Helping eCommerce Businesses Grow Using Promo Codes
A recent study found that when customers receive a promo code, their oxytocin levels actually increase. This hormone makes us happy. Promo codes should not be ignored as customers will notice and appreciate them often. If a customer is making their first purchase through your site or supporting you for the tenth time this month, a small incentive like a 10% discount or free shipping can improve the shopping experience.
Since happy customers are good for business, promo codes can also provide benefits for e-commerce businesses. In this article, we share some practical ideas on how you can offer discounts and offers to your customers. From free giveaway ideas to turning into contests, promo codes can come in many different shapes and sizes.
Benefits of using promotional codes:
A promotional code is a string of letters and numbers that an online store can share with its customers. Alphanumeric codes are usually 5 to 10 characters long and consist of uppercase letters only. Sometimes the code will spell out a word related to the discount it is offering. It can be a string of letters and numbers.
The customer can get a discount by entering the code in the coupon code box during checkout. This type of code can also be called discount code, gift code, coupon code or offer code. You can find the best discount codes on sites like RetailMeNot and CouponBirds. However 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 buy from your online store, which means you’ll generate more revenue. Your customer would not mind buying from you as they can get the products they want at a good price.
Promo codes can also help you track the progress of your marketing strategy. For example, you can use it to see which social media platforms and channels are driving the most conversions or traffic. You can do this by associating a specific discount code with a specific paid ad or marketing method. Different promotional codes can be used for the same offer, which makes it easier than it looks.
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 an online survey or sharing your content on social media, they are more likely to participate. If you link a promotional code to take a survey, you can get contact details and other customer information that will help you generate leads. It is indeed possible to use promotional codes to enhance your marketing efforts.
Disadvantages of using promotional codes:
Promo codes can be an effective tool, but their use also has some disadvantages. This can decrease your profit margin, the most obvious downside.
The best way to use promotional codes:
While this generally increases brand awareness and loyalty and helps you grow your email subscription list, you also run the risk of attracting the wrong type of customer for your brand. You can also attract people who are not your target audience by publicly sharing promotional codes. This ultimately won’t help you in your efforts to increase brand loyalty. Plus, you risk attracting customers who are only looking for the best buy they can find, not a new online store or a new favorite brand.
Promo codes are most often used by requiring customers to meet a minimum order amount before the code can be used. Customers will need to spend a fixed amount to qualify for a percentage off or free shipping. If you’re feeling particularly generous, you’ll be able to apply your promo code to any purchase regardless of the total owed by the customer.
You can also specify that the promotional code only applies to specific products or categories. You can also exclude certain products or brands, for example. It is not uncommon for online stores to exclude high-end brands from their promotional codes.
Many online stores use promotional codes because they are easy to adapt to a wide range of formats. All in all, it’s a relatively easy way to increase sales.
The benefits of using promotional codes from time to time go beyond just a quick increase in sales. They can help you improve brand loyalty and monitor the effectiveness of your marketing campaigns if done well. There are countless creative ways you can use to entice your target audience to shop with you and spread awareness of your brand. You can offer rewards for join your newsletter or discounts for referring friends, for example.