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Unit 9: The Wireless Revolution

Systems help the managers interactions with customers by improving sales, marketing and Notes
customer support processes. Companies are now realizing that customer service is a key
differentiator to reduce customer agony and increase customer loyalty.
Companies engaged in mobile commerce products and services are on a relentless quest to
create a so-called “killer app,” a must-have product or service that could guarantee breakthrough
success.
Unfortunately, the m-commerce products and services now available, from the speed of
connection to the ease of navigation, have disappointed many m-commerce customers. On top
of that, users have experienced a near-universal lack of simplicity, relevance and personalization.
Only one application, short messaging service (SMS), has become popular in Europe. Accenture’s
experience reflects that SMS at best accounts for only 10 percent to 12 percent of average revenue
per user.
For mobile operators, overcoming these negative customer experiences—and ensuring future
customer interactions are successful and positive—is the critical next step in fulfilling
m-commerce’s promise of vast opportunity and significant revenue. In other words, success will
not be about the killer app, but about the killer process.

9.6.1 Killer app Elusive, Probably Impossible

Online purchases are a good example of the customer service challenges facing mobile data
operators. According to Accenture research, ordering a book with a credit card requires about
140 keystrokes or clicks for a customer using a personal computer, versus nearly 350 for a
customer using a phone equipped with wireless application protocol (WAP).
M-commerce customers have a low tolerance for such cumbersome processes. As early adopters
of new technology, they are willing to pay a premium price and are ready to become emotionally
involved with the products and services they use. In return, however, they expect immediate
results and high value. If a product fails to meet their expectations, they take it personally and
are quick to criticize, drop the technology and inform their friends and colleagues about the
negative experience.

9.6.2 Customers will Choose their Personal Killer app

To satisfy these key customers, mobile phone operators have been in perpetual competition to
take advantage of the existing technology to create a killer app, which has eluded operators so far.
And the likelihood of future success is slim, due to the complexity and range of customer needs.
Figure 9.8: Understanding Mobile Commerce
Customers

Instead, we believe each customer will choose his or her own killer app. For some, the killer app
may be e-mail; for others, it may be restaurant recommendations or sports results.

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