Pipeline Publishing, Volume 7, Issue 8
This Month's Issue:
Enriching the Mobile Experience
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Why Location is the Next Big Thing: Location-Based Services for churn reduction AND revenue growth.
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Bates notes that Progress is working with a major entertainment group, who is planning on offering LBS to visitors to its amusement parks. The system can keep track of where visitors are, keeps an eye on lines at specific attractions to minimize wait times, and makes recommendations for the next ride to visit, all with the intention of making the experience personal and optimal for the visitor.

In addition, Bates references Lufthansa’s location-aware social networking solution, in which you can tell the service what your interests are and it will use location to create connections with other users on your behalf. The service, known as MemberScout, was developed by app developer Match2Blue using Progress’s Apama Business Event Processing platform.

While these are both enterprise examples, the level of visibility that wireless services providers have

GPS, like Social Networking, is both popular and widespread.



unique, interactive experiences to build stronger loyalty by tapping into customer call patterns and locations, correlating with customer preferences and providing value added services to customize each customer's experience in a unique way.”

Bates also, however, notes something of utmost importance when considering the growth of location-based-services, especially if the central motivation is customer experience maximization: These services must be opt-in. Privacy concerns are of utmost importance, and while subscribers have demonstrated that they are more than happy to relinquish a degree of privacy in exchange for specific value, services that strike the consumer as invasive or heavy-handed are counter-productive, at the very least.


creates an even more compelling business case for the utilization of location as a customer retention and experience optimization tool. I spoke with Sanjay Kumar, Industry President for Communications and Media at Progress, and he told me that several European service providers are already using Progress’s Location Based Promotions solution to correlate customer location, usage patterns, and customer preferences to send subscribers relevant, real-time offerings. This is a present-tense example that is sure to be replicated by providers around the globe.

The impetus for this connection is summarized pretty well in a list of the top ten telecom predictions released by Progress in mid-December. Item number three includes language that sums up the motivation for service providers to use location as a customer satisfaction-based service differentiator. As competitive forces continue to build, wireless operators “will need to provide customers with


However, provided that services remain fully opt-in, there are a number of reasons why location-based services are primed to emerge, increasingly, over the next few months and years:

Ubiquitous GPS

Once relatively uncommon, GPS is becoming de rigueur for smartphones (which are also becoming more and more widespread) and even less-sophisticated handsets. Berg Insight estimates that GPS was present in some 15% of handsets in Europe in 2010, but that the percentage is expected to increase to over half by 2013. In fact, some analysts project the compound annual growth rate for GPS-enabled handset sales to hit the 20-25% range between 2010 and 2013. Whereas consumer GPS was a specialized technology, often relegated to car-based black boxes just a few years ago, it is increasingly becoming table stakes in the mobile communications realm.

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