Points Program in High Gear at Autobytel.com

Frequent-flier miles have become just another form of currency, and Auto-bytel.com Inc. wants its own version.

Last week, the Irvine-based online automobile information and purchasing service announced that it had appointed the former manager of US Airways’ frequent-flier program to boost Autobytel.com’s own loyalty and rewards program.

Currently, Autobytel.com customers can earn points toward the purchase or lease of their next new or used vehicle through a dealer affiliated with the company’s Web site. Points are earned by buying items from Autobytel.com’s partners, which include travel agency Uniglobe, online wine store Virtual Vineyards, and flower retailer 1-800-Flowers.com. Customers also can earn points using the company’s branded Visa credit card.

But the company wants to increase the profile of the program, making it as ubiquitous as those of the airlines. Instead of being able to redeem points only in vehicle purchases, customers will also be able to use them for parts and service.

“We need to create a much deeper redemption chart for all things automotive, rather than just for the purchase or lease of a car,” said John Riordan, the new director of product development for Autobytel.com’s loyalty and rewards program. Riordan equated the company’s current limited redemption program with being able to apply frequent-flier miles only to trips to Paris on the Concord.

While Autobytel.com’s rewards program will be expanded, and Riordan has a history with the airlines, don’t look for alliances with frequent-flier programs any time soon.

Rewards programs are supposed to build the brand of the primary sponsor, in this case Autobytel.com. But partnering with, say, American Airlines, could overshadow Autobytel.com’s brand, which while strong online, is relatively weak offline.

“When was the last time you were at a party and someone talked about cashing in their Avis miles? No, they talk about cashing in their frequent-flier miles,” Riordan said.

Riordan believes there are enough opportunities in vehicle ownership and use to build Autobytel.com’s rewards program into one as strong as the airlines’, but that requires a careful balance between where customers earn miles and where they can cash them.