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 FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No.	SIC	Year	Notes
1	4522	2006	As the number of companies offering fractional jet ownership and jet cards increases, companies are working to encourage customer loyalty. Blue Star jets announced a plan in which it allows customers to accumulate frequent flier miles which may be redeemed for luxury car rentals and Coach handbags.
2	4813	1987	Pacific Bell has a "Call to Adventure" bonus points plan. When you make phone calls, you gain points (toward airline tickets).
3	5311	2007	Luxury retailers are working to encourage loyalty by offering big spenders additional perks rather than attracting new customers. However, these services often require hefty spending and are subject to restrictions. Interest rates on store cards are often very high. Nordstrom introduced a tiered reward program, which allows shoppers to earn free shipping, special trips and access to exclusive events. Access depends on spending levels.
4	5311	2007	Luxury retailers are working to encourage loyalty by offering big spenders additional perks rather than attracting new customers. However, these services often require hefty spending and are subject to restrictions. Interest rates on store cards are often very high. Neiman Marcus is offering members of its InCircle rewards program the opportunity to buy a limited-edition Lexus with five million points. Rewards offered vary by year. It is also testing a credit card which lets shoppers earn points.
5	5411	1986	For every dollar spent at Acme, "frequent buyers" accumulate credits toward discounts on car service, casino entertainment, admission to the zoo.
6	5411	1989	National Convenience launched a frequent shoppers program. After customers bought so many products, they got free gifts. It was wildly successful: gallons of gasoline sold at stores open more than a year shot up 20%.
7	5511	2006	In order to combat declining car sales, auto dealers are expanding rewards programs to lure customers back to dealerships. The programs give points for money spent in the dealership or offer a branded credit card which generates points. These points can be used for oil changes, tire rotations and a new car. General Motors introduced a Flexible Earning Card which allows cash refunds for any purpose on the list of available rewards.
8	5511	2006	In order to combat declining car sales, auto dealers are expanding rewards programs to lure customers back to dealerships. The programs give points for money spent in the dealership or offer a branded credit card which generates points. AutoNation, a dealership chain, offers Punch-A-Deal key tags which allow customers to save punches and get a reward.
9	5999	2000	Neiman Marcus's InCircle Rewards loyalty program has two tiers to reward customers that generate the majority of the company's sales. The program uses exclusivity and attention-grabbing rewards to reinforce the company's value proposition among high-spending segments and create a halo effect among the broader customer base. Membership is limited to customers who spend at least $3,000 annually. In-store parties are available for all members but exclusives, like vacations or customized artwork is restricted to the biggest spenders.
10	6021	2006	As rates for home equity lines of credits rise, banks are offering special promotions and rate cuts to ensure consistent demand. National City gave rewards points to customers when they take out a home-equity line or loan and when they access it with a credit card. Points accumulated can be redeemed for gift cards, consumer electronics and airfare.
11	6141	2004	A debit-card user can exchange 10,000 Visa Extras points for a $25 gift card from the Gap. In contrast, an American Express credit card holder could get $100 in Gap gift cards for 10,000 points. One big catch: American Express charges an annual fee for many cards that earn Membership Rewards points, while most Visa issuers will be offering free rewards.
12	6141	2004	A debit-card user can exchange 10,000 Visa Extras points for a $25 gift card from the Gap. In contrast, an American Express credit card could get $100 in Gap gift cards for 10,000 points. One big catch: American Express charges an annual fee for many cards that earn Membership Rewards points, while most Visa issuers will be offering free rewards.
13	7011	1987	Marriott offers its frequent customers free or discounted hotel rooms, airline and cruise tickets, and gifts as they use its hotels frequently. Holiday Inns Priority Club, Hyatt Hotels Gold Passport, Ramada Business Card, and Sheraton International Club all have similar programs.
14	7011	1988	If you're a member of the Heavenly Ski Club (one-time fee of $35) and ski five days, you can get a ski club hat or T-shirt. With 10 days you get a set of four Heavenly coffee mugs or a fanny pack; with 15 days a sweatshirt or tote bag.

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