Counting on Customization

It's the killer app for Alltel's Web-Unwired service, but what about the rest of the wireless-data-service space?

Whether or not you've rolled out a wireless-Internet service, listen closely. Joe Gardner wants you to know that customization is a huge competitive advantage. And the Alltel staff manager of wireless data and devices knows that in the wireless-Internet space, any-size advantages are important for every provider, but especially if you're not one of the first to introduce a new wireless service.

Alltel recently launched Web-Unwired, a ready-to-use wireless-Internet service that allows subscribers to customize it according to their lifestyles. Web-Unwired gives Alltel customers an option for their starting point on the wireless Internet and the power to prioritize the information and tools they find most important.

"It's a differentiator and gives us a competitive advantage because it further helps simplify the process," he said. As this space matures and people become more familiar with it, mass customization and personalization is going to be a real key because people are going to have to develop an offer that's most compelling for them."

Initially launched in 10 markets or 46 cities, including Charlotte, NC; Little Rock, AR; and Tampa, FL, the service will be available in all of the provider's digital markets by the end of the year.

Customization is nothing new. But in the wireless-Internet space, it may prove an increasingly important competitive advantage and differentiator.

"The first trend was to just get wireless Internet out there, the second was to see reduced prices or even free (minutes), so customization might be another trend coming up," said Charul Vyas, IDC research analyst, mobile and wireless communications.

POS Personalization You can walk into an Alltel retail store and select one of four screen formats as a starting point on the wireless Web. The four customized designs place different wireless-Internet tools, including e-mail, local movie listings, bookmarks and favorite sites, at the top of the handset's screen. Basically, Alltel wanted its wireless-Internet service to simplify the route to the Web information customers want.

"We wanted to come to market with a mass customization," Gardner said. "We picked out four lifestyles for our default deck and three primary lifestyles that people can choose from as a ready-made deck."

After focus groups and trials, Alltel developed the customized decks based on external and internal customer suggestions and lifestyles. The first is for an early adopter or Web-savvy subscribers and lists bookmarks at the top of the screen for easy personalization. Mailbox, organizer, standard news, weather and sports, directories, financial and preferences follow. With deck option two, Alltel targeted the wireless professional by listing mailbox first, followed by calendar, address book, entertainment, stocks, bookmarks and news. Option three features a local focus for a customer who's primarily local but has a fairly busy lifestyle. Mailbox is listed first, then movies, weather, restaurants, personalized sports scores, organizer and bookmarks. The fourth, standard/default deck option lists "My Alltel" first, followed by bookmarks, e-mail/planner, financial, entertainment, directories, news and sports sites.

My Alltel, offered on two of the four deck options, features semi-customized content and allows customers to set up a page with specific information on a variety of topics by visiting www.web-unwired.net via their wireless phones or PCs. Customers also can unify their e-mail and set up just one e-mail box, accessible by their wireless phones and home PCs.

"Rather than coming in with the same "me, too" offering and the customization link preferences on the portal, we actually rearrange the bookmarks to minimize the clicks or life-styles we felt would be easier for people to gravitate to and understand," Gardner said.

"We sat down and said, `How can we make this easier for customers to use? We can try to identify the things people are going to use and put them at the top,'" said Scott Moody, Alltel product manager. "Of course, everybody's different, which is where the multiple mobile home-page offering came from."

Alltel has made the process even easier for customers by customizing service at the point of sale. When consumers enter an Alltel retail store to explore the service, salespeople lay out the options, show them exactly how it works and how the options look on a wireless handset, and set up the customer's selection.

This education aspect may prove more important than customization, Vyas said.

"We did focus groups a few months ago and most of (the participants) hadn't even heard of wireless Internet, even the ones that had that feature and were able to use it on their phone," she said. "The fact that (Alltel's) customization is done in their retail stores would be an advantage because it gives Alltel an opportunity not only to help customers get exactly what they want but also to provide some time to educate users about what's available."

Unlike the other U.S. wireless-Internet services available today, Web-Unwired does not include Amazon.com, Yahoo or other popular wireless-content sites. Alltel currently is in talks with several content providers. Gardner said these partnerships are critical. However, he wants to leave the service open for customers to build what they want.

"You have a very limited amount of real estate on screen," he said. "The more options you sell or give away for placement, the less customization the customer ends up having. We're not going to sell our soul, or sell our entire deck structure out to content providers because when you do that, you take away the personalization issue."

Gardner said Alltel will partner with some content providers as the space matures, but only if it's a win-win situation for both parties and subscribers. Today, Infospace provides content for Web-Unwired.

Customization Is Key Many industry insiders say customization could be a major differentiator in the wireless-data space.

Gardner cited studies showing that as the clicks customers have to go through to get to a destination site on their phones increase, so do the chances they'll turn their phones off. Being able to customize where you want to go first and fastest is a huge issue for customers, he said.

Price is another. Web-Unwired is free for the first two months and then can be added to select Alltel digital rate plans for $5.95 per month. Web-Unwired customers can use their calling-plan minutes for voice or data.

Gardner said Web-Unwired will evolve and become more robust with applications such as instant messaging and universal shopping cart through the handset.

In the future, consumers just may want more customized wireless-data services, especially wireless-Internet services, that will give them more localized, personalized information. And customized, personalized wireless-Internet service may be the killer app.

But you can bet Alltel's wireless-Internet service won't be the only customizable option for long.

"Customization will become more important in the future, and we'll see more companies doing that," promised Vyas.