Bringing the store experience to fulfillment…close…but still long way to go.

I finally broke down and recently decided to upgrade for my iPhone. Side note, a few years ago, when the newest generation of iPhone was available it was treated like Christmas morning by some of us Apple fans. Some of us would literally wait online until the magic hour when you could pre-order the new version. Today, it is a non event. I will upgrade when I get to it, type event. For me, I finally broke down and upgraded after seeing the new phone at the Apple store, demonstrates the importance of a brick and mortar presence! Granted that pushed me to action, but I wasn’t as excited about it as in the past. But this post isn’t about the changes in behavior with getting a new iPhone. What this latest saga of upgrading my phone has provided an example of trying to bring greater experience to the fulfillment process. And how much we still have to learn.

Dreaming of the pacific…

Let’s set up the situation. My carrier is AT&T, I went through their portal to upgrade my phone. I went through the configuration – I went with the Pacific Blue option with 256 GB of memory. I selected my payment plan and then was told item could be delivered later in the week. Perfect. At least I thought. What happened next is a good effort by AT&T…but falls a little short. I was told that a customer representative would show up between 2-4 on Thursday, and spend 30 minutes with me. Hmmmm. Their tag line “we are bringing the store to you.” Makes perfect sense. I have been preaching the importance of making fulfillment a key part of the experience. Looking to replicate the in store experience at the last mile is a great example of this. However when it comes to the execution there remains much to be desired. While I appreciated the service, all I wanted was for the phone to be delivered to my address. I did not need to have a 30 minute tutorial on how to switch my phone. I realize I am not a millennial or a Gen Zer, but I can still switch my phone on my own, thank you very much. Additionally, I was told I would have to show ID and credit card…really? Are they delivering the Excelsior diamond to me? Finally they showed up, I was in the middle of all day meetings, couldn’t reach me and didn’t deliver the phone (mind you there is a perfectly safe location where packages are delivered every day). This started a cacophony of emails and messages from AT&T and their delivery service to try and reschedule the delivery. I also called AT&T customer service (the chatbot wasn’t working). Through all this communications gymnastics, I still don’t know when the phone will be delivered.

So what are some lessons from this awkward dance I am having with AT&T?

• Figure out how to bring added value to fulfillment: Clearly AT&T is trying to add value to the last mile fulfillment. But it is not one size fits all experience – some customers might want to be walked through the process of switching phones, others, like me, do not require this service. Make it an option. What about other value added services such as taking an old phone and recycling it? Could AT&T even offer to take back other small electronics for recycling or refurbishing? Headphones, chargers, tablets or even laptops that have accumulated in our homes. I appreciate the effort to add value added services to the delivery, but you must make sure that each customer truly desires and sees value in what you are offering. It cannot be a one size fits all.
• Communication is crucial: Like with many things in life, being able to communicate clearly is paramount. I appreciate AT&T and their efforts to communicate, however it has been disjointed and confusing. Between text messages from the delivery service, emails from AT&T, emails from the third party and a telegraph from Alexander Graham Bell, it has been clear as mud with regards to what next steps are. Even on the web site there is no clarity as to when delivery will be made. Have one central location to communicate – a centralized web location – so customers have a visual source of the truth. Any email or text message can always refer back to the location. If Fedex and UPS can do this, why can’t AT&T?
• Provide customers options…at the point of commerce: I realize that the goal is to simplify and reduce friction at the point of sale, so suggesting you ask for more decisions to be made might be counter intuitive. However, when it comes to decisions on delivery times and value added services at delivery, these are crucial variables that consumers will see value in. More importantly they impact the overall experience and need to be properly offered and accepted by the retailer before the “buy” button is pressed. I had no idea that I was getting a 30 minute session with delivery. I also did not realize having this service impacted delivery times. These need to be clearly explained and offered before the purchase is made. I am all for providing value added services tied to fulfillment, but you need to make sure your customer is aware of the offering, understands the value and is allowed to make a choice as to whether or not to leverage these options.

So I will see when this Pacific Blue iPhone arrives. Maybe 5 years ago I would have been more worked up about the delay and not having my new toy….errrrr…device as soon as possible. Today I just focus on the break down in the delivery and the effort by AT&T to make this a more valued experience. A for effort, no grade yet for execution.

iPhone 6 – a “cheaper” version of the iPhone? Is that really wise?

True to form Apple will release the iPhone 5s later this year, probably scoop up some of those iPhone 4 users who have not yet upgraded. Maybe Apple does not want to lose them to Android…nah no one would make that switch!! Anyways. What is interesting is the rumors that Apple plans to follow that release up with an iPhone 6…but it will not be a generation leap for the phone but more of an inexpensive model to go after emerging markets aka China and India. Wise move or sign that the Jobless company is still struggling to find their innovative fast ball? Going after the likes of China and India makes perfect sense – that is where much of the growth is happening.

