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Amazon offers its Prime members frequent special offers to ensure loyalty and retention. It maintains loyalty and customer retention for existing customers, while for new ones, it can attract them to your business and enhance your brand’s image. It is also worth noting that promo codes can work with both your existing customers and new ones. Research showed that people who received promotional discount codes had a 38% rise in their oxytocin levels and were 11% happier than people who did not receive one. It provides a win-win situation where the customer receives a discount, and the retailer receives revenue.įrom a psychological perspective, promotional codes work because people enjoy receiving them. With so many choices available to consumers, you want to incentivise them to choose your store over your competitors.

The bottom line is that you want your online store to generate a steady – and healthy – revenue stream. If you have one, you insert your alphanumeric value there, and the site will add the applicable discount or offer to your purchases.

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When you reach the checkout process stage of your online transaction, you will nearly always see a box that states ‘insert promo code here.

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It may also be things like free delivery or specialist gift wrapping at certain times, such as Christmas or Valentine’s Day. But the promo may not be a direct financial discount. Or it may be in the form of a specific dollar amount (or GBP), also on product or total. The discount code may offer a percentage of the product’s price or of your total amount at checkout. New or potential customers may receive one if they are on an email list, or it may be offered at the point of contacts, such as a website or app. Existing customers may have received one via a marketing email, SMS or app message. You may have been supplied with a promo code in several ways. Image source How do promotional codes work? They would have a set of codes that they apply at checkout, just as they would with a discount code. For example, you may decide to give loved ones some Kindle gift vouchers to buy books. Promotional codes may also come in the form of gift cards or gift voucher codes. And many major chains, such as Argos and others, will often publish promo or coupon codes in daily newspapers. Many retailers – who used to use Boxing Day as one of the biggest sales of the year – have now adopted Black Friday, too. You may decide to use promotion codes continually or for one-off special shopping opportunities and offers. It may be offered as an apology or compensation if something has gone wrong, such as a faulty product or a shipment not arriving on time. This type of code is most usually a one-off and is most often restricted to a single customer. They could also be used if you have a mailing list of potential new customers. You may decide to target previous customers who have not used your store in a while, or you may choose to reward loyal customers who regularly shop with you. These are promos that are only accessible by a specific group of people. Public codes are beneficial for attracting new customers or to entice previous customers to return. It may be displayed on your website or published on social media or via influencers. This is a code that any customer can see and use. There are three main types of promo code: They may also be applied only to specific products, combinations of products, or a whole order. These different codes may be part of ongoing or specific marketing campaigns.

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“… a code offered by retailers to customers who can use it to receive a discounted price when buying products online.”Ī promotional code is a series of alphanumeric characters that a consumer can enter to obtain discounts on an online store in more detail and eCommerce. But just what is a promotional code? How and why do they work? And what benefits do they offer your eCommerce business? Image source What is a promotional code?Ĭollins Dictionary defines a promotional code as simply being:

But with the advent of digital shopping, these discounts have developed into promotional codes, the online equivalent of old-fashioned coupons. Offering discounts on items is a marketing strategy that is as old as retail itself. As competitiveness increases, so must the efforts of marketing and sales teams to find an advantage over their direct and indirect competitors. Multiple factors can affect the success – or failure –of a product you are selling or marketing. The worlds of commerce, both physical stores and eCommerce, are increasingly competitive.

Creative messaging strategies for unique promo codes.

Tips for implementing an advanced coupon code strategy.

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