Impact of Internet of Things-based customer relationship management on customer satisfaction and loyalty: a case of Saudi Airlines

Abstract This study empirically examines the impact of Internet of Things (IoT)-based Customer relationship management (CRM) on the satisfaction and loyalty of Saudi airline customers. Utilizing the Resource-based view (RBV) as a theoretical lens, the study posits that service quality and network linkages are twin capabilities of IoT-based CRM that enable airlines to satisfy customers and earn their loyalty. Based on the partial least squares structural equation modeling (PLS-SEM) analysis of survey data from 461 customers, the research finds that five service quality features of user-friendliness, personalized services, reliability, security, and information quality positively impact customer satisfaction, whereas accessibility did not. The results also indicate that airlines’ linkages with partner airlines and airports significantly affect consumer satisfaction, whereas their alliances with banks and hotels do not. Moreover, satisfied customers are likely to be loyal. Therefore, Saudi Airlines should focus on the five service quality features and two linkage features to succeed and thrive in the current competitive environment. This will allow them to contribute to Saudi Vision 2030 by promoting tourism and leveraging digital transformation.