As a business, it’s important to constantly seek out new ways to increase income and drive profits. Retailers have unique operating conditions relative to other industries. Rebates, which are essentially discounts or incentives that are offered to customers in exchange for certain terms, such as making a purchase or referring a friend, are an under-utilized opportunity for earning increased income.
One way that retailers can gain additional income through rebates is by sharing their real-time data with suppliers. By doing so, retailers can provide suppliers with valuable insights into consumer behaviour, allowing them to tailor their marketing and pricing strategies accordingly. This can lead to increased sales and revenue for both the retailer and the supplier, which can be shared through the use of rebates.
Here are a few specific ways that retailers can use real-time data to gain additional income through rebates:
Provide suppliers with real-time data on consumer behaviour and purchasing habits.
By sharing this information with suppliers, retailers can help them tailor their marketing and pricing strategies to better meet the needs of consumers. This can lead to increased marginal unit sales for both the retailer and the supplier. The supply can also experience an increase in sales growth and saturation in a particular geographical location of demographic cohort. These insights are invaluable for product and brand strategy over the long run for the supplier, which suppliers are happy to offer consideration to retailers in the form off additional rebates, resulting in more income for the retailer.
Provide suppliers with real-time data on the performance of their products.
By sharing this information with suppliers, retailers can help them identify which products are performing well and which ones may need to be improved or re-priced. The granular live real-time data allows for significant negative changes to be identified early during change management. This is valuable information for product and brand owners in large suppliers. This can lead to increased sales for both the retailer and the supplier, which can be shared through the use of rebates.
Overall, there are many potential benefits to be gained by sharing real-time data with suppliers. By providing suppliers with valuable insights into consumer behaviour and purchasing habits, retailers can help them tailor their marketing and pricing strategies to better meet the needs of consumers. This can lead to increased sales and revenue for both the retailer and the supplier, which can be shared through increased rebates for the retailer.
