Loylogic, Zurich, Switzerland, has reached a deal with an undisclosed shipping company to consolidate shipping across a single provider, which Loylogic says will provide more consistent shipping to consumers.
Loylogic’s network includes more than 1,500 merchants offering over 10 million products that consumers can purchase by redeeming loyalty rewards from companies such as SAS, Delta, United and IHG.
Loylogic’s platform supports product fulfillment, several different languages and local currency at checkout.
Consumers, particularly those participating in airline and similar loyalty programs in which the reward levels (e.g., free trip or hotel stay) take a long time to accumulate like the idea of using points for some or all of an e-commerce purchase, but sometimes are taken aback by the shipping changes, particularly the cost of international shipping, Lars Holmquist, Loylogic chief operating officer, told Loyalty 360. “We enhance the loyalty programs with our e-commerce shopping services. What we offer doesn’t replace the rewards available from a company, nor is it intended to do so. It is designed to augment want is offered by the loyalty reward program sponsor.”
International travelers with companies such as SAS tend to only earn rewards when traveling to and from the hub city, not from spoke cities, according to Holmquist. So those loyalty members might travel frequently, but not frequently enough to and from the hub to accumulate the points necessary for free trip.
Other times, even frequent travelers want something other than another flight or another hotel stay, particularly if much of their work involves flying or staying in hotels, according to Holmquist. So Loylogic’s program provides another option to use the rewards.
The Loylogic program enables consumers to purchase products with loyalty rewards or to purchase them with a combination of loyalty rewards and cash.
But international shipping – Loylogic has shipped to more than 150 countries since the company’s inception in 2005 -- has at times offered some challenges that the new partnership should help overcome, according to Holmquist. “This will further strengthen our positioning as a global e-commerce player.”
It’s frustrating to decide to redeem points for an e-commerce purchase only to get to the end of the checkout and find that the shipping costs are prohibitive, he explained. The shipping becomes particularly complex and expensive when shipping between different countries.
By marrying the Loylogic program with a single shipper rather than different shippers in different countries, Holmquist expects to be able to offer consumers with better consistency and pricing for their purchases.
The new partnership will result in full visibility of all shipments from pick-up to delivery, Holmquist added. Increased efficiencies also include streamlined customs clearance; full shipping integrations with time and transit estimators for merchants; and automatic e-mail notifications of shipment milestones resulting in faster order processing.