Future of Mobile is User Context

8/2/2019 Future of Mobile is User Context

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Making Leaders Successul Every Day

Ju 11, 2011

The Futue O Moie Is UseCotet Juie A. Ask

o Cosume Pouct Stateg Poessioas
http://www.forrester.com/


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2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total EconomicImpact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective owners. Reproduction or sharing o thiscontent in any orm without prior written permission is strictly prohibited. To purchase reprints o this document, please email [email protected]. For additional reproduction and usage inormation, see Forresters Citation Policy located at www.orrester.com. Inormation is

based on best available resources. Opinions refect judgment at the time and are subject to change.

Fo Cosume Pouct Stateg Poessioas

ExECUTIvE SUMMAry

Consumers will adopt and use convenient services and products. In mobile, this means services that

oer immediacy and simplicity through a highly contextual experience. Te ability to deliver highly

contextual experiences will evolve in sophistication with technology in the phone. Consumer product

strategy (CPS) proessionals must leverage context to create and deliver product experiences that

enhance the overall perceived value o a product. Not all CPS proessionals need to move at the same

pace. Tey must rst incorporate context into digital products such as games and media today whileassisting their eBusiness and interactive marketing counterparts in their use o mobile to deliver

more targeted experiences. Longer term, CPS proessionals must lead eorts among their colleagues

throughout their organizations as they begin to use new sensors to detect context and motion to control

the devices and services on them.

TA blE OF COnTEnTSMobile Phoes Will Be Your Customers

Preemiet Diital Eaemet Chael

Cotetual Eperieces Are The Future O

Mobile

Techoloy Iovatios Are Drivi User

Cotet Capability

Few Proessioals Developi Diital

Strateies Leverae Cotet Today

Buildi Hihly Cotetual Services Is A

Jourey

Set Your Compays Pace For Mobile Cotet

Hihly Cotetual Eperieces Deliver Value

Beyod Pure Coveiece

rECOMMEndATIOnSEmbrace Cotet To Diferetiate Your

Products

WHAT IT MEAnS

The Cost O Coveiece Is Privacy

Supplemetal Material

nOTES & rESOUrCES

Foeste iteiewe a ume o eo a

use compaies o this epot; some o them

ae iste i the Suppemeta Mateia sectio.

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The Futue O Moie Is Use CotetCotet Tasoms Pouct Oppotuities Fo Cosume Pouct Stategists

by Julie A. Askwith J. P. Gowe, Eic G. bow, Te Schae, Thomas Husso, a doug roege

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http://www.forrester.com/go?docid=59003&src=59243pdfhttp://www.forrester.com/go?docid=59003&src=59243pdfhttp://www.forrester.com/go?docid=58676&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=58676&src=59243pdfhttp://www.forrester.com/go?docid=59003&src=59243pdfhttp://www.forrester.com/go?docid=59003&src=59243pdfhttp://www.forrester.com/


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2011, Foeste reseach, Ic. repouctio PohiiteJu 11, 2011

The Futue O Moie Is Use Cotet


2

MOBILE PHOnES WILL BE YOUR CUSTOMERS PREEMInEnT DIgITAL EngAgEMEnT CHAnnEL

Ownership and usage o mobile devices is growing at an unprecedented pace. Product strategists are

contending with a new world o mobile popularity, including:

More devices. In the US alone, Forrester is orecasting nearly 100 million smartphones by theend o 2011.1 Consumers are not only texting and surng the Web, but they are also consuming

media, doing their taxes, and shopping on these devices. Tis phenomenon is not limited to

the US. Both Apple and Google have sold hundreds o millions o devices globally, with Google

activating 400,000 Android devices daily.2 Forresters own data shows that urban consumers in

China are already more sophisticated than the average US or European consumer.3

More marketing and shopping. Forrester orecasts that advertisers will spend more than $1billion in the US in 2011 to reach consumers through display and search ads.4 Te eorts are

warranted, with consumers orecast to spend more than $8 billion on their mobile phones in theUS by the end o 2011.5 Mobile is revolutionizing the way that consumers learn about, choose,

and buy products o all types.

Failure To Deliver Coveiece Will Be A Missed Opportuity

Given small screens and limited input options, the design and delivery o excellent experiences

is a monumental challenge. So how do you create excellent mobile products? Around consumer

convenience. Consumers will embrace new products and services i they are undamentally more

convenient that is to say, i the benets outweigh the inhibitors to adoption and usage.6 Tese

three key benets are crucial to deliver convenient mobile services:

Immediacy delivers content when consumers need it most. Immediacy is timeliness butnot limited to an exact measure o minutes or hours. Diabetes patients will want warnings

o dangerous blood sugar levels immediately, while a patient with high cholesterol has more

tolerance or the occasional poor ood choice. Consumer product strategy (CPS) proessionals

oen understand the value o immediacy today and incorporate it when real-time data is

available (see Figure 1).

