Thursday, November 04, 2004

Combining Cingular and AT&T Wireless

In a merger, a new logo or tagline is the most simplistic step in combining two distinct companies. For the new Cingular, grafting AT&T Wireless's "How Many Bars..." campaign onto their new identity is decidedly pre-mature, despite the completion of the long-anticipated deal.

Right now, customers are on incompatible networks, have incompatible phones and are stuck in non-transferable customer contracts. Yes advertising can - and often must - be aspirational, talking about what can be, what will be. But big promises can yield big disappointments -- much to the chagrin of potentially disillusioned customers and the employees who have the thankless task of servicing them.

Acquisition of AT&T's customers was a prime motivator in this deal for Cingular - as cellular customer churn is a major industry-wide issue. Yet this same issue, particularly with the advent of transportable numbers, should be top of mind if Cingular forsees any customer service challenges.

Logistical issues will keep the two companies separate for some time. AT&T itself had two distinct networks - with the geographically dominant one being phased out by a more web-surfing friendly infrastructure. (Remember M Life?) Many customers were loathe to give up the better coverage of the old network for unwanted web capabilities of the new one. And many customers just got new phones, virtually forced to do so by AT&T's phase-out of the old network.

When customer contracts expire - forcing people to get a new phone (again) - Cingular will need to have as compelling a story for them as any of the set of majors out there. Unmet customer expectations that may follow this merger can only work against Cingular in retention efforts.

Yes, Cingular needs to talk about "the near future" in their messaging - giving time for network logisitics to catch up to the need to unify their customer base. But Cingular should be very aggressive in moving to retain customers long before their contracts expire. Agressive equipment deals will encourage customers to acquire new phones (and new contracts). Immediately implementation of the Rollover Minutes feature to all AT&T Wireless customers will win excitement and enthusiasm.

A new tagline will only be lipstick on the gorilla without a broad plan to communicate to and migrate millions of acquired customers. If Cingular fails to deliver on the expectations their new advertising creates, the only winners will be their competition.

49 Comments:

Anonymous Anonymous said...

I read an interesting article this morning in the New York Times concerning AT&T moving back into the wireless arena next year.

The article focused on Sprint's use of its network to generate revenue by selling bandwidth to other wireless carriers. The surprising issue, to me, is that AT&T would so quickly jump back into this space after abandoning it. Obviously, it's much more cost-effective for them to re-sell space on Sprint's network than maintain their own, but I have to wonder just what kind of brand AT&T Wireless has left. I gather AT&T is still well-regarded in the business community, and that seems to be where the new service will be aimed. Still, it seems a curious move.

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March 24, 2007 at 4:46 AM  
Blogger Roberto Iza said...

Some of our comments above may include links that are no longer valid or that do not have a nofollow value. They might very well lead you today to a third party. Therefore,
I ask you, if you would be so kind, to please delete or disregard those
comments.

Many thanks and best wishes,

Iza, Roberto Iza

Muy Señores Míos:

Algunos de nuestros comentarios incluyen vínculos rotos que bien pudieran llevar hoy a una tercera persona. Por tanto, le rogamos, por favor, que los deseche o desestime.

Gracias y recuerdos

Iza, Roberto Iza

September 5, 2007 at 4:30 PM  
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