The Evolution & Benefits of Rebate Programs

March 13, 2020

Today’s marketing world places a heavy emphasis on digital advertising.  However, that doesn’t mean traditional methods for attracting new customers and keeping existing customers coming back for more are no longer applicable. Traditional marketing tactics, like coupons and rebates, have simply evolved to embrace the digital world, resulting in a change in the way consumers take advantage of these tactics.

Before the advent of the Internet, consumers would send a copy of their receipt along with a rebate request form to the processor by mail to receive either a check or a prepaid card for the amount covered by the program.  This was attractive to brands, because while consumers were impulsively drawn to the product or service because of the potential savings, they rarely took the necessary steps to receive the savings.

As Rebate programs have taken a turn into the digital space, it takes less time for consumers to apply for a rebate. Although that may sound like a downside of going digital as more consumers will take advantage of the money back offers, it’s not.

Benefits of Online Rebates

Not sure if rebates marketing is worth the time, money, and effort? Here are a few reasons rebates programs can benefit your brand.


Offer Immediate Rewards

Consumers have the opportunity to immediately reap the benefits of a rebate program in-store.  Today, instead of getting a check or a gift card in the mail, consumers can instantly receive a virtual rebate that can be used to purchase additional items on their current shopping trip.

Deliver a Smooth Experience

Applying for rebates online is a simple process that can be completed from anywhere off your mobile device.  It’s easy to integrate the rebates into the company’s sales funnel, create digital records, and improve customer experiences. Plus, every shopper who takes advantage of the rebate will receive a reward card that can be used to make other online or in-store purchases.

Enhance Brand Loyalty

Customers love receiving additional benefits from a product they were already planning to buy.  Conducting a rebate program will ensure consumers remain brand loyal and continue to choose your brand over the competitors.  Offering rebates can improve the company’s image and potentially entice new consumers to trial the product.

Opportunity to Gather Data

Rebate programs don’t just benefit the customers who take advantage of them. They can also benefit the companies offering them.

To receive an online rebate, customers must enter contact information and opt into the rebate program. The company’s marketing team can use this information for their future CRM efforts by tailoring their advertising to specific consumers and narrowing down their future target audiences.


Determining a Rebate Amount

There are two costs associated with running rebate programs: the cost of the incentive and the cost of administration. Choosing the right amount can be a bit tricky. A rebate that’s too low won’t be very enticing to consumers, but one that is too high will incur unsustainable costs to the company. It’s important to understand your consumer, the category and the price point, and the competitive landscape to identify the value that is appropriate for your brand.

Choosing a Rebate Processor

Most companies don’t have the infrastructure to process online rebates themselves. Instead, they rely on third-party providers for rebate processing. There are plenty of rebate companies out there, but not all of them offer the same level of value.

When considering a rebate processor, consider the additional services the agency provides that could be a compliment to the rebate program.  Services including program administration, management, procurement, and fulfillment are important to consider, as well as the other areas an agency specializes in.  Working with a turnkey solutions provider ensures the most effective and efficient return on your investment.

The Bottom Line

Effective marketing requires comprehensive solutions to problems with brand recognition, customer conversion, and online reputation. If properly designed and administered, rebate programs can play a valuable role in drawing in new customers, keeping existing customers happy, increasing brand recognition, and improving the company’s reputation among consumers.


For more information please contact Randi Berger SVP @ [email protected] or 516-997-3147 ext. 14

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