Simplicity removes usability barriers, making mobile invisible to users. Simplicity is drivenby good decisions on whatcontent, services, and eatures make sense in mobile as well as how

well experiences are designed. Application designers, or example, use spin wheels rather than

keyboards or data entry. Most people who design mobile products today limit content in theireorts to simpliy, as this is less expensive than investing in design. Simplicity must be revisited

periodically, as new technologies will make existing barriers obsolete.

Context makes content relevant to the individual. Mobile phones are personal or intimatedevices unlike PCs, which can be shared. Context involves the use o inormation about the

consumer, such as location, to personalize or tailor experiences to minimize steps and manual

entries. Intuits Snapax, or example, automatically les the relevant state orms.


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2011, Foeste reseach, Ic. repouctio Pohiite Ju 11, 2011



3

Does this ormula drive success? Yes. Companies such as CNN, Continental Airlines, eBay,

Facebook, Groupon, Intuit, JPMorgan Chase & Co., Nike, Procter & Gamble, arget, USAA, and

Walgreens already deliver phenomenally convenient user context-based experiences that drive

consumers to rave about them.7

Fiure 1 Moie Seices Shou Oe Thee Coe beets To die Coeiece

Source: Forrester Research, Inc.59243

Immediacy Simplicity Context

Source: Target website; RedLaser (eBay); The Weather Channel daily text alert

An expiring offer in

this case in just under 8

hours increases thevalue of having the

information now.

RedLaser uses a

bar code scan with the

phones camera toidentify products

quickly.

The Weather Channel

uses location to send

relevant weatherinformation and ads.


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4

COnTExTUAL ExPERIEnCES ARE THE FUTURE OF MOBILE

In the uture, improving the convenience o mobile services will be achieved via improving the use

o context in delivering mobile experiences. Consumer product strategists must anticipate what

their customers want when they re up their phones and launch an application or mobile website.

Intuits Snapax, or example, must leverage a customers home state to le the appropriate tax orms.

o help consumer product strategists get ahead o this evolving expectation, Forrester has dened a

vocabulary to help them discuss, plan, and execute on the opportunity to deliver services, messages,

and transactions with ull knowledge o the customers current situation. Forrester calls this the

customers mobile context and denes it as:

Te sum total of what your customer has told you and is experiencing at his moment of

engagement.

A customers mobile context consists o his:

Situation: the current location, altitude, environmental conditions, and speed the customer isexperiencing.

Preerences: the history and personal decisions the customer has shared with you or with hissocial networks.

Attitudes: the eelings or emotions implied by the customers actions and logistics.

Mobile Cotet Is Bi Mother, not Bi Brother

Te observation o behavior and collection o inormation triggers images o George Orwells Big

Brother phenomenon rom his book1984 and government concerns about consumer privacy.

Consumers, however, have a long history o orgoing privacy in exchange or value and convenience.

Examples range rom the use o credit cards online to Googles or Yahoos ree email services to

Mint.com. Te use o context in the delivery o mobile services should be positioned as helpul

conjuring images o a caring mother rather than a spying government or prot-hungry corporation.

TECHnOLOgY InnOVATIOnS ARE DRIVIng USER COnTExT CAPABILITY

New mobile technologies are quickly changing what is possible in user context. Innovationsin user context technology are reshaping mobile devices by capturing inormation about the

consumers environment and changing how users control their devices and display content. As this

happens, the mobile phones capabilities and orm actor will move urther and urther away rom

those o the PC.


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5

So too must the experiences. Te use o context to deliver highly contextual experiences is not a

one-and-done eort. As the technology evolves, so too must the use o it to deliver convenience.

Exploiting these changes is the next rontier or CPS proessionals (see Figure 2). Our interviews

with technology leaders at more than a dozen device manuacturers reveal that the ollowingtechnology trends will push the evolution o context and with it convenience:

Todays ancy eatures will become commonplace. echnologies ound in high-end phoneswill migrate into lower-end phones as the cost o components comes down through scale and

consumer demand beyond early adopters grows (see Figure 3). Mobile phones are already

packed with phenomenal technology that is underused by CPS proessionals. Higher-end

phones have GPS, accelerometers, gyroscopes, magnetometers, Near Field Communications

(NFC), and high-resolution displays. With the use o networks and other tools, contextual

inormation can be collected.

New sensors will reveal more about the users environment. Barometers, microbolometers,chemical sensors, and other gizmos will nd their way into phones as both the use and business

case evolves. Te phones will also act as modems relaying or interpreting inormation rom

other machines or rom attachments with sensors. Tey will oer new inormation ranging

rom a consumers altitude, speed, temperature, and presence o relative lightness or darkness to

orientation to the North Pole or gravity. Dual cameras have already appeared in phones enabling

depth perception (think o your two eyes) and the creation o 3D content (see Figure 4).

Motion, voice, and touch will redefne the user interace. A combination o improveddisplay technologies and simplied development tools or motion sensors will shi the control

o mobile phones rom touch to motion and voice. In the near term, the responsiveness otouchscreens will improve. Going orward, however, the phone will be controlled evermore by

voice, gestures, speed, pressure, or the presence o light.8

HD media will sell consumers on the experiences. High-denition (HD) video displays attractconsumers to phones. Who doesnt preer HD video i given the choice? Phones could have 1440p

by the end o 2011, enabling compatibility with home systems. Less reective displays are also on

the horizon, including those that take into account the phones tilt. Higher megapixel cameras with

higher-quality lenses and zoom will migrate into cameras as will better-quality audio.

