Menu
      Edit

      Rebate Reality Check: Trends for Rebates

      Find out what’s really going on with digital rebates in marketing with our latest trends guide

      Share

      What’s Really Going on with Rebates?

      Rebate or discount?

      A rebate allows the customer to redeem money back after a purchase.

      A discount offers money back before a purchase by reducing the upfront price.

      It feels incredible that in 2024, millions of people all over the world still cut out coupons and send it in the mail to get a rebate. But in a world of smartphones, the daily barrage of information, and the need for immediate satisfaction, the image of a thrifty homemaker sitting at the table with scissors in hand is a heart-warming reminder of a Golden Age.

      Customers love rebates… or so we’re told. What you’ll hear is that 75% of people are more likely to make a purchase if they’re offered a rebate.

      But this percentage reflects a world almost 20 years ago - not as far back as our thrifty 50s homemaker, but far enough for a financial crash, a pandemic, and 4 US Presidents to roll through. And over that time, consumer habits have changed significantly.

      In 2009, a study into the success of the US Government’s ENERGY STAR© program found that the option of a rebate devalued consumer perception of a product or service.

      A more recent 2021 study of 600,000 consumers found that a rebate increases the likelihood of purchase by only 76% as much as an equivalent discount would.

      So, rebates are dead, right…?

       

      “Reports of my death are greatly exaggerated”

      Despite the negative attitude from consumers and the lacklustre results, rebates are not, in fact, dead. And with the today’s global economic situation, they’re making a comeback.

      But in the grand marketing mix of tools at our disposal, why should brands continue to use rebates?

      Rebates banner3

      Reality Check: Why Use Rebates in 2024?

      rebates_icon1

      Rebates are a data goldmine

      A single user data point has an estimated value of $65, while an email address is worth $89 to any brand.

      rebates_icon2

      Customers are prepared to engage further

      90% of rebate redeemers will take additional action (like joining a loyalty program) if asked.

      rebates_icon3

      Rebate redemption rate is only 78%

      But carefully managed rebate programs can increase returns by up to 260%.

      Rebates banner4

      Key Digital Rebate Trends

      1

      Smart Spending

      A recession is looming. But brands need to show value, not just cheapness.

      Consumers are re-evaluating what value means to them. And this impacts how they spend. Our latest shopping trends survey indicates that 57% of shoppers have switched retailers in an effort to save money.

      This makes the very concept of digital rebates an attractive prospect right now. But the consumer drive of intentional spending goes further than price. According to Mintel’s Global Consumer Trends report, “factors like flexibility, durability, and sustainability will play increasingly important roles in the value equation.”

      45%

      of US consumers who buy personal care products have switched brand due to price increases in the last year.

      39%

      of UK consumers have bought fashion items in the last 12 months that can be used for multiple occasions.

      2

      Exclusive, Exceptional Experiences

      Yes, it’s the personalization trend again.

      2024 will see a desire for consumers to redefine their identities - and the brands that people favor will play a key role. Customer data is the fuel that powers consumer insights and personalization. Brands can use digital rebates to incentivize trial of new products and provide a pathway to collecting more first party data.

      Influencers play a key role in today’s marketing mix, particularly in building brand trust. With the historic perception of rebates still present in people’s minds, brands can use influencers to reinforce trust, value, and positivity.

      44%

      of US Gen Zs agree that finding ways to celebrate themselves has become more important to them since the pandemic.

      20%

      of German social media users follow full-time influencers compared to 5% who follow business leaders.

      3

      Speed is the Key

      Do you use Paypal, Venmo or Zelle?

      Most digital rebates involve some kind of cash back element. And where money is concerned, payments technologies are at the cutting edge of consumer technology. Consumers are used to (and prefer) instant, automatic payments from their bank or finance app. This trend extends to their experience with brands when it comes to digital rebates.

      74%

      of consumers prefer to manage payments via digital methods.

      60

      is the average number of days it takes to get a mail-in rebate payment.

      4

      Privacy is Paramount

      With rebates now digital, brands need to be both transparent and secure.

      Online privacy has never been more important. Last year, Google asked 20,000 people about the consequences of good and bad privacy experiences. They found that privacy experiences impact user trust. Consumers view bad privacy experiences as almost as damaging as a theft of their data.

      Digital rebates need to be delivered with the privacy people deserve. Brands now need to make sure that consumers are - and feel - in control of their data.

      43%

      of consumers who have a bad privacy experience switch brands.

