Why Mobile Rebates Are The Way To Go
As the New Year rolls in and holiday sales die down, companies need to find new ways to increase customer loyalty while attracting new customers. One way to build loyalty is by offering rebates, which is nothing new for most companies. Companies have been offering rebates for years; however, as the market changes and customer buying habits and trends adjust to technology, the way rebates are delivered must also evolve. Companies must keep up with customers, meeting them where they are at—on their smart phones.
According to Vibes, 82% of smartphone users agree that digital coupons are much more convenient than their paper counterparts. In other words, digital rebates are attractive. Nowadays, anything digital is attractive to people, especially online promotions. Going mobile is the way to go for rebates, and here’s why:
Millennials have the Biggest Shopping Potential
Today’s typical consumer (the millennial) is always connected. They are technological natives. They grew up in a world where technology is used to facilitate almost every area of life, including shopping. In fact, they are expected to spend 1.4 Trillion annually by 2020, which amounts to 30 % of US retail sales, according to an article by Centro. That’s a lot of buying power; but to access that, companies need to engage with them through technology, specifically smartphones.
Nielsen states that there are 77 million millennials in the US alone and 85% of them between the ages of 18-24 own a smartphone while 86% of them between the age 25-34 also own a smartphone. For this reason, offering an easy-to redeem mobile rebate, with a great promotion can reap success for companies.
Millennials use their Smartphones to Shop
Millennials not only own smartphones, but they also use it to shop and to make shopping decisions. While in store, 34 % of consumers use their smartphones or iPads to browse products and find information before shopping, according to Alliance Data. Similarly, 40 % of these US Millennial consumers use their smartphones to make purchases, according to a survey by Annalect. Two-thirds of them also stated that they use their smartphones for comparing prices and for seeking discounts and coupons, which provides more reasons to offer digital rebates..
One great option for offering mobile rebates is the use of virtual prepaid cards. With a virtual prepaid card, consumers can redeem their rebates on their smartphones through an online launch window. These virtual cards are designed for online shopping, allowing customers to redeem their rebates with ease and convenience.
Mobile Rebates Makes it Easier to Personalize Promotions
According to Centro, 58% of Millennials agree that tailored advertising helps them to find services and products more quickly. Millennials value a company that looks out for their customers. To win over Millennials, companies must offer promotions (e.g. rebates) in a way that appeals to them. For this to happens, they must acquire consumer data. That’ s where mobile rebates play a big role. As you offer the rebate, the customer in exchange provides you with their information, which helps you to understand them better by sending emails and conducting surveys, etc. A mobile rebate makes the process of acquiring data more simple for companies because it’s on the spot and provides more flexibility for customers.