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Paul Cook, CEO, RedEye I have a few points to add to Andy Wood's opinion piece about the limited impact of online loyalty schemes (NMA 29 January). In the physical world, retailers have invested heavily in loyalty schemes because the payback is detailed

Paul Cook, CEO, RedEye I have a few points to add to Andy Wood's opinion piece about the limited impact of online loyalty schemes (NMA 29 January). In the physical world, retailers have invested heavily in loyalty schemes because the payback is detailed customer data that would otherwise be very difficult to obtain. But in the online arena you can build a rounded view of your customers without the need for a card to collect the data. Second, there's less of a requirement to incentivise customers online at present. The Internet is still in a relatively early stage of development, and when a consumer finds a site that offers good service and pricing, they have a tendency to remain loyal on the strength of those qualities alone. Clearly, as the Internet develops and more and more sites become very good at what they do, the market will become more competitive and the onus on incentives will increase. E-loyalty schemes should therefore be viewed as a good idea whose time is still to come.

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Published 12 February, 2004 by NMA Staff

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