Authors: Catherine Sutton-Brady; Nicole Stegemann
Previous research on loyalty programs in Australia has shown the benefits gained by partnersin these programs. This paper develops this research and introduces the concept of networkdevelopment in loyalty programs. It builds on the theory of network development (Hertz andMattson, 2004) and uses the role of strategic alliances to explain the implications of networksfor the success of loyalty programs. The loyalty program utilised in this paper is FlyBuyswhich is run by Loyalty Pacific, a joint venture formed by National Australia Bank, ShellAustralia and the Coles Myer Group. The initiators of Pacific Loyalty recognised the need toincrease and improve their individual customer databases. The development, maintenanceand usage of a data system that size, requires special skills and a large financial commitment.A sophisticated hardware and software solution is essential in order to track and manage thegrowing amount of data, transactions and services offered such as statements, service callcentre and point collections. As the computer system plays a vital and ongoing role in thesurvival of this consumer loyalty scheme, a strategic alliance with HP/Compaq services wasformed. This paper highlights the importance of HP/Compaq as the provider of theinformation technology platform which drives the program and shows how their role hasdeveloped and been expanded overtime.
Journal: ( – )
Web Address:
Publish Year: 2004
Conference: Copenhagen, Denmark (2004)