Transformers

Abstract

Purpose

The aim of this paper is to examine the current and future outlook of smartphones and how they will transform the loyalty marketing landscape.

Design/methodology/approach

The approoach takes the form of tapping big‐name companies, like Nielsen, Ogilvy and Wells Fargo, to provide insight into how marketers are looking to utilize smartphones and to predict where the future is going with smartphone techonolgy.

Findings

As smartphones increasingly entrench themselves as the ultimate personal device, it is no surprise that loyalty marketers are keenly interested in the evolving role technologies will play in increasing customer loyalty overall, as well as in boosting reward programs. After all, these pocket‐sized portable wonders offer promising ways to strengthen the two‐way relationship between companies and their customers, the very sort of relationships enjoyed by loyalty programs and their members.

Practical implications

Encouraging as smartphone development has been, however, there is still a long way to go in terms of consumers taking full advantage of the available technology. Experts agree that despite encouraging growth, North America remains in the early days of smartphone adoption and consumer interest. After all, according to recent Forrester research from the fourth quarter of 2009, about 17 percent of cell phone subscribers own smartphones, though predictions exist for that number to rise to 25 percent next year. For the time being, the remaining users are sticking to simpler, typically very inexpensive, traditional cell phones – known in the mobile industry as “feature” phones.

Originality/value

The paper provides exclusive interviews with representatives from some of the largest marketing firms in the industry today. It also provides tangible tips and tools to utilize in the real world marketing plans.

Citation

Goldman, S.M. (2010), "Transformers", Journal of Consumer Marketing, Vol. 27 No. 5, pp. 469-473. https://doi.org/10.1108/07363761011063367