Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: CUSTOMER COST SAVING SEGMENT / CUSTOMERS WHO USE LESS RESOURCES IN THEIR REGULAR PURCHASES
CHOICE 3 COMPONENT: PROVIDE A REBATE
| No. | SIC | Year | Notes |
| 1 | 4700 | 1987 | Taking a marketing cue from successful discount stockbrokers, new discount travel agents offer up to 10% rebates on the price of an airline ticket to customers who want nothing more than a ticket and a reservation. |
| 2 | 4911 | 2006 | Despite the risk of declining profits, energy companies are introducing conservation programs to improve their images. Pacific Gas and Electric, which has boosted prices by 43% for natural gas in the last year, is offering customers who cut their consumption by 10% a 20% rebate. About two-thirds of customers are eligible for the deal. |
| 3 | 6300 | 2005 | In the middle market, most insurance companies use a profit sharing formula that gives the agent a contingency payment running 2 to 3%, depending on the profit, on the book of business. If the agent is in the Elite category, it can get another 1 to 2% in profit sharing. Elites have more than $10 million in purchases from the company. Franchise Elite can have purchases of $40 to $65 million annually. |
| 4 | 6321 | 2006 | A South African insurance company is encouraging subscribers to adopt a healthy lifestyle by offering rewards for healthy habits, such as quitting smoking, exercising and getting regular checkups. This plan is a high-deductible plan in which people are responsible for the large part of their basic care. |
| 5 | 6331 | 1991 | Johnson & Higgins offers a property policy that sets premiums for 10 years and puts a portion of the cost in a "premium reserve," which the insured keeps if claims don't surpass a set level. At worst, the insured forfeits the reserve. At best, it has stable premiums (despite any disaster) and it shares profits. |
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