Table of Contents
Rebates vs. Coupons: Why Brands Are Rethinking Point-of-Sale Discounts
- Coupons discount transactions; rebates create value exchanges. Coupons reduce price at checkout, while rebates engage shoppers after purchase.
- When tied to receipt verification, rebates convert in-store purchases into verified first-party data that powers post-purchase engagement and long-term marketing.
- Unlike coupons, rebates work across any retailer or channel, turning packaging, QR codes, social, and paid media into brand-controlled growth surfaces.
- Brij simplifies every step of digital rebates, from purchase verification and fraud prevention to payouts, analytics, and CRM integration, making it easy to scale.
For decades, coupons have been the default lever for driving retail sales. They’re familiar, easy to recognize, and designed to reduce friction at checkout.
But as retail has grown more fragmented (and brands have become more accountable for performance, data, and ROI), many teams are realizing that coupons solve only one problem: lowering the price at the point of sale.
Rebates solve a different one.
While coupons discount the transaction, rebates create a value exchange that extends beyond checkout, unlocking verification, engagement, and long-term customer relationships. And for brands looking to move inventory quickly without eroding brand equity, that distinction matters more than ever.
Retailer Coupons vs. Manufacturer Coupons
Not all coupons are created equal.
- Retailer coupons are created and distributed by a specific retailer and can only be redeemed in that retailer’s stores.
- Manufacturer coupons are funded by the brand and can typically be redeemed across multiple retailers.
In both cases, brands remain dependent on retailer systems, approvals, and clearinghouse processes, introducing friction, delays, and blind spots.
How Manufacturer Coupons Actually Work
Before comparing rebates and coupons, it’s worth understanding how traditional manufacturer coupons are created and redeemed.
Coupon Creation
Manufacturers work with a coupon provider to define the offer. That provider generates a barcode and coordinates with retailers so the offer can be recognized by point-of-sale (POS) systems.
Coupon Distribution
Coupons are then distributed across channels such as direct mail, online platforms, packaging, or retailer-owned marketing programs.
Coupon Redemption
- Paper coupons are scanned at checkout and physically collected.
- Digital coupons are loaded to a shopper’s loyalty account and redeemed at the register, often with cashier instructions.
Billing
Retailers submit redeemed coupons to clearinghouses, which invoice manufacturers based on redemption volume, often with limited visibility into who redeemed the offer or why.
The Hidden Costs of Couponing
Coupons may feel simple on the surface, but they come with meaningful tradeoffs.
Limited Reach
Digital coupons must integrate with each retailer’s POS system. If a retailer doesn’t support a specific coupon format, the offer simply won’t run there.
Fraud and Leakage
Coupon fraud – from code sharing to unauthorized redemptions – costs brands hundreds of millions annually and is difficult to control at scale.
Retailer Gatekeeping
Retailer loyalty programs increasingly control coupon distribution. Smaller or emerging brands are often delayed, deprioritized, or priced out entirely.
No Owned Relationship
Most coupon redemptions are anonymous. Brands discount the sale, but gain little insight into who the customer is or how to engage them again.
Coupons optimize for checkout. They rarely optimize for growth.
Rebates, Reframed: A Post-Purchase Value Exchange
At a fundamental level, the difference between coupons and rebates comes down to when value is delivered.
- Coupons reduce price at the point of sale.
- Rebates reward customers after purchase, once proof of purchase is verified.
That shift creates opportunity.
Rebates introduce a deliberate post-purchase moment, one where customers actively engage with the brand in exchange for value. That moment enables verification, fraud resistance, and first-party data capture, all while preserving shelf price and brand positioning.
Why Modern Rebates Outperform Coupons
Today’s digital rebates are fast, mobile-first, and designed to meet customers where they are.
Redeem Anywhere
Rebates work across any retailer or marketplace. Brands can assume purchase happened somewhere – and verify it afterward – making rebates ideal for national launches and long-tail retail.
Display Anywhere
Rebates can be promoted through:
- Packaging inserts
- QR codes on shelf or display
- Paid social and influencer campaigns
- Email and SMS
No POS integration required.
Drive Trial Without Devaluing the Brand
Small incentives – often as little as $1 or $1.50 – can meaningfully influence purchase decisions when redemption is fast and digital. Rebates deliver that value without permanently lowering perceived price.
Moving Beyond “Coupon Culture”
Coupons condition shoppers to wait for discounts. Rebates reward intention. By asking customers to take a small post-purchase action (such as uploading a receipt), rebates shift incentives from passive price cuts to active engagement.
That engagement opens the door to education, loyalty, and ongoing communication, instead of a one-time discounted transaction.
How Brij Powers Modern Rebate Campaigns
Brij helps brands launch rebate programs that are fast, brand-safe, and measurable – without adding operational complexity.
Fraud-Resistant by Design
- Receipt verification using AI and human review
- Phone-number-based flows to limit abuse
- Clear proof of purchase before payouts are approved
Low-Lift Operations
Brands can launch SMS-based rebate campaigns in days. Brij automates:
- Signups and reminders
- Receipt confirmations
- Approval or denial messages
- Payout notifications and customer support flows
Brij funds payouts upfront and invoices brands afterward – no bank setup required.
Richer, Real-Time Retail Data
Brands gain access to receipt- and basket-level data, including:
- Retailer
- Purchase date
- Products purchased
- Campaign performance by region or retailer
All results are visible in a dedicated Rebates Analytics dashboard, with easy exports or syncs to platforms like Shopify and Klaviyo.
Fully Customizable, On-Brand Experiences
Every rebate experience is brand-controlled, with customizable landing pages, imagery, copy, terms, and advanced rules for age gating, reminders, and redemption limits.
Case Study: Once Upon a Farm
The Challenge
Once Upon a Farm was preparing to launch its Refrigerated Oat Bars at Target and needed a way to drive in-store velocity while capturing first-party consumer data to support long-term engagement.
The Brij Solution
The team partnered with Brij to run performance-driven rebate campaigns distributed through email and a highly engaged Facebook community.
Two offers were tested:
- A buy-one-get-one (BOGO) rebate
- A free bar rebate
The Results
The free bar rebate delivered standout performance:
- 87% opt-in rate
- 49% receipt upload rate
- 50% overall redemption rate—more than 2× the average digital coupon benchmark
The Takeaway
When value is assumed, and engagement is intentional, rebates outperform coupons – both in redemption and long-term customer impact.
Rebates as a Growth Engine, Not a Giveaway
Rebates help brands:
- Drive retail velocity quickly
- Verify real purchases before paying incentives
- Capture first-party data at scale
- Turn promotions into owned customer relationships
Coupons discount the sale. Rebates build the brand.
For brands navigating crowded shelves and increasingly complex retail environments, the future of promotions isn’t about lowering prices; it’s about creating smarter value exchanges.
Click here to get started with Brij's Customer Choice Rebates today.
