The Many Benefits of Rebate that Make it Worth your Time and Money in 2020

Don’t we all just love to get rewarded with discounts and cashback after shopping? Interestingly, multiple studies affirm that the consumer’s brain is wired to think that a product with a discounted retail price is inferior in quality in comparison to its full-priced counterpart.

Does that mean brands will stop luring in customers with compelling deals? Absolutely not! Instead, smart brands have taken the route of rebates to attract loyal customers without slashing the retail price. Sounds like a tempting imitative? Let’s break down rebates for you then.

Rebates can be defined as a delayed discount. When a brand offers its customers a rebate, they return a certain percentage of the retail price after the purchase. Usually, in the guise of cashback. And, rebate management is the complex process of tracking purchases, managing accruals and rebate claims systematically.

Say Rebekkah buys a microwave for $50 as stated in the retail price. After her purchase, she is gifted with a cashback of 15% when she refers 10 of her friends to buy from the brand. This $7.50 makes her super-happy thereby shooting customer satisfaction, makes her buy more from the same brand in the hopes of more rebates and the seller receives 10 handsome leads. But, it doesn’t make her think that the product is inferiors like a discount might have.

Rebates have existed even in the past. However, modern, smarter marketers have realized their virtue recently. Want to learn what makes rebates the future (and, the best) form of incentive to manipulate customer behavior?

Incentivizes Customer Behavior
Rebates shift the burden of realizing the lowest price onto the customer. It doesn’t offer a discount right away, the customer has to fulfill certain conditions to avail of the discount. If they fail to fulfill the pre-requisite then the manufacture makes even more profits.

Increase Sale Volume
Volume rebates are meant to increase the number of products you sell. They are a tiered system to encourage a buyer to buy more to get more rebates. For example, a buyer may get only 5% in rebate if they buy 50 units of the product, 12% if they buy 100 units, and 15% if they buy 500 units.

Get New Customers On-board
Rebates on new launches and referrals earn brands a lot more customers. Studies by Market Trend suggest that as many as 80% of customers will swift to brands that offer better rebates.

Encourage Customer Loyalty
Smart brands often induce customer loyalty by offering heavy rebates for making a certain number of purchases throughout the year. This is a simple yet great way to retain customers.

Rebate management software – making the complex task simple

Even though rebates offer a ton of benefits to brands and customers, maintaining the complex rebate cycle often turns out to be a bane for a brand. Thankfully, we are blessed with advanced machine learning technology that automates and streamlines the process for error-free, quick, and transparent. With insights from huge data pools, companies are now able to design the most lucrative ad effective rebate management program.