Drugstore.com Does More With Less

Three loyalty efforts started by Drugstore.com last November have had a tonic effect on revenue.

The online retailer’s fourth quarter sales rose to $55 million, a 13% hike over the previous year, and average orders crept up from $67 to $71. And it did this while cutting its quarterly marketing and sales budget from $9.3 million in 2001 to $5 million.

Moreover, total year-to-date sales jumped from $145.3 million to $193.9 million, while marketing costs dropped from $36.2 million to $24.2 million.

Drugstore.com trimmed marketing spending by ending its reliance on contracts that were