Out-of-Box-Experience Best Practices: Why They’re More Important Than Ever

Tresa Gowland, LEVEL Account Director

This has happened to many of us…we purchase a “connected” device, remove it from its elegant packaging, plug it in and – are forced to meander through giving up personal information and preferences that paralyze us from getting to the point. Even after successful data entry during set-up there can still be gating questions. That cord goes where? There’s an attachment that comes separately? Every step of the Out-of-Box-Experience (OOBE) can make or break the product, the brand and over time, the company. The initial product experience is a massive opportunity to start off on the right (or terribly wrong) foot with customers.

Increasing device interactivity and growing access to a variety of content via the cloud makes the product setup process crucial in ensuring users are getting the most from a product. Aside from proper product usage, the benefits of a well-designed experience for manufacturers are clear: shorter set up time, fewer support calls, increased registrations, more partner offer opt-ins and ultimately customer loyalty. Quality experiences span the entire product, from the marketing touchpoints, through product setup, usage, integration with other products and even support. The brands that hit the nail on the head across all of these touchpoints, win.

So how well are manufacturers doing?
According to a recent report from Forrester Research, 14% of connected TV owners haven’t even connected their TV yet and 26% don’t really use their connected TV much. Why should consumers pay a premium for a feature or service they aren’t even using? They might ask the same question next time they buy.

VIZIO labors over its OOBE across their connected devices ecosystem to ensure they host an uncomplicated, branded experience during set-up that is seamlessly integrated with partners. The result is they have a substantially higher rate of consumers connecting their internet-enabled televisions during initial setup, opening the door for them to realize the value of apps, streaming content services and the like. Of course, it also enables VIZIO to find new monetization opportunities.

Here’s a listing of some of the top OOBE considerations that product manufacturers and service providers should consider when embarking on designing the optimal experience:

  • Anticipate what the user needs and cut out what they don’t.
    Think through what’s critical to ensure the best experience, without being invasive. Consider what gets in the way of full set-up and connection abandonment and get rid of it (which I’ll cover in a follow-up post).
  • Appoint a single owner to protect OOBE and be the voice of the customer.
    The setup process should be streamlined, something that is difficult to accomplish when the OOBE is designed by committee and everyone has their own interests in mind.
  • Operationalize and prioritize the method used for data capture and reporting.
    It’s important that information gained about the user is maintained to inform future experiences. However, don’t ask the users something in set up that you should already know and/or are better off learning via their natural product usage.
  • Tie together internal and external partners for single and seamless registration.
    Be judicious and clear about what’s needed to connect users with the most important services and content up-front.
  • Think about “what’s next?”
    After the user shares preferences or how they intend to use your product, consider showing a relevant partner offer or tutorial.

Understanding customer needs and expectations are not new demands we see in our consumer technology practice. But the interaction points between product and user are expanding, converging and are connected. The OOBE can be a crucial differentiator for products amongst the increasing competition. Brands like VIZIO and RIM are striving to make impressive first impressions and as a result, are building stronger relationships between their products and consumers.

Let me know your thoughts, experiences and questions on the topic. I’m putting together my next OOBE post around ‘how to reduce the failure to connect connected devices’ and would look forward to including some of your experiences.

Register for the free webcast “Creating Product Differentiation for Connected Consumer Electronics” co-hosted by Parks Associates and LEVEL Studios on July 28th 11:00 AM PST.

Posted by Tresa Gowland on 7/22/11 1:53 PM

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Preparing for the Future State of Marketing

I just returned from working the floor at CONNECTIONS, a conference and showcase attended by most of the key players in the consumer technology ecosystem (carriers, device manufacturers, service providers, software and chipset manufacturers, etc.). At CONNECTIONS we discussed device adoption, changes in consumer behavior and major technology shifts like the cloud.

The big topic of conversation was the rapid adoption of connected devices. However, the noticeable shift from last year’s event was that last year, most brands were saying “it’s coming” and this year they were saying “it’s here, now what?” For example, many CE manufacturers were rushing to bring tablets to market over the last year, now they are wondering how they can differentiate in a space that is rapidly evolving and becoming crowded and how they can monetize the new innovative things they’ve rushed to market.