Apple needs to get a product into those markets that can compete with the less expensive Android versions as well as the likes of Nokia. Makes good business sense. However, this feels like a shift for our friends at Apple. Couple this with the iPad mini, which from a business stand point made sense – go after the tablet market that was being dominated by the Kindle. The iPad mini coupled with the iPhone 6 and it feels as if Apple is not longer looking to lead with innovation but instead focus on diversifying their existing product portfolio to compete in markets they otherwise ignored. Has the Apple innovation engine run out of steam? Maybe. Or is Apple looking to solidify some of its business, focus on some aspects that could be seen as weak spots in their business. Let us imagine the following:

• Apple leverages the iPad mini to go directly after Amazon with their Kindle. One might argue that introducing the mini has already knocked out one competitor, albeit a weak one, the Nook from Barnes and Noble. While I do not think it will take out the Kindle, it is clearly offering a viable substitute product for those looking for a 7 inch tablet. Apple now has a product that can compete at all levels of the tablet market. Check.
• The new iPhone 6, if it is what the rumors claim, gives Apple a device that can go head to head with the less expensive smart phones. This will give Apple a device that can compete with Nokia, who still has a large ownership of the emerging market. Really this is a play to try and fight off Microsoft and their OS that has, no surprise, been adopted by Nokia! Of course it will also allow for Apple to expand its portfolio to compete with Android.

With Apple putting together some offerings that can get them into a more diverse market, they will then be able to refocus on bring us the “next” innovative device. The iWatch? Refocus on the Television? Enhance the iTunes experience?

Let us see what the next few months hold for Apple. For now I think that what we are seeing a business being run like a more “traditional’ business. It is too much to ask for any company to innovate at the pace they did at the end of the Steve Jobs era. Does this mean that Apple is done innovating? Let us hope not. But making sure your business is taken care of first will allow for Apple to one day be able to get back to giving us innovated consumer devices.

Not sure Nokia will regain market share, but great ad

A fantastic ad from Nokia. Not sure it will get them back on track with regards to their mobile phones, but entertaining none the less!

Welcome back Google! Apple puts Google Maps back on the map.

An Apple Map user walks into a bar, or is it a church, no wait it is an office, hold on it is a sporting venue….

One of the many jokes that were out there after the Apple maps debacle. As soon as the new mapping software came out, major issues started cropping up. And these were not “bugs” but fundamental and serious issues! Of course Apple had to scramble, refused to admit to the gravity of the error and to make things worse blocked Google Maps which had been the default map app on the iPhone up to that point. Of course everyone knew that Apple was trying to shut out one if their biggest competitors from the iPhone platform. Especially considering they are in a dog fight with that same company in the overall mobile space!

But today, all is well again in the world of mapping – Google maps is once again available on the iPhone. And yes, I downloaded it immediately. I actually tried to download it last night but wasn’t available until morning east coast time! By late morning, New York time, the word on the street was how much better and what a relief it was that the Google maps were back on the iPhone. There are even some rumors that it has vaulted to top of the down load list on for the AppStore.

So the question becomes, why did Apple embark on this adventure? Why did they challenge the incumbent. One that was much more versed in the map game (anyone remember when you didn’t see Google Earth when a news station shows you a location on the map of the world?) I realize the answer is simple – Apple could not allow one of their largest competitors own a major piece of real estate on the iPhone, just like YouTube which is no longer standard on the iPhone. They did what Microsoft did to Netscape. Unfortunately, they were not as successful…correction…it backfired. For now.

Apple wants to control what is on  your screen, what default apps we all use or at least think we have to use because it is the default. Similar to Microsoft that wanted you to use their web browser rather than the Netscape one that had been the default. So far so good. However, the difference is the following – during the browser wars we were limited in the applications we had. Whether writing, spreadsheets or presentations, there were not hundreds of options. Now we have, on average between 40 – 100, applications on our iPhones. So does owning the mapping application mean as much as Microsoft wanting to own the browser – no. Could Apple have conceded the mapping to Google, maybe provided their own Apple Map app, as an option? Sure. Why not test it, and make it robust so that the Statue of Liberty isn’t located miles from NYC. Then Apple could have slowly made the switch to their own mapping as the default.

I understand that in the long run, Apple needs to hold on to some core apps, needs to be able to data mine some of the information that goes through these apps. It just feels as if they went too fast. The public backlash and PR nightmare it created was not worth it for, what feels like, pushing through something that was not ready for prime time.

 

iPhone on Verizon could be a silver lining for AT&T

The worst kept secret was finally unveiled earlier this year, that Apple will be selling the iPhone via Verizon in addition to their long standing relationship with AT&T. This has unleashed a deluge of commentary and mockery of AT&T’s network ability to handle the iPhone and the data overload the smartphone has unleashed.

As has been pointed out, AT&T stands to lose disgruntled customers to Verizon. There is not doubt this news will give Verizon a boost – they are already seen as the carrier with superior coverage to AT&T, the addition of the popular iPhone coupled with their stable of other smartphones will make for 2011 to be a good year for Verizon. Yet might this move be a silver lining for AT&T?

The iPhone has clearly given AT&T a big boost in terms of sales and customers, being the only provider of the Apple product has made those of us who want an iPhone entrenched with the carrier. As the Jon Stewart piece points out, it also created a back lash from those customers. AT&T has never been able to catch up to the data demand the iPhone has created. Could losing some of these clients from the network actually make the service for those of us still on AT&T actually better? If, as some report, we could see close to 4 million users gravitate to Verizon that would remove that kind of strain on the AT&T network that we have all groan accustomed to and had to deal with grudgingly. In addition, the arrival of another competitor being able to sell the popular device will force AT&T to make some investments and decisions to ensure they keep and attract iPhone users.

In the short term AT&T will take a hit and Verizon will leverage the ability to sell the iPhone 4 to build on their market position. I hope in the long term this move will make the AT&T experience better for those of us still using the iPhone on their network. Otherwise once my contract expires I might port my number and iPhone to Verizon.