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: PROVIDE A REBATE
| No. | SIC | Year | Notes |
| 1 | 4724 | 1987 | Discount travel agency, FareDeal, charges a $25 annual membership fee and gives 5% rebates on airfare, hotels and rental cars. |
| 2 | 5411 | 1989 | Safeway and others are giving out "preferred customer" cards that give frequent shoppers extra perks (savings). |
| 3 | 5411 | 1997 | Dorothy offers Club DLM. Customers sign up for the discount program by providing some personal information, such as name and address, in exchange for a card, which the company uses to track buying habits. Allowed Dorothy to stop running item-price ads. |
| 4 | 5411 | 2001 | The Safeway Savings program has improved store sales and increased customer loyalty. The most loyal customers are rewarded with selective discounts and are therefore encouraged to devote a larger fraction of their total expenditure to the store. |
| 5 | 5541 | 1994 | Sunoco offering a joint credit card with Mastercard which offers rebates on gasoline purchases. |
| 6 | 5621 | 2001 | Chico's has created good customer relations with their Passport Club which offers a permanent 5% discount for $500 spent, which has encouraged their Club members, about half of their total sales, without affecting margins. |
| 7 | 5812 | 1991 | Metro offers a "Preferred Customer" card that entitles the bearer to a 10% discount on any purchases. Expires 9/15/91 |
| 8 | 5941 | 1998 | For $15 the believers of REI get a lifetime membership in the co-op, entitling them to annual patronage dividends averaging 10% of purchases. The retail chain boasts 1.5 million active members. |
| 9 | 5942 | 1990 | Waldenbooks is launching a membership program to reward frequent book buyers with discounts and extra service. Membership will cost $10 a year ($5 for those who sign up in March). Members will get an immediate 10% discount on every book in any store. For every $100 of accumulated purchases, members will receive a $5 discount coupon. Membership also offers such benefits as check acceptance without additional identification. There's some concern in the industry that the pricing move could start off a pricing war. B. Dalton/Barnes & Noble says that it will follow with a membership program if the Waldenbooks program is implemented as planned. Crown bookstores currently offer 35% to 40% discounts on best sellers and 20% off most other hard-covers. |
| 10 | 5961 | 1995 | Members of CUC's travel club get a 5% cash refund on all purchases. That means that anyone who spends more than $1000 a year on travel earns back his $49 travel membership fee. |
| 11 | 6141 | 1990 | Citicorp has a frequent-shopper program, which gives customers a personal bar-coded scanner card to give customers automatic rebates and discounts. |
| 12 | 7011 | 1986 | The 307,000 seniors who belong to the Days Inns club receive discount rates–they accounted for 10% of the chain's revenues last year. |
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