The companies that are in the business of manufacturing physical products use discounts is one of the techniques and strategies to encourage customer loyalty among existing customers already use their products and they also use it as a strategy to attract new and prospective customers. The use of discounts can take different forms and strategies such as reducing the amount of money that the customer has to pay for a single unit or increasing the number of units that the customer can purchase with the same 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. For the companies that are in the business of producing physical and tangible goods, there are very many advantages that come with using rebates as a form of discounts to their customers and prospective customers. 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 advantage that producers of physical and tangible goods get to experience through the use of rebates as a form of discounts on their existing customers is that they get to encourage customer loyalty. The reason this is important is because when the company producing these physical and tangible goods have loyal customers, they get to have more time to respond to activities that their competitors might be doing in order to win over customers who use the specific product class in question.
One of the top reasons why the top management teams of companies that are in the business of producing physical and tangible goods should consider using rebates as a form of discount is because rebates tend to be very effective when it comes to attracting new and prospective customers and converting them to becoming loyal customers. The management team of this companies that are in the business of producing physical and tangible goods can set a price limit for purchases that if a prospective customer exceeds that amount, the company compensates or refunds the customer a specified amount of money. This works very well in encouraging customers to continue purchasing the products produced by that specific company.