Two briefings. Two telecom execs. One conclusion: The market of one is the future-and companies that successfully navigate that space will profit from this small audience.
Today, carriers have segmented their subscribers in several ways: there is the business user, the pro-sumer, the family-plan user, the cut-the-cord user, the prepaid user, etc. There is also the Hispanic market, the Korean market, the urban market, etc. Handset makers have defined their audiences in a few ways too: there are business users, music lovers, early adopters and no-frills customers.
But those demographics will be much too vague going forward. “When the market saturates, the playing field changes,” said Jeff Popoff, vice president of marketing at Redknee. The market will react by segmenting users. Personalization-that is connecting relevant information in the correct context at the right time-will stop churn, and be a powerful tool for operators to compete in a hyper-competitive market, Popoff said.
It’s all in the approach to the customer-finding the right balance between profiling and personalization, commented Openwave’s Martin Dunsby.
How carriers use the information they have about their subscribers will help determine their success, he said. If a subscriber searches on his wireless handset for pizza and shortly thereafter is sent an SMS for a coupon for pizza, he may feel like Big Brother is watching him. It’s likely seen as an intrusion. Yet, society is very comfortable with using Google search, knowing that the first result that pops up is often paid for.
Marketing departments are salivating at the potential for a market of one. Instead of blanketing everyone with a message that Pampers is a great diaper, the ability to drill down to the people who are interested in diapers is a much better ad spend.
But the real challenge for carriers will center on the parameters surrounding this market of one. To date, most carriers have sung the mantra that the customer is No. 1 and it is the carrier’s duty to protect its customers-which is why a wireless phone directory doesn’t exist and why very little spam has made it to the cell phone. Unleashing personalization tools can give customers an even better experience with their carrier if it’s done right. If it’s not handled properly, however, operators may find their market of one actually that-a market of one.
