Here is something that online shoppers could soon be drooling over: Microsoft will reward Live Search shoppers in USA with cash refunds after purchases. Refunds will be fueled by commissions that online merchants agree to pay Microsoft if online ads on Live Search pages convert to sales.
Though currently limited to USA, this could be extended worldwide, and provide shoppers with one more reason to shop online. Microsoft’s strategy could very well be the next big thing, if the refund system works well and users are impressed by their experience at Live Search shopping. Microsoft has tied up with more than 700 partners for the refund program. Big names like eBay and Barnes & Noble are amongst Microsoft’s partners for the refunds program.
Google is currently the undisputed leader in the field that Microsoft is attempting to conquer. Users may very well stay with Microsoft if their product is compelling (coupled with the incentives provided to shoppers).
Online retail sales are booming worldwide, and the market in US alone is expected to reach 335 billion dollars per year by 2012. Over two-thirds of this originate from a search engine, which explains why Microsoft is anxious to gain traction in this space. This could also form part of the ‘deals’ that Microsoft will be negotiating with Yahoo soon.
This is not the first time that Microsoft has provided incentives for customers to use their services. Microsoft has, in the past, worked out deals with large companies for all their employees to use Live Search in return for credits which can be redeemed against Microsoft software or support.
While this might sound like Microsoft getting their cake and eating it too (getting more Live Search users and also spreading Microsoft software), this is a sound business strategy that could work wonders if planned well. However, with Microsoft having failed in most of their online endeavours, the ‘planned well’ part may not work out well. Wait and see, as they say.
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