Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: REWARD CUSTOMERS

CHOICE 2 SEGMENTS: COMPANY REVENUE IMPROVEMENT SEGMENT / USE A THIRD PARTY PRODUCT ON WHICH THE COMPANY RECEIVES REVENUE

CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No. SIC Year Notes
1 5600 2006 L.L. Bean has discontinued its 2005 offer of free shipping. It is now restricted to customers using the L.L. Bean Visa Card.
2 6021 2004 National City is giving away vouchers for a free companion airline ticket with the purchase of one ticket at the standard fare.
3 6141 2002 American Express is offering to holders of new cards to earn two Membership Rewards points for every dollar they spend at most grocery stores, drugstores, gas stations and other retail establishments. Holders of platinum and black cards get the perk too.
4 6211 2000 DirectAdvice.com has made a deal with E*Trade to offer its services to customers of the brokerage firm. The service, which normally costs $75 when accessed directly over the Internet, will be free to some wealthier E*Trade customers.
5 6531 2005 LendingTree.com and RealEstate.com lure in sellers by negotiating directly with realtors. They find agents for buyers and sellers, who agree to give the company about 30% of the commission in exchange for the client. The company then offers a portion of that back to clients in the form of a rebate or gift card. However, clients must use an agent recommended by a participating brokerage firm. In response, some traditional real estate firms have begun to offer similar services.
6 7375 2000 Excite, Lycos and Alta Vista teamed up with FirstUp.com, a free Internet service provider in San Francisco. Yahoo partnered with K-Mart's bluelight.com which in turn gets it's Internet service from SpinWay.com. All of the partnerships involve sharing revenue from ads in e-commerce.
7 7375 2004 With trading volume down and competition up, online brokers are devising new ways to attract investors. Fidelity is teaming up with eBay to give special rewards to eBay customers who open accounts

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