Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: AFFILIATED MEMBER SEGMENT / MEMBERS OF COMPANY SPONSORED CLUBS OR AFFINITY PROGRAMS
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 5141 | 1997 | Frequent shopper cards allow grocers to offer discounted items only to loyal customers. |
| 2 | 5900 | 1997 | In traditional retail, it takes about $10 billion in sales to make $150 million in profits. CUC can make more than that selling memberships to consumers interested in discount web shopping. NetMarket recently signed up 700,000 members, many at an introductory rate of $1 for three months. One hundred thousand new members join each month and a significant percantage stay on. These people pay the full annual fee of $69. |
| 3 | 5912 | 2001 | Merck-Medco, a pharmacy-benefit manager, is offering a drug discount program with Reader's Digest to seniors called Your Plan. Seniors who pay a $25 initiation fee can receive discounts on all drugs. |
| 4 | 5912 | 2009 | CVS Caremark Corp. is apparently steering its pharmacy-benefits patients to its own drugstores by raising co-payments for some who fill their prescriptions at other pharmacies—and competitors are crying foul. The company sent its patients letters that warned them that their co-payments would rise to 50% of the cost of their drugs from 25% unless they switched their prescriptions to a CVS pharmacy. The letters appear to relate to a program called "Maintenance Choice," under which patients can opt to fill 90-day prescriptions through CVS drugstores for the same cost. Company officials have labeled it a success, saying it boosted CVS's in-store pharmacy sales in the first quarter by 1.2 percentage points. CVS's effort appears to be penalizing patients directly for patronizing competing drugstores. |
| 5 | 5942 | 2007 | While Borders phases out generous customer loyalty programs, Barnes & Noble raised the discount offered to paid club members to 40% on hardcover best-sellers and 20% on all adult hardcover titles. Members continue to receive a 10% discount on everything purchased in stores. Members pay a $25 yearly fee. |
| 6 | 7011 | 1987 | Hotels offering hospitality clubs, which (for a $50-$65 annual fee) give user discounts at restaurant, use of facilities. Only economically rational for larger customers. |
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