(Lewisville, TX) – Parago (www.parago.com), a leading provider of innovative reward programs that drive behavior and promote brand loyalty with consumers, announced today that it achieved record-breaking rebate delivery totals in 2010. Also, new research indicates that rebate programs are rising in favor with consumers and continuing to grow as a strategic approach for marketers.
“We view the overall success of rebates in 2010 the result of two things: increased consumer deal-finding behavior and the evolution of rebates from simple marketing tactics to strategic loyalty builders for businesses,” said Juli Spottiswood, President & CEO of Parago. “Consumers returned to shopping in 2010 and at the same time their willingness to find deals and look harder for them increased. Our clients use rebates for a competitive edge to take advantage of this trend and to cultivate more loyal customers through a great rebate experience.”
New consumer research conducted by Parago this month showed that 47 percent of consumers submitted a rebate in the past 12 months, whereas similar research conducted in 2009 showed that only 37 percent of consumers had submitted a rebate in the prior year. Also, consumers who submit rebates do so frequently, with 40 percent of consumers surveyed submitting more than 5 rebates per year. Finally, 83 percent of consumers responded that price was an important factor when shopping for gifts during the recent holiday season, and 34 percent took advantage of a rebate deal during the holidays.
Consumers choose rebates over other promotions because they offer deeper discounts. Additionally, the rebating experience has greatly improved, now offering a variety of payment methods including prepaid cards and PayPal, a choice of submission methods including online or point of sale from some merchants, customer service interaction via web chat and dramatically reduced turn times. In exchange for this positive and simple rebate experience, consumers are giving marketers data, participating in surveys, registering their products, signing up for loyalty programs and more. Marketers are finding a deeper value in rebates than ever before by not only benefitting from the sales lift they generate, but by gleaning important information from these captive consumers.