Saturday,
November 11, 2000
Online Microrebate Programs May Be
Huge
The Internet is putting more power into merchants' rewards and rebate programs.
According to IDC, the Web is facilitating merchants' and consumers' involvement
in microrebate investing programs, which reward consumers for their loyalty
by moving a percentage of their purchases directly into investment accounts.
"These loyalty/rebate programs are a
good fit with consumers who recognize they aren't saving
enough and want to participate in the potential returns
of the stock market, yet continue to incur large discretionary
spending," said Shaw Lively, online investing analyst
for IDC's eInvesting program. "The Web has facilitated
development of these offerings by providing easy enrollment,
ongoing program information, and 24x7 feedback on investment
balances and performance."
IDC estimates in 2004, at least 50% of
every U.S. income segment will be online. As a result,
microrebate investing programs have a huge pool of
potential customers at every income level. Nevertheless,
traditional savings vehicles, such as mutual fund,
brokerage, and bank accounts will offer viable competition
- especially for consumers with high incomes. According
to IDC, a determining factor of the success of microrebate
investing programs will be how easy they are to sign
up for and use, how many merchants participate, and
the ability of microrebate investing companies to sustain
consumer participation.
