Consumer Focused Rebates Linked Sales Increase.

The Promotion Marketing Association announced the top-line findings of a research study on rebate promotions. The study, conducted with the Moore School of Business at the University of South Carolina, estimates that almost $487 million dollars were issued in rebates to consumers over the last year. Important for retailers and manufacturers to note, the study found that increasing the size of a rebate increases sales and redemption rates in different ways. The study also tells marketers that the length of the redemption deadline is an important consideration when designing a rebate promotion.

“When used appropriately and as part of an integrated marketing plan, manufacturers know that rebates are an effective promotional tool that can engage consumers,” said Claire Rosenzweig, CAE, Promotion Marketing Association President. “The PMA Educational Foundation conducts research to help marketers better understand both consumer demand and the efficacy of promotional tactics in order to achieve brand goals. This study shows that rebates indeed drive sales.”

The study, geared to inform the trade, looks at the industry holistically and provides information on how rebates influence incremental sales and redemption rates.

The study looks at promotion evaluation practices, managers’ beliefs about performance measures, trends in rebate variables including rebate size, length of promotion and redemption deadlines, and the effort required to redeem, as well as overall promotion objectives and implementation.

“It’s clear the industry embraces rebates as a sales tool,” noted Tim Silk, Assistant Professor of Marketing at the Moore School of Business. “What will be interesting to recipients of the full report is that redemption rates can be influenced in ways that managers would not expect. I suspect the results will influence the way marketers plan and evaluate their promotions going forward.”

For more information at http://www.pmalink.org