CompUSA, AOL Sign Deal to Provide Internet-Friendly Computers.

Knight Ridder/Tribune Business News

Aug. 28 -- CompUSA Inc. announced a marketing alliance Friday with America Online Inc. under which the Dallas-based computer retailer will begin selling machines configured to help new users get on the Internet.

The CompUSA brand computers will come pre-loaded with software for America Online, the world's leading Internet service provider with more than 18 million users, and CompuServe 2000, which is AOL's budget-priced service.

Each computer will have a customized keyboard with a special button that will call up the AOL sign-on screen. AOL customers now generally direct a mouse and click on a screen icon to start the program.

"People love convenience," said Wendy Goldberg, a spokeswoman for Dulles, Va.-based AOL. "That has been our secret sauce: ease of use and convenience."

Under the agreement, AOL and CompuServe customers will receive discounted rates for CompUSA's customer support service, called Dial-a-Tech.

CompUSA and AOL also said they will develop training classes on how to use AOL software effectively for a variety of tasks, including managing personal finances. The classes will be offered at certain CompUSA stores nationwide.

The computers will have built-in modems from 3Com Corp., recommended by AOL for maximum compatibility with the company's network.

Financial terms of the alliance were not disclosed. The PCs will be available this fall, the companies said. Prices and configurations have not been determined, said Suzanne Shelton, a spokeswoman for CompUSA, the nation's largest retailer of personal computers.

The alliance illustrates the value of the "newbie" to Internet companies. Surveys from Zona Research Inc. show that inexperienced Internet users are more likely to remain loyal to their service providers.

"By catching these new users early in the game," the Redwood City, Calif.-based firm said in a report, "AOL can begin to develop their brand loyalty and possibly create AOL members, and consequent revenue streams, for life."

Online services have also been seeking to build loyalty from new users with deals that offer free or deeply discounted PCs to those who sign up for long-term contracts. Many of those who have accepted those deals are first-time PC buyers.

In its announcement Friday, CompUSA noted that it will continue to offer a $400 discount on any PC to customers who purchase three years of CompuServe 2000 service.

CompUSA shares rose 6 cents to $7.19. AOL fell $1.31 to $99.13.

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