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Well, there was plenty of information about their products, information for shareholders and how they should vote at the forthcoming AGM, biographies about good and the great on their Board, complete with obligatory mug-shots, and information on recruitment, should I consider working for this illustrious company. But there was nothing for helping my relative. Not even the web site’s own search engine could bring up anything in response the word "deeds". Despite the fact, no doubt, that it had cost many millions of pounds to build, this web site was failing my relative in her hour of need. Its whole approach is self orientated, reflecting internal organisational viewpoints and structures.
Today, we in the western world have an almost unbelievable choice of products and services. Even if a particular industry is consolidating, major players will usually be offering a wide range of products with an increasing range of features. But customers and potential customers don’t simply buy products; they are seeking to fulfil their personal needs in a straight forward, efficient and effective way. Needs that will be met by awareness, information, possibly products, and certainly customer service, whether automated or by staff, agents and distributors.
The introduction of the interactive mediums, like interactive TV, the internet and mobile computing, is providing an opportunity for rethinking how to service customers struggling to live and make sense of their daily lives. Lives that in the 21 century are becoming exceedingly complex, fragmented, disjointed and even chaotic. A far better starting point is to look a people’s life events, situations and needs. In other words, rising up to a layer above these technologies (otherwise we are falling into the same trap as companies being product orientated) and looking at the total customer experience in a holistic way.
So what are some of the questions people might have concerning their life situations? Questions for example about their financial well-being (see box).
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These are typical questions taxing the minds of millions of people across the county at one time or another. Some of these are back of the mind questions whilst others are more immediate and urgent.
Today, interactive TV (iTV) is for millions of families their window into the information society. There are now 12m UK homes having subscription television (5.5m have satellite, 3.6m cable, and 1.1m terrestrial services). Soon iTV be replacing the PC as the lead domestic interactive technology medium. Of these 12m, 8.2m are receiving digital TV with most of these having interactive facilities - for example, all subscribers to BSkyB’s satellite system have access to its Open interactive services. Eventually all 12m will be converted to digital and by 2006 it is estimated there will be 14m homes with interactive TV. The longer-term target is to convert all homes to digital television by 2010. Many doubt if this is achievable, but with the development of a cheap converter box for as little as £20, such as designed by XTC, it does become a practical reality.
Whilst many homes today have PCs, PC penetration in Europe and the US is flattening out at about 55% of homes, i.e. circa 13m homes in the UK. For the other 11m homes it is very likely iTV will become their only real access to the wired society, helping to achieve the Government’s aim of universal access by 2005. Therefore, we can assume that many of the users of iTV will not be familiar with PC technology and Windows in particular, or indeed with browsers. Yet TV viewers are quite familiar with and happy keying away on Teletext using a remote control. It will no doubt be the same with iTV. SMS on mobile is proving that many do not need a keyboard for sending short emails. iTV is a simple but powerful device capable of a significant contribution to universal access. But let’s move beyond the technology - our product so to speak - and go back to the life event questions.
Some, like the first of these questions, can be called "back of the mind" questions. They are relating to issues people are contemplating for some time before taking action, if they ever do! Television advertising is an ideal medium for reminding people about the issue and iTV is an ideal technology for facilitating an initial call to action. Television can use powerful imagery for taping into people's feelings and for reflecting their lifestyles. Interactive TV then provides an immediate, seamless way for moving from emotions to action. No writing down of 0800 numbers or URLs; no booting up PCs; and no getting up from that comfy sofa.
A challenge for designers and developers is making the transition, the action and the return to viewing both simple and quick. We don’t need complex menu systems, long lists of products, extraneous information about the Board or the latest financial results. Viewers need just the prompts for the call to action followed by a series of small simple steps. The call to action, and therefore the prompts, need to reflect the particular awareness, need or service being addressed. This is a "sense and respond" situation analysis.
BSkyB’s closed system, helps to constrain excesses by providing a simpler user interface model. On the other hand, the cable and webTV systems with their capability of accessing html internet web sites could lure companies into using a very similar user interface to the detriment for iTV viewers.
So, what are the questions that your customers are having at the back of their mind? How could you be using iTV advertising to prompt them and how could iTV provide an effective response mechanism? An excellent starting point is to develop life style and life cycle frameworks (see box) and situation needs analysis to identify customer needs and matching services your company is or could be providing. Traditionally, life for most people followed a predictable pattern: birth, education; work; courting; marriage; owning a home; children; retirement; and the inevitable death. Life today for most of us is unpredictable and fragmented. We may well experience the same events but not necessarily in the same order. And for many events, like marriage, we may well experience them 2 or 3 times in our lives. Each life event will have its own life cycle of sub-events, activities and decisions.
For example, an initial question might be: "A growing family? Need more space? - 7 steps to a successful move". The next menu prompts might reflect the 7 stages of moving: "Wondering where to live? - we review the latest stylish houses in your area"; "Just how much can I afford to borrow? - use our simple 3 question loan calculator"; and so on. Don’t forget to include a "catch all" in case the main prompts are not relevant, for example, "Any other problem or question? - press the red button to speak to an agent."
