What Is Rebate Marketing?
If you need to run a marketing campaign, stick with what works. Recent research by the Promotion Marketing Association shows that 75.4% of customers are more likely to purchase when offered a rebate. Customers prefer rebates over other incentives, and they will choose them over others. A 2018 study by Leger showed that 55% of customers actively search for a rebate when shopping. If it sounds too good to be true, think again. Rebate marketing is one of the best ways to boost sales today.
Rebate marketing is a tried-and-true marketing strategy for increasing customer engagement through incentive offers. Rebates reward their purchasing decision, strengthening their relationship with your business and encouraging them to buy again.
In today’s markets, digital rebates can apply to virtually any industry for selling both products and services. They have multiple advantages over other offers, including:
- Low-risk marketing strategies: Keep the market value of your product high. Incentives reward customers for purchasing at full price, while discounts reduce the cost of your product. Reductions in cost can reduce the perceived value, creating challenges with charging a higher rate again.
- Excellent sales-to-redemption ratios: A discount or coupon automatically reduces profitability in exchange for a sale. Rebate marketing moves customers to buy, but a significant portion of them will forget about their reward or choose not to redeem their offer.
- High campaign success rates: It’s a fact — people like saving money. If you make it easy and attractive, you can increase sales, boost traffic and create a loyal customer base. Our B2B rebate marketing solutions will help you reach more potential buyers.
- More useful customer data: Gain the advantage of more customer data and make smarter business decisions. Moving your rebate system to a digital portal is an excellent way to collect beneficial information, including email addresses and demographics.
How Does Rebate Marketing Work?
For companies processing annual sales over a million dollars in yearly revenue, the logistics of managing a rebate campaign become significant. In most cases, marketing teams outsource the creation and management of their plans. How rebate marketing works follows in three steps:
- Create your reward: The larger the incentive, the greater the effect on the consumer.
- Set your terms: Build confidence with your customers with clear terms and time to redeem.
- Run your campaign: With your campaign developed and the portal in place, start making sales.
Types of Rebates
The types of rebates offered vary based on your product or service, goals and target customer. The most common include:
- Mail-in: Mail-in rebates are costly to produce and can be logistically challenging to manage.
- Digital: Digital rebates are fast, easy and an excellent tool for collecting customer information.
- Manufacturer: Manufacturer rebates move inventory, like automobiles and equipment.
Incentive Insights — Your Digital Rebate Fulfillment Partner
A rebate offers instant satisfaction — a gift from your company that customers will appreciate. We design custom portals that you can use for processing rebates and collecting valuable customer insights. At Incentive Insights, we have the network and server capacity to handle your volume of requests, keeping your data and customer information fully secure. To learn what rebate marketing can do for you, send us a message or call (914) 290-4234 today.