Many marketers I’ve talked to are in the same boat. They know the concept of “mobile” is something they should be thinking about, maybe they have an application or two, but most are struggling to build a case for what their long term strategy should be and proving its business impact. Daniel Blackburn, our VP | Mobile at LEVEL, spoke on a panel at this year’s CONNECTIONS event which addressed how consumers are shifting the way they interact across connected devices. In the short video below, he describes why marketers should be thinking about how the proliferation of devices will impact their ideas and programs.


For marketers who are thinking “it’s here, now what?” here are a few of the ways they can step back and think about a more strategic approach to leveraging connected devices as a differentiator and to drive business impact:

Don’t think about the solution before you think about the challenge and approach.

Many clients have ideas that they want an app or are spending time debating about things like mobile optimized web vs. app solutions. Don’t let an opinion about what you need get in the way of the business challenge you are trying to solve. Instead, articulate the issue you are having and then map potential appropriate solutions to that issue. To further refine, map out what the approach would be for implementing each solution and see what resources and time each would require.

Define things on paper that seem overwhelming in your head, and then discuss them with the right group.

Mobile is not just a channel that can be tacked on to other initiatives. A truly strategic approach to connected devices will require commitment from many areas of the company (IT, channel marketers, CRM, business intelligence, etc.). It may require technology investment, an understanding of how your analytics system will tie in with mobile metrics, and integration with many other components of the business. These can be overwhelming, but doing the right work up-front will save a tremendous amount of time and money in the long run. Once you know the business challenges you want to tackle and have narrowed down your approach to desired solutions, work with your team to identify, discuss and document the parts of the organization that should be involved. Make measurability of your efforts a key piece, as justifying a significant investment is a lot easier when you have a plan for showing how your approach solved your business challenge (i.e. We drove $20 million in mcommerce sales since optimizing our site for the iPad). This effort will set a realistic expectation for the level of effort required, help you prioritize next steps and help your whole team align early on.

Posted by Garrett Colburn on 7/8/11 10:49 AM

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Watch anywhere, anytime?

As consumers of digital content, we are all overwhelmed with a myriad of subscription and a la carte procurement options for accessing the movies and TV we want. Unfortunately, no one has the complete solution just yet. Hulu gives us a lot (not all) of the content from Fox, NBC, and ABC but generally lacks support of the cable operators and CBS due to unresolved conflicts with their respective business models. TiVo and other connected TV devices are reaching many agreements with content consolidators such as Hulu and Netflix, but no one has a fully integrated experience where content comes before the content provider’s brand, creating friction in the user experience.

What’s it going to take to get to the Utopia vision of watching whatever you want, wherever you want, without navigating multiple content silos or maintaining an excessive number of subscription services? Here are a few of the primary industry issues outstanding:

Effective revenue model for all parties involved

Content owners need to be fairly paid, which hasn’t happened yet. Netflix’s growth is amazing, as they have captured 60% of the movie streaming market; however, they have windowing rules that keeps desired content out of the hands of consumers too long. Without a dual subscription and ad model, they will likely struggle to establish a model that attracts desirable content and keeps everyone fairly paid.

Hulu’s ad effectiveness with respect to brand and message recall is 55% more effective than traditional advertising. This is translating to higher revenue returns for Hulu per half hour of prime time episode as compared with cable, cable DVR, and broadcast DVR; only broadcast is earning revenue higher per half hour of prime time episode today and the gap is closing quickly. For Hulu, breaking from its JV relationship with its founders is the critical next step to expansion.

It will be interesting to see what packaging and merchandising options develop with the union of Blockbuster and Dish, given the opportunity to marry strong content provider relationships with multi-channel distribution capabilities.

Maintain brand identity, but let go of brand dominance

Making users go to dozens of websites and apps will not work. Content silos must be broken down. TiVo is currently one of the best devices to make this happen as it owns the coveted “input 1” position on our TVs, meaning even our grandparents can easily get to the stuff they want to watch. TiVo’s latest product makes huge strides towards putting the content in front of users before the distributor’s brand and makes great strides at breaking down the windowing issue faced by Netflix by giving users multiple content access points. While TiVo has had many great successes, it is still a heavily considered purchase in comparison to its cable operator owned generic DVR counterparts. Recent partnerships between TiVo and operators indicates that this issue may resolve over time, as its patents and its phenomenally superior user experience are showing signs of winning out.

