While many companies recognize the benefits of a rebate program to boost sales, many struggle with the clerical and logistical tasks of implementing a rebate program. This is where a rebate management company can help.
What is a rebate?
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. A rebate always takes place after the purchase. It’s a type of sales promotion that marketers use primarily as incentives or supplements to product sales.
So what exactly can a rebate management company do for you?
There is nothing better than having an experienced, accurate and hands on agency when it comes to managing and handling your rebate programs. An expert rebate management company will handle all the details of rebate management program efficiently, including the collection and reporting of customer data, and, typically at a lower cost that you can do it yourself. Here are the advantages of choosing a rebate management company to manage your rebate campaigns:
- Verified rebate coupons and/or orders as necessary to control costs
- Efficiently deliver your rebate, electronically or physically
- Store, warehouse and ship your rebate offer, if it is a physical and not an electronic rebate
- Manage all the details from data entry to answering customer questions about your rebate
- Provide market and customer data reports, delivered on your desired schedule
- Offer the freedom of choice of paper-based or web-based paperless rebate management systems to make monitoring your program easy and efficient.
Why should you consider running a rebate campaign?
Rebates, gifts with purchase and mail in offers are proven strategies for driving sales.
Your objective as a marketer is to encourage the consumer to pick your product over that of a competitor at the point-of-sale (POS) and basically there are two basic strategies to achieve this. You can develop a complex program involving manufacturing, packaging, shipping and special displays or, you can use the straight forward rebate which is relatively simple to implement. The main goal in the issuance of consumer rebates is to generate a higher level of consumer loyalty while increasing sales. According to Info-Now, citing research conducted by Market Growth Resources, only between 5 and 10 percent of consumers redeem rebates. This could certainly be an explanation why offering a perk of this kind remains a popular businesses’ strategy to not only raise awareness. Taking this into account, you can deduce that you can increase your sales by offering a rebate while, the rebate redemption rate is typically low, so the costs of a rebate promotion are typically low in relation to the sales generated. This is a win/win for the marketer because the get the boost in sales a rebate offer generates, with low redemption, thus keep the costs of program low.
If you need expert help at designing or fulfillment of a rebate program, Dare Marketing is here to help you. You’ll have nothing to worry about when relying on us to manage your rebate programs. You can rest assure that we will do a thorough check of each rebate and quantify and qualify the rebates so you can measure results. Contact us today to request a quote or if you have any questions at 905-569-6445.