Newegg.com: Who Says You Can't Buy Loyalty?

No one knows this better than Newegg.com, the nation's second-largest online retailer. The Industry, Calif.-based company has put its money where its philosophy is.

Newegg recently rewarded Chicago customer Kevin Thornton with a new US$26,800 Mini Cooper S as part of the company's second annual customer appreciation sweepstakes.

Rewarding Loyalty

Newegg handed out a total of more than $50,000 in prizes, including the car, digital cameras, iPods, portable DVD players, Bluetooth headsets and flash drives.

Thornton said it took him a while to realize he'd actually won the Mini Cooper.

"I was quite surprised ... I really didn't believe it," said Thornton, 41, who owns a realty business in Chicago. "This has been going on for a month or so as we worked out the details. At first I was skeptical that it was true but today I drove the car for the third time."

Strong Brand

Newegg's Web site allows shoppers to compare a broad selection of high-tech products. Users can view detailed product descriptions, pictures, how-to information and customer reviews. They can also interact with other members of the technology and gaming community.

The company recently took second place in a debut review by the American Customer Satisfaction Index. The index is a national economic indicator that examines customer perceptions of the quality and value of products and services offered by more than 200 leading brands.

In the highly competitive online retail category, Newegg.com ranked No. 2 behind Amazon.com (Nasdaq: AMZN) , demonstrating the company's ability to foster brand loyalty.

"Our customer base keeps coming back over and over, which is extremely important to us," said Bernard Luthi, Newegg's vice president of merchandising. "We like to say that you can not only come to us for products -- we also want to make your experience better."

Making It Easy

A large part of Newegg's appeal, according to Luthi, is the ease of buying.

"You can do it all from your home," he said. "You can pull tremendous amounts of information and research and look at products from multiple angles. You never have to get in a car or stand in line and that product can be on your doorstep in two to three days."

Thornton said he's become a solid Newegg customer.

"I think the company is great," he said. "I'll obviously turn to them for all of my electronic needs -- things like TVs and computers -- from here on."

Newegg.com is the second-largest online-only retailer in the United States, attracting more than 8.7 million registered users.

Founded in 2001, Newegg employs 1,500 people and generated about $1.9 billion in revenue in 2007. The company's Industry operation includes more than 400,000 square feet of space.