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Webloyalty brings a new revenue model to the online high street, Interflora.co.uk signs up

Online retailers could earn £818 million in extra income by 2011 according to Verdict Research

LONDON, UK, 13 June 2007 - Webloyalty, a leading US provider of online marketing services, today announced its expansion into Europe with the signing of its first UK client, Interflora.co.uk, part of FTD Group Inc., a world leader in flower and gift delivery.  The company will support Interflora.co.uk and other clients from its new central London office.

Customers shopping online with Interflora have the option to join Webloyalty’s Shopper Discounts and Rewards, a membership programme that offers cash back discounts of up to 40 percent off online purchases. Programme members receive discounts from M&S, John Lewis, Asda, Tesco, PC World, Lastminute.com and other popular e-tail sites. New programme members also receive a £10 cash back voucher towards their next purchase with Interflora.co.uk.

Michael Barringer, Marketing Director of Interflora UK commented: “Teaming up with Webloyalty has greatly benefited our internet business in the UK. 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.”

Interflora.co.uk and other clients benefit from Webloyalty providing the potential to increase their e-business revenue because Webloyalty pays its clients for each member who joins the Shopper Discounts and Rewards programme through their site. Clients can also benefit from increased site visits, as members return to the retailers’ sites to use their money-off voucher. The value offered by Shopper Discounts and Rewards also has the potential to enhance the relationship between online retailers and their customers and build positive brand associations. Webloyalty’s highly successful membership-based model for online shopper savings, discounts and insurance benefits brings something new to the fast-growing UK e-commerce market.

New Business Model, New Revenue Opportunities

A research report compiled by Verdict Research, the leading authority on the UK and European retail markets, states that in 2007 UK e-tail sites have the potential to generate an additional £130 million per year, growing to an estimated  £818 million by 2011 through the introduction of a post-transactional revenue model such as the one offered by Webloyalty.

This growth potential is fuelled by consumers’ decreased online brand allegiance, impatience with the limitations of points-based loyalty programmes and sensitivity to high prices.

“What Webloyalty does is to put a relevant offer in front of internet shoppers. Consumers who take it up benefit from significant savings. The retailers who offer the programme benefit by tapping into a lucrative stream of incremental revenue. Because Webloyalty benefits all parties, we believe programmes of its nature will grow significantly over the next few years,” said Neil Saunders, Consulting Director of Verdict Research.

Martin Child, Managing Director, Europe of Webloyalty said, “With Webloyalty’s UK launch, we’re bringing something genuinely new and valuable to the online high street. Our model will help retailers like Interflora create a secondary revenue stream from their web pages without having to host or market the platform. At the same time, consumers benefit from significant discounts and rewards. Our Shopper Discounts and Rewards product has been well received, and we’re confident about our growth prospects in the European market.”

Child, a former Vice President of Sales and Marketing at Yahoo!, brings more than 20 years of e-business experience to Webloyalty. The company’s Marketing Director, Gill Hynes, also has extensive experience of the UK customer loyalty and relationship marketing industry, having served as Marketing Manager of Air Miles and Head of Digital at Carlson Marketing.

Notes to Editors
Webloyalty is a leading provider of online marketing services. In the US, Webloyalty.com has more than two million subscribers, benefiting from reward, discount and protection programmes, including Shopper Discounts and Rewards and Reservation Rewards, an entertainment and travel programme with discounts off top attractions and dining. Webloyalty’s US clients – over 140 e-commerce and e-travel businesses – benefit from increased revenue and repeat purchases.

Founded in 1999, Webloyalty was recently named the 12th fastest-growing technology company in North America by the Deloitte and Touche “Technology Fast 500” award programme. Webloyalty.com was also named in the AlwaysOn Media list of the Top 100 Private Companies.

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James Curtis or Maria Englund
CitySavvy,  Financial and Corporate Communications
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