Such a framework will help identify both back of mind needs and those more urgent needs like a flooded house. For crisis situations, the advertising objective should not be to get an immediate response (if the house is flooded it is unlikely the household will be relaxing watching TV!). Rather the aim is to implant into people’s minds that in their hour of need you will be there, easily contactable and ready to respond! So whilst the TV advert may be showing role models accessing iTV to get help, it would be unrealistic to be expecting viewers to remember the details. At best they may simply remember your company’s name. So, when in their hour of need when they switch to iTV to get that help, the most recent ad campaign should be the most prominent.
In these examples, we have looked at new situation events, developing new needs or immediate new crisis. Once a need has been met, there will be servicing events throughout the life of a product, for example, an insurance claim. And don’t forget the disposal events at the end of a product’s life. As an example, soon all automobile manufacturers will need to take back and recycle cars at the end of the car’s life. Each one of these gives rise to an event, the event to a process and the interaction an opportunity to enhance and continue the relationship.
This is not to say that iTV should or will be the only device used by customers. In many cases it is not an appropriate medium. Take an insurance claim. The iTV may simply be used for ordering a claim form, perhaps with a choice of "send it by post" or "send it to my PC". More likely today, the customer will be requesting that the call centre calls them at a convenient time. Later, when broadband is widespread, customer will no doubt prefer using iTV to make a claim face-to-face.
We should not lose sight of the fact that in many households the TV is invariably a family viewing device and is nearly always used from a distance (lean back rather than lean forward). It is therefore not suitable for long transactions. For many transactions a good test is "can the customer see an advert, make a response, and complete the transaction step before the programme recommences?" Family decision making situation, such as choosing and booking a holiday destination, are likely to be an exception to this rule.
As lives become more fragmented, and more chaotic, then as suppliers of products and services we need to be available when and how it suits the customer. This is sometimes referred to as the Martini mix - Any time, Any where, Any how. So how well does iTV fit into that mix? - we’ll mark with a simple star rating.
Any time: with 24 / 7 hours of broadcasting, 200 channels TV,
the very popular text services, and with warm standby, the TV is seen as
an immediate and always available device. Advance functions of iTV, such
as "call me buttons" and instant chat, will reinforce this even more.
Any where: most of us only spend part of our time in our homes
and for some years to come, only the main TV in homes will be digital. In
multiple person households there are other family members making demands
on the TV. Eventually, with low cost set-top box and TVs networked to home
servers, every set in the home will have a digital capability.
moving to
Any how: By implication, an Any how strategy cannot be exclusive
to any one device. The question must be: how well is iTV fitting together
with other devices that may be used within the same overall transaction or
service offering? Viewers may start the process on an iTV but continue on
the telephone, the PC, etc., or they may start on their telephone but get
feedback on their iTV. Providing it’s considered within a multi-channel
business delivery capability and its place is clearly defined within an overall
systems architecture, then iTV is an important and usable device. This is
particularly so for short transactions and for providing a mechanism for
advertising’s "call to action" messages.
iTV do not have the display properties of PCs or the processing power of the latest Pentium processor from Intel. In some respects this is the consequence of needing low cost set-top boxes that the service providers could give away. But set-top boxes are changing. BSkyB has recently launched its advanced Sky+ box containing 40 GB of hard disk and a processor as powerful as a PC of a few years back. They are upgradable by downloading new software. In the future we may see video and sound capabilities such as multimedia and web cams that match today's PCs. Screen technology is also changing. Philips has launched the first domestic flat screen TV. Recall, it wasn’t so many years ago that colour portable PCs were a luxury but now many of us are using them as our sole machine of choice.
On the networking side, the cable service providers are well equipped to offer bundled TV, internet, telephony and broadband services. BT has forged a partnership with both BSkyB and ITV Digital to supply similar bundles but without the broadband. BT has also been conducting its own video-on-demand trials using ADSL. Within the home, manufacturer Pace Microtechnologies sees its set-top boxes evolving to become the hub of a home network linking PCs, iTVs, PDAs, and domestic appliances together and to the internet.
With all these advances in iTV and networks, we should not lose sight of the fact that these are just the front end and the communications technology. It also needs databases, back end systems, business processes and multi-channel knowledge centres that together provide a seamless customer experience across the different mediums.
Analytical systems provide the means for processing the wealth of customer data including user interactions. When analysing data down to a personal level, iTV can play its role in a delivering a one-to-one personal service and even for delivering unique products and service offerings. Ultimately we can expect to see personalise advertisement delivered in programme breaks, via email messages or the electronic programme guides. Thus iTV will play its role in closing the loop, reinforcing the customer relationship, and increasing customer lifetime values. An excellent example with today’s state of the art technologies and multi-channel delivery is the Woolwich banking system (see box).
