Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A LOW PRICED PRODUCT TO GET THIRD PARTY BUSINESS
CHOICE 3 COMPONENT: PRODUCTS THE CUSTOMER DOES NOT USE WITH THE PRODUCT FOR SALE
| No. | SIC | Year | Notes |
| 1 | 7372 | 2000 | Microsoft and Net2Phone have signed a deal to allow Microsoft's instant messaging users to make free long-distance phone calls over the web. Net2Phone will make money off the deal by selling advertisements that will appear on screen everytime Microsoft users connect to the new service to make a phone call. |
| 2 | 7372 | 2007 | One Internet user balked at paying for a copy of WinZip, a file compression software product. TrialPay technology allowed the company to offer it to her free if she used the site to connect to another online retailer and spend money there. Webloyalty.com and Adteractive offer similar services. |
| 3 | 7375 | 2007 | Internet users are often reluctant to pay for what TrialPay calls "non-tangible digital goods." having become accustomed to free Internet services. Zagat employed TrialPay to break down these barriers. The company allows Zagat to lure new users by offering a free Zagat subscription should they accept another unrelated marketing pitch, like applying for a credit card or spending a certain amount at an online retailer. The pitch is sent to people who are registered to use the site but aren't paying subscribers. About 10% of those who receive the email are participating, a high conversion rate compared with previous marketing campaigns. Zagat collects fees from partners for directing business this way, in some cases these fees exceed the yearly subscription cost. |
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