What is a consumer rebate?
A consumer rebate refers to a partial refund or discount that a customer receives after purchasing a product. It’s a popular promotional strategy used in indirect sales to incentivize purchases, boost sales volumes, and drive customer loyalty.
Here’s how it generally works:
- A vendor offers a rebate on a product or service, which could be a certain percentage off the retail price or a fixed amount
- This rebate is advertised through their channel partners, like resellers or distributors, to reach end customers
- Once the customer purchases the product, they submit proof of purchase (such as a receipt or invoice) to claim the rebate
- The vendor then sends the customer a check, a prepaid card, or an online transfer for the rebate amount
Here’s how it could look in practice: A cybersecurity company offers a $50 consumer rebate on their annual subscription. Their partners, such as IT service providers, would advertise this offer. After purchasing the subscription, the customer submits their proof of purchase to the company who then processes and provides the $50 rebate.
The ultimate success of a rebate program will rely on making the process as simple and hassle-free as possible for the customer. When done well, though, consumer rebate programs are a great way to clear out inventory and accelerate your sales.