What’s the difference between SPIFFs and rebate programs? Which program type is right for your business? The infographic below gives a quick overview about the differences between SPIFFs and rebate programs.
Infographic: The Difference Between SPIFFs and Rebate Programs
Seller-Side Promotions vs Buyer-Side Promotions
Although businesses use SPIFFs and rebate programs to tackle similar business initiatives, there is one key difference. A SPIFF is a seller-side promotion. A rebate is a buyer-side promotion.
This means that SPIFFs and rebates are targeted to different stages of the sales process. SPIFFs are targeted towards sales reps to change seller behavior. Rebate programs are targeted towards customers to generate demand. So while SPIFFs make it more likely that a sales rep will try to sell your product, rebates make it more likely that customer will want to buy it.
Rewards That Drive SPIFFs and Rebate Programs
Neither SPIFFs nor rebates are long-term solutions in the way that a sales incentive program or a customer loyalty program is. Both tend to target specific initiatives and to drive more immediate results. Since that’s the case, debit card rewards tend to be the most popular reward choice for these programs.
Debit card rewards – whether they are reloadable, single-use, or e-delivery – are fast, appeal to a wide range of participants, and require very little oversight from the sponsoring company.
However, SPIFFs and rebate programs can also use gift card incentives or online rewards. Incentive travel, although more uncommon, could be used as an exclusive reward for top performers during a SPIFF promotion.
Get Help Designing Incentive Promotions That Are Right for You
Whether you’re looking for a SPIFF or rebate program, a longer-term incentive program, or if you’re still unsure, it can be useful to get advice and insight from an incentive company with a proven track record. If you have any questions or would like to talk strategy for your program, contact us!