Online Loyalty Programs Not Enough, Says Jupiter Study

The majority of online consumers participate in loyalty programs but less than one-fourth say programs are important in motivating them to make a purchase, according to a new study by Jupiter Communications Inc., New York.

Although 75% of respondents to the study say they take part in programs geared to retaining them as customers, only 22% indicated that loyalty programs serve as an incentive to purchase online. They placed a higher value on easy returns (40%), customer service (37%) and product selection (37%).

Loyalty programs must go beyond points. Customers return to sites where they receive tangible value for being loyal, whether the value is priority service, personalized offers or e-mail updates, said the study.

Lessons for e-commerce players include improving customer-service response rates; streamlining product research and purchasing navigation; enhancing product information; and easing the return process. Some 85% of online buyers said that the ability to return merchandise easily is important to them, but more than half remain dissatisfied with the process, the survey found.

In unrelated news, Jupiter has invested in Inside.com, a Web-based entertainment and media business information service. The amount of the investment was not disclosed.