Rebates are a tried and true tool for marketers looking to engage consumers and drive their bottom line. Rebates offer brands the best of both worlds: they drive sales by providing a temporary discount while still protecting prices and control over discounting strategies. Since going digital, the rebate experience has gone through a 180-degree transformation in terms of accessibility and improved experience for both brands and consumers. Digital rebates help create lasting customer engagement and loyalty, as well as collect invaluable data to guide future marketing strategies.
However, navigating this new world of digitized rebates, especially the world of digital rebate management, can prove challenging for marketers looking to re-vamp their brand’s rebates program.
Rebates, or money-back offers, are a common marketing strategy, with 53 percent of Americans having taken advantage of them in some form, and more than $76 billion in rebates processed annually in the US.
53% of Americans participate in more than $76B in rebates
But companies gain more than just a one-off sale through these promotions – rebates are a data goldmine, the process naturally provides the sponsor with purchase information, consumer demographics and a significant, intelligent customer database. When rebates are actually redeemed, that is.
Traditional mail-in rebates have been plagued with dissatisfaction around their cumbersome process requirements, slow speeds, and inconvenient redemption options. Consumers themselves are calling for a digital overhaul, with 70 percent of survey respondents saying they would be more likely to take advantage of a rebate if they could submit all of the information online or via mobile phone. In order to provide a sense of what this new world order would involve, we present the following Marketer’s Guide to Digital Rebates.
In today’s highly competitive retail market, a money-back rebate can often be the variable that stands between either moving or stacking inventory. Rebates tap into basic consumer psychology – why pay full price at another store, when you could save a few bucks on a similar item at this one instead?
By offering some kind of discount, a retailer can motivate their customer to purchase the rebate product. Rebates have also shown to incentivize customers to go to a store they normally do not visit, to buy one brand over another, and to even indulge in a more expensive product. This is because discounts create a sense of urgency to purchase, and the lure of a good deal -- no matter how big or small -- can heavily influence even the most rational consumer to forget their college Econ lessons.
Just as letter writing gave way to the immediacy of email, customer dissatisfaction with traditional mail-in rebates are leading to a digital revolution. Why? For one thing, who keeps stamps around the house?
So what are the issues with the traditional rebate approach?
Higher customer expectations about every aspect of their purchase experience is changing the psychology of rebates - sure, it’s still about providing justification for the purchase (after all, $3 off a $9 purchase is only $6, right!?), but how they feel about jumping through hoops, and their level of tolerance for delayed processes is changing as well. In the era of viral hashtags, companies are starting to realize that a single negative customer experience can be amplified like never before. And when it comes to rebates, the reality is that by purchasing the offer product, the customer is already fulfilling their part of the deal – an overly lengthy, effortful redemption that places too much of an onus on a busy person is unfair.
And shortsighted, especially since hassle-free money back – and the sense of reciprocity that comes with it -- makes people loyal and want to become brand advocates. Long term customer relationships are built on emotion, and on the overall brand experience -- so each step in the rebate process, i.e., the offer, the reward, the submission and the after-sale service support customers receive, should all work together to build brand love.
In the era of the Smart Customer, companies have to make rebates easy for their consumers, or watch them flock to competitors. Fortunately, today’s digital technologies and platform-based solutions make redesigning rebates incredibly easy, and enable the following improvements:
In the next section, you'll find our digital rebate program checklist to follow for your next campaign.
Contact our advisors here to brainstorm your next digital rebate program!
Review these questions to make sure you have a winning rebate program.
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.
Here's a pictorial version of the checklist. Click the image or go here for a PDF version:
Customer engagement may be difficult to measure and perform well at scale, but it undoubtedly leads to higher profitability and customer retention. Looking ahead, the future of customer engagement is going to involve even more personalized experiences.
To reach this future, brands need to optimize their people, operations, and technology to create a consistently positive feedback loop with customers. This will keep you in touch with your customers’ evolving needs, build your brand integrity, and allow you to use data to further improve their experiences.
And that's where Snipp comes in.
We provide global marketing and loyalty technology solutions that bring together modular SaaS technology with best-in-class marketing expertise to help you increase sales, retain customers, and unlock intelligent decision making.