According to research released today, 50 percent of retailers and almost as many manufacturers (48 percent) utilize rebate programs as part of their customer loyalty and promotions mix. Half of the retailer and manufacturer respondents said the top benefit of rebates is customer retention; evidence that today’s new rebate programs that have begun to incorporate features such as electronic redemption, quick payment and mobile locating, are resulting in pleased consumers and powerful ROI for businesses.
“This research is powerful verification that all retailers and manufacturers should consider incorporating rebates into their marketing programs,” said Juli Spottiswood, President & CEO of Parago, a leading innovative reward program and rebate provider that drives behavior and promotes brand loyalty with consumers and channel partners. “This report definitively shows that businesses that use rebates benefit in many ways as a result: retaining customers, driving compelling marketing ROI and customer conversion and forging deeper customer engagement.”
PROMO Magazine today announced some new research on the business case for rebates, just completed by the Aberdeen Group. Full story here.
Among the interesting stats included in this report:
- 50% of retailers and almost half (48%) of manufacturers use rebates as part of their customer loyalty and promotions mix
- The top driver for retailers to use rebates (64%) is to improve top-line revenue, while manufacturers (61%) work to build their competitive advantage
- The top benefit of rebates for both retailers and manufacturers is customer retention (50%), followed by ROI (50%) for retailers, and customer conversion rates (46%) and customer engagement (42%) for manufacturers
Parago, a leading rebate fulfillment and processing company, saw a more than 30 percent growth in its retail rebate business in 2010, which we attribute to two things: increased consumer deal-finding behavior and the evolution of rebates from simple marketing tactics to strategic loyalty builders for businesses.
Boardrooms across the country are rife with marketing challenges: dealing with competition not just from the store down the street but the world online, satiating the public’s constant thirst for what’s new and finding new ways to reach customers in their cluttered lives. Most significantly, today marketers are up against consumers who are hyperconscious of value.
Value is in, that’s for sure. The August 2009 Nielsen Consumer Insight Report stated that 80% of Americans are stressed over the economy, with nearly 88% of them changing the way they shop through brand disloyalty, migration to private label, discount shopping or switching stores.
Last month the California Supreme Court ruled that ZIP codes are personal identification information, and as such retailers can no longer request them from consumers at checkout. Now, many retailers and marketers are scrambling to find ways to deliver targeted marketing without this customer data.
Some smart retailers are leveraging rebates and redemption-based promotions to not only drive sales with great discounts, but gain customer information – and information that is willingly provided. In a recent survey done by Parago, the nation’s largest rebate processor, 87% of respondents said that they would opt in for marketing offers and discounts from rebate sponsors. This provides retailers and manufacturers with demographic and shopping information, and the opportunity to begin building a shopping profile. Plus, consumers who don’t mind providing their personal information gain from incremental deals.
Parago provided retailers with millions of opt-in emails last year, delivering a significant marketing channel and great deals their consumers want.
Promotional Execution: Tweak Your Promotions Into a Sales and Revenue Generating Machine
In any highly competitive industry, brand managers can run similar product launches – with similar budgets, ideas and products – but achieve dramatically different results.
When shoppers have so many choices among traditional, online and discount retailers, the marketing strategy becomes the differentiator. Find out how you can set your promotional strategy apart from the rest.
In this Webinar, you will learn the story of two brand managers, each responsible for the launch of their respective brand’s new appliance. While both generated brand awareness, one broke away from the "me too" marketing and created a reusable, proprietary promotional platform that drove product sales and enhanced brand engagement to:
- Increase product sales up to 200%
- Deliver up to 50% of promotional spend back to your store/product
- Drive 70% email capture and customer profile and preference data
- Reduce cost of promotion by up to 40%
Join us at 2PM Eastern on March 30 and learn first-hand how major retailers, service providers and manufacturers are increasing sales and reducing promotional costs in a market where customers are demanding better deals, lower costs and a great experience. Click here to register.