Blistering multicore processors will enable responsiveness. Devices need high-perormanceor ast microprocessors to handle all o the tasks described. Ever mightier microprocessors will

continue to enable and improve the perormance o devices along with graphics accelerators and

increased memory. Tese processors will uel the HD audio and video displays as well as capture.

Interpreting conversational voice? A lot o this is done through servers today due to the complexity.

Embedding services such as voice, motion control, and HD media will demand a high-speed core.

Tis experience undamentally changes what is possible on mobile devices or CPS proessionals.


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6

Fiure 2 leeagig Aace Cotet Is The net Fotie O Coeiece


Leading companies are deploying

mobile unique services today.

They will need to evolve their

context to stay at the forefront

of innovation going forward.

Mobile services are evolving toward higher levels of user context2-1

Advanced contextual services should be viewed as future opportunities2-2

Levelof

sophistication

Levelof

sophistication

High

Low

Evolution of services over time

Evolution of services over time

Nothing

Multichannel

Cross-channel

Mobile-unique

Advancedcontext

High

Low

Advancedcontext

Use of a consumers context improves upon the experience byoffering more customized content it removes the need tomanually offer or input information.

Context must be incorporated into the design of mobileservices early on.

Context will evolve from simple, single-dimensional locationand user behavior today to being much more multidimensional.


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7

Fiure 3 Hd Meia Wi Magi Oea Moie Epeieces


Source: interviews with A. M. Fitzgerald & Associates and Yole Dveloppement

Context

2011 2012 2013 2014 2015 2016

Audio/video

Sensors/inputs

Control

Adoption in

smartphones

Multiple chips:

3-axis accelerometer3-axis gyroscope3-axis magnetometerNFC

Conversational voice control 9-axis/degrees of freedom

on a single chip

Single chip with10 degrees offreedom

Chemical sensors Microbolometers

Pressure sensors

Biometrics

Camera capabilities:Two cameras (3D)MicrozoomMicro autofocus

3D LCDs

High-resolution video

3D video capture

Silicon microphones

HD audio Micro-mirrors for

pico-projection


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8

Fiure 4 new Techoogies Eae new Oppotuities


Source: interviews with A.M. Fitzgerald & Associates and Yole Dveloppement

TechnologyBusiness opportunity

(examples)Control element

3D cameras DepthAugmented reality,

gesture control

Accelerometers G-force, tilt Phone orientation ascontrol, pedometer

Gyroscopes 3D orientation

Motion-sensing gesture control,

navigation, image stabilization

Pressure sensor Height Navigation (mountains, building)

Magnetometers Orientation (north) Directional navigation

Conversational voice Any command Voice-based control ofphone and services

Technology ExperienceBusiness opportunity

(examples)

Near Field Communications(NFC)

Contactless informationexchange

3D or 2 cameras

Microbolometers (infrared) Infrared images, heatdetection

Chemical sensors

Barometer Altitude information

Payments, ticketing,and security

Depth/distancemeasurements, 3D video

capture

Find pets, empty parkingspaces, and short lines

Targeting/navigationbased on weather, floor

of hotel or mall

Virtual sizing/fit withaugmented reality

Breathalyzer, perfumematching, food freshness

Detect presence ofchemicals: alcohol, CO

Technologies that drive contextual information

Technologies that enable motion- and voice-control


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9

FEW PROFESSIOnALS DEVELOPIng DIgITAL STRATEgIES LEVERAgE COnTExT TODAY

Forrester conducted in-depth interviews with 24 proessionals in digital marketing and strategy

roles across a variety o industries to assess the use o context in the delivery o mobile services.

Among those proessionals, only nine were using location-based context beyond GPS to nd the

nearest x (e.g., AM, store). Tey cited lack o priority and expertise as the top reasons or not

incorporating more context into the delivery (see Figure 5).

Fiure 5 leeagig Cotet Is Simp Too low O A Pioit Toa

Cosumer Product Strateists Tailor Services Based O Cosumer Iputs

Consumer product strategists are tailoring services based on the users location as well as personal

inormation provided by the consumer or derived rom observation. Deezer a music service in

Europe makes content suggestions based on a users country, day o the week, and past listening

behaviors. CPS proessionals as a group were the most sophisticated in their use o context among

all the proessionals interviewed.9

Their Oraizatios, However, Lack The Tools Ad Epertise To Support Mobile Eforts

Tere is a breadth o unctional expertise in organizations to support these product and service

initiatives. Consumer product strategists must rely on their counterparts to optimize the use

o context in the delivery o mobile services. oo ew o these proessionals, however, have the

expertise and tools they need to support the incorporation o context into the delivery o mobile

services. User experience teams lack the tools and processes to design and rene experiences on

new devices with limited screen real estate and novel interaction capabilities.10 And the customer


Why arent you leveraging more user context in the design or delivery of your mobile services?

