Channels to the Hearts and Minds – Online 2005

Abstract

Abstract needed here…

Article

The physical, e

and wireless world continues to grow!

The e

channel for shoppers continues to grow, with so many nay sayers and doubters. You’d think this issue would die, with more and more shoppers buying from far flung vendors: Boston to the Nanga Tribes for buying original crafts; Dallas to Huangshan City, China etc.

In spite of nasty spam, more activities go online-games, travel, research etc. Online is now part of the total life experience. The challenge will be to make it even better for users. Build capacity (again), making the various channels (wireless, cellular, fiber to the home, etc.) work well together.

First, online is now part of the Information Technology component of the enterprise. This aspect is slowly but surely destroying many industries that rely on providing “content and information as part of a paid service or subscription”, such as magazines and research firms, etc. In fact, most of these leading edge firms have found value added service on top of “free information” and the old timers are struggling to add some pizzazz to their service model. There are great strategies for bringing people closer together here!

Competitive Analysis is a huge major beneficiary of the online revolution. The advice to product firms is to make sure you use this channel well. If your competitors put a solid footprint of their product online, it would behoove you to do likewise. In spite of the risk of imitation, shoppers for software, electronics, even jewelry really are doing their research. One person in the room of over 200 executives did not do online research for products before they bought. So both business and consumer have come to rely on this channel. It’s hard to level an investment dollar, which is the big question, as executives deal with ROIs for efforts to enhance their business. Where did they buy? — In the store. So we build more stores, when in reality it was the web that “sold the deal”. Learning more about our customers is key.

In addition, this channel will only get more pervasive with all the wired and wireless channels to the hearts and minds of the buyers being served. Globally, the Telco industry continues to consolidate: AT&T with SBC, Sprint and Nextel (there is a strange history), MCI and Qwest or Verizon. France, Japan, US, Canada etc. And part of the strategy in doing so is to provide a totally integrated service. We hope that these will net value to customers. At my roost here in Canada this week, Rogers covers the wireless internet, cable TV etc., as well as my own cellphone coverage. One firm provides it all. The customer’s needs become the focal point. Poweredcom of Japan sees the broad context -seeing content as part of the picture (no pun here) as well as the mobility of the customer. Sam Nakane, CEO of Poweredcom, said that his “ultimate goal was to become ‘a ubiquitous Internet service provider’ that would become a window for users to stay connected wherever they are through one phone number and one bill.”

As convergence continues – at all levels – devices, carriers and content/retailers, the question still remains. What will be the impact to these various businesses? Consider:

  • Retailers need to provide way to make their customers more loyal – this takes some imagination, like creating and improving the experience for customers and also creating real loyalty programs (Will Amazon’s Prime be one of those?)
  • Content-information services, games and other services – being a destination site, is key, as well as managing relationships with channel partners.
  • Carriers should make it easy for customers, or they will defect and put up with multi-channel challenges until they get everything they want from that one carrier (consumer configurations like: T-Mobil, Comcast, Cingular, AOL; or Verizon, RCN, Yahoo, etc., etc. And these methods simultaneously service their work and play!

The money is clearly there for the winning providers! But you have to listen to your customers and serve their needs!

Scroll to Top