Fuel Prices Skyrocket; Rebates Save the Day

The price of oil is poised for another run at $100 a barrel after a global economic rebound sent it surging 34 percent since May. That could push gasoline prices to $4 a gallon by summer in some parts of the country, experts say. Gasoline expert Fred Rozell predicts that as many as 15 states will see gasoline prices top $4 a gallon by Memorial Day. “A dollar more per gallon isn’t that much – probably about $750 more per year for each motorist, but there’s a psychological aspect to gas prices,” he said. “People are going to be up in arms about this.” John Hofmeister, former president of Shell Oil and author of “Why We Hate The Oil Companies,” predicts Americans will pay $5 per gallon for gasoline by 2012.*

While this is disturbing news on many levels, there is a light at the end of the pipeline. In today’s economic climate, consumers are thirsty for value. The August 2009 Nielsen Consumer Insight Report stated that 80% of Americans are stressed over the economy, with nearly 88% of them changing the way they shop through brand disloyalty, migration to private label, discount shopping or switching stores.

What do Consumers Really Want?

According to a new Mintel study, cash rebates, a hard benefit versus soft, show the most resonance for consumers. Though offering some mix of both offers the best value proposition, using cash rebates, a super-hard benefit, takes advantage of the fact that consumers are practical.  They know retail prices are basically fluid, based on the season, the economy, etc. So while specials and discounts are still popular, cash rebates make consumers feel like they’ve really “gotten” something. Furthermore, in a recent survey 83% percent of consumers said they are actively seeking products with rebates. Consumers will drive an extra mile, clip coupons and want rebates. Value-seeking is in.

The good news is that you can attract new customers and establish new levels of loyalty by giving them exactly what they not only want, but desperately need. Get a jump on the competition – and the rising cost of fuel – by offering what is positioned to be one of the most influential consumer behavioral tools of 2011: fuel rebates.

Adding Fuel to the Fire

Rebates, in general, appeal to all consumers; allow you to capture enhanced demographic information and provide access to new marketing outlets. Fuel rebates, in particular, are already in high demand. Imagine how appreciative your customers will be when they realize you can help safeguard them against imminent soaring oil prices – and – immediately, positively and tangibly impact their bottom line? Fuel rebate incentives are bound to enhance yours.

*Source: $4 Gasoline In 2011: Oil’s Surge Paves Way for Higher Prices at the Pump; The Huffington Post, 12/31/10