Too low of a priority

Technical challenges/lack expertise

Organizational ownership

Financial resources/cost

Cant justify ROI

Privacy concerns

17

11

2

2

2

3

Base: 24 executives responsible for mobile

Source: Forrester interviews

(multiple responses accepted)


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analytics required to measure and understand sophisticated mobile usage patterns over time and

to guide the improvement o those experiences all short by relying too much on web paradigms.11

Over time, eBusiness and interactive marketing proessionals will look to consumer product

strategists to leverage their expertise to deliver more targeted marketing and shopping experiences.

BUILDIng HIgHLY COnTExTUAL SERVICES IS A JOURnEY

CPS proessionals sit at the oreront o using context. Tis means two things. First, they will always

be under pressure to push the envelope in incorporating context consumers o games and

media, especially, will expect it. Second, they must collaborate with their colleagues to elevate their

sophistication in the use o context to deliver convenient services (see Figure 6). Teir colleagues

in eBusiness and interactive marketing will increasingly need to rely on their expertise as devices

become more complex and they look to progress through these stages o sophistication in delivering

contextual mobile experiences. Te evolution o the use o context has our phases:

Phase 1: mastering the basics. Location, time-o-day, and past behavior or preerences todeliver more convenient experiences are not used by more than hal o the proessionals

interviewed by Forrester beyond helping customers nd the nearest x. Access to the

inormation is straightorward on smartphones with the users permission primarily or

location. CPS proessionals must ensure that they have the back-end inrastructure, including

inormation architecture, in place to leverage this context. Content, whether news, music,

running route, restaurant review, or tax orms, must have the right tags or labels to ensure it is

delivered in a relevant way to consumers.

Phase 2: layering in intelligence. Te most sophisticated organizations are already interpretingcontextual inormation. GPS coordinates, or example, are not simply an address but a

customers home, trail in a national park, highway, store, airport, etc. Reaching this phase

requires back-end data and logic to deliver contextual experiences. CPS proessionals must

create innovative products and services that leverage intelligence without encroaching on

consumers sense o privacy laMinority Report. ake a tness application as an example. I

the application knows you are in St. Louis today and not home in Miami, it can oer alternative

routes that mimic the altitude changes and distance o your typical run. Tis stage will require

substantial collaboration with your I counterparts.

Phase 3: breaking rom PC contexts. Te merger o the physical and inormation worlds willtake one giant step orward here when new sensor technologies are combined with sophisticated

display and video elements. In this phase more than beore, the phone becomes an opportunity

to deliver entirely new innovative services and products that have the potential to generate

revenue. For example, sensors and other advancements will detect heart rates, analyze breath or

alcohol content, and assist navigation in high-rise buildings or the mountains. Tis inormation


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will open up new product opportunities. While this device may have the ability to act like a PC,

it has the potential to do much, much more. Product strategists must step into the leadership

role rom here on, driving the development o user context-based products.

Phase 4: embracing motion as a control mechanism. Phones can be controlled with motiontoday. What will be dierent in three to ve years? First, the motion-detecting sensors will

be on a single chip with a common programming layer that will simpliy the use o them in

applications. Second, digital experiences will move well beyond the paradigms ound online

in browsers today. Online tasks today are broken down into steps laid out in page sequences,

menus, and navigation bars. Apple iPods already leverage motion to shue songs. Going

orward, devices and applications will be increasingly controlled by voice and motion. Tere

will be an entirely new generation o products and services delivered on the mobile platorms

that will not originate rom online these new services will have the best opportunity to

incorporate these eatures as they will be designed with mobile in mind.

Fiure 6 Cotetua Epeieces Wi Eoe I Fou Stages


Levelof

sophistication

High

Low

2011 2012 2013 2014 2015 2016

Biometrics

Conversational voice

Gesture-based control

Phase 4: embracingmotion as a controlmechanism

How wide is the room?

What floor in building? What aisle?

Direction the consumer is facing?

Light? Dark?

What does this dress look like on me?

Phase 3: breaking from PCcontexts

Consumers purchase intent

In my store? In a competitors store?

Within 1 hour of flight?Two days?

Phase 2: layering in intelligence

Consumer behavior

GPS

Time of day

Phase 1: mastering the basics


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SET YOUR COMPAnYS PACE FOR MOBILE COnTExT

Do you need to incorporate tilt into your application tomorrow? Probably not, unless you are trying

to push the mobile experience envelope or you are a game developer (in which case you already

have). Few proessionals are at phase 2 or beyond (see Figure 7). Innovation is expensive and

requires extensive investments in in-house sta or agencies. Tose CPS proessionals without the

necessary resources or mobile should simply make themselves comortable with being ollowers.

Tose with the resources should rst assess how quickly they should move and then develop a

tactical plan or achieving their goals.

