eBucks, the reward programme that started life as a virtual semi-currency from FNB, saw members spending R62 million worth of eBucks in the last quarter of 2007 – 34% more than the same period in 2006. This is almost exactly in line with projections for growth of the online retail market …
eBucks, the rewards programme operated by First National Bank, had an exceptional festive season with members spending R62 million worth of eBucks in the last quarter of 2007, 34% more than the previous festive season. Both the eBucks card and the eBucks shop showed strong growth.
The 34% growth is almost exactly in line with World Wide Worx’s forecast for 35% growth in online retail in South Africa.
However, the growth comes at a time when many bricks ‘n mortar retailers are reporting a decline in sales as a result of higher interest rates.
Lezanne Human, CEO of eBucks, said: ‚Our members benefited from using the eBucks they had accumulated to extend their purchasing power significantly during the festive season. The range of choice on offer and the versatility of the rewards programme, which allows members to choose where, how and when they spend their eBucks, underpinned the strong showing over the festive season.‚
Human said the increase in spending reflects the continuing growth in popularity of the programme.
‚Our member base and the number of eBucks they spend has grown annually since the inception of the programme. On average, over 80% of eBucks earned are spent, and this obviously increases dramatically over the festive period. With the range of spend channels and the range of products and services available to members, there truly is something for everyone, no matter how high or low their eBucks balance is.
‚We are encouraged by the strong growth we enjoyed with our retail partners and the extent to which members are using their eBucks card to essentially shop for free at those retailers with the eBucks they’ve earned.‚
The online shop also reported strong growth in the last three months of 2007, which is in line with both local and international online shopping forecasts.
Items topping the popularity stakes in online purchases through the eBucks shop included vouchers, both traditional paper vouchers, and ever increasingly, digital vouchers, electronic goods such as digital cameras and pre-paid airtime as members topped-up to stay in touch with family and friends. With the recent launch of eBucks’ kulula.com online booking facility, many members also chose to use their eBucks to fly for free to their holiday destination.
‚This latest partnership has been very well received by our members,‚ said Human. ‚In fact we are already filling more than 20 kulula.com aeroplanes a month with eBucks members using their free eBucks to pay for their flights.‚
eBucks was recently named as the multi-partner rewards programme that members get the most value out of, according to Razor’s Edge Business Intelligence’s 2007 Value in Rewards Programmes survey.
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