From tools to trusted allies: understanding how IoT devices foster deep consumer relationships and enhance CRM

PurposeOur study investigates how IoT redefines the consumer-brand relationship and CRM from the consumer perspective, focusing on the anthropomorphization of smart objects and its impact on key CRM outcomes.Design/methodology/approachWe used in-depth interviews of 32 active users of various IoT devices.FindingsWe present a framework for IoT CRM that introduces a 2x2 topology of IoT technologies, emphasizing the significance of physical and social presence in consumer-object interactions. The framework also highlights the agentic and communal roles of smart objects and consumers, positing that the anthropomorphization of smart agents leads to enhanced CRM outcomes, such as brand loyalty.Practical implicationsWe provide actionable recommendations for marketers and product designers to enhance CRM outcomes by leveraging physical and social presence. Creating introductory IoT kits that combine smart agents with devices can strengthen consumer connections and boost brand loyalty, aligning offerings with observed consumer behaviors.Originality/valueAs IoT increasingly permeates our lives via smart home devices, our framework illustrates how these objects foster higher levels of physical and social presence, enhancing bilateral consumer engagement. This engagement encourages consumers to actively share their data and see smart devices as allies.