Rebates and Consumer Reward Management

Excellent question. Rebates represent a great value to both marketers and the consumers who participate, but you must go into a rebate program with your eyes wide open. Trust is the foundation of any relationship, so you need to do your homework to ensure you are working with the right rebate management agency. At TheRebateCompany, our Trust Agreement fully outlines exactly what happens with your funds, so you can sleep at night assured that your funds are safe.

But there's more to managing a successful program than that. Here's a list of how to protect both your money and your brand while running a successful Rebate/Reward program:

* Bigger is not always better. Many of the large rebate processors use a business model which includes investment / money market revenue streams from your deposited funds - BEWARE, as this model will likely include many 'hidden' costs.

* Don't let the "this is the way it works in the rebate industry" mentality guide your communication, terms and conditions of your offer - it is "your" brand and your customer - focus on upon your customer's expectation - nothing less. It does not take '8 - 10 weeks' to process a reward.

* Build reasonable and achievable expectations for your rebate agency to deliver upon - knowing how long you need to process funds for instance, should be in the work back schedule. For example, if your company takes 60 days to pay an invoice, you will need to deposit some funds up-front to enable your agency to fulfil within a '4 - 6 week' period, if that is what is stated on your coupon. Or, you will need to fast track redemption fund requests to meet the expectation. Monitor all processes and gain understanding through reporting and regular contact to ensure the team meets all benchmarks to deliver on customer expectation.

* Pay the rebate agency quickly on substantiated funding requests and monitor their funding turns to ensure customers are being paid within days of receipt of funds and on an agreed regular schedule for deposit funds. Funds should never 'sit' for an extended period. There must be a sense of urgency to get the reward out to the consumer as soon as possible. Be sure to monitor that.

* You own the ultimate responsibility to your business / organization and your deliverables to your customers - so you should demand that the rebate processor manages your brand with at least the same highest integrity that you would if you did it yourself. This is very important, as your rebate processor can be a sensitive touch-point for your customers.

* When reviewing pricing, make sure you are comparing service to service. If the processor offers "free" or "inclusive" call center service there is a catch - nothing is free AND if your vendor is speaking to your customer then know what they say, how long they take to answer your calls and what your customers are experiencing. A message that says 'If it has been less than 8 weeks, please call again after that time" and hangs up, is NOT customer care. Your processor is an extension of your brand at every touch point and that alone should prompt you to manage your vendor relationship with the greatest of care and attention to detail.

* Watch out for hidden fees. Online web status look-ups for consumers should be free. So should standard, instant reporting.

* It is essential that you have visibility to the processor's bank accounts that they operate on your behalf - check them daily or at the very least regularly to look at the activity for "appropriate" transactions.

* Fund a maximum 25% of anticipated program dollar volume in advance OR your normal internal check processing cycle multiplied by 2 (if it takes 5 weeks to turn around a check then 10 weeks of average anticipated volume), whichever is greater.

* Demand activity reporting that shows actual data - real time is the best - to show funds, allocation and financial transactions.

* Manage your rebate processor relationship like you do all of your other top priority brand initiatives. Work with them in advance, to ensure all essential elements are in place before you print your submission forms or launch the program.

* Ensure your senior management is involved in activity, decisions and visibility to vendor real time reporting - don't leave management of your program to junior staff.

* Plan a weekly conference call and regular face to face meetings - monthly or as agreed - but don't push them off - actually have "regular scheduled contact". Just because you are speaking to them daily or have visibility to activity regularly doesn't mean the business is being managed as well as it could be.

* Audit your vendor annually or semi-annually - have balances and activity reporting justified and balanced to the penny.

* If it the price appears to be too cheap then it probably is - which means your processor is either losing money on every transaction - which is very unlikely - or they are using your money to finance their business. If bank clearing charges, postage, envelopes, etc. add up to more than the quote, you know your money has to 'make money' for them, so you are likely being placed at risk and your customer's rewards will likely take far too long to be received.

Don't try to do it yourself - you don't have the scalable systems, processes, reporting, customer care, anti-fraud mechanisms, envelopes, postage or other core competences to be responsive to customers in a business that is not your core, but be certain you know who you are dealing with - and what happens to your reward money.