      65%

      of consumers think digital payments are more secure than their traditional counterparts.

      Rebates banner5

      Three Challenges for Digital Rebates

      1

      Creating experiences that resonate

      Buyers aren't jumping at every deal they find -- they shop intelligently. The digital world is a vast place, and better prices are often just a click away for the savvy shopper. The pressure is on brands to create more relevant incentives and a user experience that makes it easy for consumers to achieve their spending goals.

      A badly managed digital rebate program puts you on the back foot. Perception of your brand goes down and consumers are put off by the hoops they have to jump through – the juice just isn’t worth the squeeze. And in a busy marketplace, it’s not enough to grab attention, you need to follow through.

      This means delivering on the process, redemption methods, and feedback mechanisms as well as the creative and the reward.

      27% 

      of all US consumers say they would like to pay with their smartphones all the time.

      How to deliver

      One of the greatest competitive advantages that any brand has in the anytime, anywhere, always-on world of digitally-enabled smart shoppers is its understanding of its customers. Digital receipt validation allows brands to learn much more about consumer purchasing patterns, including:

      • Purchase location
      • Retailer preferences
      • Demographic details
      • Preferred payment methods
      • Time and date of purchase
      • Basket contents

      For brands that historically have a hard time connecting directly with their actual end users, the first party data from rebate programs is a goldmine. It allows them to craft personalized brand experiences that make them stand out.

      Hassle-free money back (and the sense of reciprocity that comes with it) makes consumers loyal and want to become brand advocates. Long term brand relationships are built on emotion, and on the overall experience. Each step in the rebate process: the offer, the reward, the submission, and the after-sale support, must work together, powered by data, to build brand love.

      For example, if you know your consumers pay by PayPal for your product, offer a rebate directly into their PayPal wallet.

      2

      Delivering those experiences at scale

      One of the keys to a satisfying rebate experience is speed. From the moment a consumer submits a rebate claim, it’s a race against time and patience to deliver the redemption. So, while your digital rebate redemption is weeks faster than the mail-in option, that’s not what consumers are timing you against. Digital rebates are going to be compared to web-page loading speed.

      71% 

      of consumers expect companies to deliver personalized interactions.

      How to scale

      Digital rebate programs need to run on powerful and robust platforms to meet the demands of today’s consumers. And while automation plays a key role in the redemption process, it’s important to consider your martech administrators, as well as your end consumers, when choosing the right solution.

      Marketers want tools that fit easily into their current stack and are simple to use. This is highlighted most vividly in a recent study from Ascend2. They found that ease of use, integration, and customization came out ahead of improved customer experience, automation, and data management.

      Great contest and reward marketing solutions enable experiences that consumers love, while giving brands the means to take full advantage of digital rebates. This means they have:

      • Transaction & engagement processing to activate and validate customers in any channel
      • Data granularity for deep drill segmentation
      • Value-exchange engines to enhance customer engagement with preferred reward systems
      • Flexibility for seamless tech integrations
      • Personalization to deliver great experiences at every stage of the customer journey
      3

      Managing fraud

      Digital rebates might be more secure for brands, but for consumers, they’re like any other digital experience. So as well as delighting consumers, brands need to reassure them. Rebate submission fraud can negatively impact your brand's rebate program. Managing those who take advantage of rebates by “double dipping” or submitting false details can become costly and time consuming at scale.

      56% 

      of consumers wish they had more control over their data.

      How to scale

      Features to protect brands from rebate submission fraud are well-established. Fraud detection and protection is often built-into technology platforms like our own SnippCheck, which processes and validates receipts for rebate promotions, and can manage entry loads that run into millions.

      Digital redemption processes also enable the tracking of unique digital footprints such as IP addresses (for online), and unique smartphone identifiers. In this way, brands can protect themselves from a phone being used to submit more/erroneous claims.

      To ensure data privacy, brands need to build data transparency into their marketing message to ease customer concerns. Using their own websites and apps rather than third-party solutions can better ensure data governance and accountability. However, working with an expert and trusted partner that shares your privacy values can be just as effective.

      Rebates banner6

      Do Mail-in Rebates Have a Place Today?

      Short answer, yes.

      Mail-in rebate programs continue to be effective in a variety of markets. Brands like Menards and Pirelli continue to see success through their mail-in rebate programs. Pirelli have only recently added a hybrid digital/paper solution to their rebate program.

