Ipoints says it expects to be cash-flow break-even this quarter
London-based ipoints.co.uk, U.K.’s largest Internet-based rewards program
with more than 60 partners and 15 rewards categories, expects to achieve break-even on a cash flow basis this quarter.
Even in the midst of the Internet craze, Managing Director Aaron O’Sullivan
says the company had always planned to take it slow. “We kept our heads and
had a realistic game plan,” he says. “We saw an opportunity to use the
Internet to provide a more efficient loyalty program to consumers. We were
realistic about how much business would be on the web.”
While ipoints didn’t overestimate the market, it also didn’t over-staff. “We have never laid off employees. We have 20 now and that’s hugely efficient to manage our customer base of a quarter of a million,” O’Sullivan says.
Ipoints’ first big-name partners included Entertainment Express and ScreenTrade, which gave the program credibility to attract others such as Halifax and Woolworths. Since its launch, the company has bought out its main competitors, including
Surfmiles.com and WebRewards.com.
Part of ipoints’ plan is to stick to its core geographic area--the U.K. “We’ve always been focused on the U.K. market,” O’Sullivan says. “Loyalty programs do not work in multiple countries because you don’t have customers who buy their flowers in Germany and their CDs in the U.K.”
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