In a study by COLLOQUY, a loyalty industry rag, it was found that online loyalty programs can actually drive repeat customer business for retailers. That’s some pretty good news for the online e-commerce industry, since they saw a reduction in online shopping this past quarter. The key here is that loyalty programs need to be done right and that retailers need to jump on board this band waggon quickly before the market becomes flooded and consumers start to develop indifference to online loyalty initiatives. That is also great news for the multitude of online rewards programs, online malls, affiliate marketers and others who strive to drive repeat business for their retail merchants by marketing shopping offers to their members. These programs act as coalition loyalty programs, such that they aim to drive loyalty to a coalition of different retailers. The COLLOQUY report was focused around single-brand loyalty programs, like Macy’s.com for example. However, I would have to believe that online retail loyalty extends to the world of online rewards programs, which is a huge driver of sales referrals to hundreds of online retailers. To check out the COLLOQUY report, click here.
