Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: CLUB MEMBER SEGMENT
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 | 5411 | 1986 | For every dollar spent at Acme, "frequent buyers" accumulate credits toward discounts on car service, casino entertainment, admission to the zoo. |
| 5 | 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%. |
| 6 | 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. |
| 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. AutoNation, a dealership chain, offers Punch-A-Deal key tags which allow customers to save punches and get a reward. |
| 8 | 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. |
| 9 | 6021 | 2005 | Wachovia plans to roll out a loyalty program where customers can rack up points and earn rewards for using its services. Points, which expire after 36 months, can be used for rewards such as airline tickets, hotel stays and merchandise. As retail banking is becoming increasingly competitive, banks are boosting efforts to attract high-income clients. Wachovia is targeting affluent clients, hoping that they will boost their accounts. |
| 10 | 6021 | 2005 | While smaller banks have launched programs that reward customers with multiple services, Citibank is the first large corporation to launch a rewards program based on the use of banking services. Bonuses are related to the type of bank account and the number of Citi products and services they use. Points can be spent on airline tickets, concert tickets and travels. This program is aimed at boosting consumer loyalty, if a customer has multiple services from the bank, defection is much more difficult. |
| 11 | 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. |
| 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 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. |
| 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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