Mail In Rebates are money-back offers made to customers after a purchase has been made. A popular consumer sales promotion tool among marketers, rebates are attractive to most consumers as they provide a partial reimbursement on a purchase. Some mail-in rebates are offered on relatively cheap items and only amount to a few dollars. Some are attached to big-ticket items such as computers or appliances; these may offer a significant rebate amount. For the manufacturer, rebates provide the following benefits:
Encourages prospective customers to try the product
- Boosts sales and brand awareness
- Relieves excess inventory
- Attracts interest from retailers, who will often promote the offer
- Effectively increases product awareness with consumers
- Can assist in developing an email database
- Can assist with consumer research & retention
Generally, a rebate requires a purchaser to complete a form and it must be sent to the product’s manufacturer with proof of purchase prior to the consumer receiving any money back. This is typically mailed to the manufacturer, or can be completed online. Once received, the rebate is processed, and the cheque sent out.
Mail in rebates are a very effective consumer promotion tactic. Consumers want to be rewarded post-purchase and are happy receiving a rebate. According to Hawk Incentives Research, 83% of shoppers think rebates are great savings opportunities. Delivering rebates effectively helps reinforce purchasing behaviour while also helping business gather customer data to help inform them of trends. 81% of shoppers would take additional action during rebate redemption, including enrolling in a loyalty program, completing a survey, or referring a friend.
Rebates are often used instead of lowering a product’s price or putting the product “on sale” because marketers know that a certain percentage of buyers will not request the rebate at all, some will forget about it and some will file it incorrectly, causing the claim to be rejected. While it’s not an exact science, the rate of shoppers who fail to submit rebate claim forms on qualifying purchases is 50 to 70%. Rebates are a useful consumer promotion tactic and can help increase sales of a certain product without offering a discounted price to everyone.
Want to know more about Consumer Promotions? What are some Coupon Redemption Tactics? You can read about Online Coupons, Promotion Tactics, and Digital Coupon Redemption Rates?
Resources:
https://www.inc.com/encyclopedia/rebates.html
https://bizfluent.com/info-10004439-disadvantages-advantages-rebate-programs.html
https://financialhighway.com/seven-reasons-why-companies-offer-rebates/
https://www.prnewswire.com/news-releases/hawk-incentives-research-deal-seeking-on-the-rise-shoppers-report-these-behaviors-make-them-feel-smarter-300530557.html
