Mail-in rebate with delayed rewards can boost purchases for the long-term.
Hyperbolic discounting, wherein concessions are offered based on a person’s desire for immediacy, rather-than a delayed higher-value reward can help businesses enhance conversions. Marketers can use hyperbolic discounting to optimise ecommerce sales, as the brain is programmed to reap instant benefits, as opposed to delayed gratification.
Hyperbolic discounting strategy like “Buy now! Pay Later!” and delayed payments, helps sell products at a mark-up, as consumers are more likely to buy products that offer instant gratification. Offer immediate, inexpensive gifts like e-vouchers to prompt consumers to make purchases.
Further, the hyperbolic discounting principle makes long-term payment plans attractive, as buyers will be more inclined to pay less now, rather than splurging for shorter periods. With people more willing to refer for immediate pay-outs, referral programs with instant rewards also work well to entice consumers.
[10 minute read]