      In fact, manufacturing, automotive, and industrial industries benefit consistently from mail-in rebates. Why? Because their markets move more slowly and so do their customers (but that will likely change as consumer become more used to the speed of digital for everything).

      Rebates banner7

      7 Snipp Tips for Building Better Rebates

      Snipp Rebates Checklist 1

      Simple, Customer-First Submissions

      Users should be able to submit their receipts by picture text messaging, email or web-upload. No more licking of stamps or trips to the mailbox.

      Snipp Rebates Checklist 2

      Minimal Proof of Purchase

      Nothing more than a scanned/snapped copy of the store receipt, or barcode and UPC symbol from the product packaging.

      Snipp Rebates Checklist 3

      Transparent Processing.

      During the processing of a rebate claim, customers should be able to view the status of their rebate claim at any time, in real-time, and be notified of the outcome.

      Snipp Rebates Checklist 4

      Nudge Your Redeemers.

      Improve the rebate experience by reminding your customers to claim their renewal. This helpful extra touchpoint builds brand affinity.

      Snipp Rebates Checklist 5

      Relevant & Valuable Reward Options.

      Consumers should be able to choose their own reward delivery mechanisms - prepaid cards, checks, PayPal and more.

                                             

      Snipp Rebates Checklist 6

      Big Daddy Data.

      The rebate redemption process must include demographic and purchase data capture.

                                                                        

      Snipp Rebates Checklist 7

      Keep Up the Conversation.

      Remember that the redemption is the icebreaker. Leverage data from the rebate process to continue engaging the customer. This mindset makes rebates a tool for getting new customers, encouraging them to buy more and allowing them to spread the word.

       

       

      Get Your Rebates Working Harder

      Digital rebates still have a vital role to play in today’s customer experience mix. They’re both a gateway to greater engagement and key tool in capturing essential first party data. And remember – it’s not just about encouraging a purchase. It’s a tool in your wider brand strategy to provide long term growth to your marketing activity.

      See also our guide and infographic -  The Complete Digital Rebate Guide & Checklist

       

      Need Help With Digital Rebates?

      Looking to take advantage of the potential of digital rebate programs?

      Visit us at www.snipp.com/rebates or get in touch with us to learn more about our SnippRebates Platform and SnippRebates Center.

      Download the pdf here

       

      References:

      • https://www.hindawi.com/journals/complexity/2021/8839218/
      • https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/how-consumer-packaged-goods-companies-can-drive-resilient-growth
      • https://www.shopkick.com/partners/blog/how-cpg-brands-can-benefit-from-an-incentive-based-marketing-approach-fc
      • https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8188260/
      • https://nielseniq.com/?s=promotions&market=global&language=en&orderby=date&order=DESC&date_range=&date=&post_type=insight&topics=brand-marketing&industries=
      • https://www.mastercardservices.com/en/reports-insights/three-consumer-trends-impacting-cpg-companies-2022
      • https://www.pymnts.com/news/retail/2022/real-time-data-maximizes-cpg-firms-promotion-spend-and-bottom-lines/
      • https://www.onbe.com/post/future-of-payments-2022-report
      • https://web.archive.org/web/20220524194417/https://resources.360insights.com/360-blog/mail-in-rebate-vs-digital-how-to-make-the-most-out-of-your-rebate-program
      • https://www.thinkwithgoogle.com/intl/en-gb/future-of-marketing/privacy-and-trust/research-customer-privacy-practices/
      • https://www.pymnts.com/tracker/expanding-payments-choice-digital-incentives-loyalty-rewards-retail
      • https://www.snipp.com/client/digitizing-multiple-rebates-and-driving-redemption-for-scotts-miracle-gro-rebates-center
      • https://securityboulevard.com/2020/09/many-consumers-dont-trust-the-way-companies-are-using-their-data-and-businesses-need-to-change-that-perception/
      • https://www.mintel.com/global-consumer-trends
      • https://journals.sagepub.com/doi/10.1177/002224299105500202
      • https://www.snipp.com/hubfs/SNIPP-Inflation-and-Shopping-Trends-Survey.pdf
      Edit

      Let’s Work Together

      Let's talk about how Snipp can help you engage your customers.
      SnippInteractive_logo

      Suite 1700, 666 Burrard Street,
      Vancouver, British Columbia, V6C 2X8, Canada.
      1.888.99.SNIPP (1.888.99.76477)

      Get the latest news

      Quick Links

      © 2024 All rights reserved.