All That I Know (About Technology)

Over the past few months, I’ve been using FourSquare more regularly. FourSquare is a social networking service/game that you can use to track your whereabouts. It is typically accessed via an app on a mobile smartphone (Droid, BlackBerry or iPhone). The idea is that every time that you earn points each time that you arrive at a location and “check-in.” You earn more points for new places that you discover/visit vs. returning to your usual spots. But the points are virtual — they’re only a valuable way to tell who gets out who doesn’t. From my point of view, FourSquare is the perfect global economic stimulus solution — it encourages users to spend time exploring new places and money. What government or marketer wouldn’t love this thing?!

Well over the weekend, FourSquare sent me an alert that one my friends was at the Nike Factory Store, a nearby discount outlet. As soon as I saw it, I wanted to send him a note and ask him if there are any good deals on Nike running gear (I think that their Dri-FIT products are the ultimate but that’s a topic for another blog). While I could have called or sent him an email, I wanted to sent him a text and ask but that feature wasn’t available. I swear that I looked EVERYWHERE and came up empty handed.

While FourSquare is a great tool that allows you to keep up with your friends, it is missing a texting feature that allows you to quickly “chat” with them. Text messaging is the preferred mode to communicate, especially when you’re mobile (source). If it was there, I would have another reason to get out and stimulate the economy.

Apple has done it yet again. According to the Q1 2010 results (source), consumers snapped up 8.7 Million iPhone devices this past quarter. While a few mobile market analysts feel that Apple missed their sales target (BTW, some expected sales to reach the 9 Million to 11 Million units mark), the growth of the iPhone still represents a healthy 100% increase in sales in comparison to the same quarter last year.

In my discussions with Marketers, I’m regularly asked whether iPhone app development or iPhone mobile campaigns make sense considering the dominance of rival smartphone devices such as RIM’s BlackBerry. There’s valid concern if you consider only the number of mobile devices but that number isn’t as important when you consider usage. While RIM currently outsells Apple in smartphone devices (RIM sold 10.1 million devices in the quarter ending November 28, 2009 whereas Apple sold 7.4 million iPhones in about the same period), the iPhone accounted for 60% of page views AND 75% of mobile revenue at the top online retailers this past holiday season according to Omniture (source). So while BlackBerry devices are more prevalent, users avoid using this device to browse the web. This decision is likely based on the poor web browsing experience. And Marketers that are considering the accessibility of their website should optimize it for the iPhone.

So Marketers that want to interact with the largest group of mobile users should first focus on the iPhone platform — nothing else compares. But besides usage, Apple provides plenty of additional reasons for why the iPhone platform will also win in the long run:

• The current quarter’s iPhone unit sales numbers exclude the 55% year-over-year growth in sales of the iPod Touch. The iPod Touch is a Wifi-enabled mobile device that supports many of the iPhone applications. The iPod Touch user segment represent a group that is not bound by telephony service but are still connected (likely to be a younger demographic).
• Sales growth was driven by strong global demand. This implies that marketers can now expose their application/campaign or brand to an international audience (while facing the challenges that come with such a relationship).
• With the introduction of the iPhone 3GS, demand for the iPhone has spilled from the consumer market over to the enterprise market. Apple reported that 70% of the Fortune 200 are either deploying or piloting the iPhone. While marketers may have previously focused on the business to consumer or B-to-C market segment, they now have an opportunity to create applications that address the needs of the business to business or B-to-B market.
• Apple continues to invest heavily in customer service, whether it is through training of mobile carriers on device or one-on-one coaching of new customers at their 283 stores (currently present in 10 countries). This is a critical tactic for Apple to attract and service an older demographic of users that may not be as comfortable with touch-based technologies.
• The numbers did not account for the  upcoming product introduction of a tablet-like device. This highly anticipated announcement is expected tomorrow but the value of this news is that Apple will give marketers yet another device that will support mobile applications. The segment of the users that select and use this device is still unknown but it is potentially a new group of untapped users.
• Lastly, Apple has completed two recent acquisitions: music streaming service Lala and mobile advertising platform Quattro. Both represent the company’s continued future-looking view on revenue generation and demands.

Apple seems to be benefiting from a positive feedback loop. While the iPhone does have its flaws (it is not a perfect mobile device!), Apple has built an elegant smartphone unit that is extremely user-friendly. Additionally, iPhone users regularly promote their smartphone to other non-users in their social circles so the masses are choosing iPhone when deciding to go mobile (source). For brands that are still on the sidelines or ones that are only focused on the alternatives (which is a mistake; source), there’s no better time than now to jump on the iPhone platform bandwagon.

Launching new services is rarely a silky smooth process, especially for a large enterprise. Take for example my recent “experiment” with Fancast:

A few weeks ago, I tweeted about the streaming service from Comcast called Fancast. While other streaming services allow you to watch videos from the major networks, none give you streaming content from premium channels like HBO, Cinemax and Stars. So when my DVR started being flaky this past Saturday night, I decided to give it a try.

The log-in process was painless and the search functionality worked well. To watch premium content, the service required a special Adobe AIR player, which I promptly downloaded and installed. Everything was smooth sailing until up to the point when I tried to start Watchmen. For some reason, the service kept displaying a message that I was an HBO subscriber thought I was. After reading the FAQ’s, I confirmed that was I logging in with my primary Comcast.net account, which is a requirement, so I decided to call in to Comcast’s local customer service. After waiting on hold for a short while, the representative confirmed that all of my account settings were correct but indicated that another department would be better equipped to handle the issue. She tried to switch me to that department by I kept getting disconnected.

When I called in to customer service again, I spoke with another representative but the second one didn’t even know about Fancast. Yikes! Even though I explained to her how the service worked, she questioned me whether it was something that Comcast offered. My wife, who was sitting in the room, was rolling on the floor laughing as I attempted to convince the woman to help me. When the rep tried to switch, I was promptly disconnected again. So, I searched Fancast and (finally) found the toll-free number for support. When I called it, the Fancast rep informed me that my account was working correctly but error that I kept getting was due to an issue that Comcast/Fancast has been having for a week. And there’s no ETA for when it will be fixed. Now that’s a bummer!

While most would chalk this up to Comcast’s poor service, I think that the issue is actually a combination of poor user experience and internal communication/training. NOTE: I challenge you to name a cable television provider that you think is doing a great job these days! While the integration between Comcast and Fancast isn’t where it should be (and there’s a myriad behind the scenes reasons why that’s the case), I would have liked to see a simple error message that indicates that the service is currently down and that they’re working on it. Also, it would have been nice if the customer service reps at Comcast get training on Fancast so that customers like me don’t have to feel like I’ve just made a prank call. Lastly, both Fancast and Comcast should communicate on a regular basis about system status — it would have been much better if the Comcast rep told me that the service was down and to try again later instead of trying to fix my when in actuality it wasn’t the problem.

Comcast must be feeling the pressure to adapt to shifting consumer behavior and increasing pressure from competitors. According to eMarketer, nearly 25% of all TV content watched each day will be time-shifted, on-demand, on the Web or on a mobile device by 2012 (source). Viewers are abandoning television for the internet. Also, both Apple and Google are looking to challenge traditional video distribution channels by offering their own subscription services (source and source). While the service is still in Beta, it is just a shame that Comcast wasn’t able to deliver on the concept.

After spending more than an hour trying to use Fancast, I’ve decided that I need to give Comcast another few weeks to work out the bugs — eventually this service is going to be Comcastic.