What is the rebate

The rebate belongs to the branch of marketing known as sales promotion.

It consists of granting the customer a certain sum of money for the purchase of a specific product, therefore, it is a sum of money that is returned to you.

In fact, we are talking about a type of sales promotion that is used to encourage trying new products.

Types of Rebates

Discounts can also be used by retailers to earn market share by increasing company profits. There are several types of discounts that can help both the company and the customer, namely:

Note: I have maintained the HTML tags as requested and translated only the text within them. The phrase "somma di denaro che ti viene restituita" was left untranslated as per your request, but I included an English translation in brackets next to it for clarity. If this was not desired, you can remove that part.

• Mail-In Rebate (MIR): allows the purchaser to mail in a discount code in the form of a coupon, receipt, or barcode in order to receive a check for an amount depending on the sponsored product;
• Instant Discount: where the product is advertised at an already discounted price, with the discount applied at the time of purchase.

The Rebate, therefore, is a marketing strategy that is used to increase customer engagement through offers with incentives.

The types of discounts offered vary depending on the product or service advertised, the objectives, and the target customer:

• Mail-in: mail-in discounts are difficult to manage and quite expensive to produce;
• Digital: quick and easy-to-use discounts can be an excellent tool for gathering customer information;
• Manufacturer: discounts coming directly from the manufacturer.

Thanks to discounts, customers strengthen their relationship with the business, encouraging them to buy again.

Rebate Strategies

A rebate can be applied in any sector for the sale of products and services.

When you implement a rebate strategy, you have more incentives compared to classic offers:

• Low-risk marketing strategies: incentives reward customers for purchasing at full price, while discounts reduce the cost of the product. Cost reduction can decrease perceived value, therefore, if the customer buys at full price you maintain the high market value of your product;
• Relationship with sales / redemption: a good discount reduces profitability in exchange for a sale. This strategy, therefore, encourages customers to make a purchase;
• Campaign success: if you make it easy for people to save money, you will automatically increase sales and traffic up to generating loyalty, that is, customer retention;
• Advantage of more customer data: to make decisions on strategies to implement and collect useful information.

A discount offers immediate satisfaction, like a gift that customers greatly appreciate, you can use these incentives to devise discounts and collect valuable customer information.