Fiure 7 Most Compaies Ae Just Wokig To Impemet The basics


Nothingcurrently

Phase 1:mastering the

basics

Phase 2:layering in

intelligence

Phase 3:breakingfrom PCcontexts

Phase 4:embracing motion

as a controlmechanism

Location

Other

Time of day

Behavior

13

3

9

4

21

18 2

2

Use of context today

Source: Forrester interviewsNote: Numbers correspond to the number of executives interviewed using context in each phase.

Examples ofcontextual

informationused today

Base: 24 executives responsible for mobile


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Four Factors Should Dictate Your Pace

Te pace at which CPS proessionals evolve their sophistication in the delivery o contextual mobile

services will vary based on a combination o actors, including business strategy, mobile objectives,

industry sector, and overall mobile philosophy. Forrester has developed a scorecard to help

proessionals assess at what pace their companies and mobile services should evolve (see Figure 8).

Determine your organizations pace based on your rms:

Business strategy. Innovation typically requires deep pockets. Companies with a dierentiation-based strategy targeting early adopters who seek to use mobile as part o that experience will

need to move more quickly than those that are cost leaders. Cost leaders will wait or scale and

platorm-level eatures and unctionality.12

Mobile objectives. Mobile services support a breadth o business objectives ranging rom

enhancing our brand to need to get something out there to attracting younger customers.For example, CPS proessionals targeting younger consumers will need to push the envelope

aster than those who simply need a mobile presence.

Industry sector. CPS proessionals in industries like media or gaming will need to innovateaster than those selling retirement benets, which cater to older, less mobile-engaged

customers. High adoption rates o smartphones in specic industries will hasten the need or

innovation. On the ip side, CPS proessionals in service businesses like lie insurance with less

requent customer touchpoints can wait.

Innovation philosophy. When it comes to mobile, many consumer product strategists put astake in the ground and simply state their philosophy: We want to be a leader in our categorywhen it comes to mobile. Others say, Were OK being a Fast Follower. At times this is dictated

by available resources. In other cases, it is an emotional need.


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Fiure 8 The Moie veocit Scoeca


Business strategy (select one)

Cost leader

Differentiation

Segmentation/niche

Mobile objectives (select up to three)

Improve marketing effectiveness

Acquire new customers

Improve sales team effectiveness

Be everywhere our customers want us to be

Drive online sales

Lower cost to serve

Enhance brand

Drive store traffic/in-store sales

Drive sale of digital goods

Attract younger customers (Gen Z, Gen Y)

Industry (select one)

Airline

Apparel/fashion

Appliances

Automotive

Banking

Brokerage

Consumer electronics

Consumer packaged goods

Gaming

Healthcare/wellness

Health and beauty products

Home/garden

Hotel

Insurance

Media

Office supplies

Innovation philosophy (select one)

Privacy of customer data is of utmost importance

Want to be a leader in our category in terms of mobileWere OK being a Fast Follower

Weighting

1

3

2

2

1

1

1

2

2

2

3

3

3

2

2

2

2

1

1

3

1

3

2

1

2

2

1

3

1

1

52

Yes x = Points

Total

Mobile pace of innovation scorecard

Note: Weightings are used to elevate the need for urgency for those options checked. For each box checkedin the Yes column, a participant should place the number from the Weighting column in the same row intothe column labeled Points. The overall score will be a sum of the numbers in the points column.


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Its Time To Determie Your User Cotet Trajectory

Now its time to ll out the scorecard and total your points. Based on your total, you will all into

one o three categories: Conservative, Fast Follower, or Aggressive (see Figure 9). I you all near a

cuto point, you may need to adjust your pace accordingly use your judgment. Heres what the

scores mean:

A score greater than 13: Aggressive. For CPS proessionals who score more than 13 points,you are already spending a lot on mobile and chances are you sell digital media and most

likely games. I you are using gesture-based control today, you have an appetite or development.

Most companies wont play here until single-chip design acilitates an easier process. Tose

incorporating the third dimension will do so through a combination o in-device sensors and

attachments. Compelling ROIs on the sale o services (e.g., monitoring diabetes) will make the

use o sensors a higher priority in the near term than gesture-based control a key driver o

convenience or ease o use, but with less tangible nancial returns.

A score o 8 to 13: Fast Follower. For CPS proessionals who score between 8 and 13 points,you all into the middle your mobile services are probably already quite sophisticated by

todays standards. You have the advantage o learning rom others who are pushing the envelope,

but you still have the opportunity to lead your category. Tere will be a higher likelihood that

you can rely on a platorm to deliver your mobile experiences as opposed to relying on an in-

house or agency build, but this isnt a given especially i you seek to be an industry leader.

A score less than 8: Conservative. For CPS proessionals who score ewer than 8 points, thereis less urgency to enhance the contextual elements o their mobile services beyond the basics

today. Incorporating location or past behavior (e.g., past purchases, stored user names) into thedelivery o your mobile services will meet your customers expectations. In 2012, you should

begin thinking about what intelligence to layer onto basic contextual services to maximize both

customer convenience and prots. Your near-term path will rely less on mobile expertise and

more on evolving your existing inrastructure to support your mobile initiatives.


