In Consumer Rebate Programs

Food costs are rising, not just in the United States but around the world. This has forced businesses that rely on food production and manufacturing to search for the most affordable options that will still help maintain the quality of their branded products. If you are in the food manufacturing industry, you need to be wary of this. While forging a strong relationship with your customer is necessary, in most cases a company will make cost-based decisions that could lend them to partnering with another service provider with similar products. How can you combat this and retain your current customers while attracting new customers into the fold? One of the best options is to take advantage of a foodservice rewards program.

 

What is a reward program?

A rewards program is when a company offers incentives to encourage a particular purchase behavior. Generally speaking, this is a marketing strategy that allows companies to promote brand loyalty, while allowing the consumer to get something  for free or at a discounted price. 

According to IRI’s 2021 Consumer Connect survey, 51% of respondents said reward programs somewhat influenced where they decided to purchase, while 22% said it was extremely influential. 

Incentive Insights offers consumers rebates at B2B spiffs, read more to better understand how a reward program can help your business, then contact us to get started!

Incentivise Customers To Stay With You

Offering products at a sale or discounted price can help increase initial sales numbers, but it may not make a long-term impact on your bottom line. Utilizing discounts will not guarantee a sale down the road. Customers might tell you they intend to purchase a certain number of products from you every month, however, if they are given a sale or discounted price, they may make a larger purchase now to stock up. These customers might then look around for other businesses offering sale prices to get the best deal for products they need.

You generally don’t want to get into the business of constantly offering discounts and coupons because while that can generate some sales, customers might become reliant on these sales to make any kind of purchase, which in turn will permanently reduce your profit margins.

With a foodservice rewards program, you do the opposite. The customer knows the type of award or rebate they will receive upon completing their end of the reward program. Whether this is spending a set amount of money, buying a certain number of items, or maybe combining several products, they know that a reward will come. The closer they are to achieving their reward, the less likely they will abandon your business for another service provider.

Lock In Sales and Achieve Brand Loyalty

When offering a product discount, there is no guarantee a customer will continue to buy products from you specifically. They may make a purchase at the discounted price and you may never hear from them again. When a customer buys a product from you there is a reward or rebate tied to the purchase, there is also no guarantee that they will continue to purchase from you, however, you do increase the opportunity to build your brand loyalty.

Current data shows 58% of consumers make purchases from companies with rebate programs. Recent studies show reward programs increase purchases by 20%.

That said, reward programs help lock in future sales because customers want to save money on their food products. Jumping around from one service provider to the next can impact their own product, so they won’t change their partner, just as long as they receive a good price. Your reward program signals they will save money in the end with whatever reward. This will help you lock in sales for the future while building stronger customer satisfaction.

Stay Competitive

With rising food costs worldwide, other companies will look for ways to maintain their current lineup of customers while bringing in new clients, just like you. Now, this isn’t a race to the bottom in terms of pricing. Yes, there will always be customers that will bottom feed and go after the lowest price, no matter what. There isn’t anything you can do about this. If you retail to these customers, your only real option will be to bottom out your pricing strategy. However, most customers simply want a quality product for an affordable price. You will need to elevate your business above the noise and stand out.

Relying on a reduction in the sales price is not a long-term strategy. Yes, you might be able to attract new customers into the fold with initial sales. However, you need to offer something more than a one-time discounted price to keep customers interested. A food service rewards program is one of the ways you can keep new and current customers with your business.

Begin Crafting Your Food Service Rewards Program Today

It doesn’t matter if you’ve handled a foodservice rewards program in the past or if any kind of incentive customer program is new to you. Having a reliable team that specializes in exactly this is especially important. The team can work with you in building a rewards program from the ground up to ensure you remain profitable while still offering a service to customers that is most likely to keep them happy and buying products from you. Here at Incentive Insights, that is exactly what we do. No matter the size of your business, your client base, or how long you’ve been in operation, we will work with you. To learn more about the food service rewards program and begin crafting your own from scratch, there’s never been a better time to reach out and contact Incentive Insights right now.

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