It feels incredible that in 2025, millions of people all over the world still cut out coupons and send it in the mail to get a rebate. But in a world of smartphones, the daily barrage of information, and the need for immediate satisfaction, the image of a thrifty homemaker sitting at the table with scissors in hand is a heart-warming reminder of a Golden Age.
Customers love rebates… or so we’re told. What you’ll hear is that 75% of people are more likely to make a purchase if they’re offered a rebate.
But this percentage reflects a world almost 20 years ago - not as far back as our thrifty 50s homemaker, but far enough for a financial crash, a pandemic, and 4 US Presidents to roll through. And over that time, consumer habits have changed significantly.
A study into the success of the US Government’s ENERGY STAR© program found that the option of a rebate devalued consumer perception of a product or service.
A more recent study of 600,000 consumers found that a rebate increases the likelihood of purchase by only 76% as much as an equivalent discount would.
So, rebates are dead, right…?
Despite the negative attitude from consumers and the lacklustre results, rebates are not, in fact, dead. And with the today’s global economic situation, they’re making a comeback.
But in the grand marketing mix of tools at our disposal, why should brands continue to use rebates?
Mail-in rebate programs continue to be effective in a variety of markets. Brands like Menards and Pirelli continue to see success through their mail-in rebate programs. Pirelli have only recently added a hybrid digital/paper solution to their rebate program.
In fact, manufacturing, automotive, and industrial industries benefit consistently from mail-in rebates. Why? Because their markets move more slowly and so do their customers (but that will likely change as consumer become more used to the speed of digital for everything).
Digital rebates still have a vital role to play in today’s customer experience mix. They’re both a gateway to greater engagement and key tool in capturing essential first party data. And remember – it’s not just about encouraging a purchase. It’s a tool in your wider brand strategy to provide long term growth to your marketing activity.
See also our guide and infographic - The Complete Digital Rebate Guide & Checklist
Looking to take advantage of the potential of digital rebate programs?
Visit us at www.snipp.com/rebates or get in touch with us to learn more about our SnippRebates Platform and SnippRebates Center.