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New research from incentives giant indicates surging deal-finding behavior amongst consumers
LEWISVILLE, Texas, Nov. 23, 2010—Parago (www.parago.com), a leading provider of innovative reward programs that drive behavior and promote brand loyalty with consumers, is forecasting record-breaking availability of rebates this holiday shopping season.
Consumers want great deals and rebates are a terrific way to give them the discounts they demand. With 2010 rebate performance to-date at blockbuster levels, (Parago has seen a more than 20% increase over the same time last year) more companies are rebating and more products are being sold with robust rebate offers. This momentum of great deals and consumer excitement will carry through the holiday season, with more offers and rebate promotions being marketed than previous seasons.
“Rebates are a great way to deliver attractive deals to consumers,” said Juli Spottiswood, President & CEO of Parago. “Our clients are aggressively rebating products to have that competitive edge, attract customers and achieve key objectives. Rebates will be a key promotional strategy for major manufacturers and retailers this holiday season.”
Although overall consumer confidence remains meek, consumers want to return to shopping and their willingness to find deals and look harder for them is steadily increasing. Smart companies are taking advantage of this and using rebates to deliver more aggressive offers to the price-conscious consumer.
In addition to a love of a great deal, consumers’ perception of rebates is at an all-time high, with more than 89% of consumers surveyed having a positive or neutral perception of rebates, according to an October research study from Parago. Also, consumers choose rebates over other promotions citing better savings as their motivation. Rebates allow marketers to offer deep discounts to their consumers that are otherwise unapproachable. And advances in technology and process have made the experience easier and faster.
Parago, which designs and manages rebate programs that touch one out of every two American households every year through retail giants and manufacturers like Staples, Ace Hardware, General Electric, Behr and Logitech, has thus far in 2010 processed more than $2 billion in total rebates – with the holiday season still ahead.
“We predict a more than 30% increase in the number of rebates available at retailers this holiday season,” continued Spottiswood. “While consumers enjoy the tremendous deals, marketers, who are looking for new ways to interact with their customers, benefit from the data and ongoing touch points rebates provide, in addition to the sales lift that they generate. The rebating experience has greatly improved for consumers, 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. The consumer demand and perception reflects these improvements.”
Following the recession, there has been a marked paradigm shift in the way consumers shop. Now rebates are meeting the changing needs of both consumers and the marketers that are issuing them. According to consumer research completed by Parago in 2009 and 2010, 83% of consumers said they were actively looking for rebates, 71% of consumers would go 5-10 minutes out of their way for a $5 rebate on a $50 product, 87% would travel the extra distance for a $10 rebate and a full 93% of consumers would travel 5-10 minutes out of their way for a $15 rebate.
“Today, in exchange for a positive and simple rebate experience, consumers are giving marketers data, participating in surveys, registering their products, signing up for loyalty programs and more. These captive consumers are happy to provide valuable information if it extends their deal-finding purchasing habits,” continued Spottiswood.
Parago is the innovative provider of rewards-based incentive solutions that deploy technology to drive better results from consumers and customers alike. Parago provides a full range of consumer incentive and rebate programs to Fortune 500 companies, including customer acquisition and retention. Parago has distinguished itself in the rewards-based incentives field for more than ten years by consistent reinvention of legacy approaches, introducing 27 industry firsts and receiving three patents. For more information visit www.parago.com
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