics and financial services. However, with the growth of ubiquitous smart mobile consumer devices, this is rapidly evolving to delivering services to business partners, and now consumers: B2E business to employee B2B business to business B2C business to consumer B2A business to anything Social media may have started out as what appeared to be trivial and unfocussed personal commentary, but has become more business oriented to target and create communities of consumers. Now, new social business tools are going further and entering workplaces as new mechanisms for inter-employee communication and collaboration, mostly sitting alongside existing tools, but in some cases replacing them. These social media tools generate huge amounts of intelligence about the conversations and connections that are made within communities of interest. While possible, it is rarely worthwhile for an organisation to dive in and take control of these forms of communication, but there is much useful information and intelligence to be gleaned from more active listening. This can then be reflected back to the community, providing insight, support and value, in order to enhance the standing of the organisation. Likewise, mobile will continue to play an increasingly important role in gaining access to social media services. It is not only a ubiquitous and relatively democratised mode of access, but it is also immediate. The conversations and updates of friends and online communities do not happen at set or dedicated times that correspond to being at a desk, but in real time, anywhere. Again, there is intelligence that can be gleaned from the mobile context that can be used to simplify and add value to the user experience. The challenge is to gather the right information, understand what it means and make the right predictions from it.

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Smart phone, smarter service

Applying mobile context

Subscriber context has long been discussed as a most valuable mobile commodity, but elements should not be used in isolation. At one time it was thought there was a unique market for location-based services (LBS), until reality dawned that location was generally a useful feature for augmenting an application, rather than an application or service in its own right. Navigation is really the only application area where location plays such a key role, but further context can be added e.g. route, time of day, traffic or weather conditions to make the service of greater user value. Increasingly, smart mobile devices, combined with standardisation and improved performance in mobile networks, offer an ideal opportunity to open a richer dialogue with the subscriber through personalisation. The amount of tailoring and shaping used to hone the user experience will vary considerably from service to service, especially as not all devices share the same features, but there are a number of characteristics related to each individual subscriber that can be used to ensure maximum relevance: - Personal the individuals profile, the details of who they are, what type of device they use and preferred payment model. It will also contain personal preferences and recommendations what do they like, have they chosen to customise their mobile experience, have they created a wish list, or sent favourites to others? There will also be a record of behaviour and activity what have they purchased, where have they visited? - Functional mobile devices have many attributes, but certain features like touchscreens, accelerometers and GPS positioning may not be common to all, so the combination of what is, and is not, available on a specific device will be very important. What are its physical characteristics such as size and user interaction capabilities - keyboard, stylus or touch screen - and software attributes such as operating system, browser or supported standards? - Social personal behaviour extends into the interactions with others, as terms like social media, the social web and social business take hold. Who and what the user is connected to or follows, the interactions with them and any recommendations or shared preferences also add important attributes to context. The comments, beliefs and opinions of those they already trust increases the potential value ascribed to mobile services by their users. - Physical the most important of these is current location where is the handset? but other aspects such as intended or past journeys or routes will also be useful. A precise fix might be very valuable for location- specific applications such as find my nearest restaurant, but even knowledge of country or nearest town could be valuable in narrowing search or discovery criteria. The current day, date, season or even time of day can be used to ensure information is more useful to the user. Quocirca 2012 -7-

