How To Offer A Rebate Program That Works
In the world of customer loyalty and retention, one particular program can play a vital part in attracting new customers and learning more about your existing customers: Rebates. According to consumer reports, over the course of a year, 70% of customers had taken advantage of manufacturers’ rebates on products.
Rebates are attractive because you can provide customers with an incentive to continue interacting with your business. Although rebates programs are excellent tools for building customer loyalty, they can often be poorly planned and delivered. For example, customer don’t enjoy waiting weeks to receive their rebate, especially if it involves a lot of tedious paper work and confusion. However, offering rebates with strategy and tact can prove successful for any business. Here are some tips for launching a rebate program that works:
Offer A Discount That Benefits Your Customers
For customers to actually use the rebate, you have to offer them a worthwhile promotion. Offering them a $2 discount on $15 dollar purchase doesn’t cut it. A discount so small will not motivate a customer to go through the process of redeeming a rebate. However, you also don’t want to offer a discount so high that it breaks your bank. Offer a discount that benefits your customer, but one that is also comfortable for you. Always think win/win when it comes to building loyalty with customers; in doing so, you both benefit from the offer.
Make The Redemption Process Easy
There is nothing more frustrating customers than jumping through hoops to get a discount. A tedious redemption process only works against your company’s purposes. Make the redemption process simple and easy, avoiding unnecessary paperwork and long forms to fill out. Also, avoid sending checks. For a rebate, cheques are unattractive and customers often confuse them with Junk mail. 81% of consumers admit that it is frustrating dealing with a company that makes it difficult to do business with them, according to Accenture.
A great way to provide rebates is through a prepaid card. Prepaid cards are flexible for customers to use and they are loaded electronically, making the process simple for you and the customer. With a prepaid card, customers can receive a rebate in the store and use it online to make their purchase.
Consider Using Online Redemption
Online is the way to go when it comes to customer loyalty. It’s the 21st century and people are always connected in some way to the internet, whether it’s through their cell phone, tablet, or laptop. That’s where you need to meet your customers in order to build successful relationships. Online rebates are faster to access and easier to redeem, and customers get to avoid paperwork and coupons.
In a recent survey, respondents were interviewed about their discount preferences, and 65 % of them stated that online rebates are attractive. There are also options such as virtual prepaid cards that you can offer your customers for rebates designed for online shopping. Virtual prepaid cards work just like physical prepaid cards except they are made for online use only, which is processed through a launch screen.
Be Transparent With Your Rebates
Transparency is essential when building customer loyalty, especially with millennials. Millennials are already skeptical of big corporations or any type of traditional advertisements. In other words, millennials seek for trust, engagement, and transparency from companies. Stay away from fine prints and false or misleading representations when offering rebates. This only pushes away customers. And most importantly, it destroys trust. Let customers see that you care for them and that you are not out to trick them into spending their money on dubious discounts.
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