A recent study found that when customers receive a promo code, their level of oxytocin actually increases. This hormone makes us feel happy. Promo codes shouldn’t be ignored, as customers will often notice and appreciate them. If a customer completes their first purchase via your site or supports you for the tenth time this month, a small incentive like a 10% off or free shipping can improve the shopping experience.
As happy customers are good for business, promo codes can also offer advantages to eCommerce businesses. In this article, we share a few practical ideas of how you can offer discounts and deals to your customers. From free gift ideas to turning it into a competition, promo codes can come in many different shapes and sizes.
Pros of using promo codes:
A promotional code is a string of letters and numbers that an online store can share with its customers. Alphanumeric codes are typically 5-10 characters long and consist only of capital letters. Sometimes the code will spell out a word that is related to the discount that it offers. It can be a string of letters and numbers.
The customer can receive a discount by entering the code in the coupon code box upon checkout. This type of code could also be called a discount code, gift code, coupon code, or offer code. You can find the best discount codes on sites like RetailMeNot and CouponBirds. Regardless of how it is labeled, it is welcomed by your customers if they have a valid code. Promo codes can be a win-win situation. They can give your customers an extra reason to shop from your online store, which will mean you will generate more revenue. Your customer would not mind buying from you because they can get the products they want at a good price.
Promo codes can also help you note the progress of your marketing strategy. For example, you can use it to see which social media platforms and channels deliver the most conversions or traffic. You can do this by connecting a specific discount code to a specific paid ad or marketing method. Different promo codes can be used for the same offer, making this easier than it sounds.
They can encourage your target audience to engage in a marketing campaign. If you make it clear to your customers that they will benefit from taking part in an online survey or sharing your social media content, they are more likely to participate. If you link a promo code to completing a survey, you can get contact details and other customer information which will help you to generate leads. It is, in fact, possible to use promotional codes to enhance your marketing efforts.
Cons of using promo codes:
Promotional codes can be an effective tool, but there are also some disadvantages to using them. It can decrease your profit margin, the most obvious disadvantage.
The best way to use promo codes:
While it typically increases brand awareness and brand loyalty and helps you to grow your email subscription list, you do also run the risk of attracting the wrong type of customer for your brand. You may also attract people who are not part of your target audience by sharing promo codes publicly. This will not ultimately help you with your efforts to grow brand loyalty. Additionally, there is the risk that you will attract customers who are only looking for the best buy they can find, and not a new favorite online store or brand.
Promo codes are most often used by requiring that customers meet a minimum order amount before the code can be used. Customers will have to spend a fixed amount in order to receive percentage off or free shipping. If you feel particularly generous, you could apply your promo code to any purchase regardless of the total due by the customer.
You could also specify that the promo code only applies to specific products or categories. You can also exclude certain products or brands, for example. It’s not uncommon for online stores to exclude high-end brands from their promo codes.
Conclusion:
Many online stores use promotional codes as they are easy to adapt to a wide range of formats. All in all, it is a relatively easy way to boost sales.
The advantages of using promo codes from time to time go further than just a quick spike in sales. They can help you to improve brand loyalty and monitor the effectiveness of your marketing campaigns if they are done right. There are countless creative ways you can use to incentivize your target audience for shopping with you and getting the word out about your brand. You can offer rewards for joining your newsletter or discounts for referring friends, for example.