People want what they want. As a result, they have come to expect – even demand – content and services in tune with their lifestyles and life stages. On mobile – the fiercely personal device we take with us everywhere – the requirement for relevancy is even greater, which is why personalization is poised to become a mobile megatrend. Put another way, personalized recommendations and schemes that effectively expose us to the content we are most likely to appreciate (content ranging from websites to marketing messages to mobile apps) are gaining traction.
One mobile operator that “gets” the strategic importance of personalization (if only to satisfy our own requirement for convenience and reduce the heavy-lifting when it comes to choosing our entertainment) is CSL, the leading mobile operator in Hong Kong with 2.6 million subscribers.
CSL strategy
CSL has made its mark with several mobile Internet offers that tailor the mobile Internet experience to subscribers. Specifically, CSL has implemented personalization solutions provided by Amdocs Interactive to present users with content choices and suggestions based on their preferences and past browsing patterns. Chief among these is the MyNet portal. Check of the flash demo here.
CSL “pre-populates” the mobile device screen with destinations and suggestions the user is likely to appreciate. It also showcases services (customer services, for example) and applications (a tab that takes people to the operator app store).
I caught up with Han Kotterman, CSL Chief Strategy Officer, to discuss the place of personalization in the carrier’s mobile Internet offer and usage trends to date.
As Han sees it: the ability to personalize the portal – and thus the user’s mobile Internet experience – combined with the capability to deliver data services over a high-speed LTE network has led to a “50- fold increase” in the use of mobile data.
“Personalization is extremely important,” Han observes. “It creates stickiness, which is what operators need to win in a market that is mature and where growth comes from additional services and products tailored to the customer, and not necessarily from more new customers.”
Mobile Internet experiences
Now that mobile operator portals and walled garden schemes have to get with the times, the pressure is on operators to focus on improving usability and making the mobile Internet simple. At CSL this means laying the groundwork to provide a good Internet experience. “This has really become the most important feature that customers would like to use.”
To this end CSL has developed a portal that does not only allow people to access to the CSL services as they were before, but also provide a “true portal to the Internet.” As a result, people have choice. “If they want to have information on their bill, they can go to that part of the portal, if they want to have more information on the content and services that CSL provides, that’s available too through the app store on that portal. And if they want to go to the Internet, they can do that too. All this is delivered with a sense of personalization to it so that the system learns from the items the customer is interested in and will subsequently recommend [similar items] going forward as the customer returns on that portal.”
As this is key to CSL’s service strategy it has also invested in technologies such as LTE. “We believe that this fast browsing experience with a good access point to the Internet is absolute key,” Han notes.
Local is king
As Han sees it: personalization is more than part of a service; it is becoming core to differentiation. “I believe … the need for personalization has only become stronger over time, particularly now customers have very few barriers to switch. If you look at customers’ behavior, it’s apparent that customers nowadays are more loyal to mobile phones than they are to the mobile operator….So the differentiation truly has to come from customer service. It has to come from usability of products and services and [from] the personalization of those products and services.”
And then there is the advance of app stores by OEMS and by the Googles/apples of the world.
Interestingly, Han echoes the sentiment of several mobile operators and industry authorities who point out that the real battlefield is LOCAL. Put another way, OEMs and global players such as Google and Apple have precisely that: global focus and reach.
Mobile operators (such as CSL) have an ace in their hand (should they choose to play it): familiarity with the local culture and customer base. As Han put it: “The key for wireless operators to stand out is to provide applications and services that are localized.”
CSL has cleverly chosen to stock its music service with local Hong Kong singers and talent. “Community is part of the personalisation strategy.” And CSL is driving that home through applications (including its mobile TV offer) that showcase local content and entertainment.
My take:
In a market that is mature (such as mobile) growth will come from additional services (not so much additional customers). Personalization therefore becomes a must-have capability in the battle to delight the (existing) customer base. Combine that strategics focus with local content and community and mobile operators can succeed in delivering a mobile Internet experience that keeps people coming back. (CSL has certainly reported a significant uptick in mobile data use. Put simply, it’s not a matter of generating revenues from personalization; it’s about developing a communications package that is effective, impressive and – above all – sticky.
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[audio:https://s3-eu-west-1.amazonaws.com/mobilegroove/2011/01/MSG_CSL-personalization-podcast.mp3]Disclaimer: Amdocs Interactive is an MSG client and supporter.