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Fiure 9 Compaies Shou Eoe Thei Moie Cotet At Thei Ow Pace

HIgHLY COnTExTUAL ExPERIEnCES DELIVER VALUE BEYOnD PURE COnVEnIEnCE

Once CPS proessionals have started the journey toward user context, they will receive two types o

business benets (see Figure 10):

Incremental revenue rom existing services. In the near term, benets will lean toward beingincremental. When consumers are more satised with their experiences, their loyalty increasesand they talk about their experiences. Brands will benet rom the social media aspects such

as word o mouth and high ratings in application stores. As a result, brands will benet rom

higher awareness and association with innovation.

Revenue growth rom new services. Longer term, there will be new revenue opportunitiesrom both new services as well as ones that shi rom another medium. For example, companies

like Nike or Bayer HealthCare with products like One-A-Day Womens Vitamins will sell

wellness services with their physical products. CPS proessionals at automotive companies will

be able to oer owner services such as maintenance reminders or operational assistance. Many

o these opportunities will cannibalize revenue rom companies that dont evolve their products

and marketing and shi it to ones that do.


Levelof

sophistication

High

Low

2011 2012 2013 2014 2015 2016

Master the basics . . .

AggressiveFast Follower

Conservative. . . layer in intelligence . . .

. . . embrace motion as acontrol mechanism

. . . break from PCcontexts . . .


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Fiure 10 The beets O Use Cotet

r E C O M M E n d A T I O n S

EMBRACE COnTExT TO DIFFEREnTIATE YOUR PRODUCTS

Eoig techoogies i moie phoes ae uameta isuptig cosumes epectatios

o what a pouct o seice shou eie. Sateite Tv seices a nike shoes aea hae

a moie compaio to ehace the oea epeiece. CPS poessioas must thik moe

oa aout cosume ees a how to eie tota pouct epeieces ot just poucts.Kowege o a cosumes cotet gies CPS poessioas ew capaiities to eie the ight

iomatio at the ight time a the ight pace to u these custome ees.

CPS poessioas must e poactie. Thee ae ou ke phases o eoutio i the use o cotet

to eie moie seices. Each phase ioes thee high-ee steps: ethikig iomatio

achitectue, esigig ew seices that take aatage o the cotet, a testig the impact o

those epeieces to impoe the custome epeiece. Hee ae a ew ke ecommeatios:

Focus o customer pai poits. Moie seices must ocus o mitigatig cosume paipoits. Too ote, igita stategists ocus o shikig meia a seices esige o PCs.

beak-though moie seices wi ot o oe coeiece ut aso make tasks easie.

CPS poessioas who eie these coeiet a high cotetua epeieces wi eewae with cosume paise a aoae atigs.

guide mobile service developmet based o cosumer behavior aalysis. A eepuestaig o cosumes a how the use moie seices wi e paamout whe

impoig a eoig those seices. Pouct stateg poessioas ca assist othe oes i

uestaig the what it meas, o eampe, o cosume aoptio o moie techoogies.


Capability

Basic context More efficient targeting (marketing) Increase sales/service from brick/mortar locations

Improved customer experiences in mobile

Layered intelligence Higher profitability due to increased in-store purchases,higher prices with elasticity in play

High customer satisfaction and loyalty stemming frommore intuitive, convenient experiences

Break from PC contexts Entirely new digital, revenue-generating services

Improved navigation precision

Motion-based control Increased usage of mobile offerings due to ease of useand fun factor

Deeper engagement with products under consideration

in a personal environment

Revenuefrom newservices

Incrementalrevenue from

existing services

Business impact


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18

Idetiy ew mobile product ad service opportuities. Moie phoes oe ew poucta seice oppotuities oth o thei ow a comie with othes. Moie phoes

wi e the hu o cosume iteactio with ot o othe peope ut aso othe seicesa machies, such as Tvs, cas, a heat moitos. Phsica poucts such as uig

shoes, itamis, a cas wi ship with compaio moie seices. Moie phoes hae

aea ieesi atee the ieogame, meia, a music iusties. CPS poessioas

shou ea i ietiig these oppotuities a eeopig the usiess case aog with

eeopig, epoig, a impoig these seices.

Lead oraizatioal use o cotet i latter staes. As moie phoes ecome moesophisticate as moe sesos, cameas, a ispa techoogies ae ae, ebusiess a

iteactie maketig poessioas wi ee to seek the epetise o pouct eeopmet

poessioas to ea the eeopmet o moie seices to maket a se poucts a

seices.

W H A T I T M E A n S

THE COST OF COnVEnIEnCE IS PRIVACY

you moie phoe wi kow moe aout ou tha ou, ou spouse, o ou ami. Wh? you

moie phoe wi ecome the eice ou use to iteact with the wo aou ou ou

hote oom, ou shoppig cat, ou Tv, ou tess pa, ou ak, ou pakig mete, ou

eigeato, ou ca, ou uig shoes, a ma othe aspects o ou ie. you wot e ae to

keep athig piate om ou moie phoe.

A cosumes wi outai gie up piac i echage o the eets o moie coeiece.