Smart phone, smarter service

Serving mobile users

When companies first offered personalised content and e-commerce services on the Internet, it was often seen as a blunt way to increase the value of a sale through cross-selling and up-selling. Now the approach is more subtle, with information used to speed the process flow to benefit users as well as the merchants. Done correctly, this can enhance the relationship and increase loyalty. The most effective use of personalisation for mobile is to take a similar approach. A user experience that works efficiently on the individuals phone, fits their immediate need and flows quickly with the minimum number of clicks necessary to find or use a service reduces the risk that a user will look elsewhere. However, a bad experience, a download that crashes the phone, a mobile web page that costs too much time or bandwidth to view, or content that, when it arrives, presents poorly on a mobile screen will put users off for good. Even though it has evolved from the straightforward voice conversation telephone into a more sophisticated multi- purpose tool, the expectation remains that the user experience should be convenient, simple and practical. Additionally, those who pay extra to possess the more sophisticated phones will expect an enhanced experience, not the lowest common denominator interaction that would be expected on a simpler, cheaper device. There is a set of underlying principles that all mobile services need to address: - Useful value can the consumer recognise clear practical value associated with the content or service? It might be as intangible as watching a video clip or playing a game to alleviate micro-moments of boredom, or the fashion statement of the latest ringtone. Or it could be more quantifiable, such as the time saved by access to a map or directions on a critical journey, or the linkage from a quick response (QR) code to save typing. - Worthwhile cost does the price match the perceived value? This will depend on the service, target customer segment and pricing strategy. The bundling of services and special tariffs often confuses and consumers rarely risk paying when the end cost is not clear. Costs need to be clear, upfront and meaningful. Ease of use is it simple to discover, purchase and use? Mobile users do not have time, device functionality or inclination to cope with the challenges they have to endure on a desktop computer. Incompatible and difficult to use services will be discarded as consumers will switch to better thought out and simpler alternatives. Time or place shifting what activity will be replaced or permitted to be shifted in time or place? The uniquely mobile ability to conduct a remote service, there and then, means that other activities can be substituted. This replacement may be at the expense of another activity text messages instead of phone calls, MMS messages instead of sending postcards so if a new idea does not remove the need or cost of doing something else, it is unlikely to be adopted. Social interaction does it exploit social communication and interaction? The mobile phone is a communications tool supporting the human needs for company and contact and the wealth of social media interaction. Any service needs to recognise and build on this value. Mobile aware does it understand the uniquely mobile needs of the user? They may have limited time at the moment of use, less concentration and the need for relevance, so offering something that works for other media, such as TV or an online desktop service, is unlikely to have appeal.

The key challenges to make the mobile channel effective are the same no matter what the application. Use context and intelligence to reduce clutter, integrate processes to keep the flow simple and efficient and shrink the number of clicks to keep the user effort to a minimum. Quocirca 2012 -8-

Smart phone, smarter service

Conclusions
The mobile channel would appear to be a marketing and sales dream. It strikes a personal bond with the device owner, who treasures and values their device and is willing to trust it with personal details, payments, ticketing and receipts. Smartphones and tablets have become objects of aspiration as well as highly functional mobile IT and content delivery devices. The mass availability of smart devices and simple accessibility of online storefronts has swollen the ecosystem for apps, content and media. The reach and opportunity are huge. This does not mean that users are no longer discriminating, however. Content, services and applications all have to appeal and compete for attention and continued usage on the smallest screen. To obtain or maintain their position, services have to be compelling and relevant to the user, and integrate well into the mix of services already in use. This is not an impossible dream. The device, network and suitable supporting platforms can provide a huge amount of context, which can be intelligently applied to make the user experience seamless, simple and effective.

Reference
1 The data sharing paradox, Quocirca, September 2011

Quocirca 2012 -9-

About Transversal
Transversal is the UKs leading provider of online, multichannel and self-service solutions for customer-facing websites including contact centres and internal HR functions. It believes that exceptional customer experience is achieved by transforming the quality and efficiency of its clients online self-service provision. This inevitably results in significant and immediate return on investment. Its solution automatically answers customers questions online; increasing online sales and reducing the volume of call and email queries. Transversal customers typically see an immediate, dramatic email reduction of around 60%, and an improvement in email response time from a few days to just a few minutes. Transversal's customer service solution uses a dynamic, natural-language knowledgebase to deliver information to agents and customers alike. By typing questions in their own words, people can access fast, accurate and consistent answers to questions. Its clients benefit from increased first call resolution and greater efficiency, using its solution to provide the highest quality customer service across the board. Transversal has been named one of the UKs 20 fastest-growing venture companies three years in a row, and won Best Technology Partnership at the Customer Contact Association Awards several years running. Customers include John Lewis, Aviva, Royal Mail, Mothercare, Barclays, Nissan, Standard Life, Nottingham Trent University and Direct Line. Transversal was founded by Dr Davin Yap in 2000. It is based in Cambridge, UK

About Quocirca
Quocirca is a primary research and analysis company specialising in the business impact of information technology and communications (ITC). With world-wide, native language reach, Quocirca provides in-depth insights into the views of buyers and influencers in large, mid-sized and small organisations. Its analyst team is made up of real-world practitioners with first-hand experience of ITC delivery who continuously research and track the industry and its real usage in the market.