Archive for September, 2006
Featured Question
Mail-in rebates vs. Instant Rewards
Posted by Dean on September 21, 2006
I’m thinking of running a promotion, but not sure if I should offer a mail-in rebate or an instant rebate at stores. I’m seeing an odd mix of both out there right now, so I’m wondering what you recommend?
We’ve found that many marketers have recently gone to instant, in-store savings due to a number of factors, but largely due to pressure from retailers who grew tired of consumer complaints about the wait times and growing mistrust of the mail-in process. What they found, however, were a number of issues: 1. Since everyone gets the reward, it becomes very expensive 2. When you lower the value of the offer (to make the cost manageable), you get less sales and 3. You need to manage the submission of the coupons from your retailers, in terms of validation, security/fraud issues, compilation, reconciliation and payment. We can do all of that for you. There definitely is a place for both, and we’re now seeing A shift back to mail-in, likely due to all of the above.
What you need to do is determine your consumer value proposition to the cost of the savings to the consumer. We believe the best compromise may be our ‘near instant’ payment solutions, which offer consumers the full discount and pay them quickly once they mail in the submission. Since we validate in days, not weeks, with our RebatePal™ process, we can actually send a reward payment via PayPal® within 10 days of receipt. We can also create a fully customized American Express® branded reward card for your campaign and have a personalized card sent directly to a consumer’s home. It saves time, gives a better reward and carries your brand right through to their wallet. With wireless carriers and subscription services (like satellite radio), we can even
facilitate a credit directly to the subscriber’s account.
As you can see, there is lots to consider and much depends on your product, the value of your reward and where you are placing your offer, but the good news is that there are many more options open to you now.
Delay Cards
Posted by Kimberly from Lancaster, PA, US on September 29, 2006
We have been advised by an outside consultant that we should begin implementing delay card notifications if we have a rebate or premium promotion that will not meet the turn time stated on the mail in order form.
We know this is necessary for programs which require the consumer to submit funds for purchase of merchandise or for shipping and handling. This is the first time we have heard that the use of delay cards for rebate promotions is becoming an industry standard.
Could you please confirm that this process is being implemented by other manufacturers and fulfillment processors?
Delay Cards (a postcard sent to communicate that it will take longer than 30 days to fulfill an order) are necessary to satisfy the FTC’s Thirty-Day Rule for mail order purchases, however this rule does not specifically apply to rebates – at least not yet. We have not seen widespread use of them in the rebate business to date, likely because postage and print could add unexpected costs to a manufacturer’s budget.
That being said, we agree that an essential element in providing an exceptional consumer experience is to communicate their rebate status before they even begin to wonder about it. We’ve worked very hard to create cost effective ways to communicate, including eMail, text messaging and by keeping our self look-up website and 24/7 call center updated in real time. We recommend that you clearly offer opt-in permissions, phone numbers and website addresses on the original coupon for consumers to reference.
So, although it’s not mandated (yet), we strongly recommend and encourage you to budget for pro-active communication with your customers.
Guy with the bag on his head
Posted by Dean on September 15, 2006
I’ve noticed a few of your company’s ads that show the guy with the bag on his head and couldn’t help wonder what that was all about?
I’m glad you asked, as he’s an important visual representation of our dramatic differentiation from the rest of the rebate industry. You’ve heard the jokes about how horrible the rebate experience is - it even made Dilbert, where they referred to devious rebate marketers as “stinking weasels”. If you consider how poorly the industry has treated the consumer by making him wait months for his reward and not supporting the offer with proper call center support or communication - essentially leaving him on his own to ‘hope’ he gets a check, it’s no wonder why retailers like Best Buy said ‘enough!’.
Our business model is completely different. We are a transaction-based consumer service company. We make it cleartoconsumers who submit that we actually intend to send their reward and do so as quickly as possible to ensure an exceptional rebate experience. That’s why we process submissions in days, not weeks (or months) and staff a fullytrained call center 24/7, offer free customized self look-up websites, plus have additional support options such as eMail or text messaging.
And we support it all with robust, real-time, on-demand web-based reporting for clients.
Frankly, we simply felt that someone had to take a stand to stop the self-destructive cycle of not respecting consumers who had submitted rebate claims in good faith. So, to answer your question, the guy with the bag on his head represents everything that the industry has done to create such a negative feeling amongst consumers and retailers toward rebates.
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