The Woolwich
Open Plan lets the customer choose how to do their banking, with access and reaction from the bank guaranteed through the customer's requested medium. The aim of this is to treat the customer as an individual, improving relations and service. For example, "If someone makes a payment on their WAP phone, then goes to their interactive TV, the transaction will show up the same day," says Janette Winter, Head of E-commerce. To ensure customer needs were addressed, trial customers were given a two hour financial interview and their individual needs were matched with aspects of Open Plan, regardless of whether they were looking for a savings account or a mortgage. "I don't think we necessarily had a lot of people using Open Plan just because the technology was fantastic. Most people go into a bank because they have a financial need not because it has an Internet service." said Winter, adding that attrition rates are 50% lower than non Open Plan customers. Although the WAP customer segment is smaller and WAP functionality is simpler, these customers use the service about three times a week, whereas Internet and digital TV customers access it twice a week. The plan now, she says, is to make more use of interactive advertising on digital TV. " In March 2001, Woolwich plc won the prize for Best Use of IT in Retail Banking at the Financial Sector Technology Awards 2001. |
This article has addressed the user interface in its broadest sense. The user interface, whether on iTV, a mobile phone or some device yet to be invented, is a critical element in delivering the whole user experience. That experience needs to reflect and reinforce the organisation’s brand. Therefore, I believe the marketing department should have the ultimate say for the user interface. All elements of the delivery need to reflect the brand attributes, to meet user lifestyle needs, and to match the user’s personality and cognitive approach.
Major brands exhibit extremely strong levels of associated consumer trust and loyalty. BskyB’s Open and its associated High Street companies gave the supplier a major head start. In the run-up to Christmas 1999 Open reported that half its then 2m customers accessed Open at least once per week and purchased over £1m a week in sales. Whereas Internet users are typically on-line for 6 months before making a purchase, Open's digital TV subscribers were commonly buying within 2 months. Similarly, 75% of Domino Pizza’s annual sales of £1.5 million were generated through iTV with the remaining 25% through the Web. Besides selecting the toppings and the type of crust, viewers could choose a soft drink to compliment the pizza. If they could deliver a cool beer then sales no doubt would be higher still!
With millions of viewers increasingly having access to iTV it is certainly becoming a mass audience device. However, to simply use mass audience marketing techniques will squander the iTV opportunities. A recent survey by Boyd Consulting highlighted viewers differing needs. 52% of viewers are indicating a preference for instant access to information such as news, sports and weather, 44% for interactive program guides, 38% for behind-the-scenes information on TV programmes, and 37% for e-mail. For particular life events, these figures will be much lower.
So even today’s forlorn marketing executive who is having trouble hitting the correct 50% with his advertising will begin to see that as an easy target compared to hitting the correct 10% or even 1%. But iTV combined with advanced set-top boxes with in-built digital video recorders is providing a solution as well as a challenge. The challenge comes from much more fragmentation as viewers time-shift using digital video recorders (DVR), choose their programmes via the Electronic Programme Guide (EPG), and self-select programmes via video-on-demand (VOD). The solution is to move beyond mass broadcast advertising to personalised advertising via or in conjunction with VOD and DVRs.
We are only just at the beginning of the iTV revolution. A few years ago it was just a business idea. Today over 8m digital homes are part of the revolution. Surely the analogue TV will follow the way of the LP and the audio cassette. The all digital connected home will become the norm. Maybe one of my relatives in a few years time will be able to look towards the iTV and actually say: "find out where my house deeds are and in the next commercial break connect me to the company that has them."
Alan Cooper is a Strategic Business Analysis at Managing Change, a specialist in market led feasibility studies and business process improvement. A particular focus is assisting companies with the exploitation of new interactive mediums, the development of multi-channel distribution, and the personalisation of products and services. Managing Change’s web site ( http://www.managingchange.com ) has over 400 pages covering the ideas, framework, methodology, and techniques for Strategic Interactive Marketing.
Alan’s career covers both IT and business development within financial services, health and government. At TSB Trust Co. his many roles included being responsible for IT Strategy and Planning and the applied research into the business benefits of new technology. He has worked both in the UK and in Denmark.
Alan is a co-founder and co-organiser of the Henley Management College's Alumni Special Interest Group on E-Business. This group has an open membership. See http://www.ebusinessgroup.org.uk He may be contacted at alanc-at-managingchange.com or via the contact page.
usableiTV is produced by the Interactive TV Design Network, a non-profit government funded project run by Serco Usability Services and Middlesex University in the UK. It's a project to create a discussion forum for researchers and developers in the interactive TV space concerned with usability and design issues.
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The Woolwich's Open
Plan Services is a lifestyle orientated offering helping customers to identify
their life goals and then deliver products and services through interactive
TV, call centre, Internet, WAP and branch channels. Customers can access
their account at a time that suits them rather than within traditional banking
hours.