We’ve all been through the challenges of 2020, and they’re not over yet. Fortunately, we’re starting to see some businesses reopen, often while overcoming financial setbacks. That’s why it’s time for marketers like you to kick start sales and bring in new customers—or bring back existing ones.
The good news is that there's a lot of pent-up demand for goods and services. The bad news is that consumers are more price-sensitive than ever, thanks to extended periods of unemployment and under-employment.
Fortunately for you, we have the ideal proven promotional strategy for you to use: rebates. What is a rebate? In a nutshell, it’s when a buyer pays full price up front and submits a rebate request to receive an incentive (usually Mastercard® and Visa® Prepaid Cards, merchant gift cards or merchandise).
According to the Aberdeen Group’s recent research, here are the top six reasons to use rebates—and our rebate processing and fulfillment services—as you fire up sales:
1. Rebates allow you to compete on price (thanks to net-price advertising) while maximizing immediate cash flow and maintaining premium brand perception. Instant discounts do move merchandise, but you erode profit margins today and teach customers to buy only “on sale.”
2. Rebates are powerful tools to drive purchase urgency. Attract new customers and encourage repeat purchases using Mastercard or Visa Prepaid Cards that are branded with your logo.
3. During the rebate submission and reward delivery process, you can collect clean customer data, enroll shoppers in your loyalty program, request product reviews and more.
4. Research conducted by the Aberdeen Group in 2018 revealed that reward-based promotions generate 6% greater average profit margin per customer than discounts do.
5. Consumer research conducted by Murphy Research in 2019 found that getting a reward from a brand or retailer would encourage 63% of respondents to spend more with that business—and 65% noted they would purchase more often from the business giving them the rewards.
6. Many rewards can be delivered digitally—making them perfect for consumers who will be slow to emerge from social distancing and prefer shopping online.
When you’re using rebates as one of your marketing strategies, be sure to look for a business partner that can offer end-to-end rebate program management and fulfillment. A turnkey technology solution with a dedicated account manager can do plenty of the heavy lifting for you.