Transformers - Colloquy

and introduced a new iPhone application allowing users
to upload photos directly from their mobile device to a
Walgreens store for printing. “That doesn’t mean we won’t
have other programs to help out all of our customer base,
but the customer with the smartphone is browsing the
mobile internet much more frequently.”
Coming to a smartphone screen near you
Loyalty programs aren’t being left behind: Some
marketers are already making the move into mobile
loyalty efforts, including Starbucks, which has tested a
loyalty program based on 2D barcodes deployed through
SMS; Starwood Hotels, whose Starwood Preferred Guest
program now boasts its own iPhone application in which
members can access their account on their mobile
device; and Hilton Hotels, which tracked how its best
HHonors customers used its mobile website before
deciding how to best develop several brand-specific apps.
“A whole generation of consumers is online and moving
to mobile – that is how they receive their information,
that’s how they get their product information, that’s where
they get their offers,” says Bruce Pryor, Vice President
of Marketing at Zavers, whose mobile couponing platform
ties directly into existing client loyalty programs such as
A&P and Pathmark. “These consumers are not reading
the newspaper to get the FSI’s as they did in the past. The
mobile component is perfect for reaching that consumer
in the environment they are comfortable with.”
Mohammad Khan, Founder and CEO of ViVOtech, whose
contactless NFC sticker technology for existing phones
integrates with loyalty programs to drive coupons,
promotions and mobile payment options, agrees that
mobile loyalty is nearly ready for its close-up. “Loyalty
is going to move to the next level with mobile, in terms
of being associated with all of those things you enjoy in
real time when you are out there shopping,” he says. “At
the end of the day, it's the kind of CRM companies have
been looking for, because mobile makes it very personal,
with methods that have more value to customers.”
According to Jerry Rocha, Vice President of Mobile Media
at Nielsen, the current massive migration to smartphones
is due to several stars aligning within the industry,
including cheaper data plans, bigger screens, faster
networks, better keyboards and touch screens, more
available media, and increased functionality. “With all of
these factors,” he says, “when you start thinking about this
from a worldwide perspective, it’s a big game-changer.”
Resolving some of the problems that faced early
smartphones with faster downloads, easier web-surfing,
and more user-friendly functions means that the smarties
can now begin to meet a wider target market’s
requirements, adds Dr. Purdy. “The functionality is good
enough that now the smartphone can serve a larger
Dialing Smartphone Numbers
Revenue from app downloads from stores worldwide will explode
over the next three years, though not as fast as the number of
downloads themselves. Gartner explains that there will be a shift
from today's early adopters, willing to pay for cool and useful apps,
to a greater percentage of mainstream users more interested in
free apps. "Advertising-sponsored mobile applications
[included in the revenue numbers]
+380%
will generate almost 25% of mobile
application stores revenue
by 2013," says Gartner.
• Source: Dataquest Insight: Application Stores; The
Revenue Opportunity Beyond the Hype, Gartner, 2009
• 2010 projected growth figures based on
increases over 2009 (base: 2.5 billion downloads
and $4.2 billion in revenue in 2009)
• 2013 projected growth figures based
on increases over 2010
4.5 Billion
Downloads
+79%
2010
$6.8 Billion
Revenue
+58%
audience and is relatively inexpensive,” he says. “We
have reached a point where we’ve migrated out of the
‘gee whiz’ phase as far as this technology.” And from a
marketer’s perspective, he says, companies can reach
a growing audience with capabilities that reach all
industry sectors at good price points.
As smartphones become more dominant over the
next few years, Purdy says, their applications and
functions will continue to mature and people will
progressively feel more comfortable using their cell
phones for more tasks and transactions: “There is a
cultural and social acceptance, versus something
people are afraid to do.”
As a new decade gets underway, smartphone penetration
is expected to build steadily, while mobile broadband
use continues to grow, beta-tested technologies are
refined, and data plans get even cheaper. At COLLOQUY,
we believe mobile technologies will eventually evolve to
play some of the following roles for loyalty marketers:
As a loyalty membership ID: The mobile phone
could serve as a replacement for the traditional
loyalty card or keychain tag, offering a new way to
load or accrue rewards.
As a points redeemer: While a mobile device can be used
as an ID to allow customers to earn points, it can also
21.7 Billion Downloads
www.colloquy.com
2013
$29.5 Billion Revenue
+335%
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