- 95% of consumers are interested in products that come with rebates
- 80% of consumers look for rebates when making purchases
- 57% feel that rebates are easy to redeem nowadays
Rebates are a strategic marketing tactic that allows companies to increase sales and build brand awareness. Research shows that 95 percent of consumers are interested in products that utilize promotions marketing. In addition to creating excitement around a brand – loyalty programs allow companies to quickly expand their consumer database over the course of just a few weeks or months. With the continuing evolution of social touch points and technology, how do brands position themselves to grow their market share? This article will address the top 5 trends in rebates to help companies stay on the leading edge of promotions marketing.
- SHOWROOMING – Savvy shoppers are now visiting brick and mortar stores to examine products and ask detailed product questions only to return home and seek out the same item at a lower price online. This practice, known as “showrooming” is a frustration to retailers who are losing sales to price-sensitive shoppers. However, some retailers have found a way to counter showrooming by offering location-based mobile rebates to consumers who are doing more browsing than buying. Rebates can effectively lessen showrooming by appealing to a shopper’s desire for the best deal, and allowing retailers to advertise a lower net price than online retailers can.
- FLEXIBLE SHOPPING OPTIONS – Consumers now demand convenience in all areas of their lives. Rebates are no exception. Working with their promotion processing partners, brands can now analyze consumer demographic and psychographic data to determine which type of rebate submission (online, mail, etc.) is best suited to their target audience. Online submission tools are not only convenient, they also offer a fully branded consumer experience that can seamlessly link to websites and social media pages. Brands can customize the site to promote additional offers, deliver paperless rebates and maintain positive consumer relations.
- FLEXIBLE REWARD OPTIONS – Give consumers a choice when it comes to their rebate reward. Offer a wide-range of branded gift cards choices that can be delivered electronically or via mail. Options range from direct spend to themed or open cards that are pre-loaded with the rebate dollar amount. Data collected from consumer rebate reward choices can be analyzed and applied to future marketing efforts.
- CUSTOMIZED REBATE EXPERIENCES – The emergence of social media has allowed brands to tailor their rebate offerings to consumers. Tracking data such as page preferences, followers, likes, online purchases and video views provide brands with the metrics needed to segment their audience and delivers unique offers that are specific to consumer needs.
- FOCUS ON WOMEN – Studies have shown that women are almost twice as likely to seek out a rebate compared to their male counterparts. With the advent of social media, finding women and understanding their consumer preferences has become easier. Ironically, the type of product promotion does little to affect women’s buying decisions, since studies show that most women are heavily involved in the majority of household purchases.
At Virtual Incentives, our prepaid platform is powered by a simple, customizable virtual solution that closes the gap between action/achievement and rewards, rebates and offers. Thanks to our industry-leading, customizable Virtual Visa® Reward card, corporate buyers can meet increasing demand for fast, virtual incentives that offer built-in control and the personalized rebate experiences their consumers are seeking. Do you think these trends in online rebates are worth knowing?