It feels incredible that in 2024, 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.
In 2009, 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 2021 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…?