Role of information and communication technology in improving loyalty program effectiveness: a comprehensive approach and future research agenda

Abstract

Loyalty Programs are a popular CRM technique in hospitality and tourism industry; they attract huge investments from firms worldwide. However, lately they seem to have reached a prosaic state; as a result, ROI from them in future is being seriously questioned. Industry experts and academicians alike are advising companies to reexamine their existing programs and seek newer ways to increase their effectiveness and appeal. A comprehensive, systematic and goal driven use of modern Information and Communication Technology (ICT) can make huge contribution in this regard. This paper, using constructs from prior LP research, synthesizes a conceptual model that exhorts a broader and holistic view on the role of ICT in LP management. Possible use of several latest technologies in LP lifecycle is illustrated by referring to relevant LP effectiveness literature. Then, using this model as a launching pad, several pertinent issues worthy of further investigation are identified and presented.