4 Ways Rebates Can Stimulate Customer Loyalty

Retailers have been using rebate programs for decades. Consumer rebate programs have adapted to today’s always-connected shopper and rebates have remained a preferred promotion among deal-seeking consumers. Many businesses use rebates to stimulate sales or customer acquisition, but may not think of them as long-term loyalty drivers.

In an article recently published by Loyalty360, our Theresa McEndree described how rebates can give retailers the best of both worlds. They provide attractive promotions that drive sales, and are the beginning of the customer conversation that leads to loyalty.

She provided ways that modern rebate programs are beneficial to retailers in supporting consumer loyalty, including:

  • It’s a great way to get clean data: Rebate programs offer the ability for retail marketers to collect significant amounts of customer data. These include shopper demographics, purchase information, customer satisfaction scores or product reviews. The data can be stored and used for future marketing campaigns to intelligently inform and market to consumers. Good data powers great loyalty.
  • Get loyalty registration during the rebate process: Allow customers to automatically enroll in a loyalty program while providing information required for the rebate redemption. This can significantly reduce the retailer’s cost per loyalty acquisition. It also makes the process quicker and more seamless for the consumer.
  • Rebates create an elevated brand interaction: Rebate payout has largely moved to prepaid cards or gift cards as the industry standard, offering branding possibilities. The fully branded reward comes with messaging, serving as a “billboard in the wallet” and offering the opportunity for spendback.
  • Online or mobile rebate redemption improves the customer experience: Traditional rebate redemption requires cutting out UPC codes, filling out paperwork and mailing it all in. Modernized rebate submission processes allow shoppers to redeem easily, sometimes with just a few thumb swipes on a smartphone.



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