New loyalty scheme brings revenue stream to retailers

Webloyalty has launched its shopper discounts and rewards programme in UK. The scheme has been running successfully in the US with 140 retailers and has now moved to the UK market with Interflora being the first retailer to sign up for the new concept.

Membership to the Webloyalty scheme is offered on participating retailers’ sites once a customers has completed a purchase. When a shopper would normally see a thank you for your order or click here to continue shopping message, an offer is highlighted – such as money off future purchases. They can then click through to the Webloyalty site and find out more or sign up for the scheme.

Interflora customers, for example, have the option to join Webloyalty’s Shopper Discounts and Rewards programme and received up to 40% off online purchases with retailers such as M&S, John Lewis, Asda, Tesco, PC World and Lastminute.com. New members also receive a GBP 10 cash back voucher towards their next purchase at Interflora.co.uk. This GBP 10 is funded by Webloyalty.

The retailer benefits from an extra revenue stream since Webloyalty pays retailers for each new member that signs up. It’s also adding value to the customer’s purchase and deepening the relationship between the retailer and shopper. Michael Barringer, Marketing Director of Interflora said that this, along with the transparency, is amongst the factors that made the scheme appealing to the company.

As well as the GBP 10 cash back, Webloyalty offers extended warranties and insurance on purchases, it is very transparent and if for any reason customers are unhappy with the scheme “it is very easy to get out of,” said Barringer.

He commented: “Teaming up with Webloyalty has greatly benefited our internet business in the UK.” (The sign-up has been higher than Barringer expected). “A good proportion of our customers take advantage of the Shopper Discounts and Rewards offer and return to our site for a repeat purchase. Webloyalty has found a compelling model, giving regular online shoppers a new and great value way to earn online cash rebates, and providing e-retailers with a very welcome source of new revenue. I think Webloyalty may have hit upon a gap in the UK e-business market, and envisage that it could be a success with retailers and consumers.”

Whether Interflora would have signed up for the scheme had it not already been proven in use by its parent company FTD Group is another matter. “It may not have got passed my desk,” said Barringer. Explaining that the scheme does take some internalising because it’s something new, he said that people have to be sat down and have the scheme explained to them. “It helps that it’s in place in the US,” he concluded.