Lycos Teams with Netcentives for Loyalty Program

Lycos Inc. launched a network-wide rewards program built in conjunction with Netcentives Inc., a provider of Internet loyalty programs.

The strategic program is designed to reward and retain Lycos’ best members, the company said. Financial arrangements between the companies were not disclosed.

Lycos Rewards uses a custom-branded currency, called Lycos Points, that visitors can earn through a variety of online and off-line activities, including applying for and using the Club Lycos MasterCard and shopping at the new LYCOShop e-commerce destination.

Lycos Points can be redeemed for brand name merchandise and gifts, including the Palm Pilot V, a digital MP3 player, a portable CD player and other rewards.

“Lycos Rewards will assist us in engendering loyalty and raising switching costs for both our new members and our long-time users,” said Ron Sege, executive vice president for Lycos.

“We selected Netcentives because of the strength of the team both in marketing strategy and in technical prowess,” said Richard Turcott, manager, corporate rewards and direct marketing for Lycos.

The companies have also designed tracking and redemption processes; statement presentation; rewards redemption and fulfillment programs; and developed channels for direct communication.

Netcentives will also provide database management services, customer service and technical support, a customized rewards catalog and marketing consulting. Netcentives Professional Services will provide Lycos Rewards with merchant integration services.

Netcentives operates the ClickRewards Shopping Network, custom loyalty networks for major brands and portals and ClickRewards@Work, a corporate incentives solution.