The business of broadband Internet access will be transformed as service providers focus on simplifying the consumer experience
Marketing and promotion was a relatively simple task for a consumer broadband service provider when their primary digital service offering was basic Internet access, and most of their customers were eager early-adopter geeks. Then, when the home networking phenomenon initially arrived on the scene most broadband service providers were onlookers, and few were active participants in this key market development.
However, as new online applications blossomed and broadband service prices declined, more and more people joined the ranks of the broadband “connected consumer” populace. Clearly, those new broadband converts weren’t like the early-adopter pioneers. Many were long-time AOL customers who were drawn to a welcoming environment for technically challenged consumers — where AOL’s patient customer support staff was an essential part of their service offering.
The final waves of consumers who are now embracing broadband frequently don’t have the experience advantage of those who came before them. Therefore, mainstream consumer needs and demands for technical support are giving new meaning to the term “customer care.” Part of the challenge is informational, since most late-adopters simply don’t know what they don’t know. Many shop at big-box consumer electronics retailers. These naive beginners read and actually believe the promotional advertising for Wi-Fi access points that promise “plug-and-play” home networking.
The market reality — industry analysts estimate that 30-50 percent of these home networking devices are promptly returned to retailers by frustrated customers who share their trials and tribulations of an installation experience that would humble most mere mortals. Furthermore, results of a recent Harris Interactive consumer survey clarify this point. The top three factors that impact mainstream consumer technology purchase decisions are: ease of use, customer service and no hassle installation. In case you’re wondering, “getting a thorough understanding on how it works” was fourth on the list of consumer priorities.
On this backdrop, the broadband service provider business model is rapidly evolving to consider alternative approaches to increase consumer adoption. And for good reason, because if the average person can barely comprehend basic computer connectivity and printer sharing, then how on earth are they going to relate to the introduction of multimedia whole home networks that share relatively complex VoIP, IPTV and VOD configurations?
Part of the answer is utilizing proven show-and-tell learning strategies. As an example, AT&T (formerly SBC) has wisely launched two programs designed to create a hands-on experience for consumers during the holiday season. The company will test a variety of retail concepts, including a new pilot “AT&T Experience Store” in Dallas North Park Mall that will feature digital lifestyle services that can enhance the experience of rich-media consumer electronics devices.
“We describe our approach as experiential, which enables some customization of our services for a consumer’s individual lifestyle,” said Mikal Harn, vice president of consumer marketing. AT&T will also utilize kiosks at malls in other markets to increase awareness and test different hands-on models. In the Dallas store they are facilitating one-hour “how to” sessions for consumers who prefer personal instruction. So far, customers visiting the store have warmly greeted these efforts.
The company’s planned investment in Project Lightspeed is clearly a catalyst for these attempts to help educate consumers about AT&T’s communications and entertainment services, in both a relevant an meaningful way. Moreover, the need for extra assistance doesn’t end once the sale is made, and so that’s why they are also enhancing their member facing support website for SBC Yahoo! DSL customers.
AT&T and other forward-looking service providers already utilize CPE device management software from Motive, Inc. – the recognized leader in reducing complexity from the activation, update and ongoing support of these in-home consumer networks. For customers that prefer to have someone help them in person, AT&T offers a $50 credit towards a Best Buy Geek Squad in-home visit in some markets, and similar services from CompUSA or other technical support partners in other markets.
We’re witnessing a growing trend where all consumers will be given the opportunity to fully discover and embrace a connected digital lifestyle that meets their expectations. Frankly, driving ease-of-use advances is a strategic business imperative for every service provider that will launch multi-play bundles, and it’s also a required stimulus for CPE, home computer and other consumer electronics manufacturers to design their products with a more acute human factors awareness.
I’m confident that all broadband service providers will be following AT&T’s example by creating comprehensive programs that will be instrumental in enabling mainstream consumer adoption of a growing array of rich-media services. I’m also hopeful that service providers will ultimately segment their customer base and consumer prospects by their individual technical abilities, and develop service offers accordingly.
The notion of a one-size-fits-all customer support model is obsolete, and the market is primed for further self-help automation and flexible “managed care” solutions that recognize the apparent consumer-skills diversity. Next year we should see next-generation broadband customer care models transform front-line business processes, as consumer persona-based segmentation methodologies are more broadly applied.
