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 THE COMPANY, OTHER THAN THE PRODUCT ON SALE
| No. | SIC | Year | Notes |
| 1 | 4512 | 1986 | Members of Pan Am's Select Frequent Traveler program can save frequent-flier miles in an International Relaxation Account, where they draw interest at 10% a year. Miles can be credited toward free annual travel after retirement. |
| 2 | 4512 | 1987 | Northwest said it will give passengers who fly first class or executive class across the Pacific this Fall free tickets for Northwest flights in the continental US and Canada. Price cut is for members of its Worldperks frequent flier program. |
| 3 | 4512 | 2003 | Delta Air lines is increasing some benefits for its highest paying loyal customers enrolled in its Sky Miles program. Starting in January, Delta will allow medallion members free first class upgrades when they book certain higher fares. |
| 4 | 4512 | 2004 | American Airlines cited sagging coach-class fares for its decision. "With fares so low, the disparity between discount and premium-class fares is too great to be offset by miles alone. Rather than limit upgrade awards to full-fare tickets only, it will allow AAdvantage members to upgrade even if they buy a deeply discounted ticket." |
| 5 | 4512 | 2008 | Delta Air Lines Inc. announced a "Pay with Miles" Program, by which members of its SkyMiles program who have a gold or platinum SkyMiles American Express card can purchase any ticket with a combination of cash and miles. Before, only a select number of seats on every flight could be used for frequent-flier travel and the lowest mileage allowed to buy a ticket was 25,000. |
| 6 | 4812 | 2009 | In February, Sprint launched Sprint Premier, a loyalty program for customers who have a monthly plan valued at $60 or more, a shared plan valued at $90 or more, or who have been Sprint customers for more than 10 years. Members may also upgrade their phones at preferred prices after one year instead of two, receive 25% off accessories and earn free minutes. Always competitive, Verizon Wireless quickly followed suit, letting customers with monthly plans of $60 or more pick five friends for free unlimited talk, even if those friends aren't on the Verizon network. |
| 7 | 5411 | 1997 | Food Lion has a "frequent filler" card that allows gasoline customers the opportunity to get free products, like bread or milk, from the store. |
| 8 | 5411 | 2001 | For grocery and discount stores, adding pumps is relatively simple, since they tend to own land around their stores. Over time, some of the stores raise prices to the market, but they may offer other incentives to compensate. Albertson's and H.E. Butt Grocery Co., a South Texas chain, give free gas to customers who buy certain products in the store. Savings range from 50 cents to $1 per item and are tallied like coupons at the register. Fill the shopping cart just right and you could leave with a free tank of gas. |
| 9 | 7011 | 1988 | Kirkwood's Frequent Skier Program says each time a skier buys a lift ticket with a Kirkwood Kard (one-time $20), the skier gets a "frequent use" coupon. 5 coupons can be redeemed for discounts in the area's ski shop, restaurant, or ski school; 15 coupons get you dinner for two at the restaurant, a free private ski lesson, or $40 off a midweek ski vacation package. |
| 10 | 7514 | 1990 | Hertz offers a price discount for those who sign up for the #1 Club Gold service. One free additional weekend day when you pay for at least one day of an Affordable Weekend rental. |
| 11 | 7514 | 2003 | Most small businesses don't usually partner with one rental-car company, though large corporations often do. Small businesses usually search for the lowest rates. Budget's rivals, Avis and Hertz, offer programs to entice small companies to deal with them exclusively. Budget's small-business program will offer rates 10% lower than its advertised rates. Companies that sign up can also receive perks like a waiver of additional driver fees. Companies will also be able to use Budget's expedited service which doesn't require renters to check in at the counter; it will also allow access to its frequent-renter program (enables renters to earn points for free miles, equipment, etc.) |
| 12 | 7514 | 2003 | Frequent renter programs have different levels of status depending on the number of times a year a customer takes trips. Club members get expedited rental car pickups, frequent flier miles on certain airlines, and are charged 50 cents for upgrades on rentals. |
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