One of the ways that companies that are in the business of producing products use to attract new customers and to encourage loyalty among the existing customers is to use discounts. Discounts are used by organizations and they are structured differently by different organizations for example, an organization can decide to reduce the amount of money that a customer pays for a single unit by a calculated percentage or the organization can decide to make it possible to purchase more units with the amount of money that they would use to purchase one unit. Another form of discounts that they are companies who are in the business of producing physical and tangible goods use to encourage customer loyalty among existing customers and to also attract prospective customers is rebates. When customers are shopping for a product and buy products worth a specified amount of money by the producers of the goods, the companies can decide to offer the customer special form of discounts known as a bit whereby the company reference the customer a certain amount of money that they have spent in purchasing the goods. There are a few advantages that come with using rebates as a form of discounts to the customers and prospective customers of a specific brand that the company enjoys that they would otherwise not enjoy if they had decided to not use rebates. There are advantages that the producers of physical goods and products get to experience had they decided to use rebates on their customers and prospective customers in this article shall seek to discuss some of these advantages.
The first reason why the management team of companies that are in the business of producing physical and tangible goods should consider using rebates in their existing customers, is that this form of discounts is very good at encouraging customer loyalty among the customers who already are using the products of the company. Loyal customers tend to take a very long time to shift brands of the same product class and this is very important for the company that produces physical and tangible goods because it affords the more time to come up with a response to the activities that their competitors in the same market might be carrying out.
Another great advantage of using rebates as a form of discounts is that it is very successful when it comes to attracting new and prospective customers and converting them to becoming loyal customers of the specific brand. In most cases, the management teams of companies that produce physical goods will more often than not set a price limit that when exceeded by a new prospective customer, the company refunds the customer a calculated amount of money either by percentage or a fixed amount. When this happens, the prospective customer will most probably make it a habit to purchase goods from the specific company due to the fact that they feel appreciated.