CPS poessioas a thei ogaizatios seig meia, seices, a poucts wi use the

cotetua iomatio coecte aout cosumes to eie high pesoaize epeieces that

cosumes simp iew as too coeiet to pass up oe piac coces. I tu, isuptie

usiess oppotuities wi emege. Imagie these sceaios:

A ew ecosystem o trusted areators o data. CPS poessioas wi wat to ceateuie iews o cosumes to eie the high cotetua seices that cosumes seek, ut

ieet compaies a ieet iusties o see paticua sices. Fo istace, wieess

caies o eice mauactues ca see a wie eath o ata ut the ack the eepe

iew ejoe etaies o meia compaies, which aso hae a oie pespectie. As the

ea powe ies i comiig a o this ata to ceate iews oindividuals, a ew cass o thi-

pat aggegatos wi aise. These iomatio okes cou come om eistig paes i

the ceit moitoig usiess (ike Epeia Iomatio Soutios), om a Googe spi-o,

o om a etie ew compa. The chage the wa CPS poessioas esue eeat

epeieces o customes a ceate a etie ew usiess moe o iomatio

echage.


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19

Walki throuh a idividualized Iteret. Moie cosumes wi eceie moe a moeiiiuaize cotet ase o thei cuet cotet ike rSS o ocatio-ase steois. As

a esut, ewe cosumes wi eceie the same cotet epeiece. Oe the couse o a a,a cosume wi eceie iiiuaize, tagete, atomize cotet as she waks aou tow

oig he ai tasks. Shes itea wakig though he ow Iteet epeiece.

Products become services (with icremetal reveue streams). lets take a eampe ose-hep ooks. Peope o what is eas. Peope ot eecise, get maiage couseig, pa

o etiemet, o eeop the 7 haits o high eectie peope ecause it is ifcut a

requires coachig o pheomea se-awaeess. The phoes sesig capaiities a 247

pesece wi eae the coectio o iomatio to hep moito a coect ehaio i

ea time. Though aasis o coesatio, ou phoe ca oe eeack, o eampe,

o whethe ou seek st to uesta a the to e uestoo. A aasis o ou

scheue a ehaio wi show how poactie ou ae a i ou ae ocusig o what isimpotat o what is uget.

The democratizatio o services lobally. Two hue eas ago, octos, og-istace tae, a eucatio wee o aaiae to the weath. Toa i the US, ee

the pooest o iiiuas has access at a aoae pice. Moie phoes ae aea

emocatizig eucatio, heathcae, a akig seices o cosumes i emegig

ecoomies. Hee i the US, what is ae is ieet: Choesteo tests, etectio o

cotamiatio i oos o eposue to isease, a access to speciaists ae eithe e

ifcut o pohiitie epesie. Moie phoes hae the aiit to eimiate the aies

to seices ike these, acoss the goe.


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20

SUPPLEMEnTAL MATERIAL

Methodoloy

Forrester conducted interviews with 24 executives responsible or mobile at their respectivecompanies between January and March 2011.

Compaies Iterviewed For This Documet

360i

Akustica Bosch Group

A. M. Fitzgerald & Associates

American Century Investments

Atmel

Behr Process

Best Buy (Canada)

British Airways

CIBC

Citi

Continental Airlines (United Airlines)

Debenhams Retail

Deezer (France)

Dollar Triy Automotive Group

eBay

E-rade Financial

Gemalto

IBM

Intercontinental Hotels Group (IHG)

Intuit

J.C. Penney

Kimberly-Clark

Layar

Luhansa

MEMs Industry Group

Nuance Communications

Nvidia

Polaris Wireless

Procter & Gamble

Progressive Casualty Insurance

Sharp Electronics

Te Home Depot

VI echnologies

WiSpry

Yelp

Yole Dveloppement


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21

EnDnOTES

1 Forresters annual handset orecast includes a new smartphone orecast reecting the rapid adoption o

higher-end devices. Adoption o smartphones is driven by lower price points, aordable data plans, and

consumer demand or the unctionality they oer. See the March 9, 2011, Craing Products For Te Next

Smartphone Owners report.

2 On April 21, 2011, Apple announced that it had sold more than 189 million iOS devices. Source: Wesley

Yin-Poole, otal Apple iOS Sales: 189 Million, Eurogamer, April 21, 2011 (http://www.eurogamer.net/

articles/2011-04-21-total-apple-ios-sales-189-million).

On May 10, 2011, Google announced at its annual developer conerence in San Francisco that it was

activating 400,000 devices daily, with more than 100 million already activated. Source: Vlad Savov, Google

Reaches 100 Millionth Android Activation, 400,000 Android Devices Activated Daily, Engadget, May 10,2011 (http://www.engadget.com/2011/05/10/google-reaches-100-millionth-android-activation-400-000-

android/).

3 Forrester uses its Mobile echnographics analysis to classiy consumers in a given market by their level o

sophistication in their use o mobile devices. Te most sophisticated category is labeled SuperConnected.

Tese consumers own smartphones. Tey are not only regular users o SMS, mobile browsing, and email,

but they also use their phones or a plethora o other services. See the January 18, 2011, Asia Pacic Mobile

echnographics: 2010 report.

