You may already know that offering a product rebate is a time-tested method for increasing sales, but did you know that rebates are as effective as ever due to these five reasons?
- Audience Acceptance: According to a survey by market research company NPD Group, 65% of consumers have used a rebate offer to purchase a product. Furthermore, according to a Consumer Technology Association survey, 71% of consumers said that rebates and discounts are important factors when purchasing electronics.
- Satisfy Your Sales Partners: Offering a rebate to customers who buy your product through a specific retailer can strengthen your relationship with both your sales partner and target audience. For example, we work with Tempur Sealy International to offer BJ’s Wholesale Club members a unique rebate good for a BJ’s gift card with a qualifying mattress purchase. Customers submit their claim via a branded rebate portal; Promosis then reviews the claim and fulfills the BJ’s gift card.
- Protect Your SRP: A rebate is a great way to motivate sales while maintaining the Suggested Retail Price of your products or services. Maintaining a consistent SRP is crucial for building a strong brand image, maintaining healthy channel partner relationships, ensuring legal compliance, and gaining a competitive advantage. It also helps with data analysis, marketing strategy, and monitoring performance.
- Increase Registration Numbers: Coupling a rebate claim with product registration helps you collect valuable customer data, improve product safety and liability management, and foster customer engagement, which ultimately leads to increased customer satisfaction and loyalty.
- Maintain Profit: According to various studies, the average rebate redemption rate for consumer packaged goods is approximately 2-3%, while for consumer electronics the redemption rate is between 10-15%. Therefore, using a rebate to lower the price of your product or service greatly protects your margins compared to reducing the price via an across the board sale.
If you’d like to discuss how to create, develop, administer and fulfill a motivating rebate offer for your next promotion, please don’t hesitate to reach out – we’re here to help.