Aberdeen report: 50% of retailers use rebate programs

Lewisville, Texas -- Fifty percent of retailers and almost as many manufacturers (48%) use rebate programs as part of their customer loyalty and promotions mix, according to report by the Aberdeen Group.

"Our findings revealed a very persuasive business case for rebates," said Chris Cunnane, senior research associate with the Aberdeen Group. "We have a deep expertise in retail and manufacturing research, and this report demonstrates the value of rebate programs for both of these groups."

Other key findings of the report, entitled Rebate Optimization in Retail: Driving Customer Responsiveness, include:

• The top driver of rebate usage in retail is top-line revenue (64%), while the top driver in manufacturing is competitive advantage (61%).
• Customer retention is the top benefit of rebates for 50% of both retailer and manufacturer respondents. The second highest benefit for retailers (50%) is promotional and marketing spend ROI due to the shelf-level sales success of products with rebates. For manufacturers, the second highest benefit of rebates is customer conversion (46%).
• Both retailers (36%) and manufacturers (27%) identified building lifetime customer value (the value of future revenue from long-term customer relationships) as another top driver for the use of rebates.

“This research is powerful verification that all retailers and manufacturers should consider incorporating rebates into their marketing programs," said Juli Spottiswood, president and CEO of Parago. "This report definitively shows that businesses that use rebates benefit in many ways as a result: retaining customers, driving compelling marketing ROI and customer conversion and forging deeper customer engagement."