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the Benefits of Using Rebates

One of the ways that companies that are in the business of producing products use to attract new customers and to encourage loyalty among the existing customers is to use discounts. Discounts can take very many different forms such as reducing the price of a single unit using a calculated percentage or the organization can decide to give discounts by selling more units at the price of one unit. Another form of discounts that they are companies who are in the business of producing physical and tangible goods use to encourage customer loyalty among existing customers and to also attract prospective customers is rebates. When customers are shopping for a product and buy products worth a specified amount of money by the producers of the goods, the companies can decide to offer the customer special form of discounts known as a bit whereby the company reference the customer a certain amount of money that they have spent in purchasing the goods. One producers of physical goods and products decide to use rebates on their existing customers and prospective customers, there are a few advantages that come with that decision to use rebates. In this article, we shall seek to discuss some of those advantages that the company realizes through the use of rebates.

The first advantage that producers of physical and tangible goods get to experience through the use of rebates as a form of discounts on their existing customers is that they get to encourage customer loyalty. Loyal customers tend to take a very long time to shift brands of the same product class and this is very important for the company that produces physical and tangible goods because it affords the more time to come up with a response to the activities that their competitors in the same market might be carrying out.

One of the top reasons why the top management teams of companies that are in the business of producing physical and tangible goods should consider using rebates as a form of discount is because rebates tend to be very effective when it comes to attracting new and prospective customers and converting them to becoming loyal customers. Most companies will set a certain amount of money worth of purchases that when a prospective customer exceeds it, the company refunds the customer a specified amount of money either in the form of a percentage of the total amount of money that they have spent or a fixed amount. This method is very effective in encouraging the customer to continue purchasing goods from that specific brand.

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