Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: OCCASION SEGMENT / A SPECIAL SALE PERIOD
CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE
|Pan Am giving passengers buying round-trip tickets to Europe by July 15 a two-for-one voucher good for later flights to cities in the U.S. and the Caribbean.
|Fast food restaurants such as Burger King, Taco Bell, KFC, and Wendy's are using software that makes real-time sales pitches based on the change the customer is about to receive. The software runs on a cash register and instantly generates a discount offer for another food item based on the change that would be returned on an even amount. The software was developed from an updated database of previous offers and their acceptance rates. If the system discovers that more customers who bought hamburgers will buy fries with the resulting spare change than they would buy a milk shake, the system will offer french fries to future hamburger buyers. 35% of all spare change offers are accepted and most of the time customers pay 35% to 45% less for added items than if they had bought it separately. Customers accept and appreciate the technology when its convenient.
<< Return to Choice 3