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Top 6 Ways to Use Rebates and Incentives for Increasing Sales!

Rebates and incentives are two of the most common methods used to increase your company’s sales. Unlike other advertising strategies, rebates and incentives speak for themselves. Thus, as long as they’re done properly, rebates and incentives are one of the most cost-efficient marketing solutions you can use for your company.

How to Make Rebates Work for Your Company
Rebates may either be offered by the manufacturer or retailer but in either case, rebates usually offer products or services at a seemingly lower rate.

Tip #1 Calculate Carefully

Don’t just lower the price of your product and offer rebates without showing any serious thought about it. Carefully calculate just how much you can afford reducing the price without getting bankrupt.

Tip #2 Women Respond Better than Men to Rebates
If you really want to make the rebates you’re offering work, do your best to target female customers with your advertisements. Women are more patient than men when it comes to shopping. Secondly, women are more patient with keeping rebate coupons in their pockets until they finally find an opportunity to use them.

Tip #3 Keeping It Simple
Don’t give out rebates if you’re only intention is to deceive your customer into buying your product at its original price. If you’re offering rebates, but there’s a procedure to follow before you can claim the promised reward, make sure that the process is kept short and simple. Don’t ask them to photocopy their receipt in triplicate, sign tons of paperwork, and do other things to discourage them from claiming the rebate.

Dan DeSantis — United Stores, Chicago, IL and Customer Retention Programs

“Just a short note to tell you that the marketing suggestion you gave us to use the Customer Retention Programs idea to increase traffic into our stores is working. As you know, we operate large wholesale warehouse stores throughout the Midwest and want to be another Costco. The real objective is to enroll new members who prefer to shop at our stores. We use the incentive packages as a gift each time a member refers a new member. Your staff has been very helpful.” 

How to Make Incentives Work for Your Company
Incentives take various forms but all of them generally work by rewarding people for taking the desired action.

Tip #1 Reward Customer Loyalty
If your company has long-time customers – those who keep coming back to you no matter what’s dangled in front them by your competitors – do make sure that you reward them appropriately. You can identify who your loyal customers are by giving out loyalty cards. It’s important to give them preferential treatment because this kills two birds with one stones: it encourages new customers to act in the desired fashion to get similar V.I.P. treatment, and secondly, it rewards old customers and gives them reason to keep coming back.

Tip #2 Reward Customers Who Give You the Information You Want
One way of increasing sales is by building your knowledge of your target market, and there are various ways to achieve that such as giving away survey forms or encouraging customers to join your opt-in list. To ensure that they’ll continue giving you precious data about your customer base, reward the people who have kindly taken the time and effort to give you what you need.

Tip #3 Bumps and Burdens are Always Welcome
Customers always like it when they receive something for free. When you’re using direct mail marketing, prospective customers are more likely to open and read your letter if you enclose something with it. The bigger or more noticeable the bump, the heavier the package, the better! The most important thing to remember is to be ethical when dealing your customers. Just as long as you have no intentions to cheat or deceive when using rebates and incentives, they’re sure to work in the long run and ultimately cause your sales to increase.

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