Rebaiting

Rebaiting is a practice primarily observed in online retail and e-commerce. It refers to the act of a seller offering a new or revised incentive, such as a discount, coupon, or bonus, to a customer who has already made a purchase or is considering canceling an order. The goal of rebaiting is to retain the customer, prevent a return, or encourage a repeat purchase.

This strategy is often employed when a customer expresses dissatisfaction, initiates a return process, or abandons their shopping cart. Instead of proceeding with the return or losing the sale, the seller might proactively offer a partial refund, a discount on a future purchase, or a small complementary item. This can be a cost-effective way to maintain customer loyalty and revenue, especially if the cost of the rebait is less than the cost of acquiring a new customer or processing a return.

Rebaiting can also occur when a competitor offers a lower price after a customer has already purchased an item. In such cases, a seller might rebait by offering the difference back to the customer, thereby matching the competitor's price and avoiding a return or negative review. The effectiveness of rebaiting depends on the specific circumstances, the value of the customer relationship, and the perceived value of the incentive offered. It is a dynamic pricing and customer retention tool that requires careful implementation to avoid devaluing products or training customers to expect discounts.