Emergence of open standards?

From payment systems to ad platforms, the industry may have to adopt open standards to allow everyone to play. The benefit? Ease of use for users and access to content will result in more use. Proprietary business models are great if you can make it work, however, network effects are somewhat questionable, which means being the keeper of all technology components may not be the right strategic move because movie and TV viewing has not proven to be particularly social, at least yet. We don’t care much about how many people are accessing content through the same distribution channel. We simply want the content. The fewer bills, logins, and time spent finding things, the more likely usage will increase for each player.

Blog Sources
Facts stated in this blog were gathered during executive discussions in John Schneider’s Management 162 Business Capstone course at Santa Clara University during the Winter and Spring 2011 school terms. Guests include Margret Schmidt, Vice President of User Experience at TiVo, Tom Fuelling, CFO of Hulu Networks, and Peter Moore, President of Electronic Arts. The point of view expressed in this blog is solely by John Schneider.
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Today and tomorrow, we will exhibit at CONNECTIONS™: The Digital Living Conference and Showcase being held at the Santa Clara Convention Center. Read more about the conference and our participation on the press release.

Posted by John Schneider on 6/29/11 7:59 AM

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Superphone Battle: Galaxy S II vs Droid Bionic

As the battle to own the Android Smartphone market continues to forge on, the latest consideration and buzz is who will be the leader between the Samsung Galaxy S II and Motorola Droid Bionic.

Shown in the recent infographic and article by Mashable’s Charlie White (infographic below), they both are touting impressive stats from hardware to software that could make the choice based on user recognition, loyalty or carrier availability. However, Samsung appears to be the front-runner thus far.

The Motorola Droid Bionic claims to be launching with the new Android Ice Cream Sandwich software. For Fandroids and developers, this will generate a lot of buzz for what features it can produce. For existing Motorola Droid product users, this seems like a natural purchase progression based on brand loyalty. It also helps that Motorola keeps the Android experience limited in customization, allowing it to run fast and efficiently.

The Samsung will be one of the first launching with NFC functionality (near-field communication). Swipe type purchases via your phone could allow this device to be very popular with consumers and vendors depending on the software out there to support it. Another fun feature is the slight customization and playful interface of the Samsung software layer on top of Android to enhance the user experience and make it something uniquely Samsung.

For me, it comes down to the fact that more users just seem to be gravitating toward Samsung, who stays on top of the latest technology and releases feature rich phones that are very thin, lightweight, affordable, and perform well. I agree with Mashable’s take and am interested to watch how the adoption of these phones takes off when released.

Availability in your area, carriers allowing custom android layers (like Samsung’s) and competitive pricing contract propaganda, will certainly skew who wins in this battle between two very slick phones. However my money is on the Galaxy S II. What do you think?

Infographic Developed by Mashworks for Mashable

 

 

Posted by Ben Ryken on 6/28/11 9:16 AM

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Gaming | Digital in the Driver’s Seat

EA Sports President Peter Moore at E3 Expo 2011, AP Images

Just walk the floors of this year’s E3 Expo and you’ll see the game (no pun intended) is changing. I recently checked out my colleague, John Schneider’s, Management Clarity blog and came across a timely perspective in part fueled by the recent visit of Peter Moore, President of EA Sports, to John’s business management course at Santa Clara University.  Here’s an excerpt from John’s post, Skate or die: digital is the driver in gaming:

There is a lot of emerging competition for traditional video game makers. For instance, Zynga’s estimated $10B valuation is larger than EA’s, yet the firm only has a tenth of the revenue in contrast and a possible over-dependency on Facebook. This almost sounds like the dot com era again to me. How will this story end?

This is the question that my class discussed with Peter Moore, President of EA Sports, when he visited my class on May 16, 2011.

Peter opened by saying digital is the growth driver in the gaming industry. The gaming industry is expected to grow an estimated a 5-10%* from the years 2010 to 2014; while digital gaming alone has grown at a 67% pace to $20B in just the last two years of business. It sounds great, but there is a big challenge – growth isn’t coming from a single digital source.

Read the entire blog post here. Thanks Professor Schneider!

Posted by Alexandra League on 6/8/11 12:23 PM

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