How To Offer A Rebate Program That Really Works

In the world of customer loyalty and retention, a rebate program can play a vital part in attracting new customers and learning more about your existing customers. 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 rebate programs are excellent tools for building customer loyalty, they can often be poorly planned and delivered. For example, customers don’t enjoy waiting weeks to receive their rebate, especially if it involves a lot of tedious paperwork 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 Discounts That Benefit Your Customers

For customers to actually use the rebate, you have to offer them a worthwhile promotion. Offering them a $2 discount on a $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—you should both benefit from the offer.

Make The Redemption Process Easy

There’s nothing more frustrating for customers than jumping through hoops to get a discount. A tedious redemption process only works against you. Make the redemption process simple and easy, avoiding unnecessary paperwork, long forms, and cheques. For a rebate, cheques are unattractive and customers often confuse them with junk mail. Also, 81% of consumers admit that it’s frustrating dealing with a company that’s difficult to do business with, 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 purchases.

Use Online Redemption

Online is the way to go when it comes to customer loyalty. That’s where you need to meet your customers to build successful relationships. Online rebates are faster to access and easier to redeem, plus customers can avoid paperwork and coupons.

In one 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 customers during online shopping. Virtual prepaid cards work just like physical prepaid cards and credit cards, except they’re only for online orders.

Be Transparent With Your Rebates

Transparency is essential when building customer loyalty, especially with younger generations. Millennials and Gen Z may already be skeptical of large corporations and traditional advertisements, seeking trust, engagement, and transparency instead. Stay away from fine prints and false or misleading representations when offering rebates. It only pushes away customers, and most importantly, destroys trust.