The Net upends tenets of loyalty marketing

Barlow, Richard G.
April 2000
Advertising Age;4/17/2000, Vol. 71 Issue 17, p46
Trade Publication
This article discusses Internet-related trends in loyalty marketing. In the realm of loyalty marketing, it is time to adapt to the new millennium's realities by watching Internet-related trends. (1) The death of discounts. As a loyalty program benefit, discounts have always been a lame excuse for compelling added value. Enter eBay and countless eBay clones. Enter Priceline.com and its progeny. Say goodbye to list price. On the Internet, it just might cease to exist. And if there is no list price, how will we define a discount? (2) Trash and trinkets to moments and memories. The promotional world once turned on toasters and fishing rods, golf clubs and stereos, dinnerware and jewelry--to use a crass term of the trade, trash and trinkets. Then came frequent-flyer miles. Then came Wal-Mart, a decade of declining unemployment. Priceline.com, countless other Internet shopping engines and more frequent-flyer miles.


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