Cash is Best Carrot in Cyberspace

Thu. May 4, 2000 12:00 AM by Business Wire

Westport, CT - When it comes to Internet incentives, nothing beats the power of cash, according to a recent study conducted by Digital Idea, an Internet-focused consulting firm.

Ninety percent of consumers polled prefer cash to miles, points, beenz, and other Web currencies as part of an Internet customer rewards program.

According to the survey, 85% of consumers would switch to a site that offered cash incentives and 72% would probably spend more money on a site that offered cash. Forty-four percent of respondents felt confused by other Web currencies, agreeing with the statement, "I don't really understand the monetary value of things like beenz, points, or miles; cash is real money, the others are play money." Cash is the next generation in Web incentives, moving beyond customer attraction to customer retention.

"Given the fact that nearly half the consumers surveyed shop online at least once a month, it's vital for E-retailers to take advantage of the most effective incentives available," said Patrick Harris, president of iGain, a cash-based loyalty and customer retention program. The survey revealed that consumers see online rewards as an important part of their Internet shopping experience.

In fact, 73% of the respondents agreed that in order for E-retailers to win customer loyalty, their rewards programs have to offer true value, not just the occasional deal. "Cash rewards are a proven way of building loyalty and giving consumers a compelling reason to increase spending on their favorite sites," added Harris.

Digital Idea conducted the survey of 1,000 Web users for iGain, the creator of the cash-based loyalty and customer retention program. Founded in 1998, iGain provides E-retailers with a turnkey, client-branded marketing system that encourages high purchase volume and repeat site visits. For more information about iGain or the survey, please call (203) 227-2442, Ext. 201, or visit iGain's Web site at

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