4 Each year, Forrester orecasts advertiser spending on mobile display and search ads. Te mobile marketing

and advertising market is substantially larger when messaging, creative, and soware services are added

into the mix. Tis orecast, however, is limited to media spend in these two categories. See the October 27,

2010, US Mobile Search And Display Forecast, 2010 o 2015 report.

5 Forrester developed its inaugural mCommerce orecast or the US. Key growth drivers include rising

adoption o smartphones and convenient experiences. See the June 17, 2011, Mobile Commerce Forecast,

2011 o 2016 report.

6 Dr. James McQuivey, a principal analyst and vice president at Forrester, rst coined the term Convenience

Quotient in his research in the all o 2008. In the all o 2009, Julie Ask and Dr. McQuivey worked

together to adapt this ramework or mobile services. For the original ramework, see the February 6, 2009,

Cracking Te Convenience Code report, and see the October 14, 2009, Te Convenience Quotient O

Mobile Services: A Facebook Case Study report.

7 eBay alone has more than 35 million downloads o its applications and saw more than $2 billion in revenue

rom its mobile channel in 2010. Continental Airlines is the only US-based airline in the top 25 ree travel

applications on iunes with a 4-star rating. Source: interviews with eBay and the iunes Store.

8 Accelerometers, gyroscopes, and magnetometers are already in some phones on individual chips. Tey

will migrate to a single chip. With the addition o a barometer, a single chip will have 10 degrees o
http://www.forrester.com/go?docid=58806&src=59243pdfhttp://www.forrester.com/go?docid=58806&src=59243pdfhttp://www.forrester.com/go?docid=58285&src=59243pdfhttp://www.forrester.com/go?docid=58285&src=59243pdfhttp://www.forrester.com/go?docid=57645&src=59243pdfhttp://www.forrester.com/go?docid=58616&src=59243pdfhttp://www.forrester.com/go?docid=58616&src=59243pdfhttp://www.forrester.com/go?docid=53375&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=53682&src=59243pdfhttp://www.forrester.com/go?docid=53375&src=59243pdfhttp://www.forrester.com/go?docid=58616&src=59243pdfhttp://www.forrester.com/go?docid=58616&src=59243pdfhttp://www.forrester.com/go?docid=57645&src=59243pdfhttp://www.forrester.com/go?docid=58285&src=59243pdfhttp://www.forrester.com/go?docid=58285&src=59243pdfhttp://www.forrester.com/go?docid=58806&src=59243pdfhttp://www.forrester.com/go?docid=58806&src=59243pdf


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22

reedom. Te signicance o a single chip lies in the speed o calculations and ease o development. Device

manuacturers will be the rst to leverage these technologies. Source: interviews with Yole Dveloppement.

9 Forrester has written extensively on the opportunities in retail, travel, banking, insurance, and consumer

packaged goods, among other categories. For more inormation on mobile in retail, please see the July 29,

2010, Te State O Retailing Online 2010: Marketing, Social Commerce, And Mobile report.

10 Forrester has written extensively on the design o mobile services or mobile phones and tablets. For more

inormation, please see the February 23, 2011, Match iPad Experiences o Customer Goals report, and

see the January 23, 2009, Match iPhone Capabilities o Customer Goals report.

11 Best practices or measuring mobile websites are strongly rooted in traditional web analytics

understanding trafc sources, on-site behavior, and obstacles that impede conversions. Best practices or

measuring applications are based on evaluating task completion, unctionality, and user experience. For

more inormation, see the April 13, 2011, Mobile Measurement Is A Customer Intelligence Imperative

report.12 Forrester Analyst Paul Hagen lays out how customer experience strategies should be tied to corporate

strategies in the ollowing report. See the September 28, 2010, What Is Te Right Customer Experience

Strategy? report.

He also leverages Michael E. Porters On Competition, Updated and Expanded Edition, as well as his

Competitive Strategy: echniques For Analyzing Industries And Competitors. Source: Michael E. Porter,

On Competition, Updated And Expanded Edition, Harvard School Press, 2008, and Michael E. Porter,

Competitive Strategy: echniques For Analyzing Industries And Competitors, Te Free Press, 1998.
http://www.forrester.com/go?docid=57249&src=59243pdfhttp://www.forrester.com/go?docid=58636&src=59243pdfhttp://www.forrester.com/go?docid=53686&src=59243pdfhttp://www.forrester.com/go?docid=58450&src=59243pdfhttp://www.forrester.com/go?docid=57673&src=59243pdfhttp://www.forrester.com/go?docid=57673&src=59243pdfhttp://www.forrester.com/go?docid=57673&src=59243pdfhttp://www.forrester.com/go?docid=57673&src=59243pdfhttp://www.forrester.com/go?docid=58450&src=59243pdfhttp://www.forrester.com/go?docid=53686&src=59243pdfhttp://www.forrester.com/go?docid=58636&src=59243pdfhttp://www.forrester.com/go?docid=57249&src=59243pdf


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Documents

Future of Mobile is User Context