Free Wi-Fi Wins Consumer Loyalty, New Wi-Fi Business Model



-/June 08, 2004 Wi-Fi Technology News/-Pay-as-you-go wi-fi access neither pays for its providers nor is it a go for consumers. For proof, look no further than the high-profile failure of a major U.S. wi-fi provider. A New Zealand offering is set to make customers happy in a way they?re likely to actually care about: Free access.

Wi-fi take-up indicates consumers value convenience, wherever there?s a hotspot and whenever they want access. But while the benefits of wireless internet access for the customer are inescapable, the competition for providers is fierce; organizations around the world want to get in on the act and build their own wi-fi networks.

But what?s up with the business model? Early adopters are coming to realize the provision of wi-fi services is relatively inexpensive. Because of this, it?s difficult for providers to differentiate themselves on price alone. With the hardware already so cheap and commoditised, how can providers gain competitive advantage while developing their own brand loyalties? And because wi-fi occupies a free, unlicensed part of the radio spectrum, how long can networks continue to justify charging for access at all?

Managing director of New Zealand?s Wizz WiFi, Martyn Halsall, believes he has the answers. ?Free access has to be the way to go. Few companies are making money with a pay-as-you-go business model, but lots of firms want to build a network. We know customers will use wi-fi if it?s low cost.?

So how, then, can providers make it pay? One way would be through advertising content. But what if the customer doesn?t notice ? or even care about ? the promotions the service carries? The evolution of the internet shows bombarding consumers with banners and pop-up advertising leads, if anywhere, to turn-offs rather than to click-throughs. The web timeline is littered with the virtual corpses of technologies that foisted content onto consumers who didn?t want it. Remember Push technology?

If only ?advertising? content could be tailored to consumers as individuals. We?ve seen how effectively the customer experience can be managed through Amazon.com; consumers are less hostile towards brands to which they?ve developed loyalties than those pushed at them indiscriminately.

Wizz WiFi has developed a way of displaying advertising it?s difficult to ignore. It recognizes customer tastes and knows in which loyalty programs consumers participate.

Software on the network server identifies each customer and delivers custom messages to target their purchasing habits individually. Built on a secure database and requiring user authentication, Wizz WiFi?s application displays tailored promotions and messages that react to a consumer?s profile as required.

?It?s not obtrusive, but they certainly notice it,? Halsall says. ?When customers log on, the software already knows what cards are in their wallet and what they?re interested in, so they get content that matches their tastes exactly. Special promotions, customer announcements, retail deals: they can all be programmed in quickly.?

On the user?s screen, the application occupies only a narrow ticker-style band that can be branded in a company?s own style and colors. Dynamic user configuration allows the customer to change the category of information being delivered.

Retailers, oil companies, airlines and other loyalty card operators will be able to offer free wi-fi access to their regular customers as a value-added service. And anywhere where there?s a base-station wi-fi will become a footfall generator for suppliers of all kinds, rather than just another part of the telecommunications infrastructure.

?If they?re your customer, you want to talk to them,? Halsall says. ?With this product, they can?t ignore you. You provide the access, they see the messages. It?s that simple.?

Contact details:

Martyn Halsall
Wizz WiFi Limited http://www.wizzwifi.com
Mob: +64 21 64 44 61
Phone: +64 9 966 7285
Fax: +64 21 218 0316
martyn.halsall@wizzwifi.com