Cash Is King

When it comes to Internet incentives, cash is king, according to a recent study conducted by Digital Idea, an Internet consulting firm. Some 90% of consumers polled prefer cash to miles, points, beenz and other Web currencies as part of an Internet customer rewards program, says the Westport, Conn.-based firm. The survey shows that 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. Some 44% 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, says Digital Idea. "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," says Patrick Harris, president of iGain, a cash-based loyalty and customer retention program. The survey reveals that consumers see online rewards as an important part of their Internet shopping experience, Digital Idea says. 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. Digital Idea conducted the survey of 1,000 Web users for iGain, the creator of a cash-based loyalty and customer retention program. iGain provides E-retailers with a turnkey, client-branded marketing system that it claims encourages high purchase volume and repeat site visits.