Sales rebates increase sales -- if the rebate is simple for the customer to participate in. Designed to entice customers to buy either a certain product or to buy a product while frequenting a specific store, rebates are a powerful selling incentive, especially when sales and rebates are combined.

The most common type of rebate is the mail-in rebate. In order for it to be effective, it must include:

1. A form that is easy to fill out (this is true for both web rebates and mail in rebates).
2. Simple instructions on how to show proof of purchase for rebates.
3. A quick and easy way to submit rebates with a clear timetable of when the customer can expect the rebate check

Action Steps
The best contacts and resources to help you get it done

Work with a rebate company that can create and process rebates for you

Using a company that specializes in rebates helps smooth the process for you and your customer. Rebate companies can help with rebate forms and special receipts the store gives out at the time of purchase, a process that makes it easy on the customer. Also, they can create rebates that are simply processed online with only the proof of purchase needing to be mailed in.

I recommend: A promotion management company can help advise you on how best to do advertising rebates. One that clearly outlines the steps is available at Archway Marketing Services.

There are also opportunities for you to work through the process online; see Online Rewards for an example.

Rebate marketing incentives that include online advertising increase customer participation

Getting your sales and rebates listed online helps to get the word out to more of your customers.

I recommend: Some websites that list current sales and rebates are AHugeDeal.com and TotalDeals.com.

Rebates can be marketed in many ways, so be creative when working with rebate providers

When creating a rebate, consider creating other new and exciting ways to publicize it.

I recommend: You'll find a multi-faceted overview of incentive programs at Grass Roots that include point of purchase displays and the like. You can also consider attending a customer relationship conference to truly open your mind to all the possibilities; see the Gartner Customer Relationship Management Summit as an example.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Use rebates to temporarily discount a product, which often increases sales. You can restore the original price at any time without customers noticing price fluctuations, which can be disconcerting.
• •  Jump start a product's sales with a rebate if, for whatever reason, it is not selling as strongly as other models. Also, other products by the same manufacturer benefit from the advertising surrounding the rebate.
• •  You can also unveil a new product with a rebate. In addition, you can combine the sales rebate with a sales tax rebate. This gives the customer a double savings -- and double the incentive to buy the new product.
• •  Use rebates to collect information about your customers. This information can be used in a variety of ways to improve marketing and customer service.