The rationale is simple: rebates help drive interest in a manufacturer’s products. Rebates have been used to drive consumer interest for decades by manufacturers. In fact, according to a Destination CRM report, over $76 billion in rebates are processed each year. This is a tremendous advantage for manufacturers in sales, but it does not necessarily translate to brand loyalty.
“Rebates help drive consumer interest in a manufacturer’s products.”
The current rebate model is not good enough
The way most companies have their promotional claims programs structured, rebates can take months to be processed. This allows enough time for the consumer to become disenchanted with the brand experience. In fact, a PC Data report cited by Destination CRM found that only between 30 percent to 50 percent of rebate claims are processed. This number should be 100 percent to maximize brand loyalty.
This is an issue because the personalized relationship between manufacturer and customer has given way to consumer segments. But these rebate programs are a way to recapture that relationship.
Now, consumers buy a product, and they may redeem a rebate, but then they move on. This where incentive claim data management programs can drive a rebate revolution with innovative tracking and tracing programs for rebate claims processing. That will go a long way toward rebuilding the one-to-one customer relationship.
Tracking rebate programs
To be effective in driving brand loyalty, rebate redemption needs to be quick to prevent turning off the consumer. According to Digital Marketing Magazine, this is particularly true when manufacturers require consumers to perform several tasks to submit the rebate, then take several weeks to verify and authenticate rebate transactions. With the capability of data capture from incentive program management systems, these rebates should be processed quickly and seamlessly. Only then will the consumer begin to go beyond the transactional relationship into brand loyalty.
From a consumer perspective, the product is what they buy. But loyalty is brought about by the trust by, among other things, a positive consumer experience with the brand. This is where effectively managed rebate programs go a long way toward ensuring that consumers do not slip away.
Regardless of the type of rebate program used by a company, it has the potential to have a measurable impact on the consumer experience if managed properly. These promotional programs may not seem groundbreaking, but incorporating even one of them can go a long way toward stronger results.
To ensure that these incentive programs are rolled out effectively, companies need to track them properly with a centralized incentive claim data management platform.